The Ramsey Show - App - My Insurance Agent Wants Us To Switch to Whole Life Insurance (Hour 2)

Episode Date: April 20, 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 dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. Christy Wright, Ramsey personality, is here to do this show because apparently I can't. I'm here to keep you in line. She's here to co-host with me, and I'm going to stumble through, and we're going to do this show because apparently i can't and so we're here she's here to uh co-host with me and i'm going to stumble through and we're going to pull this off and we're here to help you with your life and with your money it's what we do the phone number is free

and some say the advice is worth what you pay for it the phone number is 888-825-5225 steve's with us in nashville hey ste, welcome to The Ramsey Show. Thank you, Dave, and thank you so very much for taking my call, sir. My pleasure. How can I help? And good evening also to Christy. Thanks. Let's get on.

Dave, I am currently, me, my wife, my mother, and my son are on a level term insurance policy. You were talking about life insurance a while ago, and this fits into it. But currently, my agent wants a couple of us to switch over to a whole life. I bet he does. Yeah. And I wanted to ask you, first of all, my mother's she's insured permanently because of her age when i fixed her up on a level term she she went through the two-year probation time and and she's fine my son is 30 years old they want him to swap over and of course i'm 57. They want me to. My wife is on a 10-year level term. Her age, she's 66.

And they're telling me it's going to be very difficult for her to get rewritten when hers expires in five years. How's your money situation? I'm okay. What's that mean? I'm certainly not self-insured, Dave. Okay. You're in your 50s. How much nest egg do you have?

About 50. Okay. And how much debt do you have? I do have some debt. My home mostly, it's about 60 owing. Not much. Okay. That's good.

And what are you doing towards retirement from this point forward? I'm not, at this point, I've not actually got a retirement plan in place. Okay. Well, obviously you're going to need to do that, right? Okay. Right. Yes, sir. Okay.

And does your wife work outside the home? No, sir. She's disabled. And what do you make? Around 50 a year. Okay. So the purpose of life insurance is to make sure that the people left behind who are counting on the person's income are taken care of. Correct.

If, God forbid, your wife were to pass away, mathematically, you would be just fine. Right? Because you're not dependent upon her to financially move forward. Now, I'm not talking about your heart wouldn't be broken. I'm not talking about we wouldn't cry. I'm not talking about those kinds of things, okay? I'm just saying mathematically. And this is the discussion of life insurance is the math part.

Okay. And so if we cancel her life insurance when it goes up, it's not that big a deal. Okay. So I wouldn't continue to buy life insurance on her once it goes up. So if her term runs out or you said she had a 10-year term, when that runs out, I would just drop it. You see why? Yes, sir. Okay. Now, in your case, you're going to need life insurance to take care of her until you get this nest egg built.

You're 57. You're out of debt except your home. Time to get with saving some money investing some money pretty aggressively for the next uh 10 years or so right yes sir and let's pretend that you had uh three hundred thousand dollars in your investments and you get your house paid off 10 years from today and that's all very possible if you start concentrating. Would you agree with me? Agreed. Okay. And you die. She has $300,000, a paid four house, and no kids at home.

I think she'll be okay. Yes, sir. So we're working towards self-insurance. And in the meantime, we prop it up with life insurance. You follow the concept? Yes, sir. See, the only thing whole life is good for is to make sure your agent gets a commission through your whole life.

That's what it's for. That's why I'm trying to encourage management. Yeah, and the premiums are 10 times to 20 times more expensive for the same amount of life insurance. Okay. But it's all based on the premise that you're not going to do anything to get yourself ready to not need life insurance okay but it's all based on the premise that you're not going to do anything

to get yourself ready to not need life insurance okay so we took care of you two now let's talk about mom how old's mom mom is about 85 and um anybody depending on her income to eat no there's none okay so why is it she's got life insurance it's just back when i lost dad dave uh he did not have insurance and it was a little difficult on the family to take care of all the arrangements now does your mom have any money she's she's uh not really she's she got twenty thousand dollars no sir no She's on a fixed income. Okay. So she doesn't have any money. She lives with my family, not me, but with my other family.

Okay. So we need enough to bury her. Yes, sir. But that's all we really need. That's what I have on her. Okay. So you have a very small policy on her. And it's term?

It is term dave uh and and what we started with her remember she has some uh some uh underlying issues and they wanted to go with the two-year uh probation i started with her and and that elapsed and she's he told me just the other day i met with him he said she's insured for life because i'm assuming because of her age that's strange okay well it's probably not that expensive a policy though because it's not covering but 10 or 20 000 bucks right it's really not dave so it's not an issue so we got three of the four done now your son is 30 and what he needs to do is work the baby steps get out of debt have an fund, and 20 years from today, you know, not need insurance because he paid off his house in 15 years and because he's got $700,000, $800,000 in his 401K

and his kids are grown and gone 20 years from today. He needs a 20-year level term and he doesn't need to use your guy because your guy's a whole life guy. You guys are paying too much for this stinking term. But it's probably too expensive for you to move now but it's not for your son he needs to go to zanderinsurance.com and get a quote and he'll probably find his term insurance is half what you guys are paying for it really yeah i guess i'm not allowed to tell you who he's insured i don't care who's he with farm bureau okay farm bureau is a wonderful company for car insurance and homeowner's insurance.

Their term prices are absolutely ludicrous. Really? Yeah. But they're great people. I got friends that work there. I mean, I really like the company, but you don't buy life insurance there. It's not. They're really good, though, for car insurance.

Their car insurance service, I've been hit by people that have Farm Bureau and they take care of the car. I mean, they're just wonderful. You know? And I'm a fan of the company, but don't buy term there. No. It's a bad idea.

Don't buy any life insurance there. It's just too expensive because they're not really designed to be in that business. That's like something they added on to their catalog later. And they thought, well, we can make a lot of money

doing this. And your guy's not a bad guy. He's just trained by those whole life guys. And so he just doesn't know what the flip he's doing. And that's in this particular subject. So you got to stay away from people pushing cash value. Nobody believes in this whole life stuff except people that sell it. Everybody else in the financial world knows and understands and says, no way.

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Ken Coleman. I can't remember who all. I'm here for you. Yeah, that's it. That's good. You're going to carry this. I knew you were. Good looking site

the site is much more uh it's much easier to navigate and find what you're looking for you don't have to go on a wild goose chase all the time a ton of great resources a ton of tools there a ton of free articles on just about every subject where it comes to transforming your life go to ramsey solutions.com and check out the new site it has been launched for about a month and it is uh all the feedback all the feedback has been positive no one went where'd dayramsey.com go because nobody cared but me except you where's my name go where's my name uh not really all right alicia's in decatur indiana hi alicia how are Dave. Hi, Christy. Hi. Thanks for taking my call. My husband and I are having kind of a dilemma on what to do with an inherited IRA.

A little backstory is we've been Dave-ish for quite a while. And at the beginning of November, we decided that we were going to go full in and pay off all of our debts so we had some more freedom. Well, since then, we paid off $28,000 worth of debt. Good. And the only thing we have left is my student loan debt. Good. So it's right around $40,000, $41,000. And how much was the inherited IRA?

$88,000 is what it's for. Yes, pay off your student loan out of that. You're going to have to cash out the inherited IRA over the period of the next few years anyway. That's the law. And you're going to pay taxes on it as it comes out. No penalties. And you might as well pay your taxes now and be debt free. Yeah, it's just a security

blanket for me i guess it's not a security blanket you have a student loan debt yeah that's true you have a security blanket with an axe hanging over your head that's true probably makes sense so it's not very secure you know no no and you know's not. And, you know, be debt-free. Listen, here's the thing. When you got all geared up and you paid off $28,000 since November, the reason you did that was you came to believe that the shortest distance between where you are and wealth and financial stability is to get your butt out of debt, right? True.

Nothing's changed. Yeah, just stay the course, take hit and because not because it's not a hit it's not a hit it's an advancement when you see it as a hit you feel like you're losing money you're taking that money and you're applying it to the debt this is a move forward so we got it we got to reframe that in your mind when you see that as a hit it feels like it feels hard to do let me give you an example on this you took the hit when you took out the student loan. When you pay it off, you admit it. Yeah.

When you buy a car that's $30,000, and it goes down to $20,000, and you sell it, people say, oh, I took the hit. No, you already got the hit. You already lost $10,000. When you sell the car, you just already got the hit you already lost ten thousand dollars when you sell the car you just admit it yeah that's all it is it doesn't change it doesn't change the reality it just makes you face the emotions of this student loan was a stupid butt idea well that's okay we've all done stupid butt stuff i made a living doing it kiddo

all right you're gonna be all right you're doing good i'm proud of you you know the interesting terms you use security blanket made me think of that call in the last hour where they they had seventy five hundred dollars had a debt of ten thousand but didn't want to pay it off because it was that same concept of like this makes me feel safe because i have this money here it's an illusion it's an illusion and it's like the idea that that is keeping you safe and it's somehow going to be a move backwards to pay off the debt no no that is the move forward and you know what that that does bring up a thing too that this idea that the enemy of the best is not the worst yeah the enemy the best is okay kind of in the middle if you can just sit in the

ugly middle and be comfortable you got no reason to bust into excellence you got no reason to bust into the x and it's familiar it makes me think of in financial peace university which i when i took this years ago you talked about the credit cards like oh no not this last one i'm so attached to it and there's an emotional attachment we have these ideas in our head that even if they're not accurate mathematically at all about what it's going to do for us financially we get attached oh i've got to hang on to the savings even though i have all this debt and i'm paying all this interest because it makes me feel safe that's not that's not the reality me going broke i had an advantage i didn't

have a choice yeah yeah you were forced i'm sitting there in the poop and i gotta go i gotta get up out of this because it wasn't comfortable right but if you're sitting there and you kind of feel comfortable it gives you this that that's where the enemy of the best is not the worst i was at the worst yeah and i knew it and i didn't want to be there anymore i was motivated to get my butt out of there right you know but when you're everything just kind of okay i got my little ten thousand dollars. I got my little $10,000 and I got my little $88,000 and I'm okay. And your brain just whines like that. Mine does it too on other things.

It's like, you know, I'm not fat enough that I'm going to die. So I don't do anything about my fat, you know? You know what I mean? But if a doc came in and went, you're morbidly obese. You're about to die of a heart attack, fat man. Then I would go do something about it. But my brain is like, my level of fat, I'm kind of in the middle, you know? Until I hit COVID, and then I just got big as a dadgum house, and I had to go.

So I've lost 37 pounds. Y'all shut up, all right? Because I needed to, because I was turning the Michelin man. But, you know, it's the same thing isn't it any area of our life if it's if you can hit that that mediocre middle that's a danger zone you're comfortable it's a danger zone and it gives you the illusion that you're doing better than you are because you've got this security blanket whatever your security blanket is it's like i'm okay i'm doing okay you don't have that motivation that you're talking about like things are bad i have to change

something what did you... Oh, your quote I love so much. You can wander into debt. You cannot wander out. You got to get fired up if you're going to do something because change is hard. On anything. If you're going to transform your life, it's going to involve the most painful of all emotions, and that's embracing change.

Stepping face long into change intentionally. I'm going to step up. I i'm gonna bust into this thing and i don't care if it's you know your marriage is just kind of instead of having an awesome marriage you know you gotta you gotta go something's gotta give i gotta change something you know it's like man i tell you the kids man you know you kids are out of control when you go that's it that's it you know my mama used to say the worm has go, that's it. That's it. You know, my mom used to say, the worm has turned. I didn't even know what that meant, except the beatings were about to begin.

You know? But it turned out it was Shakespeare. Who knew mom knew Shakespeare? But, you know, all that was was she had reached the end of her rope, you know? Yeah. The little grandbabies, the little girls, Denise's and Rachel's little girls were over at the house the other night, and they're jumping bed to bed to bed to bed, and I'm trying to get them in bed and sharon's got the boys another room putting them down i'm sitting in the rocking chair and i'm just girls sit down girls lay down girls stop it and they're just getting more and more wound up

and one of them says papa dave's getting frustrated mama mama she said when mama gets frustrated, it ain't good. So that means my daughter's doing a good job. I like that. That's right. So I said, girls, you're going to have to lay down. But I mean, the worm has turned. You have to have this moment in your life where you say, enough, I've had it.

And sometimes being in the comfortable middle doesn't make you do that. That's right. And you have to manufacture that in your emotions and just decide. Thanks for joining us, America. Christy Wright, Ramsey Personality, is my co-host today. I'm Dave Ramsey, your host. This is The Ramsey Show, where we talk about everything having to do with your life. Back in the day, it was me getting you out of debt, which we still will help you do. But the whole purpose of that is for you to have a better life. Christy talks about having a better life by having more confidence and avoiding fear and having balance in your life and speaks all over america to companies and churches and rights a

devotional that just came out that it was a best-selling book which we didn't know devotionals could be bestsellers i was something we learned something that's good that's cool you proved it well it was the first one we get to put it out as a company which was awesome so we proved the idea well and yeah and i also i mean i didn't know there was like a devotional bestseller list but there is so and just learn something but it's cool because you made it and um it's it's a great great uh read and uh 40 days to get back to you yep and uh you've gone through it a couple times with folks on instagram are you gonna do that again well i'm actually in the middle of it right now because and this is interesting i don't know if we've talked about this dave but i chose the number 40 because it's a biblical number sure and

it's a great uh non-intimidating length of time for someone to go through but one of the instances of 40 in the bible was the 40 days that jesus appeared to people after his resurrection so starting which were in that period following easter that's what we're doing so i started on monday after easter on day one and we're tracking. So today is day 15, I believe. Okay. Day 15, I think. Interesting.

Day 15 or 16. And so I'm walking through it right now, actually. Yeah, it's amazing how quickly these Easter or Christmas gets in your rearview mirror. It was only 15 days ago.

I know. I know. And then Mother's Day is coming up. So it's kind of nice in between Easter and Mother's Day to walk through

this women's devotional that I've written. And it's been cool. You're doing it on Instagram? Yeah. Okay. At Christy B. Wright. B. Wright, yep.

Just going live once a week and walking through, kind of having a discussion, you know, and just seeking God. The whole premise was, can you imagine how people, after Jesus rose, how once the word had spread that he was appearing on the earth, how people were looking for him, right? They're like, I mean, I've heard he's walking around and appearing to people. They must have been really looking for him with a new level of intensity, and so that's the heart behind this is let's look for God for the next 40 days together through this. Pretty cool. All right, Carol is with us in Los Angeles. Hi, Carol.

Welcome to The Ramsey Show. Hi, Dave. How are you doing? Great. How can we help? Okay, so I spent the past 10 years taking care of my mom, and she passed away last year. And I was wondering if I should sell her house and buy a condo in a neighboring state. Wow.

What an emotional thing. You've been in this home, and so you've been this angel, a blessing to her, for a decade of your life. Yeah. I didn't work or anything. I took care of her. I take it you're single. Yes, I am. And what's the house worth? The house is worth, I have to have it appraised because it's probate, but right now the low end and where the neighborhood's going, it's like $850,000. Yeah, okay.

And you're the sole heir, I assume? Yes, I am. Okay. And how are the rest of your finances? What are you going to do for a career now? I don't know. I was thinking of maybe doing things I've kind of dreamed about working on since I was a kid, like writing, and then I got into coding when I was in college,

and that was kind of my day job before I started taking care of my mom. So I thought I would do some independent projects like making video games and things like that. My coding. So when did she pass? She passed away last April, actually. So what have you been eating on for the last year? What are you using for money? My best friend, she has been paying me to take care of her kids,

to watch them because, you know, they have to stay home because of COVID. So you've had a nanny or a governess gig? Yeah. Okay. All right. Well, it sounds to me like you're someone that's given your life away for a while, and it's time for you to live a part of this next section for you. Yeah.

What are you thinking, Christy? Yeah. The thing that jumped out to me even in the question, and as far as the house and i don't you know as far as the house i don't i don't know but i think i think what you need right now carol is just community around you just some people to help you rediscover uh who you are and what you want to do in this new season i would definitely love for you to stay on the phone we can send you a copy of my devotional that's what we talked about 40 days to get back to you to figure out who you are

in this new season and and even um i'd love to invite you to be a part of the academy where we can kind of put our arms around you as you discover. Maybe there is something you can do on your own. It's a side business or small business or freelance, whether it's coding or something else, writing. Yeah, we can walk with you in this new season, and I'd love to do that. So we can definitely give you those things to help you in this transition. But as far as the house, I mean, it... I want to simultaneously applaud you for how you've served your mom and now how you're serving this family.

And at the same time for doing that, I want to encourage you in this next... You did the right thing. In this next season, I don't want you to define yourself by how you've given yourself away okay in the next season i want you to do some things for carol it's your turn and that's not selfish it's just that you put some of your dreams desires wishes on the shelf for other people and i don don't want you to, by default, sign up for another season of that. Yeah. It's time for you, and your mom would want you to go on and do the next thing.

Yeah, because she did say that. She was like, you know, maybe it would be better if she wasn't here. Well, we don't want that. I told her not to say that. Yeah, don't say that. That's not what we're talking about but i mean but we are saying that you know you've had a year since her passing to to grieve and to reset your mind uh yes i'm selling this house not necessarily because i'm selling the house but because it represents the past that's good yeah i grew up in this house yeah it's all about the past and the past is

in the past it has passed and so let's you know let's say all right let's pretend we're 18 years old and the world is a whiteboard and we have a million dollars what could we do anything we want it right i mean there's nobody telling us what to do there's nobody guiding us we can do anything we want to do because that's exactly where you are only you're not 18 yeah and that can be intimidating but it can also be exciting it should be should be both yeah this kind of a journey is exhilarating because it's parts of it are unknown but yeah i'm selling it i'm moving as i start to uh figure out what my next chapter is i'll know where to buy in the meantime i might just put this money in the bank and i might go i don't know uh whatever it is you've always wanted to do backpack the appalachian trail

i don't know rent travel yeah i don't have any idea but i mean whatever it is your your thing is you've had you got a pretty good number of things on the dusty shelf. Get them off and blow the dust off of them and sell the house. And let's get going. And I just want to encourage you to do that and encourage you to say that that does not make you a bad person. You've been a saint. You've been an angel. and the proper way to continue to serve is to find your best self in this next phase, and that's not necessarily to give yourself away.

So hang on. We'll have Kelly pick up. We're going to send you a copy of Christy's devotional and going to give her Business Boutique Academy. Yeah, yeah. So we'll sign you up for both, and it's on open enrollment right now, and so we'll sign you up for both and it's on open enrollment right now and so we'll sign you up for both and get you going and it's our gift to you to help you live this next phase

yep this next season for you so um but again this has nothing to do with the value of the house the location of the house it's not a financial decision it's a an emotional a fresh start fresh start decision yeah that's a good way it's the whiteboard man what a cool situation though yeah yeah i mean how many people would go i have no nothing binding me i don't have anything holding me back i can i don't she's not married she doesn't have kids she doesn't have a job that's weighing her down she doesn't have and she's got a million dollars and that's where you go what do you want do? And that can be one of the hardest questions to answer. What do you want to do? It's

intimidating as crap. Yeah. What do you want to do? You can do anything. Yeah. It's going to take some time for you to figure that out, I think. Yeah. Go ahead and send her Proximity Principle by Ken Coleman too. Let's see if we can... I want to interfere in her life here. In the best way. In the best way.

In the Papa Dave kind of way. This is the ramsey show Thank you. Christy Wright, Ramsey Personality, is my co-host today. We're answering your questions about your life and your money. Open phone is at 888-825-5225 james is in evansville indiana hi james how are you hi dave pretty good good what's up i have a college planning question my wife and I have five young daughters, ages 10 to 13 months, and we have five 529 plans and are contributing the max for the tax incentive of $2,500. be applying more but what does that look like for uh having five kids uh and here in about eight years uh having one go off to college yeah well about five years no no no eight years i'm sorry yeah okay all right um no it's more like 13. 10. Yeah, 10-year-old. Oh, there it is, 10-year-old.

I'm sorry. I couldn't try to look at these numbers. I wrote it down. I couldn't find them. All right. So, you know, what it amounts to is you need to be putting in more for the 10-year-old than you do the 13-month-old because the 13-month-old's got a lot of time to grow in that account. And so who have you got your 529s with?

You got an advisor? Yes, we have an advisor. We've got about 17,000 that it's grown right now for that 10-year-old. No, no, no. 10-year-old, okay. What I would do is sit down with the advisor and make sure that the money is invested in the 529 and good growth stock mutual funds that have a good track record first if it is then i would ask them to add to tell you okay in order for the 18 the 10 year

old in eight years to have x number of dollars what have we got to add to that account in order for the next one to add you know in so many years what have we got to add to that account? In order for the next one to add, you know, in so many years, what have we got to add to that account? And it might end up that you're putting, I'll just make up numbers, you might end up putting $3,000 or $4,000 in the 10-year-olds, and you might end up putting $500 in the 13-month-old. And they'll end up with the same amount. Okay.

Because you got started later on the 10-year-old. Yeah. And so you didn't have as many years for the money to grow. So it's kind of like life. Equal is not fair. Yeah, they've already been told that. Yeah, equal is not fair. Fair is not equal.

And so, you know, if you've got a special needs little brother or little sister, we're going to give more money and make sure that that child is taken care of. Equal is not fair. Fair is not equal. Fair is what you have at the county. Is there a magic sauce for about what should be put in to be able to fully fund them? Well, what you need to do is just determine what your goal is, your goal amount, and you say, okay, as an example, they're going to go to in-state schools.

They're in Evansville, Indiana. They're going to go to the University of Indiana, okay, or Indiana University. All right, and you call them and go, what's it cost to go there, and what are your projections on your tuition eight years from today? And they tell you it's going to take $150,000 to go there with room and board eight years from now for four years. And I'm making up numbers. I don't know. Okay. Today, tuition is about $10,000 plus room and board per year for an in-state school average nationally.

And so you're probably going to find somewhere around the $10,000 number per year, so that's $40,000 plus if they're going to stay in a dorm and eat. Okay, so I'm going to guess and say they can go for $100,000 eight years from now. That's maybe $125,000, but you can actually get the number from the university, bother them a little bit, or wherever you think you want them to go to to school and then you can back into the actual goal with your advisor they can put it into a financial calculator and go okay in order to do that you need to save twenty six hundred and forty two dollars a month or twenty six hundred forty two dollars a year they can tell you exactly what you need to do in order to get there once you have that goal and you have the time period it's a financial calculation at

that point it's a math it's a math formula that goes into a financial calculator and you can back into it so um but you need a target not just so far your target has been we want to save for college and it was very vague but if you really want to do it perfectly and you want to know when you're done this is how we did it okay what we did was we said we wanted i want a hundred thousand dollars per kid and i backed it out for a four-year-old and i said in order to do that today i need x in there and i just i had made some money that year and i just put x in there and then i was done that account was over i never added to it again never had to i put enough in there that it was going to grow for the four-year-old in 14 years to this much so when daniel ramsey got ready to go to school there was a hundred enough in there that it was going to grow for the four-year-old in 14 years to this much. So when Daniel Ramsey got ready to go to school, there was $100,000 in there for him.

And it was ready to go. And we just picked out a number. But if you want to be really nerdy about it, and I do recommend that, if you know what your goal is, you can back into your numbers exactly. I've got a question about the scholarship side of things because I know with 529s, like it's specifically for school. If you save all this money and then your kids are just get a ton of scholarships what do they do with that money

a hundred percent of what they get in scholarships can be removed tax-free what now if they get if you got a hundred thousand dollars in there and you get forty thousand dollars in scholarships you can take forty thousand dollars out and then no taxes oh really wow yeah you just had to prove that you just have to prove the scholarships if you're audited. I didn't know that. So you can remove it, and you've had tax-free growth on your money in a 529. Wow.

That's cool. It's wonderful. Because it incentivizes the child to get scholarships and that type of thing and do well. No, they got money. It's free money. Totally. Okay. Great.

Yeah, I mean, they go buy a house with it when they get out of college. I didn't realize that. That's awesome. It's a pretty cool thing. You're setting up millionaire stuff here. Yeah. Setting your kid up to be a millionaire before they're 30. Because if they come out of school with $100,000 or $150,000 and no student loan debt, and

they go get a job making $70,000 or whatever they're making these days, right? Doing whatever. Yeah. Oh, my gosh. I mean, you know, 22 years old and you're making that, and you've got zero debt, and you already have a paid-for house? Ding, ding. Yeah.

You're a millionaire by the time you're 30. Yeah. And the number, I mean, it's just compound interest. It's just running the math out. already have a paid for house ding ding you're a millionaire by the time you're 30 yeah and uh the number i mean it's just compound interest it's just running the math out and so what he's doing there the way he's planning i mean he's thinking about it he got a little baby 13 months and going this baby's gonna go to college but if once you dial all that in and then you see what the the next layer of effect of that is and the next layer of that effect yeah it gets rowdy right and when we talk about you change your family tree, you really did change your family tree.

It's real. It really happened. Taylor's in Denver. Hey, Taylor, how can we help? Hey, how you doing, Dave? Better than I deserve. What's up? So I have a dilemma.

I'm currently in Denver, Colorado, and I'm working at a great job. I make about $90,000 a year. It's a contract position, and they told me already that they'd like to extend it at the beginning of the new year for another year. But my last job has now invited me to come back and join them for a substantial raise. They'd like to offer me $160,000 to move to Orlando, Florida, and work there for eight months until the end of the year, and then the position will be over with. My question is, should I stay in Colorado, knowing that I have a good paying job and it'll last a good long while,

or should I go to Florida for the additional money, which is roughly about three times my, I'm sorry, three times my take-home pay each month here in Colorado. Well, no, it's not three times, 90 times three is not 160. What do you do for a living? So, yeah, with my, it's about $9,000 take-home pay for the job in Orlando, Florida, and about $5,300 take-home pay for the job in Denver. Okay, that's not even double.

It's not five times as much. Yes, sir. Okay, tell me you don't do math for a living. Okay, what do you do? I don't do math for a living. I do construction, thank God. Okay. What kind of construction are you doing?

I do 5G fiber optic construction. Good for you. Okay, I get it. And so how old are you? I'm 24 years old. What do you want to be doing when you're 34? I want to be running my own telecommunications business. Which one of these two decisions takes you there best?

I think they both take me there. Which one takes you there best? The kind of job that I'm at. Nah. Because your business is so, you are contract to contract to contract anyway. You guys jump from job to job anyway in your world, don't you? Yes, sir. All right, jump job to job and take the money.

Unless you just don't like Orlando. It's an adventure, dude. You're 24. Go make some money. That's my opinion. Yeah. You're young. Do it while you can. This is The Ramsey Show. Have a friend or family member that needs a daily dose of Ramsey advice in their life? Let them know about the Ramsey Call of the Day podcast. It's a quick hit of advice about life and money in under 10 minutes. Check out the Ramsey Call of the Day podcast wherever you listen to podcasts.