The Ramsey Show - App - Should I Prepare for a Digital Currency? (Hour 3)

Episode Date: September 6, 2023

Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual, amazing relationships. Thank you for joining us. Jade Walsh, our Ramsey personality, is my co-host. The phone number is 888-825-5225. That's 888-825-5225. Karen is in Denver to start this hour.

Hi, Karen, how are you? I'm great, Dave and Jade. Thank you so much for taking my call. You're my two favorite personalities, so honored to be here and also a little bit nervous. Well, thank you. We won't tell the other ones. I might tell Ken. We might tell Ken.

Jade, and I love your term skinny fat because I totally identify with that financial aspect, not so much food. Yes, ma'am. How can we help you? Dave, I'm 62 and debt-free except for mortgages. I do have a rental property that's free and clear, and I know how you feel about selling those to get out of debt. If I sell this rental property, I will be close to debt-free, but I owe the IRS, when I sell that property, I've had it 20 years, I will owe the IRS about $65,000. So you've never really discussed kind of, you know, your thoughts on how your desire for us to become debt-free relates to making that big payment to the IRS.

Are you still good with go ahead, that thing pay the irs and be done probably uh but you know i always just try to figure out if there's another way to skin a cat rather than give the government money right my first goal the reason i want anybody to be debt free including me is it's the shortest distance to wealth right i get that and stability so it's not we don't what dave wants doesn't really matter but the you know where does it take you is what it what matters so let's get you there you're 62 you owe what on your current home um i owe um well i made another mistake i bought a uh property where i'm going to retire someday, and I know that's not something that you're fond of. So, but I owe $395 on that. The house I live in, I owe $40 on.

And then the other rental property, I owe zero on. It's free and clear. Okay. The house you owe $40 the house you owe 40 on's worth what uh it's about worth 425 okay and the house that you owe 395 on is located where it's in california it's worth 800 okay and and no one and no one lives in it once no one lives in it yes it's rented in it? Yes, it's rented. Oh, it's rented. Okay, so you have two rental properties. One of them you intend to retire in. Correct.

And when do you intend to retire? That all depends on how you help me with this question. Probably within two to three years. Okay. It'll be partial retirement. I'll never completely retire. I'm your age. I'm not ready to retire just yet.

Yeah, okay. That's fine. I'm trying to figure out the timing on this. No, I get it. So why California? Why Northern California? Actually, I have family there, and I would like to be near a body of water. I've been landlocked my entire life

and I'm also tired of the cold. Okay. So this is near the ocean? Correct. Like Sonoma or something like that? Oh, that's nice. Well, it's actually Southern California. Oh, Southern. I thought you said Northern. That's still very nice. Okay. I might have because I am a little nervous. That's okay. That's okay. Is it your work that's preventing you from... What's the... I'm sorry. Go ahead. I just...

Mike, I'm looking at these numbers. I'm like, okay, you want to be in Southern California. You've got a rental that's free and clear that you don't want to pay the IRS debt on. You've got a home worth $40,000 or that you owe $40,000 worth $425,000. You could sell now and move down there. Why don't you sell it now and go? If you could work there. That's what I'm getting at.

I'm self-employed as a realtor, so I would need to start a new business. Yeah, you don't have to start over. I see. That doesn't sound fun. Okay. All right. What's the rental worth? The one that I'm considering selling, I could probably sell it for $350-ish.

So you've got a million dollars in equity between these three. Right. It's just the scrambled eggs is driving us nuts. Okay. Right. these three right it's just the scrambled eggs is driving us nuts okay right and i and i'm just and how did you come up with a 65 000 gain did you have your tax person calculate that with your adjusted basis yeah yeah my cpa estimates about that's about what i'll owe because i've had it for 20 years and then that and my income i guess okay so the big okay concern number one is debt free is the shortest distance to wealth concern number two is when you retire a paid for property is essential to that you live in is essential for stability because it's your largest item and if

you retire at 65 years old and you live to 95 you've got 30 years of rent increases you know this is a real estate agent you do not want to be a renter you've got 30 years of rent increases you know this is a real estate agent you do not want to be a renter for the next 30 years or a have a mortgage you want a paid for piece of real estate that you live in at retirement so these are our goals so um you're going to sell this rental it's just a matter of when correct i'm going to sell it regardless because it's 40 years old and it's time to go back to the universe. So I would end up buying like a little condo or something. You're going to sell it when you move to California and you retire and you sell the house you live in.

Or you're going to sell it now and reduce the mortgage, pay off the low $40,000 mortgage and reduce the other mortgage, finish that California mortgage off when you retire and sell the house you live in, right? So it doesn't matter. You're going to sell sell this you're not going to keep it 25 years so you know it's just a matter of when you pay the 65 not if right good well i mean i could 1031 exchange it forever but i don't i'm tired of tenants toilets and trash quite frankly yeah and i and i don't and i want your i and I want your California house paid off, and it's not paid off with the sale of your personal residence. Right. Correct.

So I've got to get there, and so since I've got to get there, I've got to sell the rental now or when you retire and move to California. I'm catching on now. I'm seeing the scrambled eggs. Okay. So, yeah, go ahead and sell it just because you're going to sell it anyway. Okay. Don't give it away. There't give it away there's no rush there's no i was going to say if you don't pay off the 40 have you got enough in the bank to pay off your house no not right this moment you don't have 40 000 bucks laying around well i do but i knew it uncle sam it's for uncle sam

yeah it's your real estate it's your quarter lease but you don't have you don't have any you don't have any other non-retirement investments laying around you just knock your house out correct okay well then sell the rental pay off your house pay that pay the 65 throw the rest of it at the california then when you retire sell your house and pay your house off in california ain't bad. That gets us there. Yeah. Took a minute. It took a minute.

Part of me is like, okay, if she's still got two years, she could possibly let it accumulate a little bit more value for two years before she sells it right before she goes to California. I mean, it's not a lot, but I'm just saying. Yeah. Trying to get this money. That would work too. She's tired of it. Trying to get this money. That would work, too. She's tired of it. I'm tired of it.

She is tired of it. I'm tired of talking about it. Let it go. This is The Ramsey Show. Jade Walsh Hall, Ramsey Personality, is my co-host today. Hey today hey guys if you want to help us out we'd appreciate it you know we provide this show as a podcast as a youtube show as a radio show as a tbn show as a free service to you guys and we appreciate you hanging out with us we would also appreciate it if you would click subscribe or click follow or share the show just by telling someone about it or actually cut the link out, email it to your friend and go, hey, listen to this.

Or if your particular, whether it's Spotify or Apple or whatever, has Google Play, if they have a share feature, just click the share feature and you can share it. Sometimes it's that easy. Sometimes it's you're listening on talk radio and you say, hey, our local talk radio station has the Ramsey show. However you share it, we appreciate it. Our question of the day is brought to you by Neighborly, your hub for home services when you need to make repairs, schedule routine maintenance, or find local help for home improvement projects. Neighborly is your source for reliable home service providers in your area. Go to Neighborly.com to start your search.

All right. Today's question comes from Carolyn in Arizona. She says, when you have a company match, does that count towards your 15%? My husband's work has a 3% match. We invest 3% of his gross into an RSP, which I believe is a Canadian 401k, and the employer contributes 3%. Would you say that this is a 3% or a 6% contribution towards our 15%? That was a lot of numbers, but basically she's talking about, we say in baby step four, that is the time that we want you to start investing 15% of your gross income into your retirement.

Okay. At the core of this question, Carolyn, is don't ask how little can I invest? Because the more you invest, the more money you have. Ask how can I invest more? That's good. Don't try to figure out a way to do less. Figure out a way to do more. And then here's the other thing.

If you switch jobs, you might get to a job where there's no match or there's less match. You don't know what the future holds. And so I think it's always good to practice the muscle of investing 15% of your money. You invest 15% of your money, you'll become wealthy. The other gravy, you'll add to it. Yeah, that's going to be great. And that's the way to get at this. Good job. Good job. Nancy's in Chicago. Hi, Nancy. Welcome to the Ramsey Show.

Hello. Thank you for taking my call. Sure. What's up? Well, I want to know what you would suggest a person would do after the U.S. switches to a digital currency, what should people do who currently use cash as a budgeting tool? Well, the first thing is I'm going to suggest you quit me reading so many articles on the

internet, because the U.S. is not going to switch to a hundred percent digital that's that's the goal people that are trying to sell gold on fox news commercials that are telling you that that because there's not the u.s here's the thing nancy the u.. is about 95% digital now. Almost all of our transactions move a digit from one account to another now. If you write a check, it's a digit. It's not cash. If you use a debit card, it's a digit, not cash. If you have direct deposit from Social Security or direct deposit from your work, it's not cash.

It's a digit. Those are all digital transactions. If you buy a house and you wire money from your mutual fund to your closing attorney, it's a digit. Almost if you buy a car these days, I bought a car the other day, I wired money to the dealer. It's a digit. I didn't walk

over there with a suitcase of cash and so the vast majority of transactions 90 something percent of them probably nine north of 95 percent in the u.s are already digital but the is the u.s going to do away with the greenback and not in my lifetime or yours i sure hope you're right because i've been worrying about this is i'm a person that can't have a credit card because if i spend money just by swiping it doesn't register with me and it'll just evaporate now i'm a person that has a redneck emergency fund in my front pocket it's a thousand bucks and one hundred dollar bills i've carried it most of my life in my wallet and so I'm with you. I'm a cash dude.

And I'm not above walking up and actually making somebody learn how to make change for the first time at the register all day. And so I'm that guy. So I'm right with you. But I truly don't think we're going to do away with currency. currency and most of what you're reading has a fear factor to get you to buy gold or it is some kind of conspiracy theory stuff on uh bricks or any of these other things that are going around just to make us worry that the entire u.s economy is so fragile that it's going to collapse because russia which isn't their economy is hardly the size of Texas is, is gonna do something. Russia's not gonna do spit.

They don't have the muscle to, they can't even feed their own people. And so, you know, it just, Nancy, whatever it is that you're reading, that's causing you to worry,

quit reading it. Scary. It is scary. I, you know, I know people have different thoughts around all of that, but then there's parts of me that I think about, there's so many things that have happened throughout history that we,

who are used to those things, we look at this and go, yeah, it's just part of life. But as it was occurring, people were probably like, oh my gosh, this is crazy. I mean, cars, the cars that we have today, there was a time where that wasn't a thing. Flying airplanes, like all of those things, you could look back and go, oh my gosh, there was a time when this wasn't a thing. And maybe, who knows, in the next lifetime, the next generation, they will live in a different sort of currency. But we already have. We already are.

I mean, you think about when I was a kid, the number of checks we wrote. Yeah, you don't do that anymore. The number of times you write, you see someone write that anymore i i in the number of times you write you see someone write a check at the grocery store yeah yeah today i don't do they even take you're much more likely to see them using cash yeah but my point is we've adapted and that's that stuff is a slow burn and before you know it you look up and you go oh yeah we live lives our lives in a totally different way um yeah i just think there's something to be said for that innocent version the the the malevolent version uh the the love i can't say the evil version is that there's a conspiracy that the u.s is going to control the all the digits and therefore they're going to

control your life well they already do have all the digits yeah and they don't control your life with those digits and so so the question is not the digits being allowed to control your life digital money because when you use your apple phone or when you use a credit card or a debit card or you transfer money any other way uh ach or anything else it's all digits when you do that, they already have all of that. That's all available. And so far, they've not used that to steal our freedoms. No, not yet. But there's a commercial I heard the other day, and then I saw a different thing, a write-up

that when the U.S. goes digital, you are not going to do transactions. And if they want to cancel you because they don't like your faith or they don't like whatever, they can just turn off your ability to do business as if it's like the mark of the beast or something in Revelation. Okay. And it's just, I'm sorry, folks, you know, there may be a mark of the beast someday, but this one's not it. There was a whole thing going around for years that the credit card was the mark of the beast.

Oh, yeah. You had to have a credit card to do a transaction. And then the last one was with the fouchy quarantine yeah they had the uh the vaccine passport yes it was that was going to be the mark of the beast and at one point it was when your face i'm getting old i've seen a lot of beasts with marks when your iphone scans your face to let you into the phone it's like they're gonna scan your eyeball yeah and that's gonna be yeah now they got your eyeball yeah so i mean it's it's every and just don't get rachel nancy i'm glad you didn't call when rachel cruz was here because she's the conspiracy theorist extraordinaire and um she would have joined you in this but no we're i'm not gonna join you so i'm gonna tell

you honey don't worry i'm not worried i'm not. I got big old piles of cash, and I'm not worried about it going out of style. Like real, actual greenbacks. So there we go. Yeah, you're going to be fine. You're going to be fine. And gold doesn't solve this, by the way, because there's never been a failed economy or a government takeover when people exchanged gold bars. I'm going to run down to Walmart with my gold bar since the economy failed,

and I'm going to get me some blue jeans. It's just not going to happen, boys and girls. Not going to happen. Okay? You can't find a, since the Roman Empire, a modern-day economy in the last 400, 300 years that used actual gold as a medium of exchange exclusively. So these guys telling you to buy gold because that's what one of the commercials was on the digits. Yeah.

Because Americans are going digital and you need gold. It's the latest fear to buy gold crap. Don't do it. This is The Ramsey Show. Jade Warshall Ramsey personality is my co-host today. I'm Dave Ramsey, your host. Thank you for being with us. Kim is in Jacksonville, Florida.

Hi, Kim. Welcome to The Ramsey Show. Hi, Dave. Hi, Jade. Thank you so much for taking my call. Sure. And thank you for all your work, Kim. Welcome to the Ramsey Show. Hi, Dave. Hi, Jay. Thank you so much for taking my call. And thank you for all your work, Dave. It's changed everything for me. But my question is, I sold my house, I downsized and bought a townhouse for me and my daughters, and I was only short about $16,000. So instead of taking a mortgage, I just took a line of credit against my car

since it was a lower interest rate and it was only sixteen thousand. So now I don't know because it's my last debt. Should I tackle this like it's baby step number two and clear out my emergency fund? Or should I look at it like it's my mortgage even though technically my mortgage is paid for and continue on the baby steps because I'm on baby step four currently if I go that route I would tackle it as baby step two what do you have yeah because what else do you owe on the car you tack the 16k to your car that was all the car was paid for yeah the card was paid for so your only debt in the whole world is sixteen thousand dollars do you have it do you have it laying around anywhere well it's in my savings account but that's my oh actually only

i borrowed 16 but now i've been paying it for the last five months aggressively so i only owe eleven thousand dollars how much is in your emergency fund seventeen thousand pay it off today and just stack back up that savings yeah i agree with jade what's your income okay um well i just got a raise so i'm up to fifty seven thousand okay so you'll aggressively rebuild the five thousand six thousand back up to a good emergency fund within just a couple of months okay that's what i was thinking i mean i was ready i called the bank i asked my lady i'm like hey i think i'm ready to pay it off and then i thought well maybe i should you know keep that emergency and work at you know baby step number four because i'm not at 15 right now um so yeah that's why i wanted to call i wanted

if it was if it was you know a little bit more money or something, I might slow down and make it six or something. But I think there's a tremendous amount to be said for cleanliness. Okay. I like that. This is just clean. Your life is very clean. You are baby step seven. Now we just rock and roll on the investments as soon as we get the emergency fund done, right?

Right, right. Because I'm only at like four or five percent right now with investments. rock and roll on the investments as soon as we get the emergency fund done right right right get that and because i'm only at like four or five percent right now with investments so i have to i have to work on that so you're on jack that as high as you can possibly jack it after you get the house paid off the emergency fund in place okay okay all right thank you so very much i appreciate it thank you we appreciate you calling that calling. That was good. That was good. She kind of just jumped back a step. She'll do two, three, and four, and on to the races. Not sure I would have done it that way, but now that we're there, that's the plan. Jared is in Minnesota.

Hi, Jared. How are you? Hey, Dave. How are you? How can we help? Yeah. My wife and I are going to be expecting a baby in March. Congratulations.

Thank you. We are trying to find something a little bit more suitable for living. And with the high costs of rent, we were thinking about potentially getting a house so that the mortgage is usually roughly about the same or a little less. Do you guys have any debt? Yeah I'm currently a student I'm in my last year of school and I've had to pay my way through and I'm about 61 in student loans and then she had a car that she had bought after she graduated a few years ago, which is at 18.

What's your degree in? My degree is math education. What are you going to do, teach? Yep. Okay. What will a math teacher make? Usually starting, it depends on the school district,

anywhere from 40 to 50. What about your wife? She currently makes 51. Okay. And she's done with school. Yeah, she's done with school and she's, she's working currently. And what is her profession? Uh, art teacher. So a couple of teachers teachers okay um look congratulations on the baby coming i'm excited for you guys i want you to have a house i want you to have all those things but i

want you to have them the right way so they don't have you right um so first first things first hey i'm just gonna walk the baby steps on this are you familiar with that at all a little bit okay so this is going to be the fastest as dave would say the cleanest way uh-huh for you to not only pay off your debt save up the money you need and eventually build wealth so there's a framework here um it it involves paying off your debt first before purchasing a home. And the reason for that is a, your income right now is tied up in your student. It's going to be tied up in your student loans. It's tied up in your car.

And we want to free that up so that you're able to save the down payment. You want, you're able to get the house that you truly want. Right. Makes sense. Yeah. Rent is a great deal. Short term.

It's a horrible deal long term. So I agree with you. You don't want to do it long term, but short term, if you buy a house with this much debt, you have to buy an extra bedroom for Sally Mae because she's still living with you. And you need to kick the old woman out for you by a house because it's going to strain you. Heat and air will go out. The water heater will go out and the roof will leak the first week you move in this house with a bunch of debt.

Don't do that. You're going to get yourself in a pinch. You're a broke college student, brand new married, brand new baby on the way. You're at the broke end of life. Do you have any money saved? It's the most broke you'll ever be right now. It'll be nothing but better from here. You'll have better incomes

from here a better situation from here so renting for the next little while uh is the babies don't take up much room they're small and renting for a little while while you guys get your mess cleaned up that you've made and then have a solid foundation to buy the home will be a blessing for you and not a curse if you'll do that. It is not popular among your friends for me to tell you that, but I don't really care what your friends think. They're broke. And you don't want to take financial advice from broke people. So the risk that you are adding mathematically to your life by adding a house to a new baby and to a big old pile of debt.

This spells stress, anxiety, problems in relationships. Don't do it. Please keep your life calm and simple. Get out. Both of you get a job. Both of you work your tail off. Smile about the time that we had to eat broke people food and drive broke people cars. And you'll remember that. Sharon and I had those days. Jade and Sam had those days.

When you're first getting married, that's the normal thing. That's right. And by the way, if you're sitting on a big chunk of money because you have money from the wedding or money from graduation, throw it at the debt. Throw it at the debt. Clean it up. List your debts, smallest to largest, and dump them in that area. We'll give you a baby gift. Financial Peace University, we're going to give your baby a gift. We're going to teach his mama and daddy how to handle money. And if you'll follow the stuff I teach you and that Rachel and George and Deloney teach

you in Financial Peace University, you will become wealthy. If you don't follow it, you will stump your toe, stumble and struggle and look like most people looking good and broke and buying crap. You can't afford money. You don't have to impress people you don't even really like. And so it is a normal good dad unction to go buy your new child a home. Thank you for being a good dad. Dad unction to go buy your new child a home. Thank you for being a good dad.

But you're going to resist that in order to be a great dad. That's right. And a dad that delays pleasure. Children do what feels good. Adults devise a plan and follow it. So hang on. We'll get you guys signed up for Financial Peace University. And you two go through that together as a young married couple.

It'll be the best thing you've ever done i promise you and if you don't i'll give you all your money back oh wait a minute you didn't pay for it so there you go i'll take some of that money back that was our old back in the day we had financial peace university we had a money. We said, if you go to all nine classes, you won't want your money back. If you don't go to all nine classes, we won't give you your money back. But if you'll go to all nine classes, you won't ever ask for a refund. And never had a single person ask for a refund. So there you go. That's good. That's a great class. Yeah, you just got to prove attendance in all nine classes and that you hated it and that we ripped you off. Nah, nobody ever got mad at anybody for getting them out of debt.

Didn't happen. That's right. Too much fun. This is the Ramsey Show. Our scripture of the day, James 1, 4. Let perseverance finish its work so that you may be mature and complete, not lacking anything. Ann Sullivan said, people seldom see the halting and painful steps by which the most insignificant success is achieved. Love it.

Gina is with us in San Antonio. Hi, Gina. Welcome to The Ramsey Show. Hi, Dave. Thank you so much for having me. My honor. How can we help? Long-time listener, big fan. So I have been married 19 years, 55 years old. I am going through a divorce. We're probably towards the end of, unfortunately, a pretty contentious divorce. We have been blessed with a lot of assets and a very good income. And my question is, you know, because I was not in charge of our finances when we were married.

My former husband handled all that, and I have to say he did a great job. My question is, what debt should I prioritize to pay off once the divorce is final oh my i'm sorry that's really hard well a friend of mine that does divorce counseling says that divorce turns a marriage into a business transaction and so first and foremost let me me clarify what you're going to end up with and why. Who's taking the home? Our primary home has already been sold, and we've each already purchased new homes. Okay, good. That's good news.

So that got rid of that problem. Is there any co-debt that both of you are on? Yes, sir. We have three investment homes that have 50% equity. We have a SBA loan that we had to take out during COVID of $150,000. And we have a vehicle that we owe about $26,000 that my former husband will be taking. Okay. The divorce court does not have the power to remove you from those debts. It has the power to assign the debts to one of you. But let's say your husband's taking the car,

it has your name on the debt. If he doesn't pay it, it comes back on you. Okay. So you have what's called a contingent liability as if you co-signed on those. So all of those debts that you mentioned are real concerning because I got a feeling the SBA loan is a business loan, obviously, and he's probably running that business, it sounds like. We actually are both 50-50 owners on our business.

We have a business together as well. There's a lot of pieces. It's a big web, which is why this has been going on since January. So what's happening with the business? Who's going to end up with it? Well, he's going to maintain that business, that LLC. We are in the same business in the meetings and events business, and we each have our own clients. He'll maintain the LLC that's in existence, and I will establish a new

one. Okay, and you'll take your clients and go on with your life. Okay, that the SBA loan is in both of your names. Yes, sir. Now, he's offered to take it, the debt, but I don't know exactly how, like you said, I'm not really protected. Same thing. It has your name on it. He can take it, but if he doesn't refinance it and get your name off of it and doesn't pay it for some reason, let's say he gets in trouble in business or gets an IRS lien or something that even he didn't see coming, okay? You're going to end up holding the bag on these investment properties this sba loan this car if he's supposed to take them unquote quote unquote

so um and divorce attorneys don't do a good job of explaining that to people so they oftentimes oftentimes just split things up and they go well he's got the car and i got this investment house and he's still on the investment house that you got you know and uh he still got you know if you screw it up he's he's baked then so uh you said there's a lot of assets yeah what kind of cash do you guys yeah really well um so we we did make a nice proceeds from the sale of our primary home. We split those. That was about $328,000 each. Okay. So those monies were split and they were, there's a legal word for them, partitioned.

Okay. So normally the lawyers advise not to buy new homes in the middle of a divorce, right? It becomes community property. But we signed documents that the funds were partitioned. Of that $328,000, the loan I was able to get by just barely only allowed me to put down $140,000. So I still have the rest of that cash untouched in a bank account that I would like to put down towards my current home. I also received a large inheritance. Unfortunately, it's been a heck of a couple of years.

Both my parents passed in the last two years. Sorry about that. Yeah. That's tough. I received an inheritance of $528,000, and it's in a separate account as well, untouched. It's just been sitting there. Let me propose something really weird. It may throw a monkey wrench in the middle of your negotiations.

I would propose selling the three rental houses, paying off the SBA, and paying off the house and splitting the cash. I love that. Paying off the car, I'm sorry. Paying off the car, paying off the SBA loan, getting rid of the three rentals, and then you just walk away with a pile of cash, he walks away with a pile of cash. Yeah, because what would have been the plan with the rentals? That you each just get a piece of it?

I'm guessing you guys were getting ready to split those up, weren't you? Yeah, now we keep dancing around like how's this going to work, and we can only remove each other from title. Exactly, that's what I'm talking about. You can get off a title, but you can't get off the mortgage. Same thing with a stupid SBA loan. You can go open your own LLC, but you're still on the stupid loan for $175K. Cleanliness.

Here it is again. That's been the theme. I think you're both setting up a very sad reason, but you're both setting up a new dream. Your 20-year-from-now future is a completely different picture than it was five years ago. Right. And it doesn't involve an SBA loan, and it doesn't involve him having a car payment with your name on it, and it doesn't involve three rental houses. The only way I would keep those rental properties is if you refinanced them and got each other's names off of them

okay it's because it's gonna bite you i've done that i've done this for 30 years it's gonna come back and bite you it may be 10 years it may be uh five years from now you want to remarry and y'all want to do something and this stupid SBA loan has got your name on it. And it keeps you and your new husband from getting a house. Yeah, this is going to, as long as you keep all this around, it's going to keep each of you from having the fresh start that you want. Yeah, that you need. It's your best shot at healing is the complete separation.

So I don't know if I can talk you guys and the lawyers into this, but man, if it was me, I would want to be, you know, shake the dust off my feet, man. I'd want to be clear. A couple of stupid rental houses to be done with the SBA loan, the car loan and him. Yeah, that's not. And you get all the cash. You get your half of the cash net. Hey, it's kind of a no-brainer.

Then the only thing we've got to split is the 401Ks or whatever's laying out there. There's nothing else left. Y'all already split the home. Right, right. You're going to end up walking away with over a million dollars cash in a debt-free house you're living in. Well, I would pay this house off, so that's my next question. Yeah, you'd pay that house off.

But you've got $528,000 laying there now. You could do that. paid this house off so that's my next question yeah yeah you pay that house off but you got 528 000 laying there now you could do that and you've got another 200 000 almost laying there from the from the partition and you got the equities from the rentals i don't even know what they are minus the debts i mean the prices of the rentals minus the debts minus the taxes due because of the sale minus the sBA loan minus paying off his car. And then the only thing left is divide up that cash and the 401ks against each other. Yeah, that ain't bad. And it's just, it's clean walking. And if you want to buy some rentals, you know, after you've finished crying and being mad

and all the stuff that goes with this. Get her own. Then go get you a rental later. But who, you know know you got plenty of money you're both going to walk out of this millionaire as i'm guessing that's what it sounds like and uh i know you are for sure with the inheritance uh and you know and you've got a good client base you're confident in your your career steps you know you got a good solid place for healing and a fresh start i'm so sorry but man that's a lot of loss i really

wouldn't try to keep my finances in the past while i'm trying to live a future i don't know why the lawyers wouldn't suggest that are they just bozos or they don't take into consideration these contingent liabilities because they don't have to deal with it five years from now i do when they come to me yeah i gotta deal with it when it screws up and go sideways. That puts us out of the 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, what's up, guys? It's Jade.

Look, if you like what you heard in this episode and want to know more about getting started on the Ramsey Baby Steps, go to ramseysolutions.com and click the Get Started button. We'll help you figure out the best next step for you based on your specific situation. That's ramseysolutions.com and click Get Started.