The Ramsey Show - App - Should You Buy Before Interest Rates Go Up? (Hour 1)

Episode Date: March 23, 2022

Dave Ramsey & George Kamel discuss: Investing vs. saving for a house, The strange generosity of paying off your ex-husband's house, Should you build a house now before interest rates go up? How long you need long term care insurance. Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6

5 Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. George Campbell, Ramsey personality, host of The Fine Print on the Ramsey Networks, is my co-host today as we talk about your mental wellness, your relationships, your jobs, your careers, and your money. It's your life right here on the Ramsey Show. The phone number is 888-825-5225. Austin is in Springfield, Missouri to start off this particular hour. Hey, Austin, what's up?

Hello, Dave. Nice to talk to you. You too. How can we help? My question is, I'm 22 years old, and I'm wanting to start investing. And I'm wanting to know which platform I should use. Wise man. All right. So you're out of college? You're working?

I did not go to college. I'm working. I actually own a construction and excavating business of my own. Way to go, man. That's incredible. Okay, so what's your income for the year, household income? My income is around $45,000 a year. Cool. And I do own my house. It's completely paid off.

Wow. What's that worth? My home appraised around $220,000. Way to go, man. Well, you're doing great already right off the bat. You're killing it. Do you have any debt? No, no credit card debt or student loans nothing and you have an emergency fund you have savings three to six months expenses yes yes my emergency fund is around 25 000 would you run for

congress 22 years old you have your crap together more than any of them at the island of misfit toys i wish but um very um i got a lot of my information from you dave obviously and plus my family and my parents they blessed um me with a lot of knowledge and stuff but no handouts but a lot of knowledge and i'm very grateful for that yeah they raised they raised a great kid, man. Well, let's talk about the investing side now. Have you invested at all in anything so far, or is this all new? No, sir. I have not started investing at all in any type of cryptocurrency or anything. All right. Well, here's what I would do. If I were you in your shoes, I would be investing 15% of my income into retirement

accounts. So things like a 401k, if you have access to that, I know you've got your own business, but you don't. So it may be a solo 401k or a SEP IRA for you. But IRAs and those kinds of retirement accounts is where I'd be putting that 15%. And you can put a lot of money in there if you're self-employed. Yeah, you can put $6,000 into just a simple Roth IRA. That's a very easy transaction, and that would be pretty close to your 15% at this stage of the game. So what you do, just click on at ramseysolutions.com. Just click on SmartVestor Pro. Sit down with one of the people that we endorse for investing. We call them SmartVestor Pros. You're the SmartVestor. They're the pro that helps you do it you're a smart investor and you are you are you qualify dude well done but they can set that up and you can have it come out of directly out of your checking account monthly if you want to

break it down monthly be 500 bucks a month if you want to uh do it one time in a lump sum you can do that um i'd recommend just setting up a monthly draft because i like getting smart things on autopilot so i never have to think about them again so i'm automatically smart i like that i like that if you can automate smartness that's a i don't know smartness not a word i'm not there yet well i'll get there smartness smart whatever it is that's whatever whatever it is it falls that wisdom we're going to just put it on autopilot and where we automatically are smart and i just i've always tried to do that trick myself into doing smart things and you learn to live on whatever's left and then you're really winning exactly well done austin sharon's in san antonio hi sharon welcome to the ramsey show

hey guys dave pleasure to speak with you. I appreciate your time. Thank you so much. I'm in a position where I'm able to pay off my ex-husband's house for him. Why? And I was wondering if you thought that would be a good idea. Well, it sounds weird. Who pays off their ex-husband's house? He's a really, really, really good man, and he deserves a break he needs kind of a hand um up and i just wanted to help him i'm i am so is george just send him the money i will take it a lot of good people out there you could give to so that's some strange generosity yeah that's

different is that weird i don't know no it's okay it's just it's i mean if you want to do it i'm not mad at you it's just would you have to admit it's highly unusual yeah like i don't think in 30 years i've ever gotten this call okay yeah i'm not trying to buy his affection i don't want to get back together with him he's just a good man he was so how much do you how much does he owe on his house? $135,000. And you have, like, extra $135,000 laying around. Yeah.

I have $4.5 million in assets plus a trust fund that's $2 million. Okay. Oh, by the way, I'm working with one of your endorsed local providers here in San Antonio. Can I say his name? Sure. Jeff Whaling and the Whaling Wealth Team. Great. That's awesome. How long have you been divorced?

We got divorced in 2016. We were married for 18 years. No children. Where did you get all this money? Where did all this money come from? My parents, and then they passed away, and my brother was sitting on it, and then he passed away in 2020, and then he did not have a will. So I had a heck of a mess on my hands. So I had, excuse me, everything went to me. And so that was the you're like what 50 you're 50 something years old i'm 53 years old yes sir and what do you do for a living

um i have a part-time job i do customer service over the phone for a company here in San Antonio. Okay. All right. Well, there's nothing legally wrong with this. There's nothing morally wrong with this. There's nothing mathematically wrong with this. You have the money. You won't even notice out of $4 million, $5 million, losing, giving up $135,000. I think it's just, suffice it to say it's just strange enough that um from a relational standpoint or an emotional standpoint you know you might want

to talk this through with like your pastor um i'm not saying don't do it but you have to admit that it's weird and and you know it's just it is and so if you want to go do it, that's fine. So, you know, I don't know. Yeah, I mean, I guess I'd wonder his situation financially. Is he good at money management? Is this going to make him feel like he just got a free ticket? If he hasn't been handling his money well, you don't want to be enabling in that situation. But, I mean, it sounds like he's got a normal mortgage like a normal person, and she just wants to rid him of it. But I'm still taking a nice long pause before I cash the check.

I just think of a whole lot of things I'd put in line in front of it if it was me doing it. But, you know, you have a sweetheart, honey. There's no question about that. And it's your money, and you're not doing anything wrong. And even if it's unusual, it's okay to do it this is the right time to buy life insurance? My answer is typically now. Life insurance is not part of the baby steps because it's needed when your family has debt and not enough savings to provide for their financial needs. That's when they're at the highest risk.

And no matter where you are in your baby steps, it's a necessity, not a choice. This includes working husbands and wives, as well as stay-at-home parents. It's pretty expensive to replace those stay-at-home parent responsibilities. I only recommend term life insurance, since it's the most affordable way to get the right amount of coverage and not break your budget. Go to Zander.com or call 800-356-4282. These are the guys I personally use. Term life insurance is inexpensive, and your family needs this no matter where you are in your baby steps. That's Zander.com.

Or call 800-356-4282. Zander.com. Well, we launched our first stop on our Wealth Building Live Tour recently. The response has been incredible. If you haven't heard, we're taking our Building Wealth Live event on the road this year. Building Wealth is a hot topic. Everyone's got an opinion on how to build wealth, whether it's crypto or single stocks or zero down real estate, and then inflation has everybody freaking out. We're going to walk you through what's going on today and teach you how to build wealth

really. The financial principles we teach are the only principles that work in prosperous times and in hard times. It's the quickest and surest way to become a Baby Steps millionaire. So we're taking this event on the road. We're going to see you live and in person. We can't wait. First stop, Orlando, Florida.

Me, Rachel Cruz, George Campbell to my right, Dr. John Deloney, and Ken Coleman. We're bringing the Building Wealth live tour to you, Orlando, May 19th. Stay tuned. We're going to be announcing other cities soon. One of them sounds kind of like Las Vegas. When you say it, it sounds kind of like that. And so not ready to announce that yet, but soon, soon and very soon. Tickets start at only $25.

You can get a four-pack for only $60. Great deal to do that. Bring another couple. Bring, you know, four of you go out to dinner, four of you come over to Building Wealth Live. And, man, $60, that's a deal. And a limited amount of tickets left in orlando it is not sold out but it's getting close do not wait visit ramsey solutions.com slash events to learn even more our question of the day comes from blinds.com the find out for yourself why they

are the number one online retailer of custom window coverings. Free samples, free shipping, and with the new promos they run every month, you'll save even more. Use the promo code RAMSEY to get the best possible deal. Today's question comes from Helen in Michigan. She says, I'm looking to build a home. I have enough saved for 20% down and have no debt. With current wait times, should I wait to build until prices start to come down, or should I go ahead and start the building process before mortgage interest rates go up more,

as I heard they are going up soon? All right, fair question there from Helen. Well, I don't like making decisions based on what might happen, and so I feel like if she's got the money to do this right now. Go ahead and start the process. Nothing wrong either way. You know, there is no question that there's a shortage of labor right now in the building world and that the building material prices have still not adjusted back to reasonable after COVID. Some of them have. I mean, lumber went way up and then it's back down. It's not all the way down, though.

And so I think you're going to see some smoothing out of the cost of the house could be offset by the increase in interest rates, which we have seen interest rates actually tick up. How much more are they going to tick up? I don't know. And is it going to offset the cost savings? So it's completely up to you. I can tell you this. Building a home today, at this moment, if you broke ground today, in most cities, is going to be more stressful because you're going to have shortage of stuff, shortage of labor. And it's just going to take a little longer to build the house. It's going to have a stress factor to it that is very real.

You've got to watch it like a hawk. You've got to be keeping up, and there's going to be things that go wrong they don't get right and so it's it's a side project exactly so you know it just depends on how hoppy you are on this you know i mean but there's not a there's not a like oh don't do it now no matter what or you gotta go right now you know neither one you're you're okay whichever one you feel best about you're probably going to you might see a little higher interest rate and a little cheaper price and a little smoother build if you wait if you're willing to go ahead and do it now you've got more known factors to george george's point we're not gonna we're not dealing what we're gonna worry about might happen we kind of know yeah where you are right now and now with interest

rates dave you've seen them where they're skyrocketing right now if they go up we're not talking eight ten percent yeah i don't know they're not you where they're skyrocketing. Right now, if they go up, we're not talking 8%, 10%. Yeah, no, they're not. They're at, what, 4% somewhere around there right now? Yeah, and so we're not going to see. I mean, if we did, it'd be highly unusual. The number of times in 30 or 40 years that I've seen interest rates move more than 1% or 2% in a year is highly unusual.

And so you're going to see quarter, eighth, that kind of stuff, movement. And we've already seen that a little bit. But it's just a little tick. But it does change the payment. I mean, it does change what it costs you to buy the house. Sarah is with us in Boston. Hi, Sarah. Welcome to the Ramsey Show.

Hi, Dan. How are you? Better than I deserve. What's up? Thanks for taking my call. We had a situation come up yesterday. We started filing our taxes and realized that we made too much money for the Roth IRA contributions we did last year, which is not a bad problem, I guess,

but we're trying to figure out what to do with that money, whether we move it to a traditional or pull it back. We thought we were being smart last year and over-contributed beyond the 15% that you recommend, and so I'm wondering about pulling that back and putting it towards our mortgage. No, it's not necessary. Wouldn't do that. Did you do it through SmartVestor Pro?

We did not. Okay. Well, I mean, did you do it on your own, or did you have an investment advisor? We have an investment advisor. Call them and tell them they need to undo it and do a backdoor Roth. A backdoor Roth? Yeah. Okay.

And what that is, they'll have to undo this contribution and then you will, then you will open a new after-tax IRA, traditional after-tax IRA, and instantaneously roll it into a Roth. And you can do that regardless of your income. It still gets the money into a Roth, but it just is going to, you're going to have to do the two step here to get it there. Is that different than a traditional IRA then? Yes. A traditional IRA is pre-tax and grows tax-deferred with taxes on it. A Roth does not grow, is not pre-tax.

It's after-tax, and it grows without taxes. So what the traditional after-tax IRA is, is just like a Roth. You're putting the money in after-tax, but then you can roll a traditional to a Roth regardless of your income. Okay. And that's what you're doing. So you're just using a,

it's called a backdoor Roth, and your advisor can help you do that without any trouble at all. Yeah, no need to freak out. We can undo this mistake, luckily. And it's a great option. And people are worried that it could go away. But for now, it's here.

And so it's a great option to take advantage of to legally get into that Roth, regardless of income. I do them every year, as long as I can, for Sharon and I. And if you make over $200,000, you don't qualify for a Roth married filing jointly. And so that's where you are. All right. Open phones at 888-825-5225. Laura is in Ann Arbor, Michigan. Hi, Laura.

Welcome to the Ramsey Show. Hi. Thank you so much for having me, Dave. Sure. What's up? So my husband and I are debt-free, and we just finished saving up a long-term emergency fund and we're getting ready to move to a different state. So we won't be around Ann Arbor anymore. But what we're kind of wondering is, you know, normally we would be moving on to step baby

step number four, right? But our question is, is we have been renting and we would love to buy a house. And we're kind of wondering where that all fits in together. Well, that would be in baby step three B. And so once people have that emergency fund in place, there's a few ways you can go. Some people go ahead and start investing 15% and save for the down payment. Some people, if you can save up the down payment within about two years or so, you can just pause investing altogether to get that down payment saved up really fast. And then some people do a mix. Maybe you invest up to the match and then the rest is going towards the down payment until we get the house. So there's a lot of options you can do there. It depends on your urgency of needing to

get into this house and when you can financially do that with your income. Does that change if we want to save up to pay cash for a house? I mean, it's going to take longer. How quickly could you save up and pay cash? How many years? I'm not really sure. I just don't want you to save up for eight years and not invest because you're saving up to pay cash for a house. We want to begin investing as soon as possible. Two years is about my emotional limit. Yeah, and that's kind of where our question is because we're both 30 now. You're fine.

Some people take a little time off, like George was saying, and build up their down payment. And if you want to do that, it fits right in our Baby Steps. We have had people do it and we so we gave it a name we called it baby step 3b baby step 3 is the emergency funds in place then before we go on to 4 we're going to temporarily sit here in the middle and save up a good down payment and that's all you're doing and you can do that this is the ramsey show We'll see you next time. In the lobby of Ramsey Solutions on the Dead Free Stage, Matthew and Vanessa are with us. Hey, guys, how are you? Doing good.

How are you? Welcome. You come sliding in sideways, barely making it from the airport. Oh, my gosh. No, I mean, it was a traffic jam in Kentucky. There was a traffic jam up in Kentucky just out in the middle of nowhere, and we were at a dead stop for about 45 minutes. Okay, so I don't understand why you're coming through Kentucky if you're from Houston.

Well, we went to see the Ark and the Creation Museum in Kentucky, and so we ended up staying in Lexington yesterday. And so we got up early and came here. But you didn't know about the world-famous Kentucky Traffic Jam? No, no, apparently not. No idea. It's because there's not one. Well, congratulations, guys.

How much debt have you paid off? So we paid off $213,900. Goodness. How long did this take? 58 months. 5-8? 5-8. 58900. Goodness. How long did this take? 58 months. 5-8? 5-8. 58 months.

Yes. And your range of income during that time? So we started this journey separately before we were married. And so my income was around $36,000. Hers was around $10,000. And we got all the way up to about $125,000. And we're back down to about $114,000. Cool.

What do you all do for a living? I'm a GIS analyst. And I'm an accountant. Very good. So this is a five-year deal here. How long have you been married? We've been married about three and a half years. Okay.

So what was the debt? What was the $214,000? So $50,000 was our student loans and then the rest is our mortgage. You paid off your house! Yes. Looking at weird people! You're strange. I love you.

How old are you two? I'm 30. I'm 28. And you have a paid-for house. That's so weird. It's unbelievable. What's the house worth? It's worth about $250 right now.

And it's yours! Yes. I and it's yours yes yes i love it yeah baby wow what in the world inspired you to do this at your young age this is amazing uh i heard about you in college but i didn't really start following you until i got my first big boy job um because i just didn't make enough income uh but honestly whenever i first started i just didn't make enough income. But honestly, whenever I first started, I just didn't want to be homeless. So just paying my bills, basically. And then I just kind of got inspired by hearing all these people paid off their mortgage. And so before we were married, I set a goal for us to, for whenever we bought a house to pay it off by the time I was 35. But we obviously blew that goal out the window. So, yeah. So whose idea was it to not only tackle the student loans but the mortgage too?

It was mine. I'm a big Dave Ramsey nut. So if you go in, you're going all in. Yes, I'm all in or all out. And so this plan fit me perfectly, especially since I'm just a gifted saver. And I just love being able to see that bank account grow. And so having no debt is obviously the key to becoming wealthy. Yeah, way to go.

So, Vanessa, he told you this is our role. What did you say? I was a little hesitant at first. I was like, are you sure? And then as we went on and we paid my student loans off, I was like, maybe we can do this. I can see it now. So I'm curious, you guys did all of this in your 20s. Most people in their 20s say, well, Dave Ramsey's playing me. I'm not going to have a life. I'm going to miss out on my entire life. Do you feel like that? Have you done this? No, honestly.

I mean, we still did like a trip to san antonio and then last year we went to uh right before we paid the house off we went to daytona international speedway because i'm a big nascar fan and uh but we still went out to eat i mean we still hung out with friends but we didn't just sit there and scrap lent the whole week and sit there and live on beans and rice um i mean our budget bill bill, our grocery bill wasn't tremendously large, but we still did some things and still ate out. And like I said, we didn't just stay home all the time. So Dave Ramsey didn't scar your youth.

No, that's good. He helped my youth. That's amazing. Thank you, George. Thank you. I've been redeemed. I want to sell your good name. I just want to make sure we get that out there for you people.

Good for you guys. Way to go. You're incredible. How does it feel to be completely free? Unreal. Unreal, amazing. I mean, the sky's the limit right now on what we can do. We're already being able to bless people, and it's such a blessing to us.

We're about to lead our eighth FPU class next week. And we've had a total of almost two hundred and thirty thousand dollars paid off in all our classes at our church. And we're just we're thrilled that we're going to be able to help people and that we're going to be able to be outrageously generous. Yeah. Way to go. What a testimonial. Now, as you lead more classes. You go, we've got a paid-for house. Wow, yeah, that means because there'll be some guy in there that thinks he's got it all together,

and then they're looking at this guy who's 30 years old with a paid-for house, so that kind of like is shut up, right? Yeah. Great testimony there. Very cool. Way to go, you guys. Woo! What do you tell people the key to getting out of debt is?

Beanie babies and Pokemon cards. No, not really, not really, not really. He's been saving that one up. While he was sitting in traffic, he dreamed that joke up. Yeah, he actually mentioned it whenever we were in traffic. He's practicing his lines. I just had to stick that one in there, Dave. I know, I know.

I can tell. But, no, I think just perseverance and just having a vision beyond just Friday. I mean, it's just totally worth it and that people definitely need to get on this plan, even if it means sacrificing two or three years of your life to do it. Like I said, it's just totally worth it. I don't even know how to explain it, what, how to explain it whenever we paid the mortgage off. Um, it was, I just wanted to jump all the way to Mars. Um, like I feel like I could defy gravity at that point. Um, but, um, but knowing that our kids aren't going to have any

debt in the future is, is tremendous because that was one of the goals of ours was to have no debt whenever we had kids. Mom, dad, we're not pregnant. I'm sorry. But just being able to change our family tree and be able to be generous to whoever needs it at that time and that we're going to be able to spread God's work because we're completely debt-free and that we're financially stable. Well, way to go, you guys. Very cool.

Very cool. Good work. Good work. Well, we've got a copy of Baby Steps Millionaires for you. That is definitely the next chapter in your story. You're heading that direction very, very quickly. And How Ordinary People Built Extraord build extraordinary wealth, how you can too, number one bestseller.

And on top of that, of course, we'll give you a total money makeover book for you to give away and continue to stir up a ruckus. With that, thank you for leading the classes. You guys are incredible. I'm so proud of you. Thank you. Thank you. I appreciate that.

Very, very, very well done. Who were your biggest cheerleaders? I would say my parents. And my parents also. Yeah. I think her stepfather was completely baffled and amazed that we paid off our mortgage in basically three and a half years because they still have a mortgage. And so I was just, so like I said, he was just baffled. And my dad paid their house off when they were 39 um and stuff so i'm just having that inspiration and i kind of had a bet with my dad that i was going to pay that we were going to

pay our house off before before uh 39 years old and obviously we blew that out of the water yeah so they're super proud of us um and and all that so you did it before vanessa was 29 so there you go yeah well she was actually 27 when we paid the house off. Oh, wow. Okay. And the one thing I was bummed about was I turned 30 last year in April, so I missed paying the house off in my 20s by like five months. Shucks.

Oh, wow. I'm bummed about that. That's just killing me. You're killing me here. I love it. Overachiever. That's what you call it. That's it. Well done, guys. Very well done. bummed about that that's just killing me you're killing me here i love it overachievers that's what i call it well done guys very well done all right it's matthew and vanessa houston texas two hundred and fourteen thousand dollars paid off in 58 months that's their house and everything

at 30 years old and under man making 30 making 46 up to 125. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Yeah! Woo-hoo-hoo-hoo-hoo! There is hope, Dave. There's hope.

Oh, there is. I'll tell you what. You take a house payment, $2,000, $2,500, put that in a growth stock mutual fund from $30,000 to $60,000, you're going to have a lot of millions. A lot of millions. Just from the house payment alone. Yeah. This is The Ramsey show. We'll be right back. George Campbell Ramsey personality is my co-host today.

Open phones at 888-825-5225. Matt is in Minneapolis. Hi, Matt. Welcome to the Ramsey Show. Hi, Dave. Thanks for having me on. Sure. What's up?

Well, my wife and I finished Baby Step 2 last June, and we currently had sold our house now this past November. My wife had a calling and works at our church. And through that, we just decided the best plan for our budget was to sell our house. We're currently renting, looking for a little bit of a downsize. We did have a net gain of one hundred0,000 off of the sale of our house, and my wife and I also have some traditional 401Ks from previous jobs that we had in the amount of just under $200,000.

I'm wondering if it makes sense to take some of that profit that we have from the sale of our house and roll those into a rock. No, not until you get a house purchased and have it paid for. Okay. Because what you're doing is creating a tax bill that you're paying with money that you would use to put a larger down payment on the house and thereby getting you out of debt faster on the house. And so the net result after you've purchased the house would be

as if you borrowed on your home to pay the taxes from doing the rollover. Because it's going to create more debt on the house if you use some of this money for taxes, right? Yep. Yeah, that makes sense. Yeah, I don't want to do that. I do want people to roll to Roths as you get into Baby Step 7 and can find extra cash to do it. So I've converted everything into Roth years ago and paid those taxes. And I convert even the match.

Any of you that get a match, it's not allowed. If you have a Roth 401k like we do, I do a Roth 401k for myself at my company. The match by law cannot be in Roth. And so it's traditional. But once a year, I go ahead and roll it at the end of the year, all of the match over into the Roth portion and pay the taxes on it. I create a tax bill to keep moving it that way. But I've got the extra cash after being 100% debt free in Baby Step 7, which is where I'd want you to do this. Yeah. So this $190,000 would then become, sounds like you're down payment on your next house. Yes.

I'd put as much down as possible to get it paid off as early as possible. Yes. And then continue to invest 15% of your income aside from that into retirement. Yeah, and then get the house paid off. And once it's paid off, then we'll do this. It's a wise decision, just wrong timing. Yeah, very, very good. And it's a good question.

Yeah. I like the question. Donna's in Hartford, Connecticut. Hey, Donna, what's up? Hey, Dave. Thanks for taking my call. Sure. So my question is really surrounding whether or not to look into long-term care insurance.

How old are you? I'm 59. My husband's 57. Oh, okay. Basically, our health care coverage when we retire at 65 or 67 will be great. It's government-sponsored after Medicare. And our income, not including investments at 65 or 67 going forward, is going to be about $100 a year.

And how much will you have in your nest egg? Pardon? How much will you have in your nest egg? Pardon? How much will you have in your nest egg? Currently in investments, we have a million. By then, I would say a million and a half. Mm-hmm. Yeah. And then, like I said, our income, not including that, will be about 100, which was kind of our goal to be at that time. Yeah. Well, the statistical evidence is that less than one-half of 1% people use long-term care insurance for nursing home or in-home care prior to age 60, and you're approaching 60. And so do you want to insure against nursing home stay?

The average stay is 2.3 years. The average cost right now is about $ 000 a year so it's about a 250 000 exposure on average um and you know can you insure through that for a while yeah i probably would in your case because i mean if you use 300 000 out of a million that's a pretty good chunk now if you get to 2 million and you say all right i'm going to take a300,000 out of a million, that's a pretty good chunk. Now, if you get to $2 million and you say, all right, I'm going to take a $300,000 risk out of my $2 million. So your husband goes into a nursing home, stays there three years. You take $300,000 out of your $3 million, pay his care. He dies.

You're left with $2.7. You self-insured through the nursing home at that point. You see what i'm doing i don't really want to do that with just a million yeah i think we'll have a million and a half yeah but still i mean do you want to be if you want to if you're okay with a million two on average yeah it might be longer it might be less but 75 of the ladies outlive their husbands. True. And I don't even know how much it costs. I've heard it's ridiculous, and they cancel on you.

The long-term care insurance? Yeah. Yeah, they don't. No, I've never. I mean, there's a few of them have been. Some of the companies were weak, and they collapsed. But I think that most of that's behind us. Don't buy any cash value insurance versions of it but uh you can shop it we've i mean we recommend long-term care insurance uh and so and i probably

would look at it in your case until you get up above a couple million dollars and then drop it so you might keep it like three or four years or something and then drop it uh and self-insure after that point but just check long-term care, ELP, endorsed local provider at ramseysolutions.com. You'll find the people we recommend. They're a broker. They'll shop among different companies, explain it to you, help you get the right coverage.

You don't need to buy it until you're 60, but you're coming up on it pretty quick here. So you can start learning about it, shopping it, being ready. Get ready to budget for it. Yeah, and it's doable. I mean, mean you got the money either way you're not it's not going to take you out the ones that concern me the most out there george are the ones that have three hundred thousand dollars you got no money in

retirement goes in the nursing home scrambles that nest egg you have scrambled eggs right i mean you got nothing left crack and scramble the nest egg and that 300 is wiped out you're broke and he dies and she's left broke and nursing home you know the nursing home take his care used up what they had and so in a situation like that it's just absolutely vital that you get long-term care insurance but uh but i'm 61 i don't have it but I've got... You're self-insured. I'm self-insured. You're okay to foot the bill. I think we can handle it. I think we can handle it.

And Sharon will outlive you, you're thinking. I think that's pretty well assured. Okay. She's in great health. Yeah. On top of everything. I mean, all of our estate plan is predicated on me predeceasing her, so I'm kind of sleeping with one eye open.

I think she has a plan. I'm kind of worried about it. Those must be fun family meetings. day's gonna die meeting matt's in rochester new york hey matt welcome to the show hey how are you guys doing today great man what's up so i'm 23 years old and i've been investing in both of 403b and then my Roth IRA. And since listening to you guys, I've been learning about the rollover Roth IRAs. And I was just wondering if that's a route I should do when I'm this young. So it's kind of a question about that. A rollover Roth, there's no such thing unless you're rolling an old IRA into a Roth.

So you can only roll a traditional IRA into a Roth IRA? Correct. Or you could roll one Roth into another Roth. I mean, you can move the money around, but there's no such thing. Can you roll what? Can I roll my 403B into a Roth IRA? Yes. So would you recommend doing that?

No, because it's going to create taxes. Okay. I mean, if you move $10,000 over there, you're creating a $3,000 tax bill. Would that save me in more taxes come long term since in the Roth it could grow tax-free and come out tax-free. Yes, which is why we recommend a Roth instead of traditional. But you paying taxes while you've got probably some other goals, I'm guessing you're going to pay off some debt, have an emergency fund in place, pay off your house. You need to do those things first, right, George?

Yeah. Are you in debt right now? I'm guessing he's not. Okay. But, yeah, that would be the order to do it. Like were talking with the other caller we got to do this once we have a paid for house then we can afford the tax bill and we have no other big financial goals in front of us other than to build wealth right all of your future contributions if your 403b offers a roth 403b i like that make your future contributions all roth if you can everything you can do roth now is good but um but i'm not going to create tax bills while i still got debt on your house or anything

else and i'm guessing based on your age that you probably still have a few of those things this is the ramsey show Hey, it's John Deloney, co-host of The Ramsey Show. Did you know over 18 million people listen to The Ramsey Show every week? A lot of those people listen on one of our 600-plus radio stations across the country. To find a station near you, go to RamseySolutions.com slash show.