The Ramsey Show - App - Never Take Out a Reverse Mortgage! (Hour 3)

Episode Date: January 23, 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. Thank you for joining us. Open phones at 888-825-5225. That's 888-825-5225. You jump in. We'll talk about your life and your money. Lorena is on the line in Arkansas. Hi, Lorena. How are you? Hi, Dave. Thanks for taking my call.

Sure. My husband and I are happily retired. We have two lifetime incomes each and living very well. Last year, we sat down and created a budget and that's been doing really well for us. We've got some medical debt and having just started listening to your broadcast about four weeks ago, I sat down with our budget and kind of scraped it a little bit and showed my husband, if we do this, this, and this, we can have all those medical bills paid off in three months. And he said, let's do it. So we'll be debt free in three months. And I'm calling because we live in a lovely home that we want to stay in for the rest of our life. And we have no children to which we would want to leave that house. I was wondering about the wisdom of a are punitive they're about three percent

higher on interest than regular mortgages which is ridiculous um you cannot borrow but between 50 and 60 percent of your value back against your house and the biggest problem is is that one in five people who take out a reverse mortgage 20 percent of them go into default and you end up losing the house so i never recommend them i think they're a really bad plan i like the idea of you getting a hold of that equity and enjoying it, but I think you probably are going to have to make the choice, if you're going to be wise, between the house or the enjoyment of the equity. Personally, I would stay in the house and save my money, and after you get this debt paid off and do some things with the cash flow that you have,

I would not do that. Do you have a nest egg other than the home and the pens flow that you have, I would not do that. Do you have a nest egg other than the home and the pensions that you have coming in? Yeah, we have about $2,500 in the safe for emergencies, and we have about $10,000 or $11,000 in a 401k I haven't touched. Okay. All right. So you don't have substantial monies there and what is your home worth about 260 maybe 270 and it's paid for no it's got about 170 000 left on it okay, I think it's just you decide whether you want to live there or not. That's what I would do. But no, I would not. You don't have enough equity to do a reverse mortgage

to amount to anything. You might get a little bit out of it, but you're going to put what you have in danger when you do that. And the fees and the interest rates are just ridiculous. They're really, really a bad idea. So I never recommend reverse mortgages. I want to get you out of debt instead of into debt as a way to stabilize your retirement in your case and other folks' case as a way to build wealth and stabilize their retirement. So sorry, but I'm going to tell you, don't do that. Please, please don't do that. Thanks for the call. Guys, there are some financial products that are out there that are bad financial products. They're just bad. They're not good for you. They make the company money,

and they don't make you money. Whole life life insurance, car leases, credit cards. The benefits do not exceed the risks and the payment and the fees that you pay out, and reverse mortgages are one of those. Gold coins, Bitcoin. the snuggie commercial and the walk-in bathtub you see an old actor advertising something that is a financial thing that means stay away from it and you can just name them they're right down the list they're gold coins reverse mortgages i mean we've got tom selleck or henry winkler pushing those thanks guys bad guys. Bad idea. Shouldn't be doing that. It's not a good product.

They are bad products. The company that Tom Selleck endorses has had numerous fines levied against them for false advertisement, for ridiculous. The Federal Trade Commission has been all over them. And so, you know, it tells you what's going on. I'm not saying Tom Selleck's a bad guy. I don't know Tom or Henry. Don't know either one of them.

I assume their agent booked them to do a commercial, and they did the commercial, and they thought no more about it than that. But when you do the math and you know what I know about those products, they're bad products. Stay away from them. Asia is with us in New York. Hi, Asia. How are you?

I'm good. Thank you. Good. How can I help? Better than I deserve. What's up? Thanks for taking my call. I'm 29 years old.

I just had a second baby. I am about 19,000 in debt right now. I'm just consumer debt, just credit cards. I have about 8,000 coming to me. I'm expecting in a tax refund. And I was just know that one case it will go to my emergency fund. I'm just wondering how do I allocate out the rest? You got any debt? So I have $19,000 in debt. Maybe step two is you list your debts smallest to largest, and you attack them in that order. So we would put $7,000 towards the first $7,000 of debts in that order out of your 19 that gets you down to 12 what's your household income um it's just me by myself i bring in about

30 000 okay cool all right and then we're going to get in attack mode now can you adjust your w4s down any further where you don't pay any taxes in well that was with adjusting it down have you adjusted it down where you pay zero taxes in right you have so i think when right so when i just got my w-2 back i only paid out about 100 and 100 almost 150 i believe it was 149 something for the whole year for the whole year okay For the whole year. Okay. Yeah, you've got it down about as far as you can get it. So the $8,000 is the unearned income tax credit because you're a single lady with kids making $30,000.

Right. Yeah, so that's where the $8,000 is coming from. Okay. Yeah, that's how I would use it. Absolutely what I'd do. Hey, thanks for the call 48 of americans pay zero income tax that's fair this is the dave ramsey show Business leaders, right now you have the opportunity to take your business to the next level this new year. You can start by hiring the right people to help your business grow. At

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Get started today and get $50 off your first job post. Visit linkedin.com slash Ramsey. That's linkedin.com slash Ramsey. Terms and conditions apply. Thank you for joining us, America. This is the Dave Ramsey Show. 888-825-5225 is the number. You know, if you had a problem in your life or an area of your life that you wanted to make better, and I told you you could do one thing, if you did this one thing, it would increase your chances of winning in that area dramatically.

Well, you'd want to do that one thing. If you were trying to get in shape and you did one thing, and if you do this one thing, you've got to do other stuff too, but if you do the one thing, your probability of getting in shape goes way up. What's the one thing? If you were going to do that with money, what's the one thing? If you're going to do that with your marriage, what's the one thing? Well, it's not one thing with all of those different things, but there usually is a main center idea that if you get this idea going, it leads you to the rest of them. It's the one thing.

When it comes to money, there's one new monthly habit that will cause you to crush your financial goals. And you need to get started right now. There is one thing. You hear it all the time when I ask people who paid off all their debts and they're doing their debt-free screams. You hear it all the time. They say it. I ask them, how did you get out of debt? And they say this, this, this, I got on a budget. We started working together in our marriage on a budget. A budget makes you your money boss. Instead of the money being the boss of you, you're the boss

of the money. And when you start, you're the boss of the money. And when you start budgeting, you're going to feel power. You're going to feel like you got a raise. And I know a lot of you think budgets are really hard to make or budgets are in form of punishment or something, but a budget is simply a spending plan. It's you just telling your money what to do. You need to give every dollar an assignment every month. That's why we named the world's best budgeting app that we created several years ago and have updated it monthly since then. Every dollar. Seven million people are using the every dollar budgeting app. It is the world's best budgeting app.

It is completely free and it's the one thing, the one new habit you need to start. If you're afraid to do some of the other stuff I talk about here, it sounds too bizarre or too crazy for you, do this, and it will lead you to the other things. It's the one thing. Go to EveryDollar.com, download EveryDollar, put it on your phone. You and your spouse get together. It takes about 10 minutes to set up your first budget. You are telling your money what to do. You become the money boss with EveryDollar. Lisa is in Wisconsin.

Hi, Lisa. Welcome to the Dave Ramsey Show. Hi, Dave. Thank you so much for taking my call. Sure. What's up? Me and my husband are in Financial Peace University and we're using the EveryDollar app and we're getting on the same page. We're just about to start Baby Step 3 and my question is, we have a rental property. We were dumb and we bought one. So far it's been good. We've been blessed with good tenants, but the more I'm listening to you and the more I'm learning, I'm getting more nervous.

Their lease is coming due July and we owe 109 on the property and it could probably sell in the area of 150 right now. My question for you is, do you think we should sell the rental and accelerate through our baby steps? It does cash flow $380 a month, which has helped us through baby step two. What's your household income? $100,000.

What do you owe on your home? Our primary home, we owe $242,000. Okay. I wouldn't sell it to do baby step two, but I might just sell it. You don't have enough equity in it, and $380,000 is only $4,000 a a year cash flow one heating and air unit one bad tenant and you don't make money you lose money so you don't have much margin in this house really um it's worked so far because it's worked but when the tenant quits paying and goes into chapter 13 bankruptcy and refuses to move and you can't get them out because you can't get the bankruptcy court to give you permission to um and they sit there and they drain you dry it's going to turn the other way pretty

fast or heating and air system goes out or roof leaks or hot water blow heater blows up i mean stuff happens to houses when you're the landlord and you've got to have some money to do that you don't have any spread in this deal 380 bucks a month spread means you're probably over the course of time breaking even slightly making money or losing money you're not cleaning up on this so that might be the reason i would sell it if i'm not going to sell it i am going to lean into it pretty hard after you get your baby step three done and let's get it paid down and paid off as soon as you can. That was my question. Since we owe such a little amount, I mean, 109 isn't little, but if we could have passed that.

It is compared to your income, and it is compared to what you owe on your primary, and the fact that you're in control now. So it's going to be the first thing you do in your baby step six is you're going to lean over into that thing and knock it out. You have children? Yes. What ages? Four and ten.

Okay. Yeah, I mean, if you spend five years or three years and they get this thing paid off before you start their college funds, that's not going to be the end of the world, but it's going to be part of your plan. So you just got to decide, is this where I want to lean into or would I rather lean into just directly funding their college funds, building up our retirement, and then save up and buy some rentals for cash later after I get my home paid off. That probably is a shorter path.

But I love real estate, and if you love it and you really, really, really want to hold on to it, that's fine. But my point is, you're really want to hold on to it, that's fine. But my point is you're really not making any money on it today. It's not really a blessing. It's not really like, you know, over the scope of time, you're not going to make money on a rental that has a $4,000 a year cash flow. It's just that there's not enough room there for spit. Think about how easy it would be to make $4,000 doing something else without being a hundred thousand dollars in debt and without putting up with all this stuff and dealing with

tenants and dealing with collecting rents and dealing with all, I mean, you're doing a lot of work for four grand. Um, so that that's the, it's just not a big deal. Uh, but if you want to, if you want to fight and push it down, that's fine. I personally probably would sell it in your situation. I'm not going to slam my hand on the table and say this is stupid and, you know, you're crazy and all that. That's not the case. But you've done a good job getting where you are. And if you want to push through and hold it, that's fine. But even as much as I love real estate, I probably would get clear of my home and everything else

and get everything else laid in a foundation and then buy rentals with cash. Actually, that's what I did, but I didn't own any rentals to have to make that decision. So that's how I did it, though, with my current real estate portfolio. Hey, thanks for the call. Open phones at 888-825-5225. Thanks for being with us. Vanessa's in Instagram. I hear you talking about manual underwriting for a mortgage. Is there something similar to do when looking for a rental? So many people require a good credit score.

Well, you're just asking the owner if they're allowed to think when you're renting. Is the landlord allowed to think? And if you have no credit score because you have no debt, because you don't believe in borrowing money, and you have a really nice emergency fund and a strong budget, that makes you a better tenant than someone who has a great credit score with a bunch of debt and doesn't have any room in their budget. It makes you more likely to pay, but that would require that the landlord has the ability to think. Not all of them are allowed to think. Some of them are a management company and they have a boss in another city and they said, don't rent this apartment unless you get a FICO score. Even if the person is worth $10 million, has a million dollars in the bank,

and has no debt at all, but they don't have a FICO score. See, so can you think? That's the question. See, I don't have a FICO score. I couldn't rent from a place like that. They wouldn't rent to me. I can write a check and buy the complex,

but they won't rent to me. That's how bass-ackwards that whole thing is. This is the Dave Ramsey Show. Let's talk about low interest rates, baby. I know right now that Churchill Mortgage can get qualified buyers into a 15-year conventional loan for well under 4% with no discount points or no hidden fees. Listen, if you're even thinking about buying a home or refinancing, do it right now. These rates are incredibly low. Here's what I'd like you to do. Take 10 minutes and call Churchill Mortgage and see what you can qualify for. So even if you have to get creative and buy something further out of the city to get something you can afford, now's the time to make the move. That's why I'm sending you to Churchill Mortgage. I trust them to look out for you and your budget.

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We're glad you're here. Open phones at 888-825-5225. Aaron is with us in Ohio. Assuming I push the right button. There's Aaron is in Ohio. Hi, Aaron. How are you? Doing well, Dave.

How are you doing? Better than I deserve. What's up? Okay. My question is, my wife and I, currently we have about $24,000 total debt. We make about $65,000 last year. We owe $20,000 on a car, our second car. We're upside down on about $7,000.

And my question is, once we get our smaller debts out, should we try to sell this car or keep it? My wife wants to keep it. I don't want to keep it. You just don't want to keep it because of the debt? Well, not so much the debt. I think we really rushed into it, and I think we got a bad deal. I think you did, too. I think you bought a car that was stupid.

Yeah, absolutely. I agree. But I don't know think you bought a car that was stupid. Yeah, absolutely. I agree. But I don't know if that is a reason to sell it right now. Here's the thing. You would never buy a car again the rest of your life when the total of all the vehicles that you own are more than half your annual income. And you were probably pretty close when you bought this car because this car puts you right up the edge now though the car's only worth 13 so it only solves a portion

of your debt problem you still got the seven thousand dollars worth of debt if you sell it right right and you got to get another car so it's not going to move the needle that much on getting you out of debt. But we do need to both be able to join hands and look at the thing as it sits in the driveway and go, that was one of the dumbest things we've ever done. We will never do that again. And we need to be able to do that as a couple, both of you. You've done that, but she needs to do that too. So that you never have to have a fight about this again.

It's like, no, if we have the cash, we will buy a car. Otherwise, we are not buying the car. For the rest of your life. She admits it's a dumb idea, but she just likes the car more than I do. Yeah. Well, you just hate it because it just, like, screams at you. You're stupid every time you see it. Yeah. Yeah, that's what it is. You're stupid every time you see it. Yeah.

Yeah, that's what it is. I mean, I've owned stuff like that, too. It just, every time I look at it, it reminds me I did something dumb, you know, and I get that. But I think in this case you roll up your sleeves and you pay this debt off, and you guys get on a really, really tight budget, and beans and rice, rice and beans. You don't need to see the inside of a restaurant unless you're working there.

You need to have a big garage sale. You need to sell so much stuff the kids think they're next. And let's roll up our sleeves and get this debt cleared up. I think you can pay off $20,000 worth of debt making 60 in about 18 months, but it's a beans and rice, no life budget. And then you can do this. A couple thousand dollars a month makes us go away in a year, and that may mean you pick up extra job or some overtime or some side hustle.

You make it all go away in a year if you did that, but 60 over 24, after you pay taxes and eat, you're not got much left to do that much faster than about 18 months, and that's really tight. That's a tight budget to do that. All right, up next is going to be Lindsay in Colorado. Hi, Lindsay. Welcome to the Dave Ramsey Show. Hi, Dave. How are you? Better than I deserve. What's up? I just wanted your opinion in time of transition. And my biggest question is, when do we start building a house? We just acquired the land. It's high rent where we're located in the mountains, and we are currently paying close to two grand for our rent. And we just found a situation to where we can move into a house, and we will be moving there the first week of February to where we decrease our rent to $1,500 a month.

But we are just wondering when we should start the construction of the home. Are you out of debt? We have $20,000 left in our student loan debt, and that's it. What is your household income? It is close to $180,000. Wow. So you'll clear that $20,000 up real fast then. We can.

I would. Yeah. So we have currently about $60,000 cash. Oh, write a check today and pay it off. Okay. okay and so then you would um because obviously for the construction loan we will need to um have you know probably 15 at least down to start the construction loan so that's you know probably close to a hundred thousand so um really probably yeah how much do you owe on the land? The land will be, let me see, so probably about $40,000. You owe $40,000 on it? Yeah.

What's it worth? Probably over $100,000. It sits right with a peak view. You shouldn't have any trouble getting a construction loan. No, no, we know we won't but i think you don't need a hundred thousand down to do the construction loan on that you got so much equity in the property the property's rolled into the construction loan they pay off the first construction loan takes the first position and the equity that you've gotten the property counts in the equation true and doesn't that take a year though for you to get that equity before they can count it yeah that was my impression when we talked to the bank i think you probably talked to a different

bank um it depends on how it depends on how they're structuring the loans and what they're doing but yeah they need to uh they typically do want to wait and establish the value but uh you obviously got a good you obviously got a good buy on it right we did yeah yeah we did so how much would you recommend us having cash before we start that construction or before we we move forward with the construction if you've got the construction loan lined up to cash flow all of the build i don don't care if you have any. Okay. I do care that you have your emergency fund in place of three to six months of expenses, and I care that you are 100% debt-free. So I'd write a check today for $20,000. I'd set aside, in your case, maybe another $20,000, maybe $30,000 for your emergency fund,

which pretty well drains the money that you've got now. That leaves you about $10,000 left over to be able to attack the other stuff or to start the other process. It's going to take you a little time to do that anyway. You've got to get plans drawn, a builder selected. You've got to get the construction loan lined up. So during all of this time, you're going to be budgeting very tight and building up some cash to add to the equation. Now, when you finish the house, your construction and your land, you need to have equity in order to be able to close on your permanent takeout loan.

And so that I do care about. In other words, I don't want you owing 100% of the value of the land and the house together in your debt, which means you've done a stupid build if you did that. Right. So you need to build the house in such a way that the equity in the land and the fact that you are building, you know, you don't pay retail to build a house. No, and my husband's going to be functioning as the project manager because he has some experience with that so all of that leads to how expensive a home are you planning

on putting on this 140 000 piece of property we want to we want to shoot for um probably 500 000 okay um yeah so you shouldn't have over 400 you shouldn't have over 400. You shouldn't have over 400. And, you know, if the value of it's 500, you ought to be in there at 400. Or if the value of it's 500, you ought to be in it. I mean, if you're in it at 500, the value ought to be 7. And, you know, those kinds of numbers. So with that in mind, I don't care if you've got cash in it. Now, I don't want you to have a net deal when you're done that the total of it creates a house payment that's more than a fourth of your take-home pay on a 15-year fixed. That's your other guideline.

That keeps you from ending up with too much debt at the end of this story. So your fixed rate, 15-year fixed mortgage where the payment's no more than a fourth of your take-home pay. You've got substantial equity due to him being a project manager and due to the fact that land is valuable. At the end of the story, if you've done all of that, I don't care if you've got a lot of cash in the deal. But get debt-free and get your emergency fund so you're ready to go. This is the Dave Ramsey Show.

One of my favorite parts of this show is hearing your debt-free screams. You guys are our heroes. You've kicked debt to the curb and you've saved for the future. Now we want to celebrate with you. If you have lived like no one else and are currently in baby steps four through seven, well, it's time to enjoy some money. And the perfect place to do that is on board our first ever live like no one else cruise in March. That's right, just a couple of months away. But get this, it's not too late to book your cabin, so don't miss your chance. This Caribbean cruise is going to be an incredible seven days at sea on a stunning new ship with amazing experiences.

I'm talking all of our Ramsey personalities and other world-class entertainers. We're stopping in the Bahamas, Puerto Rico, St. Thomas, and Turks and Caicos. It's going to be an amazing, debt-free celebration designed just for you. Don't miss the boat. Head over to RamseyCruise.com today to reserve your room. our scripture today matthew 6 33 but seek first the kingdom of god and his righteousness and all these things will be added to you. Henry Ford said, don't find the fault, find the remedy. Amen.

Trent is with us, Trent's in Missouri. Hi, Trent. Welcome to the Dave Ramsey Show. Hi, Dave. Thanks for having me on. Certainly. How can I help? Okay, so we started your FPU program and started working the baby steps back in the middle of December.

We have about $35,000 in kind of like an emergency fund savings, and we owe about $19,800 on our final consumer debt. And we were wondering, do we pay that off, being as we have a pending IRS audit of about $11,000, or do we wait until the IRS audit comes through and we, you know, everything's squared away, and then we pay off the consumer debt after that uh what do you mean pending if it's a pending audit how do you have an amount um they've sent an amount but i'm working with the cpa trying to get them the documentation they just sent over what they think we owe currently what does your cpa say um They say don't pay it yet because we're still working. Did they say you owe that? They said I don't. Okay, you probably don't. The IRS makes mistakes all the time like that. I got a bill from them the other day for $25,000 and I handed it to my guy and he started laughing. These people don't even know how to add and so we're having to file

stuff from them. I mean that happens all the time because they just don't know how to do their own paperwork. So my guess is you don't have that bill. So what is your income, household income? We, me and my wife, make around $120,000 a year. Okay. So, uh, when did this, uh, uh, audits process start on the 11,000? Um, it started back in, uh, August of 2018. So it's been quite a while that we've been going through this. It's been dragging out. Okay. Yes. All right. Um, I would write a check today and be debt free if i were in your shoes that would leave you um fifteen thousand dollars in your emergency fund which is enough to pay 11 if it comes up okay but i don't think i don't think you're going to owe this based on what you're telling me your cpa doesn't think you owe it it's dragging out because he's having to prove it 14 ways or

she's having to prove it 14 ways to get the stupid kgb to back off because they simply don't know how to add down there sometimes and sometimes you run into a smart one but sometimes you don't so uh and and these computer generated stuff that comes out there that where they just literally don't know how to put stuff in the right column is ridiculous. So yeah, I really, just personal experience and based on the way you described this situation, but you make plenty of money. You got your emergency fund. If you want your next step to be in baby step three to beef your emergency fund up a little more, given what you make and given that you got this hanging out there that's fine before you move on to baby step four and start uh doing your investing but uh if you're doing our stuff

we tell you to have a thousand dollars in the bank be debt free then go back to the thousand dollars and raise it up to three to six months of expenses and if you've got money laying around to pay off your debts you pay off your debts and that's where you are and so you knew that that's what we teach daniel is with us daniel's in texas hi daniel how are you good how you doing dave better than i deserve what's up i have a question about a house my wife and her brother inherited there it's a living trust i'm sure you're familiar with those. Trying to figure out what to do with it. It was dumped on us, so to speak, about a year ago. We've been responsible for the taxes, any upkeep, anything like that.

The house is vacant currently. Nobody can occupy it because it'll mess up the arrangements with Medicare or Medicaid, whichever one, and the nursing home is what I've been told. Oh, God. And it's costing us money. Sell it. And, well, that's what I was going to ask because I've been told we can't just sell it outright or does some of the money have to go to the living?

You know what I'm saying? Wait a minute. They did this to Dodge Nursing Home? No. My wife's grandmother didn't want to be put out on the street. She was afraid she was going to be put out on the street. Right. So she is what I was told but after my mother-in-law

died she wanted to give the house to my wife and her brother. Being afraid of being put out on the street she did it in a living trust. So the terms of the living trust state that you can't sell it?

We was told by a lawyer we couldn't sell it. If we sell it then we give told by a lawyer we couldn't sell couldn't sell it unless if we sell it then we give it up more or less is what we were told who give it up to who uh to give it back to her oh great give it back to her okay why do you want it that's what i it sucks it's sitting there eating your lunch why do you want it no but's what I do. It sucks. Well, I don't. It's sitting there eating your lunch. Why do you want it? Nothing in this situation is a blessing. These people are dumb. They put together a living trust to do absolutely nothing except trap you.

I agree with you. This is stupid. So that's what the best thing to do is just sell it out. So your mother-in-law is alive, and she owns the house, other than the fact that she stuck it into a trust and sent it to you? Yes. Yeah. All right. And the terms of the trust are as long as she's alive,

that the money would have to go to her. Correct. Meantime, you can't rent it, and would have to go to her. Correct. Meantime, you can't rent it and you have to cover all the expenses. Yes, because she doesn't have any money left. Everything she has go into the nursing home. Yeah. She was covering the expenses up until a year or two years ago. Yeah.

So she lives in a nursing home? Yes. Okay. How's her health? Yes. Her mother lived to be 90 the last 20 years in a nursing home. So we don't know. You know, it could be something similar to that.

And this lady's how old? The late 70s. Okay, so you sell it, and the money goes to her, and she uses it to pay for her nursing home. Yes. Do it. Do it. Okay.

It's not a blessing. Somebody did not think this through. I think they were trying to dodge paying a nursing home is what they were doing, is what it sounds like to me, and you really can't do that. So there's, all right, yeah, I would get out of this if I were in your shoes. Thanks for the call. Okay, folks, there's two kinds of nursing homes. There's Medicaid, which is welfare, and that is for poor people.

You cannot fake like you're poor people by hiding assets and trusts because if the government finds it, and they have the legal right to look back five years and undo anything that was done, and so you can't hide assets from the governments in order to qualify for welfare. Or you can be in a nursing home, and you use your funds to pay for the nursing

home, which is what you should do morally, legally, financially. Sometimes it's tough, but if you go to a restaurant and you eat their food, you have to pay for the food. If you go to a nursing home, use their services, you have to pay for their services. If you go to the hospital and you get care, you have to pay for that care. That's how life works. And so don't try to let someone tell you you can hide your assets in order for your elderly parents, grandparents, whatever, to end up in a welfare government subsidized nursing home. That is only for poor people, not people who hid assets to look like they were poor.

That doesn't work. That's welfare fraud. They will look back five years, they will undo it, and if you're really egregious in how you go about it, they can prosecute you criminally. So you don't want to do that.

I'm not saying that's what happened in this guy's case. There's a lot of people out there who spend a lot of energy trying to not pay for their nursing home. And that's silly. You're using the services. Pay for the services, just like you pay for a restaurant. Same thing. That puts us out of the Dave Ramsey Show. In the books, 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. Hey guys, it's Blake Thompson, Senior Executive Producer for The Dave Ramsey Show.

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