The Ramsey Show - App - Ride the Rollercoaster When the Market Gets Rough

Episode Date: May 18, 2022

Dave Ramsey & Dr. John Delony discuss: Letting a rental property go for your sanity and learning when you need to "fire yourself", Turning off the news so you don't get paralyzed by fear, Is it possible to get financial peace after 50? Maxing out a Roth IRA vs. 401(k). Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6

🎵 Live from the headquarters of Ramsey Solutions, 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. I'm Dave Ramsey, your host, Dr. John Deloney, Ramsey Personality, author of the number one best-selling book that just hit number one the other day, Own Your Past, Change Your Future, a not-so-complicated process about relationships and mental wellness. Jump in. We'll talk to you. We help people build wealth, do work that they love, and create actual amazing relationships. Open phones at 888-825-5225. Colt is in Montgomery,

Alabama. Hi, Colt. How are you? I'm doing well, Dave. Thank you. How are you? Better than I deserve. What's up? Well, first, I'll start out, I'm absolutely emotionally, mentally, in almost every way, fashion exhausted financially. I read your book in 2018 when I was on my last military deployment. I'm actually active military. I've been in 10 years now. Thank you for your service. That's mine. Thank you.

I appreciate it. So I read your book, got motivated, started following your steps, paid off almost $40,000 in debt in just the first nine months of being on your plan. Then in 2019, I thought, well, I'm in a better position. I'm going to buy a fixer upper house. I can do all the work myself. I'm blue collar, old farm boy. But I could take care of it. Well, four months later, military dropped me orders.

And I'm stuck with this house. And I'm like, I can't really rent it out in this status. So I made the dumb decision and panicked and put a whole lot of work into the house on credit cards. And the last two years, I've just been treading water. The tenants that I had in it for two years trashed it, so all the work I put into it pretty much was just undone. And then I had thought really passively last summer about selling it because the market's hot. But then I thought, no, I'm still not ready to part with it to investment. I'll get a roommate from, that's a best friend from another state, move him. And he was happy to move in and then we walked in the door and went oh my gosh this house so i'm sorry what's wrong with the house they were shouting

without a shower curtain so the deal this week was is the wall in the bathroom uh buckled inward so i spent two weeks of pto or leave i completely gutted and raided the bathroom uh every blind in the house was gone uh just a filth um this is the roommate no no this is the roommate this was the tenant oh that's when you discovered the okay so then you panicked and you've been on credit cards and you built it back, right? So what kind of condition is it in today? It's in a position where it still needs paint. Kitchen's still a mess. But, I mean, it's livable.

But my question is, you know. What do you owe on it? $140,000. And how much credit card debt did you run up? $35,000. What would much credit card debt did you run up? $35,000. What would it sell for today as it sits? Talked to a realtor the other day. She said probably around $230,000. Sell it.

You would sell it? There was nothing in your conversation with me that sounded fun so far. You suck at this real estate thing. Yes. Everything you've touched has turned to poop on this man yes get rid of it there's nothing here fun i've yeah i've been working in addition to school when i said that you breathed better i know when i, you went, thank God. Hey, and dude, listen, you and I could probably talk for an hour. You and me and Dave could talk for an hour. You've got other stuff in your life going on, don't you? Yes.

Way too much. And you're running 10 years on deployment return and deployment return, and I hear your voice is crackling. You're fried. Is that right? right yeah you have to get after last week you've got to get some margin yeah you get some stuff off your plate even if that means go live on base go rent yeah fire yourself from anything you can to make your life simpler i i really needed to hear that because that's what I told myself when I was driving home. I said, I've got to make my life more simple. Calm.

Like almost boring. You need some boredom. Go talk to a counselor. Yeah. Go pick up, take up fishing. You've got to find some people, go hang out with some people that aren't in the Matilda. He ain't desperate enough to take up fishing. Well, I was going to say golf, and then I thought, I love him.

He loves our country, so I don't want to encourage golf. But, hey, look, you've got to get some friends. Your life has been living you for a decade, and it's been one of service and one of a lot of trauma and a lot of exhaustion. And this real estate thing is just one more chapter. Yeah. Where it's riding you, you're not riding it. So I'm not telling you to get out of the military.

Just keep doing what you're doing, but you've got to create a life. Okay, now I've got to crest this wave. Kind of like Dave is a great ski instructor, and when you first start skiing, and you're sitting in the water, and you come out, and it's just blasting you in the face, eventually you can stand up,

and you crest, and you get on top of that thing. Boats still go on the same speed. Everything's still going the same, except you're on top of it. That's what we're talking about, and that's you backing up and deciding, I'm going to do some things in my life differently

so I can be well. what else can you fire yourself from well the second other job that i picked up on the side that i'm exhausted and washing campers up in the hot alabama sun to try to bring in some extra cash you don't you don't need any extra cash we just got rid of the house and put some money in your pocket you're debt free yeah that would be great move on base get a one-bedroom apartment just control delete man go to the gym laugh right go play golf don't play golf but whatever right get some joy in your life man you've worked too hard and you've given too much of yourself to continue to run like this go to the range and drop a thousand rounds down range that's there that's stress now we can both

agree on that that's stress relieving okay and the government will pay for it the only other question i have though is just my roommate just moved down best friend moved down just in february i'm still trying to figure out how i hand him a little bit of a check when his house sells hand him a little bit of a check give him five grand and say go get no give him if you gave him a thousand dollars and said i'm sorry i gotta get out of this this is killing me the thousand dollars is just to say i'm sorry what would he say okay he would be as good a friend as we are i think he would be perfectly fine with that but still just the emotion like i feel like i failed him you feel no there's that that that's how i feel about it also so there's that that part of it well it's why you serve in the military you're a man of honor so you're going to always have those feelings about things and they're always going to be about 2x what reality is yeah yeah you did fail him but it ain't near as big as

it feels like inside of you in other words no big deal okay if his life was all hooked up he wouldn't have come right it isn't like you disjointed some guy from his medical degree he didn't have nothing to do anyway that's why he lives in your house so yeah i mean he it's okay he's gonna be all right um yeah give him a thousand bucks to say thank you or i'm sorry or whatever you want to call it and call that honor, and it is honor. And help him some other way if you can without signing up for some extra job. Quit washing campers. Go put 1,000 rounds down range.

Get yourself in a simplified life, boring life. And I'm going to send you a copy of John's book, Own Your Past, Change Your Future. You need to read this book. Hold on. You're going to send you a copy of John's book, Own Your Past, Change Your Future. You need to read this book. Hold on. You're going to love it. You're going to go, oh, there I am. This is The important than ever. While some circumstances can't be controlled, there are items within your budget you can take charge of, such as your

health care costs. For nearly 40 years, Christian Health Care Ministries, or CHM, has provided a budget-friendly means of sharing for medical bills when our members need it. Learn more by visiting chministries.org slash budget. That's chministries.org slash budget. Christian Healthcare Ministries is a Ramsey Trusted Provider. Well, the housing market over the last couple of years has been unique to say the least. Home prices have gone up like a rocket. Hungry buyers are pouncing on homes as they hit the market. And now there's a plot twist.

The Fed has upped the ante and raised the Fed funds rate for the first time in three years. And that means we're seeing some tick up in mortgage rates. And that's got a lot of you worried about higher mortgage rates and maybe even a recession might make buying and selling a home more difficult. So let's all just take a little breath, turn off the news, click, get a little perspective. A whole lot goes into buying and selling a home. Market conditions and mortgage rates are part of it, but they don't drive the whole thing. Anytime you're looking to buy or sell a home, you need to do your homework. You need to get a pro in your corner who knows what they're doing.

This is your largest asset. It is not amateur hour. So get a high-quality, high-octane real estate agent in your corner. Regardless of what's going on out there, you will do a better transaction as a buyer and certainly as a seller in this environment. So if you want to know about this, head on over to RamseySolutions.com slash rates. We've got some good information there on what's happening with the rates and how that affects you.

Go to RamseySolutions.com slash agent, and you can talk to one of our endorsed local providers that are Ramsey trusted, and they'll help you navigate these stormy waters. Our question of the day comes from Blinds.com. They have a 100% satisfaction guarantee. That means even if you mismeasure, you pick the wrong color. They'll remake your blinds for free. Free samples, free shipping, new promos they run every month.

You'll save even more. Use the promo code Ramsey to get the best deal. All right, today's question comes from Jose in Brazil. And Jose writes, I currently earn $45,000 to $50,000 a year working for a law firm, and I have some clients on the side. I'm debt-free, have a 12-month emergency fund, invest 20% of my income, and I live with my mother while I'm saving for a home down payment and to pay for a small wedding.

I have trouble spending money on myself. Consider myself generous, but when it comes to spending money on me, I'm paralyzed. I desperately need a new computer, but I worry about things on the news shows, so I save my money instead. It's like I always find an excuse to not spend money. Now I'm anxious about taking on a mortgage when i get married how can i get over this mental block i what do you think dave i got all kind of feelings um turn off the news shows there's one. Because they're skewing your view of the future. And they're just about all of them have turned

into the National Enquirer. I mean, case in point, the leading news stories on all the major networks, which used to be credible, is UFOs. So, I mean, the National Enquirer has now invaded every one of them um so i mean seriously we had a slow news day um or if you were biden and you wanted to throw something shiny out

and cause people look at it right quick let's just have a testimony before senate on ufos in case somebody would look at that instead of gas prices you know so um oh my gosh so anyway so i i know get away from that crap i remember this um person not specifically but from my days back working with law students and it was a very common sentiment that i think we can all have some sort of yeah i can see that which is a manic, powerful, I'm going to accomplish this so that I can get this so that I can get this so that when I get wherever it is I'm going, I'm finally going to go, ah, and this guy got, ah, and it doesn't exist because if you're not dealing with the underlying anxiety, which is this young man comes from

a situation where there was a lack of safety, I can guarantee you this young man comes from a situation where there was a lack of safety i can guarantee you this young man comes from a place where um relationships were something that were done to him they were not uh there was not engagement there i can guarantee you and he is trying to solve that rattling that goes on inside his body with this and with this and i'm going to double the emergency fund i'm going to invest even more i'm going to i'm going to get married i'm going to buy a house i'm going to have a computer i'm going to do clients and then i'm my clients on the side i'm going to do it all and here's what's happened you're just going to have a bigger collapse because at the end of the day you got to pay the piper which is you got to heal and so the getting it's not getting over this particular

mental block it's healing your body and it is healing your approach to how you do life. Now, some of the pushback I get on this, Dave, dude, there's a lot of problems in the world, and we need some really great attorneys out there, and we need some great innovative people that need to work really hard for over a long period of time. I want people to be ambitious, to work really hard, but I want people to know that that's not going to solve you healing and relationships and running hard can all be done at the same time well as you say in one of your talks winning does not make you well that's right so you can get on the super bowl and you still have to go home with you there you go and you you cross the finish line and then you look around go for what right for what and so Jose, here's what I want you to do,

man. Yes, you need to spend some money. And so right now you're gonna need some discipline. You're gonna have to change your identity. And we've talked about that. You have to change who you see yourself as right now. You see yourself as this frugal guy who's a planner and you got to change your identity,

brother. And you got to be somebody who is generous and who enjoys life. And you don't know how to do that. You got to be somebody who is generous and who enjoys life and you don't know how to do that you got to practice it and i want you to begin healing from this anxiety because this has been a long time coming my guess is living at home with mom may not be the best thing for you right now and so that may be step one of practicing this is getting your own place even paying rent which is going to slow down your down payment and i'm good with that but that's a lot of me reading to somebody that i've never talked to before what do you think dave yeah i'm reading in i mean i believe in hard work i believe in getting it i do pretty much yeah i do too i do pretty much everything wide open but i

have learned to get a little rhythm where there's some margin and i have a moment where i just sit and breathe and um i don't have to do it for two hours every day, but I have to do it every so often. I mean, Sunday is a good time as an example. There's a reason for a Sabbath, right? And so you need some rhythm where you just breathe, where you just sit and breathe, and not churn, churn, churn, churn, churn, churn, churn, churn, which means you don't have any screens in front of you while you're breathing. Screens don't help you breathe.

And news channels for sure don't help you breathe and uh news channels for sure don't help you breathe so but my time with you dave as hard as you run and i'm similar i love i love going hard i love going like i like just getting it done and get it done i've never got a sense from you that if i win over here and i increase my net worth that my employees are all going to be well my leadership team's going to be well, my leadership team is going to be great and my marriage is going to be perfect. You invest equally in I got to make sure we're having these conversations.

I got to make sure we say this again and we say it again and we say it again. We're training these people. So this is awesome and it's important and it's not the end all be all. There's a difference between frying yourself out and working hard. That's exactly.

I love that. That's what it comes down to. And it has to do with the margin and the rhythm and some Sabbath and the peace. You need to have a time where you consciously realize ever so often, and it's not once a year, but it's not once a day necessarily, but where you consciously breathe in and you just feel peace for a second, which means nothing's bothering you for a second. They'll be planning to bother you later. Don't worry about it. It'll come around.

But I mean, you just because that what that is, the things we're discovering is is that during the pandemic those of us that were doing business during the quarantines and the shutdowns and the economic disruption and the uh alien invader called fauci and all of these things i think he was actually why they were doing those alien testimonies before senate but um i think he's actually an alien but i'm gonna personally invite him but yeah but the uh but any i mean he does well anyway the uh in the middle of all that we you know we were like we're gonna get through this you know you know hold your breath grit your teeth push through we're gonna fight through we're gonna survive this thing we're not gonna lose everything you know we're gonna do what it takes we're gonna be proactive and and frenetic if we need to and what craig and i were talking about was it

just burnt everybody down to their last fuse there you go and instead of instead of just getting back to normal you have the before you can get back to any kind of version of normal you got to fill the tank back up because you drained it to nothing a bunch of us i was going to say you but i did yeah i did that too and i i so i spent you know i started talking to craig craig and i started talking about that about he's one of the best leaders i know one of the largest churches in america he's a wonderful pastor and we were talking about this just over dinner back about six or eight months ago and ever since then i went okay i got to make sure i'm filling the tank back up and just make a conscious effort because if you're just running on constant gear on gear with no oil you just fry

the thing out dude so that's what's going on here jose that'll help you do this that'll help you relax and then you'll spend money this is the ramsey show Dr. John Deloney, Ramsey Personality, number one best-selling author of the book Own Your Past, Change Your Future, is my co-host today. Heather's in Cincinnati. Hi, Heather. How are you? Hi. How are you? Better than I deserve. What's up? I wanted to call in and say I've accumulated debt over the years, and I'm over the age of 50, and I'm trying to get financial peace. But one of the holdups of me going through with your program is that I just feel like it's too late in my life to actually be able to pay off all my debt and then be able to accumulate enough money for retirement

oh absolutely you're completely ancient you're so old there's no chance you're gonna make it what are you talking about girl there's nothing in our stuff told you you were too old i'm 61 for god's sake i can still make that's old you're not old i just feel like we've got i've had so many things I did dangling on my life with debt that I've never been able to just get paid off, and I want to get paid off, and I want to be able to do it. That's most people. How much debt have you got?

How much do you owe? I've got about 85 in student loans, which my husband and I, my husband's 68, and then I have 12,000 in IRS and some car loans, and then we still have our mortgage. How much on car loans? I have just 15. I was trying to figure that out. About 24, I think.

Okay. And what's your household income? I'm sorry. It's 18. 18, I'm sorry. Household income, I bring in 90. My husband is retired, so he's bringing in about $1,500 a month plus $300 a week for a part-time job.

Okay, so he's bringing in about $30. Okay, so you've got like $120 to work with. You owe $85,000, $12,000 to the IRS, and $18,000. What kind of student loans does he have at 68 years old? We went through a bad time. He had a heart issue, and so we ended up going where he had to put him on suspension or whatever, and so they've just been sitting out there. But he went back to school late in life.

He went back around 55 to get his master's degree. What did he retire from? Facility management. Okay. Any chance he could go back to work? What did he retire from? Facility management. Okay. Any chance he could go back to work for two years? Is he physically able? Physically, probably, but just not mentally.

I don't think he would mentally want to do that. I didn't ask if he wanted to i don't care about what i don't want to be 85 000 in debt when i'm 68 years old and i got a 51 year old wife i'm getting really saddled with this mess yeah hey yeah heather how i i just got to. You are real, real close, if not already crossed over that line, from being frustrated and burned out to resentment, aren't you? Well, I don't know that I'm resentful. It's just I'm nervous that we've got a lot here that we need to pay off, and it's going to be difficult. It is, but you rolling this out and you making 90 000 and him making 30 and him finally he's not going to want

to all right so here's the deal okay you can do this on 110 and uh if we say 85 and 30 is... 120, huh? 125, right? Yeah. Okay. So how fast do you pay off 125 making 120? Well, if you lived on 60,000, you would do it in two years and some change. If you live on more than that, it's going to take you three years and some change.

But you're going to have no life for the next three years. My personal recommendation would be that Bubba go back to work during that time whether he wants to or not for two years and you guys clean it all up in two years and throw 50 000 bucks in the bank at the end of the three two years he's 70 you're 53 you're debt free with 50 grand in the bank but the faster you do this and the more harsh circumstances you put your life in so that you have extra money to throw at this meaning harsh meaning he goes back to work he didn't want to you guys have absolutely no freaking life i'm talking drop an atomic bomb on your lifestyle don't talk to me about going on vacation i'm retired well kiss my butt you're broke okay and so uh you know not a chance here you got to get after this and both of

you got to get after this and it sounds like he's emotionally in coast mode and you're in freak out worried mode you're ready to go frenetic on this and go crazy and you're afraid you're going to drag him that's what i think i'm hearing between the lines am i reading that wrong well he's agreed to do the program with me because i did talk to him about it he's agreed to do whatever until he found out the program and he was going back to work until he found that out we haven't talked about that that probably will change things in here. Well, if he gets really enthused about what this will do for you,

and he wants to do this as an offer of service to his wife, he'll find some energy to go do some of these things. I don't know exactly what that is. But he's got a master's degree, and I think he's got earning potential, and I think he's got a little gas left in the tank. and you're telling me that a lot of this mess is his uh or is related to him it's your all's mess because you're married both of you're into this but yeah that's what i would do so i can give you great hope to the extent that i can get both of you enthused, excited, on board, fired up so much that you're willing to sacrifice. And you put whatever you want to put in the bucket called sacrifice.

But sacrifice means the income goes up and the outgo goes down and the difference is thrown at this. And you can mathematically clean this up in two to three years. Prefer it to be two years with some money in the bank at the end of the story. So hang on. We're going to sign you up for financial peace university we'll show you couples just like you two that have done this time and time and time and time again do a little scrolling through the youtube uh debt-free screams and you'll find some couples just like you that are doing this just like him just like you just like the two of you uh and you know you can pull this off but he needs to hear your heart on how worried you are that he's going to die and leave you with this because that's under all this it's freaking you out and really it kind of should

be yeah i don't want you to be completely freaked out but i want you to be worried enough to do something about it i would love to see you go to a coffee shop by yourself and write down, what do I need right now? What do I need from my husband? And it might be that y'all have never sat down and had that direct of a conversation. And I need you to plug in on this because I need to be free from underneath all of this debt. And I think we're getting part of the story here, Dave, but you got an IRS here. This is a big, long, you've got heart attack, heart issues along the way.

There's been a lot of stuff going on here, man. And so I would love, love, love to see Heather. I'd love to see you write your needs down and then go sit down with your husband and say them out loud. Hang on. We'll pick up, and Austin will pick up in there and get you guys signed up for

ramsey plus for the financial peace university and get you going we'll try to help you call in anytime we'll walk with you but we're going to tell you the truth we're going to be blunt you can tell that all right william's with us in dallas hi william how are you i'm good sir good how are you better than i deserve how can we help um so i am in my wife and I have been working on your baby steps. I'm in a position where I can make a gigantic leap into a different job. I have interviewed for the job. He called me the same day I applied for it. I interviewed for it. He gave me pretty much a huge rundown of the whole company and everything like that.

And I've gone back up there and asked and just kind of stuck my head in his office and said, hey, I'm still interested if you you hear anything, let me know. That was two weeks ago. Oh, it's inside your current company. No, it's not inside my current company. So you just dropped in, stuck your head in his office? It was a small business? Yes, sir.

Okay. Approximately 15 people work there. Okay. Do it again, and this time ask him when he's planning to make a decision. Would it be better in person or email? In person. Person's always better. What date do you plan? Because otherwise, I need to know because if I need to look for something else, you tell me. It's okay. I just need to know what's going on. I don't want to pester you, but I want to be professional enough to follow up. And by what date

do you plan on doing this deal or not doing this deal and if it's not me just let me know it's okay and um you know he'll appreciate that directness of small business guy he's gotten too busy and he hadn't followed up and he's dropping the ball this is the ramsey show Thank you. Thanks for joining us, America. Dr. John Deloney, Ramsey Personality, is my co-host. Roxanne's in Portland. Hi, Roxanne. What's up? Hi, Dave.

I am doing pretty good. I'm calling with a question about Baby Step 4. My husband and I are just starting this part of our journey. And I'm wondering if I should max out my 401K or meet my match for my employer and max out my Roth IRAs as well. 401K available as a Roth? It's not a Roth. It's a traditional. Is it available as a Roth?

They don't offer that at your office? Correct. Okay. There's a rule of thumb, okay? Mathematically, match beats Roth beats traditional. Okay. So what that would tell you to do, I think, in your situation, are you married? I am.

Okay. So I would do my match. It still gets more complicated then because we're doing this as a household with both of your offerings, not just you as a single person because you're not a single person. So as a household, because you can, you know, name him as your beneficiary, he can name you as his beneficiary, what's yours is mine, and mine is yours in divorce court anyway when it comes to retirement accounts. So all that to say, you're perfectly safe and perfectly fine for it to be heavier

in one name or the other does he have a 401k he does not and he does not have access to one okay he is a business a small business owner perfect perfect okay does he have employees he does not okay very easy all right so he has a SEP available to him a simplified employeeplified Employee Pension Plan, or a simple IRA, which is a 401K for small business. And he has a traditional individual Roth IRA available to him. So rule of thumb, and all of those are available as Roths, by the way. So Roth beats traditional, but match beats everything so we take your total household income 15 of that total income is your baby step four contribution turn that into an actual dollar amount and let's

just make that up let's just call that 25 000 is 15 of your income what is your income by the way household between the two of us 120 000 gosh,000. Gosh, I got pretty close. Okay, so $17,000, $18,000. Okay. Is your 15% of your situation. All right, so let's call it 18. And how much is your match? My match is half of 6%, so 3%. 3%.

If you put in 6? Correct. Okay, so you're going to put in 6. What do you make? I make about $100,000. He makes $20,000 at his small business? It's not a – he plays music for a living. Not much.

He plays – anyway. I was going to say, I bet he plays a ton to still even make that much. He does. Yeah, yeah. Okay. So, a whole other discussion. All right. So, we're trying to get to 18,000.

You make 100,000. You're going to put in 6,000 in order to get that 3% match. All right? Okay. You follow me? Yep. All right. We're trying to get to 18, so we still need to do 12.

So if we did two Roth IRAs at six each, one in each of your names, you'd be fine. Great. That's exactly what I was thinking. Yeah. You would get there and sit down with a SmartVestor Pro, and they'll help you pick out some good mutual funds. We always recommend spreading your investing across four types of mutual funds, growth, growth and income, aggressive growth, and international. But, Dave, if you looked at the stock market, my 401k is a 201k. What is wrong with you?

Well, here's what's an interesting thing. CNBC just printed this out. Nearly 40% of investors who pulled money out of markets in the last year regretted it. Oh, so you figured out that when you pull money out of the market that it's a dumb idea because you usually pull it out when it's down so you bought high and sold low that's kind of the opposite of what you ought to be doing all right well the stock market is crashing dave don't you know yeah i do know i just pulled it up just a second ago let me just tell you what it says today let's see here today the stock market is down in the past 12 months day over day 12 exact months seven and a half percent that is not

crashing bitcoin is down 52 that is crashing that's a train wreck okay that's a train over the mountain in a black and white film wreck. Okay? But 7.5% is not your 401K became a 201K. You didn't lose all your money. Now, it's down from, let's see, the high points, January the 4th, it looks like 36,000, almost 37,000 Dow. And the Dow is down around 31 right now. So it's down more than 7.5% since January. But over the last 12 months, it's down 7.5%. That's not exactly a crash

it's not good i'd rather be up 17 i'm not happy about that but it's not exactly reason for you to panic time is the ultimate weapon when it comes to investing said matt schultz the chief credit analyst at lending tree gives younger investors a huge advantage over their older counterparts unfortunately however gen z and millennials risk squandering that advantage if they pull their money out of the market when times get tough. Let me just help you with this, Matt. All of you are stupid when you pull your money out of the market when it gets tough. You don't have to be Gen Z.

You can be 50, 60, 70 years old, and you just go, oh, God, and you sell low. That's just the worst possible time to sell it. Ride the wave. Trust that better times are ahead, this quote says, and I agree with that. Ride the wave. My quote always is, no one gets hurt on a roller coaster except those that jump off in the middle. But here's an interesting thing. Some 38% of investors said they sold stocks last year due to a current event like extreme inflation ukraine whatever according to a study from magnify money of that

group 40 so they wish they hadn't done it the online survey of more than 1 000 u.s consumers was conducted in a on april 15th and the other 60 just uh wouldn't admit it. Yeah, they haven't seen it. They still haven't looked at it. Here's an interesting thing with the fear that happens there. We've talked about this before where there's psychological studies done that say you have to gain $3 to feel

like you broke even with a $1 loss. Losses have more impact on your psychology than gain does. More negative impact than gain does right more negative impact than gain does positive impact and so in other words we all like you know we all are negative ninnies at our soul in some sense you know and so uh the thing that goes with that then is this idea that that um then they add a narrative to it when they get out that is hyperbole that's not true that's exactly okay so they say things like i'm back in 1987 black monday i lost everything in the stock market what do you what do you been listening to your grandfather from the Great Depression? You didn't lose everything.

The stock market didn't go to zero. You had the money in mutual funds, and it went down 25% in one day. But you didn't, it didn't go to zero. It was a cataclysmic event. It was not a good day, but it didn't go to zero. And so you didn't lose everything what happened was you pulled your money out at the bottom and you felt really stupid because you were stupid for doing that and then you had to make up this story that made it sound like the stock market is the villain

right and then you just got off on a lifeboat just in time yeah well and it was just a no it's not you don't put money in there because I lost everything back in the day. I had all my money and it got to zero. No, it didn't. It's mathematically impossible unless you had all your money in a single company and that company went completely broke and was liquidated and they had no assets and the Chapter 7 bankruptcy trustee couldn't sell the assets and get a dime because that would have been distributed to the stockholders. So, I mean, this is almost physically impossible for you to get absolutely zero. Now, I lost a lot, or I lost an amount that made me feel really scared. These are accurate statements.

But we have to add to this somehow to put a stake in the ground to somehow create a story to offset the fact that we know this was a bad idea that's right and nearly 70 of gen z investors pulled money 70 instead of 10 they have only known this bull run for the last few years and they don't know what even they don't know the roller coaster goes down ever right so here we are wait a minute it goes down too who knew exactly so write it out i. Write it out. This is exactly the wrong time to sell. Oh, by the way, the market's down. That means it's on sale. This is the time to buy.

It's not the time to sell. This is the Ramsey Show. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today.