The Ramsey Show - App - Should I Take Over My Father-in-Law’s Business? (Hour 3)

Episode Date: November 15, 2021

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. George Campbell, Ramsey personality personality is my co-host today open phones at 888-825-5225 that's 888-825-5225 matt's with us in indianapolis hey matt welcome to the ramsey show thank you guys god bless you for everything you do we really appreciate it

well thank you what's up up? Got a question. I had a 24-year career at a previous employer and had a company-sponsored, I guess you'd say, pension plan. And when I left there, I was given three amounts, what the life annuity might be worth, at 55, 62, and 65. And I was wondering if there's any way to try to convert that, what it might be as a lump sum payment.

Is there any kind of calculator or estimate? Because that was not given to me at all. Okay, so you got the possibility of a monthly payment for life. Yes. You got the possibility of a lump sum at $55,000. Did they give you a lump sum today? No. I have the numbers for what they have monthly.

Will they? Well, probably not. I would have to call the company that actually handles the money, which is like One America, and whether they would talk to me or not, I don't know. Well, I guess my question is, is that an option to take a lump sum today? Not today. I'm 53, so we're just trying to do some planning okay so 55 is 55 is the soonest yes sir okay all right all right here's what you're going to want to do you're going to take

it at 55 but i'll back in and help you with the answer to your question as well what you're looking for is a discounted cash flow analysis or a net present value of the money okay and so uh when you back that out and you run the calculations with a financial calculator you're going to find this annuity paying in the five to seven percent range okay that's what you're going to find okay and so were you to take the lump sum at 55 and roll it into an ira with no taxes involved because it's pre-tax i assume right it's a pension yeah it's a pension yeah so you'll get taxed on it if you pulled it out we're not going to pull it out we're going to roll it to an ira that way there's zero taxes on it all right yeah now when you do that if you rolled it into a good growth series of good growth

stock mutual funds you'd make 10 to 12 percent and you're going to find that produces much more income than the annuity would produce now the annuity for life is probably calculated out with you dying uh 78 years old maybe 80 depending on which actuarial tables they're using. And that's how they run the numbers out. And so, but here's the hook to the whole thing, the deal breaker. When you die with a pension, regardless of which option you take, your estate will get precisely zero. Yes. When you die with having rolled this over to an ira 100 of the money will be in your estate

yeah that's that's the route i definitely want to go yeah so that not only are you beating 12 or 10 percent over seven percent but you're also beating zero over at death zero over so you're better off alive better off dead to take it but it's okay to run the calculation out and a smart investor pro can help you do that and sit down it's not something it's a little too cumbersome to do on the radio but i could do it i could take my financial calculator out of the drawer over here and do it for you but but it's a it's a series of numbers and you'd have you need to sit down with somebody take about five minutes to do it and you can figure out then what the actual interest rate is that they're paying based on the different numbers that they're giving you there's a formula

to put the stream in and you can make an assumption of 80 or assumption of 78 and there's a formula for putting the lump sum in there's a formula you said there's another number at 65 when you put those three numbers in they're all going to cough out five to seven percent probably six and a half something like that it's what you're going to find that's because pensions are regulated very strictly and they really are not going to ever produce much more than that for that reason yeah that's interesting just doing the math on that and saying hey if i took this out into the ira let it grow it could do a whole lot better than taking those payments or waiting any longer well and you you can turn and take the payments 59 and a half you can't take them at 55 um but um but the pension it's one of the reasons that almost all mainstream companies have done away with pensions they're almost all gone everybody's pretty much 401k now you still do

find pensions and unions and huge companies and certainly in government, find them everywhere in those situations. But, I mean, most traditional corporations in America today don't have a pension anymore because it's just not a good deal. And it's cumbersome as crud to manage it from the employer's standpoint. It's a disaster. It's really hard. But so the big thing is just when you die, you get nothing, versus when you die, you get something. Your heirs get something.

Yeah, that alone is good reason to take it and invest it as soon as possible. You know, it's $100,000, $50,000, $200,000, whatever it is. It just evaporates, you know, and so that pretty much destroys the math. Even if the numbers were reversed, if you only made seven moving it and you would have got 12 leaving it you still got to think about zero at death and it starts to offset the numbers so you know you just still got to do the critical thinking on it but it's okay to do the math and it sounds like he wants to so sit down with a smart investor pro they can pull out a financial calculator and just a few minutes back into those numbers i could do it but

i'm not gonna do it on there i used to do that on the air and it drives me nuts because i get too add punch one number wrong i'm trying to talk and then i hit it in and it just doesn't work so all right so generally folks if you have a pension lump sum option take it and roll it to an ira in good growth stock mutual funds with your smart investor pro because when you die it doesn't evaporate that way. That's your general answer. Now, there may be some weird exception somewhere, so it's always good to think about it, always good to learn about it.

But in general, that's some fairly simple reasoning that will get you to that answer. Ryan is with us in Johnson City, Tennessee. Hey, Ryan, what's up? Ryan, George, it's great to talk to you guys. You too, sir. I've got a serious life question. Quick back story. Dave,

I dropped out of school when I was 17 years old, and I've worked at my hind end off the last eight years to get to where I am today. You're 25? My father-in-law, yes, sir. Okay. I've been a heavy-duty diesel mechanic ever since.

I actually run a shop now for a major company, and my father-in-law has approached me to take over his construction business. Now, I'm not – I also own a home investment company where we buy fix and resell houses i'm currently working on two houses all this is done with cash no bald money um and i just i don't know i've worked really hard to get to this point i'm nervous i don't know what kind of decision you know know, what kind of, you know. I understand. I guess you could say. That's a very, very good question.

I'm bumping up on a commercial break here, so we're going to go make a little money so we can stay on the air. And we'll come back here and be sure we answer your question a little more thoroughly. I don't want to do it in 10 seconds. So hang on, Ryan. Be back with you. This is The Ramsey Show. Most people know me as the guy who did stupid with a lot of zeros on the end. I made my first million dollars in my 20s the wrong way

and then went bankrupt. That's when I set out to learn God's ways of handling money and I developed the Ramsey Baby Steps. By following these steps, I became a millionaire again and this time the right way. After three decades of guiding millions of others through the plan, the evidence is undeniable. If you follow the Baby Steps, you will become a millionaire

and get to live and give like no one else. And now I'm excited to share with you that I've written a new book called Baby Steps Millionaires, and it's available for pre-order right now. You'll learn how ordinary people built extraordinary wealth and how you can too. I'll walk you through how to invest, build wealth, and bust through the barriers preventing you from becoming a millionaire. For those who are ready, it's game on. You can baby step your way to becoming a millionaire. Pre-order your copy today at Ramsey personality is my co-host today. We're talking with Ryan in Johnson City, Tennessee.

Started out at 17 years old as a diesel mechanic. Now he runs the shop, doing really well. His father-in-law, by the way, is doing some fixes and flips on some houses. Father-in-law comes along and says he owns a construction company, and Ryan, we want you to come over here and run it. And that's about how far we got in the discussion. Is that a fair summary of what you told me so far, sir? Yes, sir, Dave.

That's accurate. Okay, cool. So what are you gonna do i don't know that's kind of kind of you know wanting some advice from you guys today uh you know start off you know he what it is is he's looking to in the next five to six years he's looking to to pass it on and be you know he's he's ready to retire. He's worked this business for 30-plus years. The last five or ten years, he's just got older in his age, and he's not been as engaged as he used to be. But, I mean, he does painting and trim work and, you know, really high-end houses.

It's not, you know, regular mom regular mom and pop type houses so it's it's specific it's specific work and it's highly you know it's in high demand for the type of work that he does um and he just is he physically is he physically still doing the work or he has people working for him that does it um he goes to the job so he he has multiple people where he got paint crew and a carpenter crew but they're doing specific type of like paint work. Yeah, they're doing craftsmen. They're doing high-end stuff. It's not slapping on there.

But he's not swinging a hammer or a paintbrush anymore. He still goes to job sites, but, you know, he works the farm. You know, he might go to job sites and help guys if they need help, but he's not required to be there like he used to be years ago, building the business and this and that. He actually let the business get a little smaller than it used to be. He used to have about 60 or 70 employees, and now he's around. He's in the 20s, but like I said, the last five or 10 years,

he hadn't really wanted to work. Okay, so what's the profit on the business? I don't know. Okay, we haven't sat down and talked those numbers, but basically he can replace my income as far as what I'm making here. Today? I'm putting in 50. But long-term, you're doing this to get your income up?

Yes, yes. Okay, so I want to know what that is. I mean, replace my income. What do you make now? I make between, just depends on how hard I want to work, between 85 and 90. You know, I'm still an hourly foreman, so I still run a shop, but if I want to work extra every time, I can get into the high 90s this depends on how hard how hard and how much i want to work and that's that's just from my current job that don't count my you know the company that i've

got where we buy and sell houses uh i think i made like between foreman and that last year i made like 135 ish or something uh what are the what are the terms of you taking over the business basically um he wants me to to get in there and learn this hand trade um i would be i would be an owner from day one basically um so you know he's always just he would go work the job sites and he would get to pay for pay for you know the what he would earn that week that's all he'd pay himself and the rest of the money that all the other carpenters would work and that he would make on top of what him being on the job site he would just put in the business account and then he would pay himself you know quarterly or once a year just a bonus or something and i I mean, he's got a very high net worth, well over $3 million.

So, I mean, he's done very well with this business. So he's going to give you this business at the end of the story? At the end of the story, end of the day, he wants me to run it. He wants me to get this business. No, you running it for him is different than him giving it to you. Which is it? He's going to give it to me at the end of the day, but he just wants me to learn the trade and start running all this.

I understand. I said at the end of the story. So you're 25. When you're 30, this will be yours. Yes. Yes. Okay. Now, when you're 50, what do you want to be doing with your life?

Diesel mechanic or running high-end trade? I'm going to work for myself dave um uh you know that's not the answer you work for yourself doing anything yeah that's true you could be a diesel mechanic for yourself and i'll run a shop for yourself uh you could be a high-end trade for yourself what do you want to be doing every morning when you get up monday morning you're going to work have a smile on your face like I did this morning? Yes, sir. I've been doing this 30 years, and I still like it. At the end of the day, Dave, I could be doing either one of these jobs

and be happy at the end of the day. Bull crap. I'm limited. I love them both. No, listen, you are good with your hands and you are such a freaking hard worker that you are you are content with anything that is hard work that you can make a living and i want you to rise up above that and get into your head not just your hands and go what's gonna make me smile when this is big and you don't have to answer me but

you got to answer you before you make this decision i think you're going to go to work for him in the hand that take this over but i want you to be really sure that you're not just doing it just because it's there because you'll be miserable don Don't be miserable. And look back and go, I live my father-in-law's dream. Yes, sir. Ryan's dream. That's what we're after here. And it's okay to do that. I mean, my kids are involved in this business.

They're taking it over. They're not going to be miserable. We've gone through a very detailed process to make sure it's God's call on their life for them to be here or don't be here, because nothing's worse than family business when somebody don't want to be there. Yes, sir. I tell you what, Dave, I won't do anything that makes me miserable. I want to come home and, you know, be with my family and enjoy the time I'm with my family.

So when you don't enjoy what you do, I ain't going to. You aren't doing those real estate deals just for money. You enjoy that project based get stuff done take something and transform it and put it back out in the marketplace looking better than it did and make some money on it you enjoy that don't you absolutely you're a guy who fixes things you're a guy who fixes things so i think you're going to end up doing this but i want you to get down inside your heart, talk with your wife. And then the other thing is with your father-in-law, don't assume squat.

This needs to all be written down. Yes, sir. That's one thing he said. He said we can get with his order. Yeah, like on this date, if I am competent and I have learned the trade, you will turn it over to me. Yes, sir. That needs to be in writing, okay? on i'm gonna have kelly pick up ken coleman's book from paycheck to purpose will be helpful to you but more importantly kelly give him

this career assessment that we've got now and it is ryan it's just magical it'll take you about 15 minutes to take it and you will have insights into yourself you can go over it with your the answers with your spouse you and your wife look it over you You can go over it with the answers with your spouse, you and your wife. Look it over. You could even go over it with your father-in-law. It sounds like he's a great guy. And just talk it through and go, what does this, the answers to this assessment lead me to this deal? Yeah, that's a very interesting situation where he can do anything.

He's a hardworking guy. But what does he love to do? Because that's what I'm looking at. You could take over the business and go, all right, this is fun. But when you have options, which he does does right now i don't want him to feel obligated to step into family business and then step into a nightmare down the road exactly and it's um both of these jobs are activating the same stuff inside of him that makes him you know he does stuff with his hands he's a fixer he's got to fix his stuff so that and that's all

perfect for both of these. That's one of the reasons he's saying that, but I want him to push past that. And Ken's, this new book that is really incredible. Yeah. To get really clear on what it is you're going to do. That's stage one of his seven stages to get to move from paycheck to purpose. And that get clear assessment that you're talking about, that purpose statement that it gives you is so, it gives you such clarity. And you go, oh, I want to run it through this filter.

Nope, the trade's not going to do it. Yep. I need to be a decent mechanic. I need to be in real estate. Yep, yep. And you do move through the process. I talked about this with Ken's group the other night when we did that live stream for his book.

You do move from the process of just having a job to make a living and feed your kids, eat, keep the lights on, and then you move to career. And then the best of the best is when you get to move from career to calling. When you move into your calling, that's where the joy is. That's where there's soul. The deep work. In your work. Yeah.

And you and I are both experiencing that personally. Yeah. So, good stuff. This is The Ramsey Show. Thank you. George Campbell Ramsey personality is my co-host today on the debt-free stage in the lobby of Ramsey Solutions. James and Emily are with us. Hey, guys, how are you? Hello. Hey, we're good. Welcome, welcome. Where do you guys live?

We're in Kennesaw, Georgia, just north of Atlanta. Awesome. Welcome to Nashville. Where do you guys live? We're in Kennesaw, Georgia, just north of Atlanta. Awesome. Welcome to Nashville. Good to have you. Second Atlanta debt-free screamer today. Very good. How much debt have you guys paid off? Just over $50,000. Awesome.

And how long did that take you? 17 months. Good for you. And your range of income during that time? $60,000 to $74,000. Very cool. Good for you. What do you guys do for a living?

So I now am a stay-at-home mom because we had a baby during that time. Yay. And I work part-time at a treatment center to help substance abuse clients. Okay. And that was your career before? It was, yeah. I was full-time. I just kind of took a step back to take care of our baby.

Absolutely. Absolutely. Cool. And what about you, James? What do you do? I run a lawn care business in the Kennesaw area. Awesome. Very cool. What kind of debt was your $50,000?

My student loans. It was my student loans, my car was a good bit of it, and then... A credit card, too. Yeah. No mowing equipment? No. He runs a debt-free business because of you. bit of it. And then... A credit card, too. Yeah. No mowing equipment? No. He runs a debt-free business because of you. I love it. That's awesome.

So good. There's pictures of that, too, by the way. Yeah, see them. They're showing up here on YouTube. Very good. That's great. It mows better when it's debt-free. That's some kind of pickup you got there, dude.

That's the humble beginnings. That's the beginnings of the whole process. He has a truck now. Okay. He's got a real truck now. He's pulled it with a Honda Accord before. It good i love it well done dude i like it that's cool and so uh debt-free dude marries emily when how long y'all been married just over a year it was august 2020 we got married okay so before you even got married you started on this idea of getting

out of debt and then completed it after marriage and then had a baby. Yep. Y'all been busy. He was the initiator of the whole situation. I can imagine. Yeah. How did that go down? Tell us that story.

So I had proposed to her early in, I guess it was 2019. And it was kind of at a time where I didn't really have a plan or goals with money. I didn't have, like, I was just, you know, flying through the wind with everything. And, you know, I came across your stuff from our friends. And to have, like, a straightforward, direct, like, follow these instructions thing was super easy for me to get behind. And I really liked that a lot. So, you know, we discussed it together that this is kind of what we wanted to do for our life and how we wanted to live our life and to grow and to prosper

and then uh so we set the goal and then you know we found out we were pregnant with lily not long after we got married and so uh that kind of made things real and made things sort of like it kind of gave the timeline like i was really I personally was sort of pushy with it. I was like, I really want to try to get this done before she comes, if we can, so that we can come home and not have to worry about that. But we did. As soon as she was born and home, safe and healthy as well as me, we paid it all off.

You had the money saved and you chunked it in. That's perfect. That's exactly what you're supposed to do. During that time, though, we were able to cash flow our wedding um pay for an acl surgery for one of our dogs and to pay cash for her birth oh wow yeah and he's building this lawn care business with cash the whole time yeah yeah yeah he was doing that um and i worked three jobs up until um i gave birth wow and you guys have been after it for 17 months. So what was the hardest sacrifice along the way that you guys had to make?

I don't know. Sacrifice. I really like eating out. But I would say the hardest part was probably when we came to the grips. We did financial peace as kind of our premarital thing. We went through the course online at times it was COVID. But when I had to personally accept that our bank accounts were going to be joined, that was very difficult because I couldn't do what I wanted to do with my money anymore.

It was like I had a built-in accountability partner, and that was the most difficult part to me, I think. Wow. So along the journey, you guys had to combine finances, and and you were going i don't know how much i like this but now you see the benefits of it when you get on the same page absolutely yeah oh yeah how's it feel now to be free i mean that financial peace is the perfect way to describe it you know it's like it's kind of i feel normal like this is kind of it's hard to describe like i felt weighed down before and stressed out a lot and you know i'm sort of a naturally high anxiety person as it is.

And so to not have to worry about that is just huge. I mean, it's huge. It really is just like, that sigh of relief. Like, it's like this part's taken care of, you know, like we're okay. And we have a goal and a plan now. Like we have a direction that we're going in financially. And like, I really, you know, want to do that for our daughter and for our family and our kids' kids. You guys are heroes. You're so fun. You changed everything for her. I mean, she's got a great future because of you two, because of the way you've taken control of your life.

Congratulations. I'm so proud of you. Thank you. Yeah, it was tough. I'm a spender, I would say. And it was difficult. But I think having him was super important because at times I wanted to be weak, he was strong. And at times he wanted to be weak, like I was strong.

And I was like, this is why we're doing it. Like, we need to remember that. And I took out a ton of student loans not knowing what it was going to do and now my daughter is never going to do that amen amen well done yeah that's that's the family tree that's changed right there it's not the 50 000 it's what happened in both your hearts and in your marriage and everything else during that time and that's worth a five or ten million uh that's what it5 or $10 million. That's what it will result in as young as you guys are.

How old are you two? I'm 27. I'll be 35 in December. Okay. Very cool. Good for you guys. Yeah. The future is bright, baby.

The future is bright. Very, very, very well done. And what's your baby's name? Her name is Lillian. Lillian. Okay. And she's visiting off to the side, I understand. She is, yeah.

She might freak out. She's a little camera shy at her age. Okay. That's cool. No troubles. No troubles. All good. All good.

Well done, you guys. Who were your biggest cheerleaders outside the two of you? I would say our friends were kind of cheering us on along the way. A lot of them, they didn't necessarily, friends and family were cheering us on along the way. They didn't necessarily buy into what we were doing because it's not a normal thing in the eyes of society, but they cheered us on. Yeah. Everyone wanted us to, man. You're weird, but I love you.

Good for you. You guys are doing good. Yeah, that's good. I like it. Well, you never know. Some of them may come along now that you're having this sense of peace that they don't have. Yeah? Yeah.

So good stuff. So what would you guys say to the couple out there who's about to combine the finances, they're getting married, they've got a pile of debt, and they're a little bit anxious about all this stuff? I would say, I mean, you said it really well, George, when you said that it gets us on the same page. Because even if we both have the same goal but aren't combined in what we're doing, it's just still off a little. It's like you're not really there.

You're not walking hand in hand on the same path. You're kind of walking two separate paths in a similar direction. And it's just so much stronger. It's like getting in the car and driving down the highway rather than wandering. It's so much better. For me, it was trust. I took that extra leap to trusting him because I told him straight up, I was like, I kind of want a separate savings account just in case.

What if? His exact words were, you're setting us up for failure and for divorce. I'm fighting words. Mic drop. That was before being married um so we still got married but he was he was right like i don't need an escape route because we're in this together like we're in this together and oh that's beautiful beautifully that's strong i don't need an escape route because we're in it together that's that right there's tweetable. I'll take it.

Back when people that were real were on Twitter. But, yeah. Oh, my gosh. Way to go, guys. I'm so proud of you. Got a copy of the Legacy Journey for you. That is the next chapter in your story for sure. That's where you're going next.

And on to Baby Steps Millionaires before you know it. And I can't wait to hear from you when that part of your story occurs as well. Really well done. Copy the Total Money Makeover for you to give away for one of those doubter friends and maybe you'll bring them along on the journey.

All right, it's James and Emily and Lillian from Marietta, Georgia. $50,000 paid off in 17 months, making $60,000 to $74,000. Count it down. Let's hear a debt-free scream. Ready? Count.

One, two, three. We're debt-free! hear a debt-free scream. Ready? Count. One, two, three. We're debt-free! That is how you do it, ladies and gentlemen. This is the Ramsey Show. We'll see you next time. Our scripture today, James 1.12, Blessed is the one who perseveres under trial, because having stood the test, that person will receive the crown of life that the Lord has promised to those who love him. Joe Vitale said, a goal should scare you a little and excite you a

lot. That's the truth. So let me ask you a question. When you think of a millionaire, what kind of job do you picture them having? Some kind of high-powered executive position, CEO, VP? Well, here's the thing. Only 15% of millionaires actually have jobs like that. The reality is the top five careers for millionaires in America are engineer, accountant, teacher, manager, and attorney. And that's just one of the surprising things our team found when we conducted the largest study of millionaires ever done. They talked to 10,000 millionaires about who they are and how they achieved that goal. Our study also made it clear that to become a millionaire, you've got to invest wisely.

And a big part of that is getting good investing advice. The vast majority of millionaires use an investment advisor to teach them, and then they make their own decisions. Our team recommends trustworthy, vetted investing pros from all over the country. We call them SmartVestor Pros. To get in touch with a SmartVestor Pro in your area, go to RamseySolutions.com slash SmartVestor and start building wealth today. That's Ramsey solutions dot com

slash smart vestor george camel is my co-host today alex is with us in sacramento hi alex welcome to the ramsey show hi thanks for um answering sure how can we help i have a question about cancer insurance and um so i know you don't recommend cancer insurance, but I was wondering if that still applies in my situation. So I have a genetic mutation where my chances of getting breast cancer increase to about 70%. And I scheduled the appointment to meet with my insurance company, and I'm about to cancel it, but I want to make sure that I'm doing the right thing.

Okay. So what kind of cancer insurance do you have? It's cancer insurance offered through my workplace. Basically, if I get some kind of service that's related to cancer, like a mammogram, then I'll get a little check, like a good job for doing that. And then if I do get cancer, then I'll get a percentage of what I would have gotten if I were working. Okay, so it covers your income if you're off from work due to cancer. Yeah, but I have to have a cancer diagnosis.

Yeah, I know. I understand that. But mammograms are free with almost every health insurance plan out there now, right? Yeah. Yeah. Yeah. Okay. So really this is basically disability insurance in the event of cancer only. Do you have long-term disability insurance?

Yes, I just signed up. So now I do. Good. Do you have an emergency fund? Only of $1,000. I'm still on baby steps, too. two okay and how much does your cancer insurance cost um about 30 bucks a month okay and what does it pay if you get cancer 70 of your income right yes for how many months oh i'm not sure okay be good to know

be good to know how long before it starts too after a cancer diagnosis does it start six months after or six days after that's important right okay so here's the thing if you have three to six months of expenses i would drop it even in your situation it's a gimmick is what it is they don't sell heart attack insurance they just sell cancer insurance and as many people die of heart attack as i do cancer but they just cancer so scary and it's such a thing and if you've ever had a loved one and most of us have that have had cancer then it just you know it just devastates you emotionally and so it's you're you're so susceptible to that. So I would keep it for now, but I would not keep it long-term because it is really not a good product. But for right now, $30 a month is covering you because you only got $1,000.

But once you have three to six months of expenses set aside and long-term disability insurance in place, you've got no need for it. Yeah, you talk about this in Financial Peace University in that insurance lesson. There's so many different types out there and riders you can add, and a lot of them are just gimmicks. And they're covered through your normal insurance. They're covered through long-term disability. So you really got to look at the fine print, no pun intended, to figure out what you actually need.

And, Alex, I do want you to do just exactly that. George is right. Because you don't know what you're getting for your $30. And here's the rule in insurance. If it doesn't cost much, there's a reason. The fact that it's only $30, $360 a year, there's a reason. Because it doesn't cover much. So either it has an elimination period, meaning it starts late, or it's a short payout.

It doesn't pay out for very long and they know that on average covering a young woman of your age that that's where you are so i'd leave it in place for today but i want to learn what it actually covers and then i do want to get your emergency fund in place the fully funded one and then drop it at that point just because you in particular are worried about this because of this genetic situation for most people i just drop it at that point just because you in particular are worried about this because of this genetic situation. For most people, I'll just drop it, period, just because it really doesn't cover much when you get down into it. It just doesn't. There's not much benefit for the cost.

That's what it comes down to. So good question. Thank you for joining us. Eli's in Clarksville. Hey, Eli, welcome to the Ramsey Show. Thank you. How can we help so I'm a sergeant in the army right now and I'm planning to get out June in uh June 18th of this coming year and I have about 60 days of leave before I do get out and like the army will still pay me for like that that time but I'm not sure exactly what I want to do when I get out because like I there's all kinds of

different options and I was just hoping that you could I don't know like uh help me like figure out like how long of like a window I really, like, figure out what I need to do. Eli, how old are you? I'm 22, and I turn 23 in February. Awesome. Well, thank you so much for your service and sacrifice, first of all. Thank you. So, when it comes to what you want to do, this is all you've known is being in the military, right?

Yes, sir. So what you've got to do is figure out what do I want to do for the rest of my life as a 22, 23-year-old? And we've been talking about Ken's book, From Paycheck to Purpose. And I want to gift you that book, and I want to also gift you that Get Clear assessment that's going to help walk through what are you really wired to do? Because there's a lot of things you could do. Like you're saying, I've got a lot of options is there anything that that comes to mind when you think hey man if i could get out and do anything here's what i would love to do with my life with my work so i mean i'm a really big fan of like helping other people out and like uh doing kind

of like a or like doing like a supervisor type position. So you want to lead people? I've thought a lot about opening my own business, though. But, yeah, I don't know. I need to learn a whole lot more about that before I would be able to move anywhere in that direction. Agreed. Agreed. I agree with that. You got time to learn?

I don't think that's your first step. I think your first step is find something to move into and begin to find your way toward something that gives you joy, where you can serve folks and you can get some sense of soul. So George is exactly right. We'll send you the Get Clear assessment. Take that. It's our gift to you to say thanks for your service, and we'll send you a copy of ken's book from paycheck

to purpose and read every bit of that and look at every bit of that dig into it and then dig into ken coleman's website because you've what you are is you're on a journey a process here of self discovery that's very healthy and good um people do it at 22 they do it at 32 and they do it sometimes at 62 and that's all okay so just you're finding out what your next chapter looks like. And the good news is even if you pick something, you don't have to do that the rest of your life. You can just take a stab at something and give it a run. But do it with some analysis and with some wisdom, and we'll give you some tools to help you do that. And I think you'll be on your way.

Amen. And go ahead and do it now. Don't wait until June. Start right now, really working hard on where you want to end up. Good hour, George. Well done. Thank you. Well done, James and Kelly in the booth.

We appreciate you. This is the Ramsey Show. 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. Have a friend or family member that needs a daily dose of Ramsey advice in their life? Let them know about the Ramsey Call of the Day podcast. It's a quick hit of advice about life and money

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