The Ramsey Show - App - Should I Switch Careers? (Hour 2)

Episode Date: August 6, 2019

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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 dumped, 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. This is your show. Thank you for joining us. Open phones at 888-825-5225. That's 888-825-5225. You jump in. We'll talk about your life and

your money. Patrick is with us in North Carolina. Hi, Patrick. Welcome to the Dave Ramsey Show. Hi, Dave. Thank you for taking my call. Sure. What's up? I'm currently on Baby Step 6 with my wife. I just maxed out my 401K and my HSA. So that extra money that was going into those funds, every paycheck, I wanted to see, should I use all of that money and throw it at the house? Yes.

Should I break it up with the house? Okay. Yeah, everything should go at the house. Yes. Should I break it up with the house? Okay. Yeah, everything should go at the house. Baby steps four, five, and six run simultaneous. Four is 15% of your income going into retirement. And it sounds like you have more than that with the HSA and the retirement max, right? Yes, I've done 19 in my Roth 401K and 7,000 in the HSA. Yeah, I would drop down to 15% of your household income going into retirement. The balance would go to Baby Steps 5 and 6, kids, college, and paying off the house.

What's the situation with kids' college? I'm putting in, I have two children, a 2 1⁄2-year-old and a 10-month-old, and I'm currently putting in $300 each month into their 529 plan. Each? Each, correct. Okay. Yeah, that's sufficient. So let's just take everything above that and above 15% that you can put into retirement

and throw it at Baby Step 6 and get your house paid off. Because what we found when we studied millionaires is the typical millionaire has two major things in their wealth building plan that their wealth comes from, funding their 401Ks and investing in funding their 401Ks and getting a paid-for house. Okay, so with maxing out my Roth 401 401k i shouldn't take 15 more percent no i would i would say 15 of your household income going into retirement what's your household income i'm in sales so my base salary is a little over a hundred thousand but uh this year i'm on track

to probably make a little over two200,000. Okay. So $30,000 goes into retirement. No more. Okay. Somewhere. I mean, take the match, get the Roth 401K, that's fine. But no more than $30,000 going into retirement. And then above that, we're going to throw everything at your house and get the house paid off because the average millionaire has their home paid off in 10.2 years.

And so that's one of our big things. Knock that puppy out. Because when you don't have a house payment, man, I mean, you're free, baby. You can do a lot of stuff at that point. Denise is with us in Tennessee. Hi, Denise. Welcome to the Dave Ramsey Show. Denise.

Hi, Dave. Hi, hi, hi. How can I help? It actually is in Tennessee. It's Texas. So, you know, I want to give a shout to Texas. Okay. Well, it, hi. How can I help? It actually is in Tennessee. It's Texas, so you know I'm going to give a shout to Texas. Well, it's Kelly. She just got confused. How can I help?

I want to find out. And then you went. See, that's what happens when you mess with Kelly. Are you there? Let's try one more time. Hello, Kelly. Hello. There we are.

How about now? Okay. I'm back again. Let's try again. Okay. All right. Thank you. So. Let's try again. Okay. All right. Thank you. So, so such a pleasure to meet you.

I just discovered you, but I think I'm trying to figure out, is it okay for me to buy this house March of 2020? Okay. So let me let you ask the questions and I'll answer. Are you going to be debt free by then? The only debt I have, Dave, is school loans. Nope. Not until you get that done but what if i tell what if we paint the

whole picture first before you say no not gonna change i'm not gonna tell you to buy a house while you have sally may in a spare bedroom i wouldn't do that to you i like you too much to do that to you what if it's not that much we'll pay it What if it's not that much? Well, pay it off if it's not that much. How much student loan debt have you got? 32. Okay. What's your household income? 145.

So why are you not done by March of 2020? Because I'm thinking about the down payment for the house. Okay. And I was going to try to do that. Nope. We're going to be debt-free, and then we're going to come up with as much down payment as we can. What's the March 2020? Where did that come from?

Because I had already signed on to buy a house in October, and I picked out a different one, and so they moved me out to March. I did hear someone call you and say, once you've given somebody your word, you know what I'm saying? Like, that's where I'm struggling. That wasn't what you started. You didn't start with that. You just said you wanted to buy a house in March. once you've given somebody your word you know what i'm saying like that's where i'm struggling that wasn't what you started you didn't start with that you just said you wanted to buy a house in march you didn't tell me you'd already bought a house i thought we were going to talk about a little bit more apologize that's okay so you've already bought a house that's okay you've already bought a house and you got to close on it in march yes okay and how much is the house? $323,000. Jeez.

Okay. Pretty strong, given your income. Really? Yeah, really. You get that on a 15-year fixed rate is what you're planning on, right? Okay, yep. I've heard you say that, yep. So I have never told someone to break a contract on this show in 30 years.

So I'm not going to tell you to break a contract. You've signed a contract. So it's not really, this discussion is not really relevant. You've already decided what you're going to do. You've already legally obligated yourself for what you're going to do. So you're going to do it, you know. But is it what I would have told you to do? No, I would not have told you to do that.

Okay, so can I ask another question or give you a little more feedback, a little more conversation on it? Okay, so what I decided to do with Stop My 401K, I was doing 15%. I've got a good chunk in there. I think even if I did it for a year, stopped doing it for a year, it's not going to hurt me that bad. I was thinking $400 into that weekly. So now I've started to put that just into savings by March. I could easily have probably close to 20,000. So that doesn't get me out of the school loan thing.

I'll also get a, I get $10,000 in bonuses every March. My house won't be done till the end of March. I'm just trying to figure out how I can get this cash days. You know what I mean? But if you're saying this is too much house for the amount of money I make, that's where my real concern is. Okay.

Well, run out of payment with a $30,000 down payment at 15% – I mean at 25% of your take-home pay on a 15-year fixed and see if it puts you in that house. Okay. That's what our guidelines are. And we tell folks to be debt-free, have their emergency fund in place, which you don't have either. Well, I do. I do.

How much is in your emergency fund? My emergency fund currently has $6,000 in it. A fully funded emergency fund is three to six months of expenses. Correct. So I would have you to be debt-free. Okay. to six months of expenses. Correct. So I would have you to be debt-free. If I could draw this up with what we teach before you signed a contract to buy a house, I would have you to be debt-free, have the school loans paid off, have saved up your emergency fund of three to six months of expenses, which is probably $25,000 or $30,000 at your house.

And $145,000, yep. And then I would save the down payment. So you're about $60,000 premature on this. Okay. Because no emergency fund and student loan is still in place when you move in. And, you know, you're just inviting trouble because you're broke. You make $145,000 a year and you're broke. You're in debt and you're buying a house and you're broke make 145 000 a year and you're broke you're in debt and

you're buying a house and you're broke and that's not what we teach people to do i'm not gonna fuss at you but you asked what our guidelines are and what i would do that's what i would do now what to do now that you've signed a contract is i think you're buying a house you signed a contract this is the d Ramsey Show. Are high health care costs getting you down? Are you confused trying to navigate your options? Do you wish you could find an affordable, biblical solution to your healthcare costs? Based on New Testament principles,

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It's Christians financially and spiritually supporting each other. It's what Christian Healthcare Ministries has done for over 35 years. And our members have shared over $2.5 billion in medical bills. To learn more, visit chministries.org. That's chministries.org. Christian Healthcare Ministries is a proud sponsor of Dave Ramsey Live Events. Hi, Alicia. How are you? Alicia is with us in Washington. Hi, Alicia. How are you? Alicia?

Good morning, Jerry. Hi, how can I help? I was calling to see if you were. Honey, you're going to have to speak directly into your phone. I can't hear you. Okay, can you hear me better? Yes, ma'am. Okay, so my husband and I, we're on baby step number two, and we're trying to decide if it's smart enough to refinance our home to get out of the PMI.

We currently have an FHA loan, and if we do refinance, they said we'll be in a conventional loan, and it'll drop our mortgage payment about $200 a month. Awesome, I love that. So have you got enough equity to put the refinance costs into the refinance? Yes, we have about $60,000 of equity. Okay, so it doesn't cost you anything out of pocket. You'd roll your refinance costs into the loan and you'd still save $200 a month.

Yes. That's a no-brainer. Do that. Okay. I just was wondering if it was worth it or not. Okay. Yeah, definitely. Now, that's assuming you're going to stay in the house, are you?

Yes. I mean, we would like to get a bigger home eventually, but we're trying to get out of debt, so we're just going to stay here and work on getting out of debt. If you're going to be there two or three years, I suspect that's probably going to work out for you. Okay. The refinance is going to make sense. Now, is this on a 30 or a 15? It's a 30 because we got into the program.

I mean, I just learned about you. We didn't know about the 15. Let's go ahead and do a 15. It'll cause your payment to go up, not down, but let's do it anyway. Oh, okay. Yeah, the $200 savings is interest savings, and the 15 will offset that. What's your loan balance? $241,000.

Yeah, your payment's going to go up a little, but not a ton. So have them calculated on a 15, and if you can figure out a way to make that work in your budget, even though it will slow down your debt snowball a little bit, let's go ahead and do that anyway. This is a good move. This is a good move all the way around. Hey, thank you for the call. We appreciate you joining us. Our question of the day comes from Blinds.com.

Find out for yourself why Blinds.com is the number one online retailer of custom window coverings. I just ordered free samples, looked at them this morning for a patio blind I'm getting from these guys. The samples were free. The shipping is free. The new promos they run every month give you a better deal. Use the promo code Ramsey. I love this company, Blinds.com. Nicole is in Michigan.

Dave, would you recommend a will, which would still go through probate, or a living trust worth 38 and have two children? A living trust is very expensive to put together and very difficult to maintain. The only way you don't run something through probate is if it's in the living trust. And that means your cars, your bank accounts, all of your of your investments your house everything is put in the name of the living trust and so you're doing all your business with a trustee through a living trust it is a complete pain in the butt and i do not recommend it except in extreme circumstances where you've got a extreme wealth and there's a it's part of a bigger overall estate plan. And you can do a will for $300.

You can do a living trust for $2,000 to $3,000. And it saves you some on probate. No, I'm not a fan of living trusts by and large. I think they're overused and oversold because people are trying to get fees out of you. So I hope that helps. Open phones at 888-825-5225. In case you haven't heard yet, our brand new event, Financial Peace Live, is debuting this fall. We're coming to four cities around the country.

Seats are on sale now. If you're sick and tired of money problems, debt payments, the stress of living paycheck to paycheck, time to put a stop to it. It can all begin at Financial Peace Live. In one exciting and inspiring night, we give you the momentum you need to kick off, kick start your goals, and get control of your money once and for all. We're going to walk you through the baby steps. You can bring that spouse that is reluctant, bring that friend that thinks you're crazy, bring your grown kids that are misbehaving with money bring your grown kids that are misbehaving with money

or your grown parents that are misbehaving with money, and we'll show them exactly how to do this. You will laugh, you will cry, you will win with money. September the 12th is Austin, Texas. Chris Hogan, Anthony O'Neill, Financial Peace Live. Chris Hogan and Anthony O'Neill are doing most of the fall. Rachel's out with a baby. And so October 2, October 2 is Tacoma, Washington.

Chris Hogan, Anthony O'Neill, October 10, Phoenix, Arizona. Chris Hogan, Anthony O'Neill. These are selling very, very rapidly. They will sell out early. November 20, Charleston, South, is me and Chris Hogan. And again, seats are selling really fast. Go to DaveRamsey.com slash events or call the Ramsey Concierge Team at 888-22-PEACE, 888-227-3223.

Ashley is with us in Florida. Hi, Ashley. Welcome to the Dave Ramsey Show. Hi, Dave Ramsey. It's a pleasure to talk to you. You too, what's up? So I'm actually a new listener and I've learned a lot from you the last two to three weeks and my fiance and I just finished paying our car loans but we still have his student loan which is about $22,, and we're debating whether we should pay that

off or just wait for the law enforcement officer's student loan forgiveness, which she has another seven years to get that paid off. Okay, there's not a we until you're married. You should not be paying bills that have his name on them until you're married. Okay. You're going to get yourself in a pinch. Don't his name on them until you're married. Okay. You're going to get yourself in a pinch. Don't do that. When are you getting married?

In six months, in February. Great. Okay. He can pay on his student loans until then, and after that, we can pay on them. What's the balance on his student loan? It's $22,000. Oh, I definitely would knock that out. I wouldn't let $22,000 hang around for seven freaking years and hope something goes right.

No, I'm getting out of there. Let's get that thing done as fast as you all can. Let him work on it really hard until you get married. If you want to save up a bunch of money until you get married and you can throw it at it after the honeymoon and catch up what you would have paid, in other words, before then, that's fine. But do not pay other people's bills until there is an official ring on your finger. And I'm not talking about the engagement ring. So be careful with that.

Hey, thanks for the call. Open phones at 888-825-5225. Listen, I've been doing this 30 years, you guys. I didn't tell her not to do that just because I thought I was trying to be a grumpy old man. I have talked to the fiancé after the other one was killed in a car wreck. And the mother-in-law-to-be hates her. And she paid off $40,000 of his debt, and she'll never see that money. And the mother-in-law got the life insurance i've had that phone call i've had that counseling session multiple times i've talked to the jilted lover the runaway bride

who ended up not getting married to who they thought was their soulmate, and knew, they just knew deep down it was all going to work out the way it's supposed to in Cinderella, but it didn't. The glass slipper didn't fit. And he or she has paid off the other one's debt and never sees that money again, much less their former lover again. So it's not that I'm not romantic. It's not that I don't think you're going to get married. It's not that I'm an old grouch.

It's that I have seen the other side of this crap when you do it wrong. People, those of you out there that are shacking up. You're not married. You just got roommate-itis. Don't be paying each other's debts. You don't pay your roommate's debts. It's relationally stupid. It's financially stupid.

And it's legally stupid. You got almost no way to recover in these situations. Please. If you're getting married in six months way to recover in these situations. Please. If you're getting married in six months, getting married in a year, getting married in eight months, just pile up the money and after the honeymoon, throw the money at the debt. But do not pay someone else's debt. I've seen all the downsides. I don't want that to happen to you people.

I love you people. I want you to win. I'm here to help you i'm not joking around i've been doing this a while i got socks older than most of you this is the dave ramsey show We'll be right back. Julio is with us in Delaware. Welcome to the Dave Ramsey Show, Julio. How you doing, Dave? Nice to hear your voice. Good to hear yours, sir.

How can I help? So, I was at a job and I was making good money and I got greedy and quit the job and I got a new job. And then I hated the job, so I quit that job and I don't new job and then I hated the job so I quit that job and I don't know what to do for my next job. I don't know if I should just go into a trade like I or stay in sales which I've been doing for five years. How old are you? I'm 23. Okay cool. So when you're 43 what do you want to be doing with your life? Probably own a real estate company. Selling real estate company or investing real estate company?

Investing real estate company. Okay, so you want to start, you want to become a real estate investor? Yeah. Okay. Okay. So what is the best path to get to that? Just save my money and find my first investment property. Could be.

I'm talking about your career. You said which career should I take, and I don't want you to take something miserable just because you can make money at it. I'm thinking let's take some steps that take you in the direction that you want to go. Like maybe you ought to be in the real estate business if you want to be in the real estate business. Right. But also I have like some like credit card debt and a car I have to pay. And my parents are retiring and moving back to the Dominican Republic. So now at this point, I'm stuck in the middle of doing what I want to do

or doing what's going to pay the bills. Why can you not do what you want to do and pay the bills? Because I know in real estate, it does take like six months to like a year to really start making money. And I'm pretty scared of what those six months is going to come to. Okay. What were you doing? What were the two different things you were doing, the one you hated and the one you left before that? So I was in phone sales and I was making like 60 a year. And then I switched to business-to-business sales.

And I was really good money, but I hated it. So I quit that job. What's really good money? So my first month, I made like $8,000. Okay. So you were on a schedule to make $100 instead of making $60 at 23 years old. What did you hate about it? It was like telemarketing.

It was like cold calling, making like 200 calls a day, leaving like 150 voicemails. It was like dreadful. It was really something that I saw myself doing the next year. Okay. Okay. So in both cases, you were on the phone, and in both cases, you were selling. Correct.

So I wonder what you could do along those lines to make $100,000 while you're stabilizing your finances and building up some savings to begin to sell real estate part-time on the side. Okay. And I wonder if there's somebody in the real estate world that would hire you for telemarketing, and you could get your foot in the door that way. I mean, there's not a reason you can't gravitate in that direction. You know, you could go back to the old thing, making 60,

but I think you're showing some skills that you could make some good money. And you might as well get about the business of doing that and lay the foundation to be able to make the transition into the real estate business. Hold on. I'm going to send you a copy of Ken Coleman's book, The Proximity Principle, The Proven Path to the Career You Love. It'll show you exactly what to do step-by-step on this whole idea of careers, and it'll give you a different way of thinking about this,

because I think you've just been lurching around from trying to find a paycheck and have not really had a plan, an overall plan, to get where you want to be 20 years from now. And that's what's missing. Patrick is with us in Indiana. Hey, Patrick, welcome to the Dave Ramsey Show. Thank you. I appreciate it. I started listening a few weeks ago, and I'm excited to talk to you on the phone.

Well, thank you, sir. How can I help? So I've looked at your plans and what have you, and I've kind of lived that way for the way that you guys preach or not preach i shouldn't use that term but that's okay teach i preach i preach too that's good teach people and i appreciate that that's why i enjoy listening to you guys and then how you try to build people up so my question is is i've um in a fairly good position i I got about $35,000 cash on hand. That is just kind of my slush fund, about 65 grand in just government investments for a job. And my goal and passion in life is to own

a bunch of real estate and be financially stable through that means. I want to be that way my whole life. I'm 41 now, so I'm in the position to do that. I don't really have any debt other than your, your standard kind of day-to-day stuff, other than one lease payment for my wife. Um, and my problem is I have a house that's paid off, a rental house that's paid off. I do have another rental house that does have a mortgage on it. Um, but I want to pull the money. I think, out of the house that's paid off and buy more real estate with it. But I guess based on your teachings is you don't maybe necessarily want to pull a mortgage out to reinvest, or what's your thought process?

Yeah, I'm going to teach you to avoid debt. It is a slower method of building wealth, but it is a much more sure-footed method. Twenty years from now, it will be the way that causes you to be the wealthiest overall because the risk is lower, you make fewer mistakes, and you don't get caught sideways with mortgages coming out your ears all of a sudden. So you have $35,000 cash, and you said $65,000. What is that, in a in a tsp or it's invested in something yeah tsp okay that's that's not touchable that's in retirement correct and

what's your household income um so gross is about 147 good okay and then net is about 8900 and we have about 2,000 2,500 to come to count in just generic expenses for a month. We do have a son that's in college, so we do support him as well. Okay. So you've got a good income, and you've got a basic budget. Did you say your personal residence is paid for? No, it is not. So that's the other question, too.

So how much do you owe on your home? $108,000. Okay. And what do you owe on your home? $108,000. Okay. And what do you owe on the rental? One rental I owe $82,000. On the other rental I owe nothing. Okay. Very good.

All right. So total mortgage debt is $190,000, but the value is $118,000. Gotcha. Okay. And the... I'm sorry, $418,000. I said $118,... I'm sorry, 418. I said 118 is 418. And you have an emergency fund other than the $35,000?

No, that is our emergency fund of just cash we keep on hand at all times. Okay. I'm going to teach you to do what I did personally, and I own a bunch of paid-for investment properties. It took me a while, I will tell you that, and it was a little bit frustrating, but I sure am glad now that I'm 20 years older than you that I'm sitting here with all of this property 100% paid for, and it has been paid for through everything I've owned since then, through that process has been paid for. So here's what I did. And that's where I'm at.

I'm trying to figure out my retirement 20 years from now. I'm struggling to try to get there the most efficient way. Well, my point is that if you'll follow this, it sounds like it's going to take forever. But when you get to the other side of this 15 or 20 years out, you're going to be really glad you did it this way. So we teach a process called the baby steps. You've probably heard me talk about that. I'm going to apply it to this situation because I am convinced it is the shortest path to building wealth. I did it, and I've talked millions of people into doing it.

So we need an emergency fund of three to six months of expenses. How much of that $35,000 do you think is for emergencies only to be set aside? Like I said, my monthly expenses, let's call it $2,500 is what it costs for me to, you know, kind of just live comfortably per month. So what do you want to set aside of the $35,000 and call your emergency fund? $20,000. Okay. Then we got $15,000 to work with.

Then I'm going to be working on baby steps 4, 5, and 6. 15 includes we start putting 15% of your income, if you're not already, into retirement. We take care of kids' college, which you are cash-flowing. And then the next goal is to pay off this real estate. I'd pay off your home first, and then I'd pay off the rental as fast as I can. Do a budget. Lean in on this. Look at this as your goal you knock those two out you're gonna have cash flow coming out your ears and paying cash for the third rental is going to be very easy but it's going to take you a Chad Zee is with us in Virginia.

Hi, Chad Zee. How are you? Hi, good. Thank you for taking my call. Sure. What's up? So I have a question about rental properties. My husband and I make about 350K growth together. Wow. But we have seven mortgages, including the one, the house that we live in. And I never really

thought anything about it until I started listening to you. And then the amount of mortgage debt we're in started making me extremely nervous. Good. That's my job. So you guys make a lot of money. Way to go. What do y'all do? My husband is in the Air Force Reserves, and he's also the Director of Pricing Optimization

at a major hotel company, and I'm a Procurement Advisor for the Department of Energy. Way to go. Excellent. Excellent. So what's the total of Energy. Way to go. Excellent. Excellent. So what's the total of all the mortgages? It's $1.3 million. Okay, cool. And what's all that property worth?

Probably about $2.4 million. Excellent. Okay, so you're real estate millionaires anyway. Yeah. Way to go. Good job. That's a net worth of $1 million, and you make good money. That's good.

And so there's no reason to panic here. There's nothing here on fire, but we do want a steady plan to make this stuff go away, because what if you were sitting there with all that paid for? Yum, yum. We just doubled your income, because you're paying out a lot in mortgage debt, and if you didn't have those mortgage payments, had all that rent, life would be good. So of the 1.2, what is on your home? 516. Half of it. Okay. So you got some little mortgages. You got a few of them under 100,

don't you? Yeah, I have one that's 85, because it's been paid down a ton, and then I have one that's 89. Okay. You can do it however you want. One way to do it would just be to, okay, let's write out a written plan with what we're doing with our $350,000 monthly. And you certainly don't have to go on beans and rice. You're doing fine. We're not freaking out. But we do need to be very intentional with the disposable income and you have a bunch of disposable income um and

so i'd be putting 15 of your income away for retirement uh if you're not doing that already and you're debt free other than the mortgages you said right right okay what about kids college um so my daughter gets the GI Bill from my husband, but we are saving for assuming that she wants to go to graduate school. We're saving for that. So I've been putting like $1,000 a month in her 529. Good. Okay.

So you kind of got that covered. I think we're good. All right. So if you're putting 15% away, you're putting $1,000 away for that. Any other money we can find in the budget while still having a reasonable life, we're going to be very intentional and begin to beat on these mortgages. And one way to do it would be you could list them smallest to largest. You mean you could knock off those two little $80,000 ones,

probably one a year for the next two years, couldn't you? Yeah. And then you'd be down to five mortgages. Then you might reach over and pay off your house, or you might pick the next one up. You could go smallest to largest. I don't mind if you move your home up ahead of the others because it is the one that will give you the most peace when you pay it off.

Let me just tell you, you guys have been doing a really good job. You're people who hustle and grind, and you're smart people, and you're very goal-oriented. You're professional. You're doing so much right. What you don't know, aside from the mathematics and aside from the risk, when you get this debt paid off, there's going to be a flood of peace into your soul like you never thought.

It's going to be amazing because you've done so well, and then when there's zero chance you're going to lose any of it, no foreclosure ever in any scenario, oh, my goodness. Okay. So you wouldn't recommend selling any of them right now just because the mortgage debt is so high we should just if you have one you hate or it's not doing very well and it accelerates this process sure i'd dump it but um you might pick the you know pick the ugliest one in the bunch right yeah the ugliest one is in chicago and um i would love to dump that one okay well let's dump it what do y'all want it um 222 and i might be able to sell it for close to that but um it was

a really bad i i used to live there and i bought it right at the top of the bubble so you're basically if you're breaking even you're probably losing money on the rent. Yeah, a little bit. Yeah, so there's no benefit to this property at all. Yeah. Hey, we're down to a million. Okay. Sounds good. Just like that.

And then you knock off those 280s, you know, and now we're down to 800 or so. Okay. And, you know, see how quick this goes. That just leaves you your house and a couple of others after that. So, yeah, you're, you know, again, we don't have to panic. But I think I'm just going to, without running the numbers real carefully, I bet you in selling that one in Chicago, you probably knocked this out in about five years. That would be awesome.

Yeah, we'll put that as our goal, five years. Well, I mean, sit down and run the math on it and make sure it's reasonable. Because, I mean, this is not one of the – you're not at a baby step where – or in a situation where I say, you know, don't go out to eat and don't go on vacation, like if you're in baby step two, okay? Okay. You know, this is not that kind of a thing. So you're going to go on vacation.

You make $350,000 a year, for goodness sakes. You're going to have a nice Christmas, for goodness sakes, right? You're going to drive a decent paid-for car, right? All that kind of stuff. But no reason to drive junk in this scenario. But we're just going to be intentional, and you can live a very good life and still pay off $100,000 a year. Okay.

Yeah, that sounds like a great goal. Yeah. Hey, thanks for the call. Open phones at 888-825-5225. Charles is with us in Illinois. Hey, Charles, how are you? I am terrific, and thank you so much for all the work that you've done that has made my life so great. Well, thank you.

How can I help? I got two questions. One, I'm trying to make sure that we have the resources to self-insure long-term care. Because of health issues, we were not able to get long-term care as we retired. Okay. How much money do you have? About $776,000. Okay. And our annual income is $170, 170 000 so you're continuing to build that nest egg then it's not because you're probably you're not probably spending all that annual income right no we're not we give it away and we uh save some okay good good well the average nursing home stay in america is 2.4 years okay and the average you know the average nursing home stay in America is 2.4 years. Okay.

And the average expense is around $50,000. Not a problem. So that's like $150,000, you know, is three years. And the worst case scenario is that we will both be in a nursing home, which we don't anticipate being there. And so you would have to both go in and you'd have to both stay double average okay let's see what i'm doing 150 is the average and 300 would be both of you and if you both doubled the average that'd be 600 that pretty well does away with your 700 right well that doesn't count the income we would were getting yes okay but i'm just saying you do it i'm just i'm just doing rough math here big numbers right so bottom line is you're pretty safe

okay on average now if we run into a weird situation then you know you you could you could burn through it so you have to be diligent watch what you're doing you have to continue to manage the income that's coming in continue to to build the nest egg, and those kinds of things. But I think you're safe. I think if you – the typical scenario is 75% of the ladies outlive their husbands. Yes. And so mama – daddy goes into the nursing home, burns through a couple hundred grand, and leaves mama with whatever. If that happens in this scenario, you know, if you burn through a couple of hundred and left her with $500,000

plus $140,000 income, I think she'll be okay. Yes. And most of her income would continue except for my Social Security benefits she would not be eligible for. Yeah. But everything else she would keep. You've done a great job, sir. Congratulations.

Thank you so much. Now, the other question, quickly, I know that, has to do with part of the $7.76 that we have, about $300,000 is in a $4.57. And do you recommend that I convert that to an hour? It's doing quite well. It's been averaging about 8% or 9% for the last six or seven years. I would sit down with your investment advisor and look at it. If you can move it into mutual funds and do better, I would.

And you can move that into an IRA to do that. That would be an easy way to do it. I would look at doing that probably because I think you might outperform that. But that's not a bad return, not bad at all. Hey, good question, man. Thank you for joining us again. Very good job. That puts this hour of the Dave Ramsey Show and the books.

Hey, it's Kelly, associate producer and phone screener for the Dave Ramsey Show. This episode is over, but if you heard about a product or service and didn't have a chance to write it down, don't worry. We list everything that is mentioned during this episode in the podcast show notes section. Thanks for listening.