The Ramsey Show - App - My Dad Has Hoarded $500,000 in Cash...How Can I Help Him? (Hour 3)

Episode Date: November 17, 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. I'm Dave Ramsey, your host. You jump in, we'll talk about your life and your money. Chris Hogan, Ramsey personality, is my co-host this hour. Number one best-selling author of the book, Everyday Millionaires. The phone number, 888-825-5225. That's 888-825-5225.

Ayanda is with us in Green Bay, Wisconsin. Hey, Ayanda, how are you? Hello, how are you doing? Thank you for taking my phone call. Sure, what's up? Sure. So I have a, it's probably like a two-part question. So I found you around May online on YouTube.

So from the stuff that I've seen, we are currently on baby step number two with my husband. We have a car loan, which should be paid off around March. We purchased the car last year. And he's currently doing his master's program. So his job has offered, well, they've paid $20,000 towards his master's program. So his job has offered, well, they've paid $20,000

towards his master's program. He had to get a certain grade, which he has, and so we are cash flowing the last $10,000, and he should be finishing in the spring of next year. Wonderful.

Yes, thank you. So my question is, at his job, he gets offered, he's got a Roth 401k, and we also have individual Roth IRAs. And so once we have finished baby step number two, I was wondering, the 15% that you invest, would that be spread out across that, or do we just put the whole 15% into his Roth 401K? He currently puts 7% in with a match of 7%.

Okay, cool. Well, you guys have done very well. The baby steps, the way we teach them, we have learned the power of focus on a short period of time supersedes the power of math. And so we always recommend when you're in Baby Step 2, paying off debt, that you stop all investing temporarily. And so that's what I would have you to do now until you get the car paid off. And then when the car is paid off, that makes you debt free, I think, other than your home. And then I would build my emergency fund of three to six

months of expenses. And then I would restart my investing at 15% of your income. You're certainly going to want to take that match of 7%. And I would do that on a Roth 401k. Where you do the other 8% after that would depend. It really would, Dave. And you're absolutely right. That Roth. And now, Yonda, as soon as you hear Roth, I want you to get tinglys, because I know I do, even on my scalp. It happens. Terrible. Because why? Easy, Dave. Because it's after tax. The government can't touch it anymore. And so it's going to grow for you and be a beautiful thing. Now, with that other remaining percent, you can go to the Roth IRA. And if that doesn't get you to 15, go back to your 401K.

But utilizing those two things, young lady, is going to put you and your family on the way to beginning a legacy. And I'm very, very proud of you all. And never touch it. Not for a home down payment. Not for a wedding. This is money for your future. Yeah. And it's tax- very proud of you all. And never touch it. Not for a home down payment, not for a wedding. This is money for your future. Yeah. And it's tax-free, not after-tax.

That's right. So we kind of do a rock, paper, scissors thing as far as the order of attack goes. Okay? The first thing you're going to want to put money in is the match once you get to baby step four, to working towards your 15% of your income going into retirement, the match. And then you've got a 7 retirement. The match. Now you got a 7% match with his. If you've got one at work, then you would do that as well. But we're looking at your total household income, 15%. So if you're working outside the home, you take your

income and his income together times 0.15. We got to get up to that. So take his 7% match in a Roth 401k in good growth stock mutual funds spread across the four types that we've always taught and that Chris invests in and I invest in growth, growth and income, aggressive growth, and international. Once you've gotten the match, if you're not to 15 percent and most people aren't, then you would want to do any kind of Roth that you can do where you can get good options, whether it's an individual Roth because it grows tax-free or whether it's a 401k Roth. And I think in your case, you're going to get to 15% by the time you do both of those with this 401k Roth and two individual Roths, you should be able to get to 15% of your income in the Roth. If however, you run out and the only thing you've got left is a

third option, which is a traditional 401ks or 403bs where it's not a roth growing tax free then you would do that as your last choice of the three but matches first then roth then traditional and you work your way right down that till you get to the 15 nathan's in sacramento hi nathan how are you? I'm very well. In fact, I'm, as you say, better than I deserve. Cool. So it's amazing. It's great to talk to you both. Thank you for your time. Before I tell you about my interesting situation, you've got a man named Jeff Martinez on your team. Yes, we do. He's a childhood friend of mine from church, and when I heard that he was moving to Tennessee to work for you, I was totally stoked we do. He's a childhood friend of mine from church, and when I heard that he was moving to Tennessee

to work for you, I was totally stoked for him. He's an incredible young man. We make fun of him and call him Martinez. Martinez. Instead of Martinez. Since he moved to Hillbilly Land, we have to mess with him, right? He's basically like an adopted

family. His aunt, I'm sorry, his uncle actually married one of my aunts. Not blood related, but yeah. There we go. Yeah. Thanks again for taking my call. My question to you is about the deed on my house. My why for many years to get my house paid off, which my wife and I got became pretty, pretty weird

back in May. We paid off our house. Yeah. Yeah. It's, it's amazing. And you know, everything that you've said, and I know you know this, but you know, everybody listening, what you, what Dave says about how you feel once your house is paid off and you don't owe a cent to anybody is absolutely true. Something snaps, air feels different. The ground feels anybody. It's absolutely true. If something snaps, the air feels different, the ground feels different. It's absolutely true. Thank you, sir. My why was to get my wife on the deed because I met this fantastic lady. So right quick, what's your question for a run out of time here?

Okay. Now that the house is paid off, should I get my wife on the deed, or what should I do about that? You need to ask a real estate attorney in California or an estate planning attorney. California has some very weird real estate laws that are different than most of the rest of the U.S. In most states, it won't matter. The residence, your wife automatically owns half of it. I'm not positive in California if that's the case or not. If it is not, you can easily add her with what's called a quit claim deed.

Sometimes people call it a quick claim deed. It's not. It's a quit claim deed. And you would quit claiming half ownership to her. That's right. And so you'd quit claim half of the ownership to her or joint ownership to her. And, you know, you can have that done. It's usually a very inexpensive process. A few hundred dollars will knock it out with the deed prep and the recording and everything.

But you have to get it recorded. You can't just sign it. You've got to be notarized and recorded. Anytime on a deed you do. That's right. I would want you to check with an attorney in California to see if that's even necessary. Most states it's not. And your simple will to take care of it and the fact that you are married and the fact that it is your residence.

Primary residence, yes. That usually takes care of it. This is The Dave Ramsey Show. I get the privilege every day to talk to smart, creative entrepreneurs doing great things for our economy. GRIP6 is no exception. BJ and the great team at GRIP6 know how to truly create smart products that are unique and makes everyone's life a little easier. That's why I'm so excited to announce to you that GRIP6 is expanding their innovative product line. You heard me. Along with their no-holes and no-flap and no and no bulk belt buckles they are adding an aluminum wallet

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Tom is in Moscow, Idaho. Hi, Tom. How are you? I'm doing well. Thanks, guys, for taking my Hi, Tom. How are you? I'm doing well. Thanks, guys, for taking my call. Sure. What's up? Okay, so I'm a little bit, in Chris's words, I'll blend them, panicked and pumped, if you will.

We've been blessed financially. And so I guess I don't want to get rid of assets. I want to hang on to them for a legacy for my children, my children's children, if you will, because land out here is going to the roof. And with the COVID thing going on, there's just more people flooding in here. So we have 143 acres. We have five rental homes. We still have a little bit of debt. I did divide up some ground this year. If I sold off three lots,

that would wipe our debt out 100%. We do well financially. We're one of those everyday people that you wouldn't know about. So do I sell off the land, 20 acres of 143, or just keep doing what we're doing here. How much debt you got left and how much income you got? How long are you going to be? How long is it going to take if you don't sell the land? Wife and I are both 52 years old.

We have $280,000 in debt yet. One is on our primary. There was another residence we used to live in. We kept that as a rental and we have another one on a rental. So we have five rental homes. We have about, to maximize my IRA, or correction, my 401K. What's your household income?

$75,000 a year combined. Going to take a while to correct through 385. Well, I guess you haven't met me yet. Well, I met a thing called math. Well, we have a business as well. Well, I ask you what your income is. What's your income? I cannot depend upon my fluctuating income.

Yes, you can. I'm asking what your freaking income is. What is your income? $75,000. No, it's not. You have a business on the side that you haven't told me about. It varies, Dave. I know.

So does mine. You can't depend upon my income. It could be $200,000 gross one year. It could be $400,000 gross one year. Just answer my question. What are you going to make next year off this business? It could be $50,000 profit. It could be $100,000, literally.

It could be $28 million, but it's not. What do you think you're really going to make? Let's say $50,000. That's what you really think you're going to make? That's your actual projection? Correct. What'd you make last year on it? I think on tax purposes, probably about $40,000, $50,000 on paper.

Okay. All right. So you have approximately, depending on the variable portion of your income, $110,000 income, how quick do you think you're going to pay off $385,000 if you don't sell off these lots? $280,000. $280,000. $280,000. I'm sorry.

I'm sorry. Well, I'm putting $25,000 into my 401k. Do I stop that and throw everything at it as well? The point is if you're putting 15% of your income towards retirement, which is what you should be doing at baby step four, then how quick are you going to pay off 280 with a 75 to $150,000 income? We don't know exactly what it's going to land. It's going to take a while.

Now, I personally would probably rather hold the lots on the contiguous 20 acres to the 143 than I would a rental. Rentals I can replace. I can't replace somebody living next door to me that I can't buy back. Yeah, yeah. That's what I'm sitting here thinking too, Tom. You know, letting go of that rental, it allows you to keep the land, it allows you to wipe out the debt, and now you're able to move forward, my friend. Yeah. And that's the better plan.

And I know you, I can hear it in your voice. You like to buy and hold. Even the rentals. But that rental, letting it go, it's going to allow you to pay off your primary residence and you're holding the dirt. Yep. That's the better long-term plan. If you want to let go of the dirt and trade it for the rental, that's fine.

But you're going to make a trade here. Yeah. If you're smart. I would not sit and try to cash flow my way out of this i would move one of these assets off the books and get rid of the debt either i'd move the rentals or i'd move the lots and you just gotta decide which one you love more um i personally would rather have the property contiguous to me and and ditch the rentals and then come back and get rentals why is that because you can't get it back that's right once it's gone that's right that's right and so um contiguous to me and ditch the rentals and then come back and get rentals later. Why is that? Because you can't get it back.

That's right. Once it's gone. That's right. That's right. And so I have, you know, every property that I own, I buy property when it comes up adjacent to me if I can. You know, if it's reasonable, people, I got, you know, sometimes people are crazy. I'm not paying, overpaying, but I'm just saying if I can pick up a property that's adjacent to a property, I've got two lots adjacent to my home.

I've got six lots adjacent to my lake house for buffer because I can't get that back. And none of them produce income. They're there just because of the way he was talking, this idea of legacy, this idea of dirt, and it goes up in value, and you're going to be okay with it. You're going to make money on it. It's a matter of how much and you're protecting your sanity by keeping space yeah so i it's up to you but i that's you can look at it and work your way through now if you really are going to make you know a hundred thousand on this business instead of 50 and you're just sandbagging me because you're trying to be conservative because you can't, in quote, air quotes, count on this income, then you might want to just

not do either and take three years and live on your salaried income, use all of your business income and be done in three years. That's right. If you could do that, I might do that. Yeah. But if you're going to be in debt for seven or eight years more. Yeah. Playing with it.

Don't mess around. If you're going to be in debt for seven or eight years more than messing around, then that's what the numbers you're giving us are indicating. Then I wouldn't. I'd sell the rentals personally. And, Tom, I want to invite you to hop over to EntreeLeadership.com, where we work with businesses and we guide them, people that are self-employed, people that are leaders and managers, because we help them grow their business, grow their profits, as well as their team. So hop over, check out entreleadership.com.

It's going to give you the boost. I'm telling you, you've got a lot of tools inside of there that can help you in your business. Yeah, and, you know, it's a good idea to just stop a second and say, if the pandemic didn't teach you folks this, here's a thing you should know. You can't count on any of your income. That's right. I have a steady job. That's a funny thing, you know, because we've proven this year there's no such thing.

No, we really have. And so, you know, I'm secure. No, you're not. You're as secure as your ability to save money and go get another job. Go take your skills to the marketplace and make money with them. That's what makes you secure. You're not secure in your job. So your business income is never secure because things happen.

We've learned that again this year. That's why we want to be the third pig, the one in the brick house, so when the pandemic wolf comes and he huffs and he puffs and he blows, then he just gets out of breath because we had an emergency fund. We were debt-free. And you ain't going nowhere. I ain't going anywhere. I ain't going nowhere.

You can blow. Mr. Carnivore, I'll be sitting here in my house. Paid for. And that's where you want to get to. This is the Daveave ramsey show We'll be right back. Chris Hogan, Ramsey personality, is my co-host today here on the air. This is the Dave Ramsey Show. Open phones at 888-825-5225. Jeff is with us.

Jeff is in Naples, Florida. Hi, Jeff. How are you? Hey, Dave and Chris. Thanks for taking my call. Sure. Dave, I want to thank you because this little pig is safely residing in a brick house that you helped build. I didn't build it. You did.

I'm proud of you. I just talked you into doing it. Well, thanks, Dave. Hey, for the sake of not boring your listeners, I might change my question because it was about land and very similar to that last caller. So I appreciate you sharing your opinion about it. So I guess my backup question would be, my wife and I recently made it to seven here this year, and I just kind of feel like I don't have that aha moment, like I've actually made it. And I just, I want to continue to walk in your guidance. And I just kind of feel like there's a wall and now I don't know where to go after this. So

if I give you my numbers and my breakdown, would you be willing to guide me and just tell me what you think I should focus on next? Sure. So I'm 45 and my wife is 35. I'm a police officer. She's a school teacher. We have about $500,000 in retirement accounts, including 457 IRAs that are both mixed together. And we have a paid-for house, about $250,000. So we're at about $750,000, give or take. Way to go.

Well, thank you. You know, I listen to every one of your shows, and sometimes I feel like I'm really behind, and then sometimes I feel like I'm doing okay. You're more than okay. You're ahead. You're doing great. Okay. Well, thanks. You're doing great. Okay.

Well, thanks. If you don't do anything else except hold on to that 500 and let it double a few more times, you're going to be in great shape, and you're not going to do that. You're going to continue to add to it. So the trick you need to play, and Chris and I discovered this when Chris first came on board, we started coaching athletes that were making piles and piles of money, and Baby Step 7 faces the exact same thing, we discovered, and Sharon and I do the same thing, that there's really only three things you can do with money.

You can give it, you can invest it, and you can spend it. And you really ought to do all three all the time. Different ratios, different amounts. You're in a position now you can spend a little more than you were when you were a broke guy. And you've, you know, because what you've been doing, saving like crazy, investing like crazy. So, Chris, we would put ratios on those three things. We sure would. And looking at that and understanding the percentages. And so, Jeff, you might increase some lifestyle where you expand your budget. Maybe your wife has had a heart to renovate some rooms or remodel or do some things and make those projects.

But at the same time, you might also find some charities to lavishly give to. Wounded veterans or things that support single moms or other charities that align with you. See, what you've done is you shifted out of the sprint of Baby Step 1, 2, and 3, and you started into this lifestyle, right, this marathon of 4, 5, and 6, and now to 7. So it's in your DNA, but I want to warn you, stupid is around every corner, and it takes about 3.2 minutes to sign on to buy a boat or to buy a car to go backwards. And so what I want you to do is adopt a mentality that stupid can't get in your house. It's a brick house with a lock and you're doing things with cash and it's okay to save and

enjoy. Just do it intentionally. One of the three things is easy for you, and usually two of them are hard. Between generosity, enjoying the money, spending, and investing. One of them comes easy to you. The other two, you need to put a percentage on. You say, this percentage of our income is for giving, this percentage of our income is for enjoying, this percentage of our income is for investing. And then you just get in the rhythm of doing that. And it forces you. For instance, if you're not a spender, if you're a saver, if you force yourself by putting a percentage in for enjoyment to do a bucket list trip or a bucket list purchase of a 1960 Corvette, which I did.

I was born in 1960, so I wanted a 1960. So that was a lifestyle thing. It's a complete toy. Don't need it. You know was a lifestyle thing. It's a complete toy. Don't need it. It doesn't, you know, just wanted it, you know, and that's a baby step seven thing, but it is a small percentage of my overall net worth and a small percentage of my income for sure. Well, wait a minute. Hold on a second. Now I know you are an investor and I know you save. So did you have to learn to enjoy? Was that your struggle moment? No, no, no.

I had to learn to invest. Did you really? Yeah. Okay. I'm a spender. Okay. I have no trouble spending money, none whatsoever. To this day, I don't.

Okay. But it gives me a guideline. I still need the guardrails. Right. It says this percentage of your income. And you pick the percentage. I don't care. 10%, 20%, 5%, 6%, 5.3%. I don't care.

And we've done that with these athletes. Because we've met them. We've made athletes. You always hear the stories about the ones who lose it all. But we've met them who don't spend anything. They're scared to death. They came out of poverty and they're scared to death. They're driving a 25-year- old hoopty and they got 10 million dollars in cash or they got ahead 28 million yeah 28 million 28 million in a bank account in a bank

yes and we were like what are you doing dude buy a house he was ashamed he was scared he was scared he was paralyzed ashamed i hadn't done anything with it because i didn't know what to do and i'm like don't be ashamed you got 28 million that's exactly right you know so but anyway the the the point is you got to say some people are just love giving and so that one's easy for them some people they don't have to really kind of i need to be a giver you know they kind of have to say that out loud and i'm gonna give this 10 i'm gonna give this 14 i'm gonna always. And then you always do that. That money's already spent before you get it. Right. That portion of it's spent on giving. That portion

is spent on lifestyle. That portion is going into an investment. And when you do that, then you can start setting some goals in the investments. You can start setting some goals in the giving. And you can start setting some goals on the giving, and you can start setting some goals on the spending, some bucket list stuff. Well, I've always wanted to travel there. I've always wanted to own a dot, dot, dot. Save up, go get it. That's fine. You got that within your spending budget. You'll get there in baby step seven. Well, David, I'm finding people as I go around, and when I used to travel, when I used to travel and do things that were nice and fun and helping the people, I'm on lockdown. But people would talk to me.

You're grounded. Yeah, seriously, literally. But people would talk to me. It would be a struggle to enjoy. They had been in that mindset to work to get out of debt. Well, you get it. Some people have to. They have to go.

The pendulum has to swing you know like yeah and with me it happened i had to swing all the way over from irresponsible spending to no spending and you have to swing over there and just go gazelle intense beans and rice rice and beans don't talk to me about going on vacation and baby step two or going out to eat and baby step two i'll smack you because you Because you have to get this new groove in your brain where you're controlling your life and you're controlling your money. And then once you do that, though, it's hard to get up out of that groove. Yes, it is. And go to the next step.

And that's just getting in the rhythm of investing and getting the house paid off. And that's more of a plodding instead of sprinting. That's right. And then when you finish that and get where he is with baby Step 7, then it opens up a whole other can of worms. And really, Baby Step 7 is where you hit legacy stuff. You start to have a more noble vision for money at that point because survival is behind you. Yeah.

Oh, yeah. You take care of that. You don't have to worry about survival. Yeah. And, Jeff, that's a great point. Hop over into Ramsey Plus. Dave's got a lesson in there called The Legacy Journey where it really and truly starts to dig into that nobility side.

And it will allow you to kind of start to think bigger. And it unpacks a lot, biblically based. But it's going to give you a foundation. And I'm telling you, you and your wife, you go through it together, you'll start to look at all of this stuff much more differently. And you'll find that you do have things to still chase. You do have some whys inside of you. So check it out. It's the Legacy Journey.

It's a part of Ramsey Plus that you get a chance to go through that course. Yeah, I always thought it would be cool if I could give away X number of dollars. And then I thought it would be cool if I gave away that in one day. So now I need a new goal. Because you did it. You did it. You know, I mean, you've got to have some fun with this. No.

You've got to have some fun with it. Without a doubt. This is The Dave Ramsey Show. Thank you. our scripture of the day titus 2 7 show yourself in all respects to be a model of good works and in your teaching show integrity and dignity thomas jeff said, In matters of style, swim with the current. In matters of principle, stand like a rock. Ooh. Mr. Stylish himself. Yes.

Thomas Jefferson. Who knew? There you go. Chris Hogan, Ramsey Personality, is my co-host today here on the air. James is with us in Nashville. Hi, James. Welcome to the Dave Ramsey Show. Thank you, Dave.

How are you? Better than I deserve. What's up? Hey. I have a father who's a longtime believer in keeping the cash nest egg. Unfortunately, he's pretty elderly now, and that nest egg has grown north of 500K. So I'm wondering, what do I do with 500K of $100 bills when he passes? He's 87 now. And, you know, it's legitimately earned.

He's run a business his entire life. He's put back a little bit of money every month and never spend it and here i am in this dilemma now um who do you bank with uh i bank with regents okay good uh go into them and talk to them about a private banker and um go ahead and and set your bank up on notice for this and ask them how to process this cash best well in advance. Go ahead and start talking about it now. The ATF requires a report. I believe it's over $10,000 cash comes in.

It's reported on you to keep drug dealers from running money through banks. Okay. And so a report goes out to the feds, but that's not the end of the world. It just shows that it's there. And, you know, I do not know what a bank will require to process that much cash. I know what I would require. I would require an armed guard leaving his house, and it would certainly be best if you could talk him into – he's sitting on $100 bills. Wow.

Yes. James, is your dad – North of $500. Yeah. Does he have all his mental faculties still? Well, that's another issue, but, I mean, he's probably 90%. Okay. So, I mean, for his age, that's probably good.

Would he allow you to open a bank account and begin to put this in? Oh, heavens, no. Okay. Okay. No. And the only reason I asked about the faculties, too, is this is what you know about, you know, the $500,000. I'm just seriously in the home. In the backyard with a metal detector.

In the backyard. I would ask him, just then talk and say, Dad, you know, where else did you used to put money? And just so you're able to kind of have a trail, you might be surprised. There might be closer to 750 or something, you know, all totaled once once you find it all. Yeah, it just becomes his home. Go ahead. Yeah. Going through his home after he passes will certainly be.

Oh, my. I'm guessing he probably has hoarded other things. Not so much. He loves his cash, and that's about all he cares about. Okay. And you know where that is. He's got a bunch of real estate and, you know, some other holdings and such, but it's mainly this cash is my big concern because I'm always worried about civil asset forfeiture.

Yeah. Are you an only child, James? Yes. Okay. Okay. That's good. Well, yeah, I hope he has a will. And anything you can do, I just worry about his security.

Yeah. And so, obviously, it hasn't affected him so far in 87 years. So he's okay. I don't panic about it. But – Would you get a safe, Dave, and at least try to get something in there to lock it down? That wouldn't be a bad idea. You know.

If you can talk him into it. Yeah. He may already have done it. Yeah. I don't know. He may have. Or who he's told into it. He may already have done it. Or who he's told about it, so just keeping him safe. That's the idea is that, my goodness gracious.

But, yeah, you're going to have to somehow. Usually a private banker would help you within your branch and regions as a reasonable bank. They should be able to provide that and can help you process the cash. I'm sure there is a reporting mechanism. I'm positive that they have to go through, but I don't know how much it changes between $10,000 and $500,000. I don't either. I don't. When I say at the beginning of the show, cash is king, that is not what I meant. Just for clarity. Just for clarity.

Just for clarity. I don't have $500,000 in cash stored in my house. I can promise you that. Yeah, that money needs to be working for you, not just in the hammock. And that's what it's doing just sitting there. Mike is in Charlotte, North Carolina. Hey, Mike, how are you? I'm great. I'm great. Hey, guys. how are you? I'm great. I'm great.

Hey, guys, so my wife and I did our estate planning last year. We've got two daughters under the age of four. So if something happens to us, one of my brothers would be the executor of our estate, and another brother and his wife would raise our daughters. Dave, I've heard you talk about how you sit down every year with your family and the board to review what would happen if you died. But my wife and I are kind of wondering how often should we review our estate with my brothers? I think my wife's a little hesitant to disclose to family where we stand financially. So should we dive into those financial details? Yes. Don't ask them to manage it if you're not and leave it to them and then be surprised by what it is. We should have a reading of the will while you're alive

and say this is how much this is. If you trust him to manage it, you've got to be able to trust him and tell him about it. Right. The caveat would be that he should not discuss that with other family members. That's right. And, Mike, I agree. That annual review is a good thing.

Here's also the other kicker. You can send the kids in one direction and the money in the other. He did. Okay, you did do that. They're two different brothers, right? Right. Oh, yeah, definitely sit down with them. I don't even have to sit down with them.

I mean, if nothing changed and last year you said there's 1.1 million in the 401K and this year there's 1.2 million and you call them up and just have a 10-minute conversation, everything's the same, the only difference is here's the balances, then I'd give them an update. The more complicated your estate, the more in-depth your annual review will be, but it could be three minutes. But I just want to touch base, make sure he's still cool managing it, because people do this stuff and they look up and a decade has gone by nobody's talked about it again and memories get short right and if family gets crazy mike you reserve the right

to update it and make changes yeah absolutely yeah so it's not in stone buddy you can you can adjust that and anything of course major that changes in your life if you change if you move your residence to a different state yep uh if if a child uh reaches the age of 18 or 21 that may necessitate a change or recommended change in her will at that point uh you know you you you also need to as the kids eat teenage years start reviewing this stuff with them with them. With them. Yeah, and I was saying sit down and talk about it. I was talking about the initial meeting, Dave.

Yeah. Where you're sitting down and yes, and then that way you can email update and just keeps everybody on the same page. Yeah. Yeah. That's probably if he doesn't know the amount, he just said, yeah, I'll manage the money. He may think it's $2 million and it may be $200,000 or it may be the other way around. Right. And so you need to just, everybody's got to have expectations about exactly what is going on here.

Absolutely. And what's going to happen. If you can't trust them to discuss it while you're alive, don't trust them to manage it when you're dead. That's the truth. So, and you've got to go through this stuff. And you talk about the kids. We talked about that with who we were going to leave the kids to.

How are you going to take care of these kids? Yeah, no, I mean, that needs to be discussed. And when we hit the drum about getting a will, people, this is because if you die, it's called dying intestate without a will. If you don't have one, the government's going to make decisions about where your kids go. And I've traveled to almost all the states, and guess what? There are potholes in every road. Well, if they can't take care of a road, what makes you think they're going to take care of your baby? So do a will, detail the people that are getting the kids and do it the right way. I'm done. Are you? That's pretty good. Potholes. That's pretty good. I like that. You can't trust them to take care of the roads and don't trust them to take care of your estate. Have a will. Yep.

That's good. Mike, that's a really good question, and thank you for doing that. But the more complicated the estate, the more in-depth their annual review would be. The annual review could, if they've got all the information the year before, it could be a five-minute phone conversation. Yeah. It doesn't require much, but it makes you stay in touch with the details and the people on the other end stay in touch with the details, and that's smart. That's just good diligence. Chris Hogan, good show. Thank you, sir.

Good to be with you. James Childs is our producer. Kelly Daniels, our associate producer and phone screener. Great job in there, guys. I am Dave Ramsey, your host. 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.

This is James Childs, producer of The Dave Ramsey Show. Once again, you made The Dave Ramsey Show one of the top four most popular podcasts last year. To get your daily dose of motivation and inspiration from the Ramsey Network, subscribe or follow today wherever you listen to podcasts.