The Ramsey Show - App - Student Loan Payments Just Hit Me Upside the Head (Hour 1)

Episode Date: June 19, 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 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. Thank you for joining us. Open phones at 888-825-5225. That's 888-825-5225. Kathy starts off this hour in Dayton, Ohio. Hi, Kathy. Welcome to the Dave Ramsey Show. Hi, Dave. How are you today? Better than I deserve. What's up? I have a quick question. My husband and I are $96,000 in debt, and we were wanting to know, would it be smart? I've always wanted to move to Florida, and I didn't know about your take if we should pay everything off first and then move to Florida, or if it's okay to get the little ones paid off, move to Florida, and the equity we make from selling our house,

moved with that, and then what's left over, paid the rest of the debt. What's in Florida? We used to vacation there every year growing up, and I've just always considered it home compared to where I'm at here in the cold. Okay. So what's your household income? Our household income right now is about, I'm doing a lot of overtime right now, so with overtime about $70,000 to $80,000 a year. So it's you.

You're single. You're single. No, my husband and I together. Oh, okay. What do you do for a living? I'm actually a medical coder. Okay. What's you do for a living? I'm actually a medical coder. Okay. What's he do? He actually works at a grocery store here in town at night. Okay.

And so have you looked at the city and jobs in Florida? Actually, I have the option to work from home. So I would be working from home. So I wouldn't have to worry about getting a job because mine would just stay the same. And you can do all this overtime you're talking about from home? Yes. Okay. And he, hopefully, from the equity that we sell, would get a job down there in Clearwater,

kind of doing the same thing. Because he does backup management also for them. From the equity from your sale, that doesn't get him a job. No, that's just kind of like kind of a flow dust until he gets beat up and gets in there. Okay, so here's my thing, okay? I'd like to live in Florida because it's warmer. Does not work unless you do. So if you go down there and have the exact same home price and the exact same jobs, there's no difference in living in Florida or living in Dayton, Ohio, except it's warmer, right?

Yeah. But if you go down there and wander around because you didn't have a freaking plan and you're acting like a child you're saying i've always had a fantasy of living in florida and you go down there and wander around for about six months and make no money while you're there because you just moved on an impulsive whim then you're going to end up like this is a mistake right so if you have a plan where you can at least break even on your money or come out ahead on your money not counting the sale of your home because the sale of your home you could do and stay in ohio but um but you know are you going to make more money at your jobs as

a result of being there and or have lower costs as a result of being there. If those are the cases, then you're going to come out ahead by being there, plus you get to live your dream. But if you live your dream in such a way that the math doesn't work, it becomes a nightmare. Does that make sense to you? Yeah. So have a full-on plan that is fully executed and then make the move, meaning both of you have your incomes lined

up and you look at housing prices and you either repurchase equal or less there when you sell the house or you rent there and but we keep your costs down but if you go to florida and make less money and have higher expenses then that was not a wise move while you're $96,000 in debt. Is that logical to you? Yeah, I understand that, yeah. Because mine, like I said, I wouldn't have to get a job because mine would stay the same. Yeah, but I'm not talking about that. I'm talking about the overall picture, the details.

If your husband goes down there and makes $100,000 a year more than he makes now, then maybe you don't know how to work at all, right? I don't care. I'm just saying net, net, net. When you go to Florida, you need to make more and spend less, and then you go ahead and go now. It's a no-brainer to go, and you use a little bit of your equity to cover your move costs, and maybe you run a little while and use the rest of your equity to get out of debt or

whatever you're going to do. But yeah, that's how you do it. But don't go because I've always wanted to live in Florida. And your planning stops at the end of that sentence. That's what gets folks in trouble. And so good question. Thanks for calling in. Open phone is at 888-825-5225. That's what Ken Coleman does with the Proximity Principle book when he's talking about you getting a job.

Everyone talks about these days you ought to do something that you live in your passion. You ought to work in your passion. I completely agree with that. But the sentence doesn't end there. Well, the sentence ends there. But the concept doesn't end at the end of that sentence. Work in your passion some people when they say i'm going to work in my passion what they mean is is i'm going to take a pay cut because part of working in my passion is not working as much well that's not that's not

that's not working in your passion if you're working in your passion it's fun and so it's not really work you're having a blast shut up and go to work but if you're working in your passion it means well i'm going to go work um the only thing i can do in my passion is in a non-profit when i hear that it automatically means pay cut that's what you're saying i'm not saying i'm mad at non-profits i'm not mad at non-profits i support a bunch of them but the you know when you say i'm going to work in my passion dot dot dot and here's the plan to make more money as a result of being more creative and more fired up and caring more at my job whoa now i got a reason to work in my passion i'm very passionate about what I do, but I'm also passionate about making money doing what I do. And unashamedly to be successful doing it.

And so, you know, if you're going to live your passion, you ought to make more. That ought to be the assumption. So if you say, I want to work in my passion, period, at the end of that sentence, you need to continue the next sentence and continue the thought. So that means I'm going to make more money. Because I'm in a career that I love. I'm creative. And I'm passionate. And I'm working harder. I'm working more. I've got fresh ideas all the time. Mondays are awesome. Fridays are not. I just love doing what I do. That's why I'm working in my passion.

But you can't just in there. But sometimes people say, well, that means, you know, I just got laid off. If you put a period at the end of that sentence and you stop, you know, most people continue with. That means I'm going to make less at my next job. Well, your job you got laid off from might have sucked. It might be you're going to make more money than you've ever made in your life. It might be God just did you a favor, kicking your butt out of that lame old place. So, you know, this is the way you look.

You don't, at the end of the sentence, the story continues. But if you just stop at the sentence, that's how people walk into nightmares instead of dreams. And that's what we want to be careful of in these situations. This is the Dave 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 health care costs? Based on New Testament principles, Christian Health Care Ministries, or CHM, helps Christian families, churches, and ministries join together as the body of Christ to share their major health care costs. Christian Health Care Ministries is the original health cost-sharing ministry.

A Better Business Bureau-accredited organization, CHM members share to pay each other's medical bills. It's not insurance. 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. chministries.org. A couple of big things happening around here. I just got word our Baby Steps community, the Ramsey Baby Steps community,

the official Ramsey Baby Steps community on Facebook, just broke through 200,000 members. So thanks for hanging out with us on Facebook. And if you want to hang out with the official community, it's the Ramsey Baby Steps community. And we're glad you're with us. Great activity in there. Great threads in there. Great discussions in there. It's a lot of fun.

Our team enjoys interacting with all you guys there. So the Ramsey Baby Steps community, over 200,000. Second thing is that in the next next few weeks we'll be doing our last show in this building we are moving we built a new headquarters a couple exits south of here and we'll be moving in in the month of july and our first broadcast there is projected to be july the 22nd and so in the months of august uh we won't be doing any debt-free screams in the lobby in august because we'll be getting everything dialed in there in the new place uh we'll be doing debt free screams by phone of course like we always do here on the show but also you're welcome to come

visit beginning in august at the new place and look us up you have got to see it we put in a whole timeline kind of our museum if you will will and uh it's uh the bookstore is pretty unique it's a pretty amazing place so um and we've got two studios two huge uh radio tv studios on the glass there on the lobby this one's on the glass in our lobby currently but a little better situation there obviously and looking forward to that. Seven podcast studios and two TV studios as well downstairs. And so a lot of production facilities there, a lot of ability for us to get new things out to you guys. And like, for instance, the Ken Coleman Show, which is on the Ramsey Network on Sirius XM and is a podcast, has also just launched on 35 radio stations across America, our first radio syndication other than this show. And so he'll be broadcasting from the glass there soon. And we'll be looking forward to all of that.

So you can be able to see all of us in and out of there as we come in and out like we always do, but a little more accessible to you guys when you come and visit into our lobby. Of course, we'll still have the free cookies and, you know, coffees and all kinds of wonderful stuff for you guys when you're visiting just like we do now. So make plans to come and visit. Put us on your list. You'll definitely have a reason to do it now. It's a pretty, in addition to just watching me yak, you know, but it's a pretty fun location and everything,

and still right here just south of nashville in the franklin tennessee area so put that on your list and be sure to come down by anytime after the first of august and just poke around and see what's going on you can expect a little construction dust still in the month of august as we finish up things but uh that's fine and uh we'd love to have you come down and wander down and find us. I think we're going to have it on Google Maps and everything by then so you can find it. It's a brand-new area, and there's nothing there but us. We're out in the middle of a field. And so you're going to have to have a fine way to get there.

But it's all going to be great. We are really, really excited about it. Ben is with us. Ben is in Grand Rapids, Michigan. Hi, Ben. How are you? Hey, Dave Rapids, Michigan. Hi, Ben. How are you? Hey, Dave. Thanks for taking my call, man.

Sure. How can I help? So I was given a truck as a gift that's worth about $25,000. Wow. Who gave you that? My granddad did, actually. Wow. And so he told me that I could sell it or keep it, whatever was best for me.

And so I was wondering, really, what do I need to do? I have $7,000 from a student loan that my wife took out before we had met. And that's the only debt I have other than my mortgage. I owe about $100,000 on my mortgage. And so I was just wondering what would be the best thing to do. What's your household income? Right now it's about $70,000, but it will go up here in just a little while when my wife graduates and starts working full-time as a PA. Oh, great.

Yeah. So it'll more than double then, huh? Right. Yes, sir. Wow. So you'll be able to pay off the $7,000 debt very quickly, right? Right. Yes, sir.

Good. Good. Okay. And you have no other debt other than your mortgage, and you would pay off the $7,000 debt very quickly, right? Right, yes, sir. Good, good, okay. And you have no other debt other than your mortgage, and you would pay off the $7,000 debt very quickly. You'd build your emergency fund very quickly, right? Yes, sir. How old are you guys?

I'm 23, and she's 25. Wow, congratulations. I appreciate it. Well, I'm curious. Why did your grandpa give you a $25,000 truck? Was it just one he had sitting around? Yes, sir. He just retired, and he's a multimillionaire.

He has about, I guess, $10 million, and so he decided to buy him a brand-new one, and he just gave me his old one. Man, that's awesome. I like grandpa. Yes, sir. He's a big fan of yours. I mean, he is a very big fan of you. Well, I'm a big fan of yours. I mean, he is a very big fan of you. Well, I'm a big fan of his. Well, the rule of thumb I use is can you be out of debt other than your home

and do your vehicles add up to less than half your annual income? And the answer to both of those questions is yes. So I would keep the truck if you like the truck. I assume you like it. Well, I do, but I like having those numbers in my bank account a lot better if i'm being honest with you well i i would drive it because you're getting ready to be making 150 200 000 a year household income in the next two years and um you're making plenty of money to drive a 25 000 paid for truck right so i i would keep it and um you know you're gonna

have plenty of money in your bank account because you don't have any payments. Right. And the good news is your guy pays attention to the bank account. You must be your grandfather's kid. I suspect he's pretty proud of you. So well done, sir. I would keep it if I were in your shoes. Charles is on the line in Houston, Texas.

Hi, Charles. Welcome to the Dave Ramsey Show. Hey, how are you? Better than I deserve. What's up? Hey, so I just had a quick question. I just completed my first year at college, which is totally paid for due to scholarships and a little bit of help from my parents.

So I have, while I was in school the first year, in the summer I'm working, I worked full-time while I was a student, and so I have about $6,000 to $8,000 by the end of the summer in a savings account. And I have already a Roth IRA through my parents. They gave it to me about a year ago. So I wanted more of a short-term investment strategy. So I want to know your opinion on, you know, something I could maybe access five to ten years down the road if I need money for rent or just emergency funds. So I want to know your opinion on that. Well, an emergency fund should not be invested.

It should just be parked into a money market account. And if you wanted to invest this for three to five years, like for when you get out of school buying a house or something like that down the road, you could just drop that into a – I'd probably just drop it into a no load mutual fund no commission because you're not going to be in there very long and um uh you know you could lose a little but you'll make a little uh too that's um and you know if you got a five-year window which you probably have three to five somewhere in there uh you could go with like just a simple s&p 500 mutual fund a no load no-load, because you're going to leave it there for a fairly short period of time.

You could do that. Here's what I want you to hear, though, Charles. What are you studying? I'm studying business analytics and finance. Wonderful. Great degree. Business analytics, hot subject right now. Businesses that are not managing and mining data are not going to exist a decade from now. So you are right.

Yeah, that's exactly what I'm doing this summer, actually, too. You're in a hot field, and you're going to do very well. So good career choice, good job. So here's the thing. The return on investment, you're studying finance, your ROI, your return on investment, of your education and you getting out debt-free is much higher than a mutual fund now i understand you have scholarships and parents taking care of the balance of your school but if something were to happen the insurance policy that says that charles graduates with his business

analytics and finance degree 100 debt-free is this money we're discussing and in other words mathematically you are a better investment than a mutual fund is and so i would not tie this money up in a retirement situation i would not add to a roth i would not do that i would just pile up cash to ensure you graduate and graduate 100 debt free and i understand this is backup, that you've got a primary plan, okay? But I'm just saying you are the better investment. So I want to make sure what little you would make on that money in two to three years is not worth screwing with it. In terms of, you know, you invest $8,000, it makes 10%, that's $800. It makes 1%, it makes $80.

So you're going to make $800 or $80. Well, neither one of those numbers changes your life, dude. So if you want to do a little bit of investing in a mutual fund, that's fine. But I want you to understand the secret sauce in you being wealthy is you. You're going to do fine. You're going to do great. Congratulations. Thank you for joining us.

This is the Dave Ramsey Solutions, Makisha is with us. Hi, Makisha. How are you? Hi, Dave. I'm doing so well. I'm doing good. Good to have you. And where do you live?

I live in Waco, Texas. Welcome to Nashville. And all the way over here to do a debt-free scream, eh? Yes, sir. That's correct. Cool. And how much are you paying off? $88,197.41.

Love it. How long did this take? Took 16 months. Good for you. And it. How long did this take? Took 16 months. Good for you. And your range of income during that time? $65,000 to $97,000. Love it. Great.

Big bump there. How'd you get that big 30% raise? Oh, I just worked. I stayed at work. You just worked a lot. Yes. What do you do for a living? I am a registered nurse, and I work in home care with medically fragile and technology-dependent children in their homes.

Oh, wow. And I also do some clinical supervision for nursing students while they're getting their education. Very cool. So you get all the work you want then. Yeah, pretty much. Good for you. Well done. What kind of debt was the $88,000?

The $88,000 was $23,000 on a car loan, and the rest was student loans. Okay. So $55,000 in student loans, $23,000 on a car. How old are was student loans. Okay. So 55 grand in student loans, 23 on a car. How old are you? I am 28. Okay. So you came out, finished your nursing school, passed your boards. Yes. And bought a car. Yes. Yep. Worked for a few years and just said, oh, well, I'm okay now. Yeah. How'd you get connected to us? What fired you up? Well, a little bit of background. Single parent home, low income. So my mom definitely stayed on me as far as getting my education at the end of school. So coming out of high school, I had some merit-based scholarships, some need-based scholarships and grants and things like that. But I just chose a very expensive school in my hometown, Bailey University. So I just wasn't prepared for what that meant. So we had to add on to that with student loans. And then I chose my graduate program. I did a little bit better near the state school, but I still took out a loan for that. So I worked for a few years. And when I finished my graduate program, my student loans were coming back into repayment. Minimums were

going to hit me over the head. And I was just like, hey, I don't have that. I got to figure out what I have to do. So I got on YouTube and found a young lady that had paid off her student loans, found you, and was just like, hey, I need to get it together, and I have to do this. So I actually had some money in my savings, so that was the first thing. And I was like, if I get rid of that, there's no turning back. I have to let go and keep going. Very good. Yeah.

Very cool. So YouTube is where you learned everything about us? Yes, and I checked out the Total Money Makeover at my library. Okay. And I read that, and once I read the book, I was like, okay, the plan is there. I just have to submit to it and follow it. Wow. Look at you.

And so 16 months later, you just took every job, every piece of overtime, just worked your tail end off and threw it all at the debt and then some. Yeah, exactly. How much was in savings that you threw at it? $18,000. Okay. So that still left you $70,000 to cash flow. Exactly.

In 16 months, making $65,000 up to $97,000. But you made $97,000 most of that time because you were cooking. Yes, exactly. You were getting after it. Way to go. Well done. I just cut every expense that I could. Yeah.

Just cut my phone bill. I looked into your ELps for my insurance tried to lower that um and just every expense i could i slashed it start eating at home which was huge saves a lot of money when you eat at home you do um and then once i paid my car off i was able to put that into my snowball and just kept rolling yeah yeah then it goes fast yeah good very good cool does it how does it feel to have no payments? It feels, I don't know, it just feels different. It's just like a weight is off my shoulders.

So now I'm getting ready to try to save for my first house, and I'm just excited about the things that are in front of me. So your mom's a hero. Oh, absolutely. I mean, she raised a single mom. She raised you. You come out, you get your nursing degree. You killed it. You make $100,000 a year. You come out. You get your nursing degree. You killed it.

You make $100,000 a year. You don't have a payment in the world. This lady is a rock star. She is. I owe it all to her. Because anytime I would go to her with something, she'd be like, well, what would Dave say? I was like, you're right, Mom. I've got to stay focused.

No whining. Exactly. Get after it. Exactly. And it was so ironic because i paid off the vehicle and about eight months after that we were actually in dallas i was in my car on the way to see you guys at the smart conference and i got hit and my car was told eight months after i paid it off it was devastating yes it was devastating wow but i just like i can't buy another one i can't go

back in the debt so i just have to keep going. Well, you got the insurance check. Yeah, but I was so underwater that I lost quite a bit of it. I thought you said you paid it off. I did, but after I paid it off, it wasn't worth what I paid it for. Oh, no, nowhere near. So, yeah, I lost a little bit. Yeah. Okay.

But you got what the car was worth. It was worth, but, yeah. Okay. And then that would enable you to get another car for cash. I see. Good. Very good. Good for you. Okay. And then that would enable you to get another car for cash. I see. Good. Very good. Good for you.

Well done. Very well done. Who were your biggest cheerleaders? Oh, man, I had so many. Definitely my family, my close friends, my mom, my Michael, he's here today, my sorority sisters, and then social media, like the Debt Free Community on Instagram and the Dave Ramsey Baby Steps group on Facebook. There's so many of us just keeping each other encouraged and, you know, giving words back and forth and, you know, bouncing ideas.

So the social media presence is there. Yeah, it's easy to get into the community, isn't it? It is. Well done. It is. Very well done. What do you tell people the secret is when you're getting out of debt? If somebody says, hey, I want to do what you did, what do you tell them to do?

There's a few. I think my biggest, well, a couple of them was definitely the budget. Like, you have to look at what's coming in at the beginning of the month, and you have to know what's going out. Checking in with the budget every single week, not just getting to the end of the month. Like, because I used to do that. I'll be like, I don't know where it went. So every week you have to check in.

Definitely having a reason why bigger than just Dave said so or Makisha did it. Having a reason why and really connecting with what that freedom will mean. What's your why? Definitely my mom and my family just turning, honestly, turning that generational poverty into generational wealth. Touchdown. I love it. Absolutely.

I love it. And then if I do have kids one day, hopefully, you you know sending them to college without having to worry about that student yeah absolutely you will yeah you'll be wealthy yes and then just having accountability having a village and having people that are like-minded and just cheering you on because there were a lot of people that just kept telling me to keep going like you got this and then when i did it it was amazing well it's easy to encourage you because you look like you're going to do it. You sound like you're going to do it. You're walking like you're going to do it.

I was on fire. I really was. It's like, yes, there's no question she's going to do it. You know, that's good. Good for you. Well done. You got the stuff, kiddo. You're a rock star.

Thank you. Very well done. Proud of you. You got a copy of it. We're going to give you a copy of Chris Hogan's book, Everyday Millionaires, signed by him because that's the next chapter in your story, for sure. You're going to be an everyday millionaire next. And that's the purpose, getting out of debt.

So you've got to have a big why. Like you said, you break the curse off of a family. You change your family tree. You change that with investing and managing and with generosity and all of those things. That's what it all stirs together to make some really good gumbo. Well done. Proud of you, Makisha. Very cool.

From Waco, Texas, $88,000 paid off in 16 months, making $65,000 to $97,000. Count it down. Let's hear a debt-free scream. Three, two, one. I'm debt free scream. Three, two, one. I'm dead free. I love it. Well done. Well done, well done, well done.

Man, that's absolutely fabulous. Open phones at 888-825-5225. You jump in. We'll talk about your life and your money. It is a free call anywhere in North America. Well, she said it. She said, I checked out the Total Money Makeover at my library. You can do that.

Or if you want one, they're on sale right now for only 15.99 at davramsey.com about seven million people have now purchased that book and i think a lot of them actually read it after they purchased it it's a difference you know what i mean so yeah the seven baby steps are laid out in there in great detail and uh it gets to the heart of your money problems. You. The problem is you. That's the bad news. The good news is the solution is you. I love that.

You have the dignity of winning in this process. You have the dignity of choosing different habits choosing different behaviors choosing different activities because the ones you're doing suck if what you're doing has given you the results you're getting and you don't like it it's time to change go online at davramsey.com pick up the total money makeover right now it's only to change. Go online at DaveRamsey.com. Pick up the Total Money Makeover. Right now it's only $15.99. Or call Ramsey Concierge at 888-22-PEACE, 888-227-3223. Thank you. Steve's in Pittsburgh. Hey, Steve. Welcome to the Dave Ramsey Show.

Hey, Dave. Great to talk to you. You too. How can I help, sir? So I'm currently in Davis at two. I got one student. I'm sorry. My wife and I are both in Davis at two.

I have $5,000 left on a student loan. But my wife actually just told me the other day that um she wants to leave me so i'm kind of kind of a pickle here so i just don't know the next steps this is just it is totally blindsided and i uh i've been trying to hold myself together here and it's just not been easy yeah hear you. So how long have you guys been married? Well, we've been together since we were 17 when we first started dating. We've been together 15 years, married for nine. We're going to celebrate our 15-day dating anniversary and our 10-year wedding anniversary this year,

but I don't think we're going to make it there. What happened to the marriage? You know, since we got together so young, we both grew up together. We just kind of, I guess, interests have become different. I'm in shock,

but from what she's telling me, she's, uh, you know, I guess it's one of the things that we kind of grew apart. Um, and again, I'm still, I'm, I just, I didn't feel it, but she's the one that said we did. And I, I, I don't know what to do. Okay. How old are you guys? Uh, 32. Okay.

All right. Okay. How old are you guys? 32. Okay. I'm guessing you're not a part of a good local church. Well, this just happened on Monday, and I reached out to my church yesterday. And I was talking to them. I tried to get a hold of the pastor. I couldn't get a hold of him. But I did schedule something to talk to them later in the week this week here. Okay. That's a good move.

Yeah. If the two of you can sit down with a good pastoral counseling on marriage, you know, you take a shot at saving this. So I think that's what you work on right now, Steve. You've only got $5,000 in debt, and you said, right? Right. And that's your student loan in your name or hers? It's in my name, yeah. Okay.

And there's no other debt in the house? Correct. Do you own a home? Do you own a home? We will. Yes. Okay. All right.

And how much do you make? I make $42,000. Okay. And how much does she make? I make 42. Okay. And how much does she make? She makes closer to 80. What does she do? She's a nurse. Okay.

All right. Children? Two. Yeah, I teach two kids, eight and almost six. Okay. All right. almost six okay all right yeah i think um 98 of your energy is on uh working aggressively to see if there's any kind of saving this situation that's your first thing um okay the uh as far as the money parts go you don't have a lot of debt and you know you can work your way through

that debt making 42 or making 122 depending on what it is that that part's doable you'll end up with your student loan if a divorce occurs and the house will be split if a divorce occurs typically in most situations like this and so that means it's going to be sold and there's going to be you know whatever equities there's going to be handed to each of you i would not uh i do not recommend in the event of a divorce, as a matter of fact, I strongly recommend against it, that one of you stay in the house and the other one stay on the mortgage. If you're going to keep that, if either one of you is going to keep the house, it needs to be refinanced and get the other one off the mortgage.

So don't you dare quit claim the house to her and give her your half and then you stay on the mortgage don't you dare do that because that'll bite you later on if this comes down to that hopefully it won't hopefully you guys can turn this around i'm sorry i know you're back on your heels and you've been punched in the face with this news and you're trying to figure out what to do i understand but i don't think for the financial part a friend of mine that does divorce counseling says a divorce turns a marriage into a business transaction and so what that means is it's just splitting up the math after that yeah there's all the emotion and the heartbreak and the hurt and the anger and everything else that goes with it. But the math, the finances of a divorce are just a business transaction.

It's just simple, you know, addition, subtraction, division, long division. That's what it amounts to. Sorry. Sorry you're facing that. Joe is with us. Joe's in Columbia, South Carolina. Hi, Joe. How are you? Doing well. Hey, thanks for taking my call. Joe is with us. Joe's in Columbia, South Carolina. Hi, Joe. How are you?

Doing well. Hey, thanks for taking my call. Appreciate what you do. Thanks. Quick question on long-term disability and life insurance. Currently in step or on step number two, I have a medical condition, so it's a little bit more expensive for me to get long-term disability and life insurance. Currently, right now, I have $6,000 a month through work on long-term,

and I have a supplemental policy of $2,450 a month. It costs me about $150 a month for that policy. It's a five-year. What do you make? About $140. Okay. All right. year what do you make uh about 140 okay all right and then and then i also for my life insurance i got the max at work for 300k and then an additional 300k outside of my work policy is about 120 a month so i know i'm below the 10 to 12 times my income but with it being so expensive i I just don't know what level I should be at at this point.

Yeah, you just have to gauge that. How much monthly pain do you want to take so that you can get coverage? And at some point it reaches a point you just go, well, we're just not going to have enough coverage because it's just too stupid, you know. And you just got to look at that. What's the nature of your medical condition? I have a mitral valve prolapse and I had a valve repair open heart surgery in 2015. Okay, yeah.

Ouch. So have you talked to Xander to get a quote through them? Yeah, so I'm actually waiting on medical records from my cardiologist right now to see what they're willing to offer. The disability, I wasn't able to get anything better through Xander. No, you wouldn't. Your disability is very reasonable in this situation. So that's not a thing.

So just get a quote on it and look at it, and then you just kind of make a gauge. Do I want to, you know, how much do I want to put on this? And how much of my income do i want to replace and of course the more wealth you have and the less debt you have the less need you have for life insurance and so if you're making 140 and you've got a million dollars in mutual funds then your need for life insurance is largely gone away right yep so how much is in your 401k so right now i only have about 50k uh in my retirement and i've stopped all contributions since i'm on step two good okay so you're working your way through debt that's perfect good good for you very well done okay how old are you uh 40 okay

all right and does your wife work outside the home? She does not, no. Okay. Yeah, that makes it that much more of a reason to do this. But, again, you've just got to balance it out and go, well, honey, if something happened to us, you're not going to live on $140,000. You're going to be living on more like $80,000. Yeah. Because that's all the coverage we can get and choke down the premiums, right? Otherwise, we're going to be in debt the rest of our lives because all we're doing is paying life insurance premiums but you're doing the right thing continue to poke around the business and as your medical history ages meaning distance from the operation distance from the open heart surgery uh when it's 20 years later rather than five years later it does make a huge difference

so you know even if this go round if it doesn't work um in three to five years step up and try it again okay will do because that'll get you there eventually and by then though you may have less and less need for it that's what you're after so hey good question man thanks for the call and i appreciate you joining us folks always get in touch with zander Insurance, zanderinsurance.com, and just call them over there. I mean, you can do this stuff online, but where you've got a special case like that, they can run what's called a dry app, meaning fill out everything,

but you don't pay for anything until you get the actual quote back. And they can run a full application in, and it's not a guest, man, it's an actual quote, which it sounds like that's probably what he's doing in this case. So go over to Zander, get some good life insurance quotes, and if you've got a special medical situation, talk to them. You'd be amazed as to what you can get coverage on now that 10 years ago you couldn't. So the life insurance business has come a long way in who they're willing to cover, and Zander's got a lot of sources to help you find a possible carrier.

They represent a gazillion different companies. This is The Dave Ramsey Show. This is James Childs, producer of The Dave Ramsey Show. Once again, you made The Dave Ramsey Show one of the top five most downloaded podcasts last year. To get your daily dose of motivation and inspiration, subscribe today.