The Ramsey Show - App - Should I Pursue Child Support? (Hour 2)

Episode Date: May 18, 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. My co-host this day on the Dave Ramsey Show is Chris Hogan, number one best-selling author and Ramsey personality. Jump in, and Chris and I will be happy to help you with your money and life questions.

The phone number is 888-825-5225. That's 888-825-5225. Let's start with Austin in Florida this hour. Hey, Austin, welcome to the Dave Ramsey Show. How can Chris and I help? Dave and Chris, thank you guys for taking my call today. Sure. My question is, me and my wife, we're in Baby Step 2,

and we have $50,000 in debt. Also, we have about five credit cards in collections. One of those was Bank of America, which they actually sued us about two months ago for the full amount. And when they came to us, we tried to negotiate, but it was actually their lawyers. We tried to negotiate, but they said it's too late. We're asking for the full amount. They even summed us. Sheriff came to our house, gave us the papers. We have four other credit cards in the collections, and my question is, should we tackle them so that we can negotiate or continue on our regular baby step two debts that are good? How much do you owe B of A?

$3,400. And what's your household income? $100,000. Okay. All right. And what is the rest of the debt? You've got four credit cards, and what else on $60,000? We have student loans that are approximately $30,000. We have a car loan for $12,000.

And we actually just settled with the timeshare exit team. We got out of our timeshare. Good. But we're having to pay them approximately, I think we have $10,000 left. So we got a payment plan with them to complete that process. Okay, good, but you've got an end to that mess. So they're bad news. Okay, so the sheriff came and served you with a court order

or gave you a date, right? Yes, which has actually been extended because of the coded right so when is when is the date the new date i believe is uh june 15th um but we thankfully we we got our stimulus check which is exactly what we needed for it so we put that in savings um i've tried to contact a lawyer to pay them but they're unavailable just due to the virus. Don't pay them. Don't pay them. At all?

Nope. I would show up down there on June 15th and meet with the attorney, and they will settle it on the spot with you. And you'll get it for 50 cents on the dollar, 20 cents on the dollar. Okay. That was unexpected yeah yeah you're broke you don't have any money um and you know you don't have the money to pay this in full that's why you were offering them a settlement for god's sakes that's why it's in collection to start with and um here's what happens you're dealing when you're dealing with bank of america to start with you're dealing with satan but um did i say that out loud but anyway the um but the uh you

know when you go when you're dealing with their attorneys in collections you are a widget in a factory that churns out 5,000 widgets a minute all day long. So there's absolutely no, you got no attention at all when you tried to work with them before. You were probably dealing with a 26-year-old paralegal at best. Okay? there what you're going to find is the attorney has a two-wheeler with boxes of cases that are going before the judge all at once that day they're rolling the widgets off the end of the assembly line and you're one of them when you actually show up in person it is so completely shocking to them that they cannot emotionally deal with it and then just stand up before the judge and tell the judge i offered them a settlement to them that they cannot emotionally deal with it.

And then just stand up before the judge and tell the judge, I offered them a settlement if they won't settle. But he'll settle before. You just find the little character, and he'll be running around. He'll be highly unimpressive because he can't get a good job, right? And, you know, his little mustache will be going up and down with cookie crumbs in it or something, right? I'm telling you, you're going to be so underwhelmed. You ever been to traffic court?

Oh, yeah. Like for a speeding ticket? You remember when you went and you thought it was a big deal, and then when you got down there, it's almost like something on a Saturday Night Live skit. You remember that? That's what the emotional part with me, too, is, you know, going to court for something. Well, that's my point. When you went to traffic court, though, you were all jacked up about it but when you got down there it

was almost funny wasn't it the way it all went down it was quick too do what it was quick too it was very quick and it was just like it was automatic and the judge goes oh you want to go to school or you want to pay the ticket if you go to school it, it comes off your insurance. You go, school, your honor. Everybody says, school, your honor, right? And you run through the school. You know how it works. And so this is about the same thing. This is a traffic ticket world.

And nobody comes. You'll probably be the only one there. Yeah. Austin, they see you as an account number and a dollar amount. And so for you to go down there and to be firm and to be clear what it is is now you're putting a name to your to your account number but just you know give them payment that you have proof of payment has been made if you cut a deal and then he has to give it to you in writing that it is settled or an agreed order will be fine before

the judge give enter an agreed order that they agree to accept a thousand dollars for this 3400 and you can take cash if you want i don't care but he needs to give you a receipt so for the other four same thing just continue just continue to work them over the phone like you work these guys i'm surprised you weren't unsuccessful over the phone as you were but you're dealing with bank of america and they're just a complete pain in the butt. Well, as they've put such a small dollar amount. I can't believe they're being hard-bought. Seriously. It's so standard in the credit industry when something gets all the way to court like this

that something under $10,000 is settled for about 15 to 20 cents on the dollar. Yeah. It's done every day. Well, and I want everyone out there to know, sometimes if that debt gets shifted to a collection company, that may not be a bad thing. Yeah. Because you get an opportunity now to deal collection company, that may not be a bad thing. Yeah. Because you get an opportunity now to deal with some people that may talk with you and work with you. Just make sure that they're documenting your account, that you write down the name and number of who it is you're speaking with.

They may tell you their name is Bob. That's not their name because they're going to have 17 different accents. I had one used to call me was Mrs. Savage. And another one was Baskerville, like the hounds of. Yeah. That's being creative. They make up pseudonyms yeah to be intense savage she's savage the bounds of baskerville are after you dev once i caught on to how the stupid business works it got to be humorous because they can't play with

your emotions well yeah because i was scared out of my brain. I didn't know. I thought I was some kind of deadbeat, and I wasn't. I was just a guy who screwed up. So clean it up, dude. You can go down there if you want. If you want to just write them a check, you can write them a check. But I think it's a little bit of an adventure. I think it's probably worth a couple grand to you if you go down there and sit down and meet the guy with the cookie crumbs and his mustache.

I promise you, you're going to find a highly unimpressive individual because they could not get a job doing something else, so they're doing small $3,400 credit card suits for Bank of America. Good Lord, that's the bottom of the barrel. This is The Dave Ramsey Show. Business leaders now more than ever, we need people with the right skills to support our communities, especially the frontline workers who provide resources and care for those most in need. To help, LinkedIn is offering free job posts for healthcare and essential service organizations that need to quickly fill critical roles with the people who help us all.

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LinkedIn.com slash ramsey. Terms and conditions apply. Danielle is with us in California. Hey, Danielle, what's up? Hi, how are you? Great. How can Kristen I help? My question is, should my boyfriend and I wait to get married until this coronavirus clears up, or should we just go for it? Okay, Danielle. What is your gut right now telling you?

I would like my family and friends there, but we've been together for about six years now. And it's still something that we've constantly been pushing off. And it's hard to say when this thing will actually clear up. So I don't know if it's another excuse to keep putting it off or how old are you um i'm 25 and my boyfriend is uh 34 okay well you know obviously this is a very personal decision and you called uh mistakenly to ask chris and i about something we know nothing about. And so the only answer that I can give you is a Papa Dave answer. As the dad of three kids that are slightly older than you, but ever so slightly, if my daughter asks me this exact question, that's the only way I know how to answer it,

but it's certainly not based on any level of expertise. You understand that, right? Yes, sir. Okay. All right. I'd get married tomorrow. And then I would have a celebration after COVID clears up or California opens up, or I would move to a state where I could have a celebration or something. I don't know.

But do that. You know, you can delay the celebration. That's right. You've delayed the marriage six years, so this is not like this is a hardcore traditional path you have been on. Agreed? Yes, sir. Okay.

So I don't know what changes about that. So, I mean, you've been acting like you've been married for a long time. Might as well make it legal, right? Yeah, that's been holding us back from financial involvement as well, and it's been causing problems, not living together and such. Well, you need to make sure those are cleared up, that upon marriage, that we're in agreement that this is how we're going to go forward with the financial part, okay? But if you're in agreement on how we're going to handle money together going forward upon marriage,

in that case, it's time. Yeah. Dave, I'm surprised because surprised because you know you're significantly older than danielle and i um and i was notice how i put that you're significantly balder than me too so oh my god but listen unbelievable listen i agree look at the bus tracks we you could definitely go see the Justice of the Peace. Go ahead and get married. You can go see the preacher.

Yeah, get it done, and you can do a celebration with the family another time. So why are you surprised at me? No, I'm just shocked. What did you think Papa Dave was going to tell her? Wait 10 years? I thought you were going to tell her at least wait a little longer so the whole family could be there. The traditionalist you are. Well, I am, but they've been living together six years.

The whole family's already been there. Yeah, that's true. Good point. Everybody's already met everybody by now, brother. Go get it done. Might as well just make this thing happen. But again, you just asked two people who you should not have asked that question. That's true.

That's like calling and asking us hair care tips. That's not a wise decision i mean what razor do you use oh michelle is with us in wisconsin hey michelle help us please how can we help hi david Dave and Chris. Thanks for taking my call. Sure. I have a retirement 401k, 403b question. I've been following you for about five years, but I think I know the answer. I even coordinate FPU. But here's my question. I recently switched jobs, and I called my new 401k company

and broached the subject of rolling over my 403b jobs and I called my new 401k company and, um, burst the subject of rolling over my 403b into a 401k all Roth. Um, and he strongly advised me against it because of the, the state of the markets. And I said, well, my understanding is it's a one for one I'm selling and I'm moving into a new one. So there should be little to no impact. His explanation went in circles. So he doesn't know what he's talking about.

You've got it figured out more than he does. Yeah, Michelle, you're right. I know I have to roll my 401K. I wouldn't roll your 403B into a 401K, though. I would roll it to an wouldn't roll your 403b into a 401k though i would roll it to an ira that that's my question because he left me feeling like i didn't know what i was talking about and he didn't do a good job of telling me why he was right and i was wrong um i really don't want to put my funds there is it feasible for me to fully fund two ross one for my husband one for myself and just invest my match through my current company

and do everything else through smart investor pro and but take your old 403b and roll that to an ira as well yeah that's that's what the that i had been talking with an investor and he recommended the same thing yeah well the reason is real simple. Number one, you don't have to deal with HR, and you don't have to go through your company to do your investing and handle your investing. But number two, you've got more options in the open market when you're dealing with a smart investor pro. So we always tell folks to take your retirement with you when you leave, if you can, by virtue of a direct transfer rollover into an IRA. And that's not coming directly to you. That's going into the IRA, so you're not cashing it out.

You're not tapping Uncle Sam on the shoulder. Michelle, thank you, number one, for reaching out and trusting us, but for helping other people as a coordinator of Financial Peace. This is an opportunity to really help other people start to get those basic questions answered so they can gain confidence so we really appreciate you and all the other coordinators out there the best part about michelle is what's that she trusted herself yeah he's talking in circles i think i know what i'm talking about he couldn't teach me where I was wrong. Right. So she says, talk to the hand. Yeah.

I'm out of here. Yep. And that's what we teach. Yeah. That's the most important thing. Even if you don't call Dave and Chris to get the nuanced detail on what to do with this stuff, you go, if I don't understand it and you can't help me understand it, that means you're not my guy. That's right.

If you don't have the heart of a teacher, if you don't know how to land the dadgum plane, all you know how to do is circle the airport, and you just yip, yip, yip, yip, yip, yip, yip, yip, in a self-important dadgum tone, the way these characters do. And it's the dadgum financial world, man. It is. It really is. There are crazier beings out there. There really are.

So you have to find someone in the financial world, and they're fairly rare. There's only about 15% is my estimate, and that's a made-up estimate, but it's pretty close. About 15% of the people in the financial world have they're fairly rare there's only about 15 is my estimate and that's a made-up estimate but it's pretty close um about 15 of the people in the financial world have the heart of a teacher the rest of them are like that guy they're self-important arrogant don't know what the flip they're doing and they can't land the plane because they don't even know where the runway is that's exactly right and heart of the teacher means that they care enough they're trying to help you get to your goal they're not just trying to use fancy words to try to sell you that's a salesperson the person with the heart of a teacher is trying to help you get to your goal. They're not just trying to use fancy words to try to sell you. That's a salesperson.

The person with the heart of a teacher is trying to guide you. Well, this guy was more concerned about being right than he was about her understanding. No, he didn't care about her. And he's not right, by the way. So, Michelle, proud of you. Yeah, that's it. Thanks for calling in. You trust your instincts because what we teach you is don't put money in something you don't understand

and don't work with people that don't have the heart of a teacher. And that's what, in both cases, she couldn't understand his point because he couldn't make it. It was wrong. But then also, he didn't have the heart of a teacher because obviously he couldn't teach her the stuff. So it's the wrong guy. Yes, he felt it.

I feel like I need a shower after I get off the phone. That's how you know you got the wrong guy. We've all had interactions with that guy or that gal. Slimed. Just talking. Ghostbusters. 90 miles a minute. You remember the movie Ghostbusters when you're slimed?

That's what it feels like when you're in a meeting with one of those bozos. Coming out going, yuck. Things just all over me. It's a poltergeist. Yuck. This is a poltergeist. Yuck. This is the Dave Ramsey Show. So so Folks, I love telling you about well-made, well-thought-out products. Today, I'm talking about Grip6 belts.

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Hey, guys, how are you? Doing good, Dave. How about you? Better than I deserve. Welcome. Where do you guys live? We're from Somerville, South Carolina, just outside of Charleston. Absolutely. Know it well. Well, welcome to Nashville. Charleston opening up a little bit. A little bit. Getting there.

Okay. Well, good. Well, welcome up here. We appreciate having you. All the way up here to do a debt-free scream how much have you paid off we paid off two hundred and twelve thousand dollars wow how long did this take two years and eleven months good for you guys excellent and your range of income during that time uh we started out at 126 000 and we finished at 170 000 all right love about 20,000 of that each year was side hustles good for you what do you guys do for a living i'm a high school teacher and i'm a civil side work estimator great what was the side hustle uh well we did the best one the best one uh probably uber eats doordash postmates um just because it's an ease of using. If I decided I wanted to work now, I could turn it on.

If I decided in five minutes I wanted to be done, I could turn it back off. Okay. So what made you the most money as a side hustle? I think it was our embroidery and vinyl work. We started a side business doing T-shirts, embroidery, vinyl decals for your cars, for houses, business logos. And that brought in somewhere between $15,000 to $16,000 a year. Good for you. Wow.

Excellent job. Very, very neat. So you guys got serious about this. Oh, yeah. I mean, so the $212,000, what did you pay off? We paid off about $110,000, $112,000 in student loans. We had $31,000 in solar panels. We had $62,000 in cars, and then the rest was credit cards. $7,000 credit cards. Okay. Did you sell anything big?

Nope. Didn't sell anything. Just plugged right through in two years and 11 months. That's a long three-year track. It was. Y'all been getting it. Yes. You've been scratching, clawing, hustle, grind. You've been going after it. Yes. So tell us the story. What happened to put you on, to lit you on fire? Well, we got married in April of 2016, and we kind of wanted to get our finances in order. And so we kind of day-vished it through the rest of that year. And I thought I could get rid of my student loans through the public service loan forgiveness program. And we started seeing more and more evidence that that was a scam. And we decided after Morgan got a sizable bonus that we could do this and we could power through it. And so come January of 2017, we just decided to go full on, work our way through it.

That's amazing. How old are you all? I'm 31. I'm 26. Wow. That's amazing. You hammered it. Seriously.

You hammered it. How's it feel? It's great. Very good. Free. A little bit. $212,000 out from around your neck. Look at Morgan.

Morgan, you're smiling awfully big you're not saying much talk to us how do you feel you all did this i know josh went to work he he did so much extra he found all these side jobs he he did great um i tried to just support him and everything that he wanted to try to do so it was it was great for us yeah wow way to go you guys very very proud of you. Who were your biggest cheerleaders? Definitely our parents. My mom turned me on to you when I was a little kid.

She listened to it on the radio. She listened, but she never heard. She used to always say that she bought cars, not tires. So I knew about you early on. And then Morgan's mom and dad gave us the old financial piece when it was still on cds oh wow and so those were great cheerleaders for us they were great um so it was always around you but you just never picked it up that's right and three years ago boom game on yeah wow you all picked it up and ran with it yeah i mean you really did mor, what was the biggest sacrifice for you? I think it was staying home most of the time.

We would eat at home. We wouldn't go out. We would have our own date nights, but it would be at our home or watching a movie at the house. So it was a sacrifice for us for sure. Yeah, so all these people whining about being at home right now, you're just like, I've been doing that for three years. That's right. And a lot of times our date nights were going out and driving Uber Eats together. Oh, you did it together.

So we would drive together and talk about what we wanted to do for the future. Keep that dream alive. That's fantastic. What do you tell people the key to getting out of debt is? For me, it was stay into the budget. And then we've always been blessed that we're always on the same page. So it's been really easy for us to be, you know, same goals, everything. So that's been good.

Mine's going to work. I can tell. We did all of the driving delivery services. We kept other people's dogs. I was a high school football referee. People needed a new light fixture in their house, I'd go put it up. Just last week, we built someone's playground in their backyard for their kid. Bartended. Literally, if you were going to pay me and it was legal to do, I did it.

Yeah. You do not have a work ethic problem young man yeah not at all so when people say they have trouble finding a job you just know better yeah it's a little frustrating yeah it's like i i don't understand how that is yeah because you find plenty of them they're everywhere yes sir they're right in front of you way to go you guys we're very very proud of you. Congratulations. Wow. Absolutely amazing. Well, we've got a copy of Chris's book for you, Everyday Millionaires. Of course, that is the next chapter in your story, right?

Yes, sir. You're going to be a millionaire now, and there's no question about you two. You're on your way to that without a doubt. So very, very cool. All right. It's Josh and Morgan from Charleston, South Carolina, $212,000 paid off in two years and 11 months, making $126,000 to $170,000. Master of the side hustle. Count it down.

Let's hear a debt-free scream. Ready? Three, two, one. We're debt-free! Yeah! Yeah! Oh, that's how it's done right there. Woo-hoo!

I tell you. Man, life is good. That is awesome. Very, very cool. Good stuff. So, I don't know if you heard the news this morning or not. They announced it in a staff meeting. If you didn't already know, Mr. Ken Coleman, Ramsey personality, is doing a big-time live stream this Thursday night called Get Hired.

Yes. All about how to get a job in the middle of this. If you're stuck in a job you hate, if you recently lost your job, or you're looking for something new and you understand there's 33 million unemployed right now, so you've got a little competition. If you answer yes to any of those questions, our new live stream event coming up on May 21st is for you. And it's a one-night digital event.

Ken Coleman's going to teach you how to build a killer resume, everything you need to know to get the interview process nailed down, and then how to seal the deal with the right kind of follow-up conversations. This Thursday night, 7 p.m. Central, tickets are only $10 at DaveRamsey.com slash events. And I can't think of anything more timely right now. Oh, I think it's definitely necessary, Dave. I'm talking to people. They don't know where to turn.

You know, you've got a lot of people who hadn't been on the job market in 10 or 15 years. And so now throughout this pandemic and all the things that are going on, people are waking up and knowing they need to take action. And I know Ken's going to give them good guidance. Yeah. Well, some people lost a job they hate, and some people kept a job they hate. Ooh. And they just realized they hated it. Oh.

And so it's time to move on in either case. And so, yeah, this is, you know, we definitely got the economy has got pandemic-itis. Yeah, it does. Without a doubt. It's got 33 million people unemployed. And so all we know how to do is help. We help you with getting out of debt. We help you with your life. We help you with your help. We help you with getting out of debt. We help you with your life.

We help you with your career. We help you with your small business. And we help you with getting a job. And Ken's going to help. The event is called Get Hired. It is a live stream this coming Thursday night. Tickets are just $10. And, again, you can purchase them at DaveRamsey.com slash events.

Also still on sale or still available, the 14-day free trial to Financial Peace University at DaveRamsey.com slash hope. If you haven't heard the news on that, that's the first time in 30 years we've done a free trial on Financial Peace University, and we certainly want you to get involved in that while you still can at DaveRamsey.com. This is the Dave Ramsey Show. business leaders make your life easier with fresh books Whether you're starting a business or you've been at it a long time, FreshBooks is one of the smartest decisions you'll make this year. FreshBooks is an accounting software designed for people like you that lets you do the things like automate your invoicing and your online payments so you get more time to work on your business. Try FreshBooks for 30 days free at freshbooks.com slash Dave Ramsey.

Open phones this hour. This is the Dave Ramsey Show. My co-host on the show today, Ramsey personality, Chris Hogan, number one best-selling author lately of the book Everyday Millionaires. Erica is with us in Arizona. Hi, Erica. Welcome to the Dave Ramsey Show. Hi, Dave. Thank you so much for taking my call.

It's a pleasure to speak to you both. You too. Hi Dave, thank you so much for taking my call. It's a pleasure to speak to you both. You too. I have a question about child support. So I am grateful to say that I am actually on baby step three. I've got all my debt paid off, but my child's father owes about maybe $15,000 or $16,000 in child support and arrears. And so because I have been able to, you know, kind of get through this, you know, myself so far, pay off all the debt that I had, just wanted your thoughts on if I should just, you know, stop the frustration and hassle of trying to take him back to court to get him to pay. He has another child on the way as well on his own. But I just wanted your thoughts on if I should let that go or if it's still something that you think that I should pursue.

I'm grateful that I've been able to get to this point so far. Praise God. Okay. Let's pretend that you got a phone call this afternoon from an attorney and a rich relative that you didn't know had died and left you a million dollars. Okay? In other words, you're financially, let's just pretend for a second, you're completely financially set.

How does that change his obligation to pay for his child? It doesn't. Okay. So the point is not that you are okay. The point is that this is his kid's money. And a guy ought to pay for his kid. Have you been abusive, or have you been to him, or have you abused the court system, or has he not really owe what they, you know, have they ripped him off in some way?

I mean, there are some child abuse, child abuse. There are some child support cases that are over the top and they're wrong in terms of what they're charging the father. There's no question about that. Those exist. But you didn't mention any of that. So I'm assuming that's not there. Is this a proper amount of child support and he just has chosen not to pay

it what's the deal it's really low it's only 260 a month um they have we did the agreement maybe like six years ago when minimum wage was a lot lower in our state um so it's only 260 a month and he's just to pay 20 towards arrears as well making it 280. But no, it's not extravagant at all. And you say his dollar amount he's behind is 15 to 16 grand? He's never paid it on. Wow. Yeah. Yeah.

Erica, you definitely need to have a conversation and get back to court and walk through this. You know, the reality is, as Dave is saying, you've got to take care of the kids. Now, I wouldn't spend 90% of your emotional energy doing this, but I would continue to put some steady pressure on him because it's incumbent upon him morally, forget the legality of it, to take care of his child. Dads are supposed to feed their babies. Moms are supposed to feed their babies. Does he see the baby, the child at all?

Erica? I'm sorry, you said, does he see him? Uh-huh. Does he come, does he have visitation? Okay. Every other weekend he sees him, consistently. Okay. Yeah, I think you've been a little too easy to get along with, sweet girl.

Okay, I just wanted to make sure, because I feel so grateful that I paid off $34,000. I would be grateful if I inherited a million dollars, too, but that has nothing to do with him being a deadbeat. Okay, I got you. I just wanted to see your gaze and point of view, so thank you so much. I appreciate it. Yeah, that's just my opinion, and I think you've been way too nice is what I'm afraid of. Well, and she's been able to move forward despite. Yeah, and that's good.

And she should. But this is about the kids. And I'm grateful for opportunity. I'm grateful I live in America. I'm grateful I can work. I'm grateful I can save money. But this guy's never paid a dime. So no.

And has no intention to. No, he doesn't. He really doesn't. He's just showing up, picking up the kid. Yeah. Yeah, somebody needs to give him. Well, depending on the state, you can give him a pretty vicious reminder. But John is with us in Michigan.

Hey, John, how are you? I'm good. Thank you for taking my call. Sure. What's up? Okay, so my question is, I have a TSP account. I'm separated from the government now, so my understanding is that I cannot withdraw from it until I'm 59 1⁄2. You can roll it.

So is there a retirement vehicle or something that I can put my money into where I don't have to wait until I'm 59 and a half. No, but you can roll it to an IRA and some good mutual funds and outperform the options that are available in the TSP. Okay. And then how does that work? I have about a third of it into Roth and about two thirds into traditional. Can I keep my Roth as a Roth and my traditional as a traditional? Yep. But you can't access it until 59 as a roth and my traditional the traditional yep but you can't access it until 59 and a half and so uh but that that's not a big deal you know but go ahead and get click smart fester at dave ramsey.com and uh meet with a smart fester pro in your area pick out one you like that has the heart of a teacher they can show you how to do what's called a direct transfer rollover, meaning that money doesn't come to you.

It goes directly into the IRA, into the mutual funds you select that have outperformed the options that you're in with the TSP, and you can outperform them. The best thing in the TSP is the C plan, and it's the S&P 500, and the S&P 500 is great. I mean, it's not a bad fund at all. But you can buy funds that outperform that, and you can keep your Roth Roth and your regular regular. Yeah, John, you're going to be so happy with the additional options that you have.

You know, you've been going to a buffet that had three items. You're about to go to something now that's got over 5,000 items. And so you're definitely going to be excited about the future. Yeah. Completely change your options. Michelle's in Kansas. Hey, Michelle, how are you? Hi, Dave.

How are you? Better than I deserve. How can we help? Hey, I have a question. My husband and I have been, we are debt-free thanks to your principles, been listening to you for about 18 years now. And we have gradually accumulated farmland over the years. I grew up on a farm.

My dad knows people that typically farm at Forest, and it's been a pretty good investment. But in order to not borrow money, we have to save a pretty big chunk of change, like usually around $400,000. How would you recommend we save that money? Like, where would you put it currently we have like 320 just sitting in a savings account not making much interest because we want it available whenever the land becomes you know the opportunity happens to come up oh so you're saving for a particular piece of ground is that what you're saying well we don't know what that land will be i mean from time to time something will come available and we'll have an opportunity

okay so you're just saving because you want to buy some more farmland, period, though. Yeah. Okay. Has nothing to do with the operations of your current land? No. Okay. Just extra. If more land becomes available, that we'd like to invest more money there.

Gotcha. You just like dirt. Okay. And so what is your total net worth? Oh, gosh. I don't know. Probably, I mean, my husband and I both make a pretty nice living. We have no debt.

I mean, I would probably say like a million and a half maybe. Okay. But I don't know exactly. Okay. So what I do when I'm saving for real estate is I use an S&P 500 index fund with no commissions, no load. Okay? Now, what that does is that's going to exactly ride the stock market. That is the stock market.

Okay? So if you had done that in January, your $300,000 would be down $60,000 a day. Ouch. Okay? 60,000 a day. Ouch. Okay. But, you know, you would just, but what will it be by fall? You know, it'll be 400,000. It'll be back up. So thus is the ride. I do that because I can absorb that risk. Meaning if I lost that $60,000 on paper, not a big deal. I can wait on it to come back to the fall, and I just wouldn't. If a piece of land came available today, unless I had the money in there to buy that piece of land, I wouldn't be able to do it.

It might keep me from doing it, but I don't know where the $400,000 came from. You just made that up because you don't even have a piece of ground in mind today, right? Just knowing what farmland typically goes yeah but i mean typically you could buy 320 you might buy those you know right so anyway the the if you want to take a little more risk you could do that if you just want to make uh savings account rates of return you can leave it in a money market either one is fine you have a high enough net worth you can absorb that risk if you want to try to make a little bit more on it. Yes, you really could. That puts us out of The Dave Ramsey Show and the books. This is James Childs, producer of The Dave Ramsey Show.

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