The Ramsey Show - App - Stupid-Butt Stuff (Like Lendtable) Makes You Broke! (Hour 2)

Episode Date: April 19, 2023

Dave Ramsey & Jade Warshaw answer your questions and discuss: What to do if you can't get traditional life insurance,  Why borrowing money for your employer match through Lendtable is a terrible idea, What should I do with money in savings? "Should I help my son purchase a home?" "Is our long-term care insurance still worth it?" Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods moving and storage studios, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual and amazing relationships. Jade Warshaw, Ramsey Personalities, my co-host today. The phone number here is 888-825-5225. Allison starts off this hour in Lancaster, Pennsylvania. Hi, Allison, how are you?

Great, how are you doing? Better than I deserve. What's up? So I have a question about what to do if I'm denied for life insurance. I have kidney disease and I've tried to get life insurance privately and through Zander insurance and I've been denied on both accounts. You would be. Yeah. I'm sorry. How are you doing? Oh, it's good. It's more of an autoimmune disease that affects my kidneys. I've had it for about 10 or 11 years. Okay, good. Well, I'm glad you're doing okay.

Yeah, that's a very hard one for the life insurance actuaries. They're going to struggle with that one. Are you single? I'm married. Okay. And what is your income? I'm self-employed, so it varies, but it's approximately $25,000, $30,000. Okay.

And your husband, what does he earn? He earns, he just got a promotion, and so he'll be making $85,000. Cool. Okay. And how old are you? 33. Okay, cool. And do you all have any money built up in savings or investments or retirement?

We have some retirement from previously, but we're on baby step two, just about finishing up. We should be finished with baby step two in the next couple of months. Good. How much is in your nest egg in your retirement from previous? About 40,000. Not much. Okay. All right. Cool. Okay. Yeah. Okay. So the purpose of life insurance, as you're probably aware, is to replace your lost income or something to happen to you. And we usually say 10 to 12 times your income. So $300,000 or $400,000 for a $30,000 income earners, what we would normally tell you to get on a 15 or a 20-year term and you can't get that we've established that okay so what are we going to do in the interim well number one obviously the sooner we

can have three or four hundred thousand dollars in your retirement accounts over the years which you're working your baby step two to get there i understand then then you're self-insured at that point if something happened to you your husband could use that money to make sure the family was okay. And, uh, you know, in terms of the loss of your income, does that make sense?

Yeah. The other things that you can do are what are called, um, guaranteed issue policies there. That means they don't do a medical. They're usually smaller policies like 10,000 $20,000 or something like that. And they're a lot more expensive than traditional term. You can get those through like mortgage life insurance, that sort of thing, Dave?

Yeah. Yeah, you could take out a mortgage life insurance policy on your mortgage that paid off your mortgage in the event of your death. And that's a guaranteed issue policy and again it's about 5x what term is but it's still not that bad and so like if he if you just took care of the mortgage at your death if you had a premature death and your husband and kids he would be uh financially mathematically in good shape right yeah that's one place to pick it up another is what what is what kind of a business do you have so i'm a court reporter and i have a young daughter so i stay at

home and i pretty much edit other people's transcripts is there an association of court reporters yes there is yeah they probably issue some twenty thousand dollar fifty thousand dollar no medical required guaranteed issue policies that are, again, like that mortgage. They're probably five to ten times. Sometimes you can get $10,000 with your checking account at your bank, that kind of a thing. But I would patch together a few of those with your mortgage life, like Jade's suggesting. And then other than that, I wouldn't worry about it.

I'd just save and invest. And the faster you have a big investment pile, the faster neither one of you need life insurance. Okay. Does that make sense? Yeah, it does make sense. My husband has a life insurance policy that's a bigger policy, obviously. Yeah, yeah. But I just wasn't able to get anything like that.

So you've got to get the guaranteed issue, but they're more expensive, and or continue to work your baby steps to get to the point that you become self-insured over time. So good question. That's a great question. Yeah. So the guaranteed issue, again, they're almost including the mortgage policy, life insurance policy. By the way, if you're healthy and can get insurance, don't buy mortgage life. Right.

It's five times more expensive than the same amount of term insurance. That's like a last resort. We're recommending it to her because she can't get life insurance, okay? But the guaranteed issue policies are more because they're obviously taking more risk. They have no idea who's signing up. Exactly. No medical exam. Yeah, and they're kind of, they fall in the gimmick category, really.

You would never do them unless you couldn't get insurance otherwise. Yeah. What would be the purpose? Well, people get just like, it's convenient. Oh, yeah. My association. I got one through the home builders. You know, I got through my electrical, I'm an electrician, you know, or whatever.

I don't know. Whatever it is. And they just, it's right there in front of you. It's like the Aflac crap. You know, whatever it is. And they just, it's right there in front of you. It's like the Aflac crap, you know, that's the same kind of stuff. It's just handy. It's, you know, and it's only $3 a week, which when you add it up is like, good Lord, that's a lot. You know.

That's true. But yeah, that's what, but again, it does have a use. And the use is a situation like Allison finds herself in. That would be the way to go. Guys, there are several things you can do with insurance that are smart, but there's a whole bunch of things you can do with insurance that are dumb. Oh, yeah. That's true. I think I hear a lot of people that get caught up on the single-issue insurance,

like, oh, this is the, in in case i get cancer i've got this policy like your health insurance doesn't give cancer yeah i don't get it yeah yeah they didn't sell you heart attack insurance yeah but they sold you cancer they might try now that you now that you mentioned it on the air you might have given some somebody an idea and you know uh accidental death in the in the case of accidental death, you get twice as much. Well, you're not double dead. Right. Right. Yeah. It's why do I need twice as much if I die by accident? You don't. Your family needs the same amount either way. And so don't buy those gimmicky things like that.

What you said, I think, is a point that a lot of of people miss the whole purpose of it is to replace your income it's i think a lot of people think well the purpose of my insurance is to make me rich if something if something family rich make the family rich and that's not it no so if you make 50 000 and you got 600 000 on you and you die your spouse takes 600 000 invested in good mutual funds if it it averages 10%, that's $60,000. You're now worth slightly more dead than alive. So don't buy too much. You'll have to sleep with one eye open. I was going to say you better trust your spouse.

Yeah. And so, you know, but that's what it's for. And so that $600,000 would sit there perpetually spitting off $60,000 a year. That's right. To offset the loss of the $50,000 income earner. And so the family is just fine that way perpetually. So that's where the 10 to 12 times your income comes from. And most people are underinsured and they buy the wrong kinds of insurance and they

get the gimmicks and they get ripped off and all their, they're really spending a lot of money. They're spending more than enough money to have the proper coverage, but don't do it. Hey, if you want to know more, click on coverage checkup on our website. It's a free thing. It'll run a coverage checkup on you and say, oh no, that's gimmick. Don't do that. Oh, that is good. And our coverage checkup tool will help you get dialed in on the right kinds of insurance. And as she said, check Zander insurance for your term insurance. This is The Ramsey Show. Jade Warshaw, Ramsey Personality, is my co-host today.

So, Jade, one of your Instagram followers is who sent this, right? Yes. I had somebody pop into my DMs, as you guys sometimes do, and she was like, Jade, you've got to see this. And so I click open the email and it's a ad for a company called LendTable. And so I opened it up and I look at it and it basically says, you can't afford to fund your 401k. let us do it for you. LendTable, we will loan you the money to invest into your 401k up to your match so that you can get your company match. And then we've magically solved all your problems here, except for a couple of problems here. So just to make this clear, crystal clear, you're a person,

you work at your job, you get a 3% match, but because you're broke, you're broke, you're not on a budget, you're spending all your money. You say, I don't have any money to invest in my 401k and everybody's telling me I need to do it. So I'm going to go to lend table and they're going to loan me the money. The 3%. The 3%. So they give you $6,000 or whatever it is. You take that money, give it to your employer, they invest it, and then they match it. But here's the catch. And let me tell you, it's a catch. It says, once approved, you can link your company-sponsored retirement account with your bank, and we will disperse the payments. You charge $10 a month. This is a subscription service, so you're paying $10 a month, $120 a year, and you sign your contract. Now from that on there, they're

putting the money in and meeting the match for you. Now here's the kicker. And this is the one that gets me if you leave your job. So let's just say when you leave, when you leave your job, now you don't just have to be fired. If you decide to move on. You retire, you take a better job. Yeah, you are on the hook for everything that they've lended you up until that point. Dave, what if you did this for like four or five years? That's a lot of money. It could end up being substantial.

Substantial. And not only that, here's where I'm like, you guys, they take 20 percent of your earnings 20 percent 20 percent of what the employer match is and 20 percent of what it goes on yes yeah so was it worth it so let me get this straight this is a credit card yeah that charges you 120 annual fee and a twenty percent interest rate and it's tied to your 401k and really screwing up your life when you leave your company well it gets worse because you have to write a check for the whole thing right then and if you can't guess what you're

gonna be cashing out the 401k or borrowing on the 401k or screwing up the 401k. There's so many stupid things here for you to do in one possible thing. And it's all bad for you and all good for them. Well, I love that it says, hey, if you choose to, you can just repay us by getting a 401k withdrawal, a 401k loan. You know what? I'll bet you that I bet you Lentable will issue one of their credit cards and you could move the money over to there. And that's probably only 28%. You know, the thing that occurred to me when I saw that, I thought, I wonder what the table

is. I just watched the, you know, have you seen the John Wick movies? No, Dave. John Wick. The evil, the evil empire in the John Wick movies is a thing called the table. The mafia organization in the background of these hit men. Okay. It's called the table.

Okay. And if you want to be an assassin for the table, you have to like give up a finger or whatever. Okay. You have to prove your commitment. Right. I'm tracking. The table, however, will turn on you.

That's why they call the tables turned. That's why they call that. Oh, wow. Okay. And so the table, it's and that's what I thought of when i saw this you're going to give up a finger this is like this is like eight digits you're this is like you can't give you don't draw a nub back oh my gosh at the very least they should leave you the middle one because that's what you that's what you want to give them oh you could just leave it with them as a permanent sign of our

affection oh man it's terrible oh god so you're gonna borrow at 20 percent of what the employer pays you and ten dollars and any gains and ten dollars a month 120 a year in order to get the employer match because you're too broke to get the employer match because you're too broke to get the match. And 10% when you get the withdrawal. See, when you do stupid butt stuff, that's what makes you broke. Yeah. Stupid butt stuff makes you broke.

And this fall, Lynn Table, let me help you guys. This falls under the heading of stupid butt stuff. Real stupid. I think you and I just made new friends over at Lynn Table. Yeah. They didn't see this coming. I love Jade and Dave now. Well, I don't like when... They screw people. I don't like that. I don't like products that benefit from other people's bondage. I hate that. I hate that. There's no upside for the

customer. There's no upside for Lindy Table. And they're taking advantage of the fact that they and you're buying into it when you do this when when companies make products based on the fact of you're probably not going to do this at the end yeah who stays at the same job oh gosh who stays at the same job when you leave you're gonna have a cash crunch you have a problem yeah because you know it's like it's like borrowing on your 401k in that sense because when you leave your company there that's why we tell you not to borrow on your 401k because you get yourself in a crack man it's bad news yeah horrible stuff domino effect bad all right let's go to vicki in uh san antonio hi vicki welcome to the ramsey show hi dave hi jade Hi Dave, hi Jade Thanks for taking my call Sure, what's up?

Hey, I'm 55 now I worked your plan, implemented your books in my 40s And paid off the house, did the term life insurance for my partner at the time And we ended up splitting back in 2017 Splitting the house and I had about $100,000 That I still have in a savings account that i'm wanting to figure out what to do with and i kind of had it for i wasn't sure what i was going to do with it because i was going to have to move so like you sold the house and or the other person bought you out well the other person

the other person bought me out and that's the 100k100,000? That's the $100,000. It was like $130,000. Now it's $100,000. Where do you live now? Now I'm in a new city. Actually, I live in the Bronson area. You own a house? I do not own a house right now.

Okay. I actually relocated to a new city. I'm living with my mom, which is awesome. That's not a problem. I can afford to get my own place, but I'm trying to figure out what I want to do. If I want to buy, if I want to rent for a while. So right now I'm making, I've just took a full-time job that started back in May. I'm sorry, end of March and this new town that I love. And I kind of grew up in it. So I've never worked in a

place that I've grew up in. So I love the community. I'm marketing. I love meeting all the people. And I think I definitely want to stay here. That was my issue. I didn't know where I wanted to really plant. So buy a house. Well, I, I think so. I just don't know how big, and there's so much exploding growth right now. And I'm thinking, well, shoot, do I get one of these, you know, condos, you know, one of these apartments? You know, I can live in there for a while. I don't need much. I don't need much. I make about $82,000. I got $178,000 in my IRA.

Yeah, you just want to be riding this wave up instead of having a crash on you. Absolutely. And so I'm just wanting to know how much to spend. I would really like something like a two-bedroom condo, something like that, where I can kind of just get my feet wet. Yeah, that sounds good. I would really like to start, you know,

reaching my full potential and really get out of really doing paychecks and making my own money in some way, either a small business in this area or, you know, slowly just working up to, basically not working for someone else is my goal in the long run. I think you know what you want to do. I think you know exactly what you want to do. Getting a house in the area, getting something that's within your means, you know, the way we

teach it is I think right up your alley, which is we don't want that payment to be more than 25% of your take-home pay, all included on a 15-year fixed mortgage. And if you wanted it to be, you know, you don't have to go all the way up to 25%. If you want it to be more modest, you could pull it back a little bit, but you've got this $100,000 saved. I'm assuming that you've probably got some other money set aside. If you don't, make sure you save. She had her emergency fund in place and is debt-free.

So I'm chunking the $100,000 down on a nice two-bedroom condo that meets your needs. Again, no more than a fourth of your take-home pay. That's the plan. And, yeah, Jade's exactly right. That's what I would do. Good deal. And, you know, buy something that will be fairly easy to sell later because, you know, you may decide to do something else later. That's right.

But let's keep it conservative so that you've got lots of cash flow to open and start your business as well this is the ramsey show jade warshaw ramsey personality is my co-host today thank you for joining us america open phones at 888-825-5225. If you missed it earlier this week, we announced that we're taking Smart Conference Weekend on the road. Chicago, Illinois,

we're headed your way this fall, September 15 and 16. Me, Rachel Cruz, George Campbell, Dr. John Deloney, Ken Coleman, and Jade Warshaw for two action-packed days of life-changing content actually it's friday night all day saturday uh to help you be successful in every area of your life with your money your career your mental health and your relationships we've got a lot planned great speakers great

teachers through the whole time and a live taping of smart money happy hour podcast with george and rachel and there's other surprises throughout the weekend this is your chance to join thousands of like-minded people and get smarter and you get to meet rachel george john ken jade in person take pictures with them we're headed to chicago uh now we've got vip vip platinum all kinds of special experiences and uh the tickets start for the general admission at just 79 dollars and they go up from there depending on how involved and plugged in you want to be we've got i think 60 tickets for a dinner after the event with all of the ramsey personalities with only 60

people so uh now that ticket is not 79 dollars i'll just tell you so check it out ramsey solutions.com slash events guia is it guia or gia yeah gia yeah okay grand island nebraska hi gia how are you i'm better than i deserve how are you better than i deserve what's up all right so i've got a question my husband and i have been working your plan and we're actually coming in a couple of weeks to do our debt-free screen. Go ahead. My question is, right now, my husband and I apparently are not normal and we only have one debit card with both of our names on it. So we're trying to decide where we want to get our next debit card. So I'm trying to decide, is it better to go with a small federal credit union around us, or would it be better to go with like a bigger corporation that would have a better interest rate for the savings? Because my thought process was to move our emergency savings into

one of their savings accounts that I would still have access to with the debit card, and it would be hooked together, and then allow it to be able to gain interest. But I'm not sure which is better. No, I wouldn't have a debit card connected to your emergency fund. Mm-mm. Okay. That's asking for trouble. You'll find a couch on sale that'll be an emergency.

Mm-hmm. Fair enough. So would you still have a second debit debit card because i've just had it where yeah you know it's a stupid thing it's a fraudulent transaction exactly if it gets shut down you can't pay for dinner or something you're you know you don't have enough cash in your pocket yeah i i have several uh debit cards and um i actually have um multiple cards with one bank different accounts and then i've got another bank that we also have cards with so that I'm not stuck. I carry two in my wallet, but I have one of those on the business

and one in our case and one on my personal. And then I have more, you know, in my briefcase, so to speak. And if I need something for something else, I've got access that way. But, no, I don't do any business with large corporate banks. I work with regional banks and local credit unions. Okay. So it would just, you can even get it for like a different, like just like a different account, but at at the same federal credit union or something like that. Yeah, drop $1,000 into a checking account over somewhere. It's not how much interest it earns.

That doesn't really matter. This is just more as a safety net. Okay. I'm with that. That makes perfect sense. Hey, thanks for the call. Appreciate you joining us. So here's the thing.

Credit cards and debit cards, reminder to everyone, they run on, in most places, they run on the same algorithm for fraud. Yeah. So if your credit card's going to be shut down because it got some kind of a fraud notification or something that woke the computer up and said, oh, this one's in bad. Something's going on here. Then your credit card will be shut down. Same thing. So you can be, if you only had one credit card or one debit card, you can be stranded these days. That's true. That's true.

So she was saying they're operating off of one debit card for the family. That's. Yeah, for the whole family. But I mean, they both have, I mean, Sharon and I both have a debit card on the same account. That's the same thing. Yeah, that's what we have. In a sense. The numbers are different, though.

So if mine was messed up, I might be able to get a whole. You know what I'm saying? Yeah, you could issue another one to your spouse. Yeah. And that would give you, if you're together and you had a problem, that would give you. Because we've done that. Well, I messed up and left my card in the pocket. It went through the washer and it's bent.

And half the time it doesn't work. So half the time I'm like, Sam, let me use your debit card. It's the same account. You know you can order another. I can, Dave. You know. I'm working. I got work to do.

I can't be. I don't have time for this stuff. I don't have time for this stuff. Debra's in Philadelphia. Hi, Debra. Welcome to the Ramsey Show. Hi. Thanks for taking my call.

Sure. What's up? I would like to help my son get into a single-family home, and I'm not sure the best way to go about it. Why does he need your help? He doesn't qualify for much of a mortgage. He's currently renting a house with a roommate. My son recently got engaged, and he and his fiancee would like to live together. Unfortunately, I'm over in New Jersey,

and rents here are just crazy. They'll never get ahead if they got a rent and you're not gonna like me or me you don't need to do you don't need to do this no why because you're not helping him you're enabling him he hasn't got his crap together enough to go buy a house you're going to get him into a house and it's going to be a curse not a blessing because he hasn't got his crap together enough to go buy a house you're going to get him into a house and it's going to be a curse not a blessing because he hasn't got his crap together to get into a house well in which way do you say it's going to be he's broke you said he can't pay the bill the reason they won't give him a loans because they know he isn't going to pay the bill and then you get him into the house and he doesn't pay the bill why because he can't pay the bill well i kind of look

at it as giving him part of his inheritance now you're gonna give him a house for free i don't know about that but then you're gonna sign him up for something he can't do that's not a blessing deborah well how about if i were to buy the house and he rented it from me how about your grown son becomes a man okay that's what you should do he needs to be on his own he needs to stand up he's going to get married to this girl they need to set up and have a life instead of mommy taking care of him really this is not good for him deborah it's not good for him i know you're the sweetest lady on the planet i'm being mean to you but you're just trying to be helpful to your little boy but i gotta tell you one of the things i had to do with

my wife when we were raising a son was to let him be a man let him is a sh, no. Yes. You can't. You got to. Young people have to have dignity. Yes. And she owes it not only to him, but this is the side I see, to the girl that he's dating because she needs to see what kind of man this is going to be. And if mommy is swooping in and paying all the bills so they can live together and she's never going to see who he truly is he's disqualified as a proper husband at that point hey guys mom and moms and dads you know love your children enough to let them do hard things called life like i told you deborah i told you at the front of this you weren't

gonna like me and you're not gonna do it you're gonna go in there and interfere and screw this up because you ain't gonna listen to a thing i said. But the deal is that moms and dads, if you will let your kids find their way, coach them, cheer for them. If they're in a really hard pinch, be a safety net, but don't interfere. We're seeing data right now that 25% of millennials, their parents are paying for their housing in one way or another. Let me just tell you, moms and dads, not good. Not good for your little millennial. They are much better off to face some calluses, some stress, some hard times, make some hard choices, stand up and square their shoulders and be a man, be a woman instead of a child.

It's not good for them. They're not good for themselves. They're not good for their spouses. They're not good for their employers because mommy and daddy swoop in and take care of everything. Bad plan, America. Bad plan. So, Debra, we love you.

You're sweet. You love your little boy, but he's not a little boy anymore. This is The Ramsey Show. Jade Warshaw, Ramsey Personality, is my co-host today. I'm Dave Ramsey, your host. This is The Ramsey Show. Dan is next in Sarasota, Florida. Hi, Dan.

How are you? I'm good, Dave. Thank you for taking my call. My pleasure. I have a question. I have a question about long-term health care. We purchased it in 2009, and this last couple of weeks ago, we saw that they were going to raise the price up to like 75% over the next three years. My question is, is there another alternative, or what do you think about doing that? Well, my guess is you have three years of coverage.

Would that be right? Yes, yes, that's correct. And what are they charging you for? About $475 or something like that. I'm sorry? Right now we're paying $310 a month for two of us, and mine is $158 and my wife's is $151. She's a lot younger than I am.

So it's $3,700 a year. What are they going to take it to? Probably like $6,200 a year. In one year? No, in three years. 25% to 30% every year okay and that's really different than what they did in the past so okay all right have you looked at um nursing home providers in your area uh we have some yes okay i'd go shop a couple of them i think you're going

to find 80 to 100 000 a year is your exposure the average nursing home stay in america is two and a half years if you go past three years you're self-insured anyway right so all you've got is basically 250 000 worth of insurance that's what you've got so how much money do y'all have oh we have enough uh plenty put aside um no i mean is your net worth five million dollars or a million dollars oh no no no no more like a million more like a million all right so 75 75 of the ladies outlive their husbands so the normal statistical scenario is that you go into the nursing home you spend 250 000 300 000 and she's left with what's left that's the normal scenario statistically okay now some people live longer in nursing homes. Truthfully, the vast majority don't make it two years once you go in.

Okay, statistically. That's not saying nursing homes are killing people, but that's not the point. Okay, now, the other thing that's an option is you could just decide to self-insure. That was what I was going to ask. How old are you guys, Dan? Well, I'm 77, and my wife is a young 72. Okay. So if one of you required care,

I also would, in addition to pricing a nursing home, I would price what it would take to get 24-hour care in the home. Right. You probably can do that for eighty thousand dollars okay right that's what you're going to spend on the nursing home and then you've just got to decide do i want to spend three thousand seven hundred forty three hundred five 6,000 against a $250,000 exposure because that's your average exposure, right? You're not going to get any more out of this policy than that. That's the most because it covers three years. And if you said, you know, if you said 80,000 bucks, that's 240,000. So, you know, we're right around a

quarter million dollars and so my guess is that if something happened to you and you burned through a quarter of a million your wife would be okay on the 750 oh by the way if it happens seven years from now you're probably going to have two million dollars to work with yes that's what i'm because your money's invested well your money's invested. Well, your money's invested, right? I hope it's invested. What portion of that net worth is invested in the stock market? None of it. I have it all in a savings account. But I'm getting like three and a half percent.

Did you say that you have a million dollars in a savings account? No, I said I'm worth a million dollars. My you say that you have a million dollars in a savings account? No. I said I'm worth a million dollars. My house is worth more than that. What portion of that is in a savings account? They're in their 70s. He's doing that for safety. Let's stay on.

I'm just slightly younger than you, and I would probably have some of that still invested. That's what jade's having a hemorrhage about i am i'm hemorrhaging there's 72 and 77 so okay uh you know that's okay but the point being it's not going to double in seven years i'm wrong because it's not invested it's going to double in uh 20 years so you're not going to double. Okay, so. But it will grow. If your wife is comfortable with it, she can live off of $700,000 left over after you spend $300,000 on you, then you can drop these policies.

But until then, you carry them. If I'm in your shoes, it's kind of on the bubble. I'm probably going to keep them a couple more years because a trade of three grand for a potential 300 grand or 250 grand exposure and make sure that your policy covers in-home care as well and again i'm recommending that i'm not against nursing homes i don't think they do that they all do a bad job some of them do but some of everybody does a bad job so um but the nursing home industry is not evil they do a good job they they have a tough job uh but in our case the ramsays uh we've got plenty of money to do either one uh we simply will just hire in home care we can afford it yeah and uh we'll just staff it up and so when you reach the point of being self-insured that's what a lot of people are choosing to do because of quality of life and so forth.

But the thing you've got to swear you're going to do is not leave all the care on the spouse. Right. Get some people in there to help carry the weight of the process. In some cases, literally carry the weight of the process. So, yeah, that's, but that, that's what you can look at. And so long-term care insurance, if you have less than a million dollars and you are 60 years old, as far as I'm concerned, it's mandatory. You should get long-term care insurance. If you've got north of a million dollars and you are a million, like I said, he's on the bubble and you

want to, uh, talk about self-insuring in either case, look at in-home care coverage in your long-term care policy and look at in-home care as a possibility if you're self-insuring. Again, because, you know, I don't know. There's something about the nursing home that people are like, oh, I took care of that now. Well, no, you really haven't. There's still a lot of stuff going on that's right um but yeah the long-term care insurance at 60 years old i would

not buy it before you're 60 the probability of using it before you're 60 is less than one percent i would not buy it for that but once you're 60 i would and dan's been wise i think to have bought this yeah i'm probably keeping it if i'm him and one of the reasons i'm going to say that is he's super conservative he's not invested yeah i know that that's what threw me off that's what i had a slight conniption over you did i did that's true i mean yeah you need to have uh because if you could be let's say you got 300,000, it's sitting in the bank at 3%, and it could be making $12,000 in a good mutual fund, that's a $30,000 swing. Yeah.

That's what that is, and it's a year. That's $2,500 a month swing. That would pay almost for the whole thing. I mean, it takes us a long, it would pay for the, more than pay for the policy, that's for sure. Yeah. My thought was just on how that net worth was broken up because of, you know,

if the majority of that is sitting in your home but you're not going anywhere, I feel like there's a couple of things that you definitely want to play out, play that scenario out if you chose to self-insure. Yeah, if it's an $800,000 home and $200,000 in mutual funds. Yeah, you can't do that. You can't, you can't, you've got to keep the policy. Yeah, if it's an $800,000 home and $200,000 in mutual funds.

Yeah, you can't do that. You can't. You've got to keep the policy. Yeah, you're exactly right. So the mix would matter. Yeah, and that's what I was trying to get to with Dan. But, you know, something tells me it's probably kind of equal. He's probably got a Sarasota.

He's probably got, he didn't say, but maybe $500,000 in his house and then the rest of it. Hopefully that's the mix the way it is. So, with you being conservative, Dan, I'm going to tell you, you probably keep it. If you had $2 million, I would tell you to probably self-insure. Yeah. Yeah. That's a big difference.

That'd be the difference. So, you did a good job, though. You're retiring a millionaire. You did great. You're taking care of your family. The whole process is excellent. Very, very well done. Love it.

That puts us out of the Ramsey Show in the books. Hey, what's up guys? It's Jade. If you love the show and want a deeper dive on your money journey, we have a weekly newsletter that gives you trending and helpful articles and tips on following the Ramsey way. Just go to ramseysolutions.com today to sign up for our newsletter. Again, that's ramseysolutions.com to sign up for our weekly newsletter.