The Ramsey Show - App - My Dad Wants Me To Pay for His Life Insurance… (Hour 1)

Episode Date: June 20, 2024

Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual, amazing relationships. Thanks for joining us, America. Ken Coleman, number one best-selling author, host of The Ken Coleman Show on the Ramsey Networks, and Ramsey personality is my co-host today. As we talk about your life and your money, the phone number is 888-825-5225. Caroline is with us in Washington, D.C. Hi, Caroline, how are you?

I'm doing great, Dave. Thanks for taking my call. Sure, what's up? My question today is about spending a lot of money on a big trip for my family. Cool. Sounds fun. Yeah. Do you have a lot of money? That's the question. I retired last year and I feel like I'm doing pretty well. I guess the question is if I don't have all the money saved, is it okay to take it out of retirement? We're going to Disney for my whole family, and it's like 20 people.

And you're paying for the whole thing? I'd like to. Okay. It's for my retirement. And how much do you have in your nest egg? About $1.1 million. Okay. And so you're going to spend, what 50 000 bucks right i have i think i'll

have about 30 000 saved by the time we go um and we live on my pension my husband and i live on our pension and his social security so i haven't taken any money out of there, and I don't have any debt. How old are you? 62. Yeah, I think you ought to do it. You do, even if it's a lot of money? Yeah, it is a lot of money. But you have a lot of money. You're a millionaire. You're a millionaire.

I know. I just don't spend like that. It's really hard to spend money. Well, that's how you got a million dollars, and I don't think you're going to do it again. And the reason I don't think you're going to do it, I don't think you're going to do it again. And the reason I don't think you're going to do it again, I don't think you're going to do this every year. This is probably a one-time hit. And by the way, your 1.1 million, if it's invested in good growth stock mutual funds, it should make another $100,000 this year that you're not going to use because you live off your pension, right?

Right. So it'll be 1.2 million. So you're spending some of your income okay you're not actually spending out of the nest egg does that make sense right yeah yeah well i mean it feels like if i'm taking it out of there you are i will end up taking it out of there some of it anyway i mean if you take 20 000 bucks out and you save 30 and you spend 50 yeah that's a lot of people and a lot of Disney, but that's your choice. You live like no one else so that later you can live and give like no one else. Here you are living and giving because you're having your family go,

but it's something you get great joy out of watching all those little kiddos run around Mickey Land. That's right. That's right. that's right i took the whole stinking bunch on a disney cruise one time the whole bunch the whole fam damley and yeah and they all they all they all loved it i hated it yeah but they loved it well it's a one-time thing yeah i just i well i just i was just my job was to pay for it and be quiet and let them enjoy it and not ruin it with me being a grouch well i just i was just my job was to pay for it and be quiet and let them enjoy

it and not ruin it with me being a grouch so i but it was just great did you wear the uh mickey ears no i would have forced that on if i'd have been a part of the ramsey family but that's yeah it's just not my gig okay i'm sorry but that's um that's a lot of small humans may or may not have bathed well trapped on one boat okay that's all i'm saying and so um yeah including the ones we brought with us and so they're they're no exception but anyway it was fun they had a blast we've got great pictures with every freaking princess that ever was a princess or thought about being a princess and every character and rachel cruz was in heaven because disney's her thingy and so she probably instituted this whole thing and talked me into paying for it i don't know but i promise you have fun have fun yeah you know have fun this is what you've worked for go do it enjoy it and don't think a thing

about spending too much money because it's not too much that's right you probably don't need to do this twice a month but you're but if you do it once and you know it's a big one-time celebration you're going to be in great shape you've done a wonderful job handling money you're millionaires i'm so proud of you congratulations this is why you've done all that stuff to get to do this with all the grandbabies and the great grandbabies or whatever it is that all these old people all these people add up to be in your group there have a blast yeah i was just going to say that i would stop thinking about how much you're spending because you've just walked through it with dave and this is a priceless memory if you make it to a grand old age and we hope you do

this will be something that you will think about and reminisce about for a long time and i don't think you can put a price tag on it. And I think this is a great decision. Go and have an absolute blast. Yeah, absolutely. Get a couple extra toys. It's why you do that. Well, pay extra for the front-of-the-line passes or whatever the crap it is.

What do you call that stuff? Fast pass? Is that what it is? I don't know. There's actually a couple levels to that. There's a fast pass. Take the top level. Take the top level. If you're going to spend that kind of money do not be inconvenienced

by the other people that are there yeah nobody wants to stand in line for the log ride or whatever that thing is you and i are the worst possible people to ask these questions it's too bad our resident disney expert rachel is not here we should have phoned her we should have phoned a friend yeah phone a friend uh. Arnold's with us in Baton Rouge. Hey Arnold, how are you? Hi. Better than I deserve. Good. What's up? I have a question. I'm 24. I've been out of college for a year. My wife is 21 and we own a house. We're both engineers. I make

85 and she makes 93. And we got one of those FHA loans for our mortgage. And we put 3.5% down and I'm trying to at least get to that 20% ASAP to get rid of the PMI. We're a little over $270,000 left and we're putting in an extra 1100 a month in, in principle only rock and roll.

How can I help? So we're at six and a half percent right now. I'm, I'm wondering, uh, I hear these, these rumors that the, um, mortgage rates are going to go down later this year or later on. And I know you can refinance, but, like, what's the rule or your guidelines for that? Just a break-even analysis. It's a break-even analysis. And so let's say that rates dropped from – yours is a 6.5, you said?

Yes, sir. Let's say you could get a 4.5. That's a 2% spread. And let's say you got 200200,000 by then still outstanding. So 2% of $200,000 would be $4,000 a year you would save. Right? Okay. And if your refinance cost is $8,000, how long at $4,000 a year savings does it take to break even?

Two years. If you're going to be in debt long enough to break even then you would talk about refinancing okay and you could do it on one percent you can do it on a half a percent but obviously at a half a percent it's going to take you seven eight years to break even it's probably not going to make sense but anywhere from anywhere from one anywhere one percent north of their savings you can start running the calculation But it's simply take your savings annually and divide it into the closing costs or the refinance. And that's how long it takes you to get back to even for having refinanced,

and then everything from there is gravy on the biscuit, right? Mm-hmm. That's a break-even analysis, and that's how you would do it. That's how you decide. But obviously, we don't have to worry about that today. This is The Ramsey shadow Ken Coleman Ramsey personality is my co-host today thank you for joining us America open phones a triple eight eight two five five two two five Frankie

Frankie is in Greenville North Carolina hi. Hi, Frankie. How are you? Hi, Dave. I'm good. How are you? Better than I deserve. What's up? So I have a pretty straightforward question. I talked to my dad yesterday, and he wants me to pay for his life insurance policy.

He said I should think of it like an investment, and he doesn't want to actually pay for it himself. So I just wanted some advice on maybe how I can talk to him about paying for his own life insurance or should I pay for it myself? that's so weird isn't it yeah when you heard when you heard that you had to go say what i don't know if you said it out loud but you said it in your head didn't you frankie i did and i and he said it to my mom and he said you know because he's not going to be receiving any of the benefits i was like well i mean that's kind of the point um he was saying since he's not going to be receiving it i should pay for it yeah since i can think of it like how old are you i'm 24. and how old is he 65. is he ill? Not necessarily. I mean, he has some health issues, but I mean, for his age, he's... But his death is not imminent as far as we know.

Right. Yeah. Yeah. So you could be doing this for like 30 years. Yeah. Yeah. Yeah. I think that's a hard pass.

Okay. That's a big N-O. big no nope nope let's just call that let's check that not check the box beside nope yeah your question was your question was though how do i talk to him about it just go dad you know i'm 24 i'm going to be doing other kinds of investing rather than in your death and um i don't i don't think we're going to go this way, but thanks for the offer. Yeah. Okay. Yeah, I think that.

Pretty simple. You don't need to be snarky about it, although it's really tempting. But it doesn't serve any purpose to be snarky about it other than to make you feel just because it's just strange. And he knows it's strange. And I don't know, your dad does stuff like this often doesn't he yes yeah yeah quirky quirky quirky dude okay yeah i just i would just smile and say dad you know thanks for the offer i've kind of thought about this and i talked with my financial guys and they said i should just be doing regular investing rather than investing in your death and I'm just not comfortable doing that and so but thanks for the offer no and I really wouldn't go into a bunch of I wouldn't go into a long lengthy discussion about it it's just a two sentences and no well what I'm going to do is I'm going to play this

back for him later okay that's fine you could tell him i said obviously he's quirky but because that's a really quirky thing to say to your 24 year old daughter dude if you're going to play it for him i mean i wouldn't do that to my 24 year old daughter you've got other things you should be doing with your life rather than investing in your dad's death i mean and besides that mathematically it's a bad investment because insurance companies make money on insurance. Right. The probability of his death is, and the payout is less than the premiums that they think they're going to receive.

If they don't receive premiums equal to the payout before he dies, they lose money on the insurance. And if they do that often enough, they go out of business. So insurance companies make money on insurance, which by translation means it's not a good investment it is a good purchase for those of you out there we had a debt-free scream yesterday i believe our day before yesterday that the young lady's husband was killed in a car wreck he was 30 something years old two months before they were debt- free two months before that he had gotten life insurance and he had a brand new baby now that's a good time to buy life insurance that's perfect i mean that that family's taken care of because that young

man was just a stellar dad and husband but this is a completely different thing it's not a good investment mathematically it is a protection for your family in the case of a horrible event happening. But if your dad doesn't, he's 65, he may not need life insurance. If he's got enough money, he could just not buy life insurance. I'm 63. I don't have any life insurance. I have a huge pile of money and no debt. If I die, Sharon's going to have a party.

She doesn't need life insurance, okay? And it'll be a big party. I guess not if I die. When I die. If I die before her is what I should say, right, Ken? Well, we will celebrate. We know that that's her plan, and I'm a little worried about it. Yeah, I mean, the data probably backs that up.

I would just say this, that this is like common core math. It just doesn't make sense, and we already have good math. We don't need to invent something. This is just a wacky idea. The minute I heard it, it's just wacky. Yeah. And you can't, by the way, reason with wacky. You just got to move on quickly.

Yeah, I wouldn't. No, Dad, no. You didn't have to deal with Common Core math, but I'm glad because it would have made the top of your head explode. It must have been what happened. Okay. Joel is in Chicago. Hi, Joel.

What's up? Hi, guys. It's a pleasure to talk to both of you finally. I have a question about a debt question. I just started listening to you guys a couple weeks ago. I've been watching your podcast or listening to your podcast like every day nonstop. Me and my wife have been talking about this, and we're getting ready to start the baby steps. We have the $1,000 already set.

The issue that I'm having is I can, um, I can introduce some quick numbers real fast. We're about 25 to 30 in credit card and personal loan debt. We have about 31,000 in two car loans, um, 122 in our mortgage and we have a second home, which was our first purchase that still sits at about 40 K and that's being rented currently. Um, and so what's your household income uh we make around 140 okay combined before tax and your your question is simply how to start the baby steps yes okay we get on an every dollar budget you and your wife are in agreement that we're going to

get out of debt and we're going to sacrifice to do that, because if you didn't have any of these payments, you'd have a lot of money, agreed? Exactly. And that's the whole idea. And so do you have any savings that's not in retirement? No, just the 1K for the startup. You got the baby step one. Okay, then we're going to list all these debts, smallest to largest. We're going to pay minimum payments on everything but the little one.

We're not going to see the inside of a restaurant unless you're working there as an extra job, and you're not going to go on vacation. You are broke people that make $140,000 a year, and you need to clean up this $70,000 worth of stupidity before you do anything else. It's stupid butt car loans and all this other mess you've got, and you've got to get disgusted about it and attack it and attack it and attack it to where your friends think you've joined a cult. I agree.

The one thing I did want to mention is, like, the one car loan, we owe $2,000 on it, so that will be gone in, like, the next four months. Good. No, no, no. It doesn't take four months to pay off $2,000 when you make $140. You do that the first month. Yeah, I agree. i totally agree with that um the second thing is the second car is our second vehicle which is an suv that one's the

one that's at sitting at about 29 000 and i told my wife we need to just get rid of the car and that's where she's kind of no i wouldn't be on it i wouldn't i don't think the best way to get your wife on board is not say, I want to sell your car. Well, that's actually just like a weekend vehicle. I drive a personal, I mean, a work vehicle Monday through Friday. Is that your car? She drives. It's kind of both our cars, but we use it because we have three kids. So it's a larger vehicle for the family.

So you have a work car. Yep. That you own? It's a company vehicle. Oh, okay. Oh, no. So it's a company vehicle. Okay. And then she has a car. Yep. That you own? It's a company vehicle. Oh, okay. Oh, no, so it's a company vehicle. Okay. And then she has a car.

Yep, which is the one that's about to be paid off, and that's a community vehicle to work every day. And then the other one has $29,000 on it. Yep. Well, her car that she owns, carry your family? Yeah, we'll fit. I mean, my oldest is about to finish high school, and the other one, the smallest one, is like 10 years old. So, I mean, we'll fit. I mean, my oldest is about to finish high school, and the other one, the smallest one, is like 10 years old.

So, I mean, we'd fit. Not much space, but I told her, you know, something we could do if we really wanted. Yeah. The other thing you could do, what's the rental worth? I think about $120, $130. Yeah. You could dump it and clean up the whole mess, but either one of those is fine, or neither if you want to just bust all the way through it. You're going to trade sacrificed lifestyle,

scorched earth lifestyle longer. You're going to stay in the mess longer if you don't move one or both of these other items. And that's the decision the two of you can make together. This is The Ramsey Show. Ken Coleman, Ramsey Personality, is my co-host today in the lobby of Ramsey Solutions, and you can join us there anytime you'd like. The coffee is free, and the homemade cookies are free,

and you can watch the show from 1 to 4. The coffee and the cookies are worth the price. The show's questionable, but you can come hang out with us. There's usually 50 to a couple hundred people sitting out here. And in the lobby of the Ramsey Solutions, right here where we do the show, is the debt-free stage, and Andy and Tesla are on that stage. How are you guys? Good, Dave. Thanks for having us.

Absolutely. Tesla, did i say your name right you did good okay i'm making sure i didn't mess that up because i hesitated there for a second all right and how where do you guys live dayton ohio oh fun and how much debt have you paid off 134 100 in seven years way to go and your range of income during that seven years between 80 and 100,000 we're just a little north of that now cool what do y'all do for a living i'm an x-ray and ct technologist at a local hospital and i'm a massage therapist at a local hospital oh wow is that where y'all met yeah no we met through high school we're high school sweethearts oh that's fun fun

so seven years 134,000 in dayton ohio would that be your house this would be our house you paid off your house looking at weird people we're weird yeah how old are you two weirdos i'm 33 and i'm 36 you have a paid for house paid for house wow what's this house worth um anywhere between 225 and 250 excellent excellent job and how much have you guys got in your retirement nest egg now um close to 200 we're hoping to hit that goal at the end of the year here yeah okay so you're gonna you're gonna bump up about a half a million dollars towards a net worth right yeah gonna be millionaires soon we're almost halfway there yeah way to go i mean easily by the time you're 35 or 40 you'll

be millionaires yeah way to go you guys awesomeness i'm so proud of you yeah so what happened seven years ago that made you decide you could and should pay off a house yeah so um before we got engaged um he told me to read your books because he had already read them um and then we got married and then we did the financial peace course yeah and we we originally paid off 46 000 in 12 months in one week when we got married yeah and those were on student loans that was in 2015 we got married in 14 so you're working the plan right up the baby steps we just did the baby steps and we had some hiccups along the way it wasn't it wasn't perfect but you know we did it to the best of our ability and uh when we got the house you know we wanted to have children

and it was get a house we didn't want to have them in this little apartment sure and so uh that's where it got tough for us we couldn't't have children easily. And we didn't keep track exactly, but we spent between $8,000 and $10,000 with fertility treatments over about a course of a year. So we weren't focused on the house at that time. We were just trying to. That's fine. That's a perfect time to do it. That's exactly what we'd listen to your show and you'd advise others to do. And then it was, we were told we could not have kids naturally, that we needed to go through IVF.

So we were not taking out a loan. Nope. We weren't about that. No. So we saved up the money that we needed and we were planning to do IVF July of 2020. And I got pregnant naturally with our first wife. Got a signing bonus.

Yes. It was fun. So all the money that we saved up went to our house as soon as we had the first one we wanted to make sure everything was okay with him we had another one and we held on to it for a little bit there yeah and then right right after we knew we like you say have a healthy happy home we went ahead and did it and we were done so i love it way to go y'all yeah that's a great story yeah thank you thank you i think i know somebody else that happened too yeah it's exactly right our youngest daughter same situation doctor says it's not going to

happen we pursued adoption and then adopted two kids adopted two boys and we brought the second one home he was 12 days old we found out stacy was pregnant so so we went from one to three at nine months I don't recommend that at home but I gotta ask you this because this is a really unique story yeah and I think it'd be fun for young couples couples your age some younger than you some your age why now on the other side of paying this house off I mean they hear us talk about it why should you pay off yeah why does it matter now what's it feel like there's two good reasons right there and our and our little

sons there eli and isaac and uh you know it was just something we've kind of manifested as we got engaged and as we got married and something we've just always wanted to do and be in a situation where we can control our own destiny somebody else isn't controlling it for us yeah you make a hundred thousand dollars a year you got a no payment in the world yeah and then and then uh i hope she's okay with this but she's getting her master's degree in september yeah and so she's gonna have a master's in health care admin so what will that do for your income immediately and even long term do you have an idea um right now i'm kind of staying put but if something you know opens up it will just increase our income it'll just be a nice cherry on top and the nice thing about it is my work is very helpful so um yeah they've paid for most of

it so there's just a two-year deal with that but you know that's taken care of even if she wants to leave we can pay for it right now so she got it there and it's just see okay here's what i want everybody here how carefree you are with going uh if it doesn't i do this and and see that the whole thing on this is freedom that's the play you guys can kind of just make your own decisions i love that answer that's what i want people to hear yeah And you're so relaxed, by the way, when you share all these options. I mean, it was challenging. It's challenging, but I mean, you can do it.

When the brakes go out in the beater car, and the KFC, you're using the e-brake to get through there. You're like, hey, we got to get that next car. It's like, we don't want to be back in those positions. That's great. Yeah, it's been a lot of fun along the way and we laugh a lot we argued the other big tip that i listened to your show when we were in our apartment we sat across from each other doing the budget and it was miserable and i remembered you here and saying you say about sit next to one another well we changed that it changed everything right now and in a hurry

and put us on the same page. And that was a big key moment in our journey there. Way to go, you guys. All right, what's your biggest tip to get somebody out of debt? If somebody says, how do you do that? How do you pay off your house? What's the secret to getting out of debt?

I think you just gotta be on the same page. Like, it's challenging, but we went over numbers all the time and adjusted our budgets adjusted our budget we became very comfortable with talking about that amongst ourselves and then uh just having that why you know we want to be free we don't want people to control us we want to control you know our own situation and and then uh yeah we just we just couldn't be happier with it and how it's worked out and where it's projected so we're proud of you congratulations

thank you well done well done thank you all right let's bring the guys into the picture here come on you gotta come to me how old are they this is this is isaac he's one and that's eli he's three ah okay perfect very good well way to go you guys that's fun that's as good as it gets right there this is the real deal we've been there brother no worries no worries with. It makes a great video for you. All right. Andy and Tesla, Eli and Isaac, $134,000 paid off in seven years, making 80 to 100. Count it down. Let's hear a debt-free scream. Three, two, one.

We're debt-free. Yeah. Yeah. three two one we're dead free and those two little boys don't even know how big a hero that mom and dad are they've changed their whole family tree i mean they're gonna be 35 36 years old millionaires are already half millionaires and make 100 they have no payments in the world they've set themselves up to take care of themselves those little boys and anything they need to do in the future so well done such heroes yeah people when you take control of your own life in a culture that has told you that you are a victim for everything when instead you decide i'm not going to be a victim i'm going to be a victor when you you take control, we immediately at Ramsey label you hero. Because you're standing out, you're standing up in a culture that's lost its backbone.

Stand up and stand out. Do it. Time to be a hero, boys and girls. Got little boys like that that need heroes in their lives. This is The Ramsey Show. Ken Coleman, Ramsey Personality, is my co-host today. Thank you for being with us, America. If you want to help us out, we could use your help.

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If you are baby step four or beyond, that means you're out of debt and have your emergency fund, everything but your house. You're out of debt. Then you're working on the, you're at the, you know, you're in a different range there. If you're in those first three things, you shouldn't be going on vacation until you get your emergency fund and you're out of debt. We tell you that. So you don't go on the cruise with us. But if you're baby step four and beyond, we would love to have you. It's almost sold out.

It is March the 22nd through the 29th of 2025 on a Holland America ship that is almost new. It's a fabulous, fabulous ship. And we are really excited we're going to turks and caicos st thomas puerto rico the bahamas all the ramsey personalities will be on there including me all week plus we will have a grammy award-winning dove award-winning steven curtis chapman with us and plus we will have dina carter with us remember strawberry wine a famous nashville musician she'll be with us uh several comedians and other things hanging out with us it's going to be a fabulous week we're going to be doing events that are ramsey unique events the ship has never

seen anything like you people and us when we get there we're going to take over the whole thing the whole ship is us nobody else going to be on it but the whole it's you're trapped with ramsey people the whole week it might be a way to kind of get a spouse going you know but you need to be on baby step four and beyond right wow so there you go all right i like that idea a little motivation yeah okay ramsey personalities it's the ramsey cruise the live like no one else cruise march 29. Now, cabins are rapidly leaving. We've only had it up for sale for four or five weeks, and it's going to be sold out very soon. So if you still want to go, you can put down as little as a $600 deposit and normal cruise routine on all that. Just go to ramseysolutions.com slash cruise, and you can join us for Turks and Caicos, St. Thomas, Puerto Rico, the Bahamas.

I promise you we're going to be doing a lot of fun stuff, a lot of special events that are just with you and me and Ken and you and so forth on the show, I mean on the ship. So don't miss this. RamseySolutions.com slash cruise. I need a little whistle behind that. All right. Sarah's in Fort Collins. There you go. All right. Sarah's in Fort Collins. Hi, Sarah. How are you? I'm good.

How are you guys? Better than we deserve. What's up? Okay. So my question is, I'll give you the question and I'll give you some context. My question is whether or not we should look at buying a home next spring, probably a little after the new year, or if we should continue to rent.

So we sold both our primary home and a rental property in January of this year to help us get out of debt faster. The original plan was to rent for the next four years while my oldest is in high school, and then we were going to move out of state. But now we're wondering if it would be better to buy a house next spring after we've saved up a down payment

and just live in the house for the following three years. The oldest graduates from school? Yes, he will be a freshman this upcoming fall. And so you're willing to move the other kids, but you're not willing to move the oldest? Yes, so we would have a very tight window between um the oldest graduating the reason we're not moving before is because i have shared custody of him and we can't move oh and so the the other kids are with your current husband and he's with a former correct all right okay now now now logic is kicking in okay

because i couldn't figure out why we had to be why this guy was so special that we had to wait on him but no one else but now i get it okay he thinks he is well i know but he's listening he's a freshman so that goes with the territory now i get it though it makes sense what you're saying is very logical okay uh the answer that is a math formula and what we've got to try to guess at is what we think houses are going to go up between the time you buy it and the time you sell it okay and uh Fort Collins Colorado is a good market I know the market it's a strong market. And my guess is that if you said, okay, a home in this neighborhood, talk to a local Ramsey-trusted real estate agent and say, if we were to buy a home in this neighborhood,

what would we think the appreciation would be per year for three years percentage-wise? Is this going to go up 8% a year, 10% a year, 4% a year? What do we think it's going to go up? Okay. And they can actually provide you hard data on that. You can pull up a statistic in the MLS, a real estate agent can pull this up for you. It says in this neighborhood, the average appreciation for the past five years has been x percent for the past 10 years has been y percent okay and you could use something like

that percentage now obviously the last five years have been wacky last 10 years have been wacky it's not a normal quote real estate market agreed agreed yeah so but but you could so you temper this information with the knowledge that hopefully the next five years is not as wacky as the last five years so um uh but you look at that and the second piece of data that you could look at is in that neighborhood for the last five years or four years or three years what has been the average days on the market, D-O-M, okay? Okay. So let me give you two possible math examples to show you how you would use these numbers,

all right? So you say the math, because they usually kind of correlate, okay? If the houses aren't going up much in value you probably take a while to sell them agreed agreed it's not a hot super hot market so you might hear like a 270 day average days on the market nine months average and it only goes up two percent a year if that's the number you get back you don't buy a house because it's not going to go up enough to even break even with expenses when you sell it after three years follow me that makes sense yes and it's going to be hard to sell but the other side of that equation is what if it said okay average days on the market

is eight days this is a white hot market and the appreciation rate has been 12% a year. Well, in three years, that's 36%, right? Yeah. Well, you're going to make some money, and you're going to be able to get out of the house. That market's super hot. You're probably not going to be all the way on either one of those spectrums, but that's how the formula informs you whether or not to buy. It needs to go up during the three years at least seven percent a year okay that's going to be 20 and then you're going to have expenses that are going to be

10 to 12 when you sell the house yes so then you're going to make a little money and but if it's not going to go up at least that much you're not going to make money and you're going to wish you didn't do this you'd be wishing you'd rent it you see how i did that calculation i do yeah and that makes total sense okay and just get you could call one of the uh ramsey trusted real estate agents off our website they'll help you do that right now knowing that maybe they can help you buy a house next spring and you can tell them which neighborhood you're looking in perfect we actually have one we use to sell our house. Oh, okay.

Did they do a good job? Yeah, they did amazing. It was such a smooth process. Once we sold two at one time, it was a lot, but they did awesome. Very good. Well, that's what we want to hear. It's always dangerous to ask that on the air. No, it's not, because we vet those people so hard.

We know that they're amazing. These real estate agents are amazing that we have in our in our system so folks that's the thing if you're moving into i'll tell you where that formula comes up for a lot of you out there is if you're military and they move you every two years that just means you're not buying because when you run this formula on a two-year very few markets are going to make sense it means you're renting if you're gonna if they're gonna military's gonna move you every because when you run this formula on a two-year, very few markets are going to make sense. It means you're renting. If the military is going to move you every two years,

you're probably a renter, and that's okay. Just be piling up cash to buy when you get out of the military. We'll see you next time.