The Ramsey Show - App - THAT Is How You Do a Debt-Free Scream! (Hour 3)

Episode Date: March 19, 2020

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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, America. We're glad you're here. Open phones at 888-825-5225. Chloe is with us in Indianapolis.

Hi, Chloe. Welcome to The Dave Ramsey Show. Hi, Dave. Thanks for having me. Sure. What's up? I am getting ready to leave my job, and I have money in a 401k Roth, my current employer. And I was wondering if I can roll that into a Roth IRA I had several years ago that I've not been able to contribute to

because I make too much money. Or if I can put it into a SEP IRA or since I do have some consulting I do on the side for my own business, or if I just need to create another Roth IRA of some kind. It would just be a new Roth IRA. Okay. Because you don't combine these accounts. You can have them all in one mutual fund, but they'll have different account numbers. Okay. Let's say you had four different jobs and you rolled them all into the same mutual fund,

you'd have four different account numbers. They don't stack them into one. You don't roll them forward into one other one. So it's technically a division, but you can put it in whatever you want to put it in. If you like the mutual fund that one of them is in or mutual funds that one of them is in. And a Roth to Roth rollover doesn't create any taxes. Did you have any match from your company? Yes, about 3%.

Okay, now that is not Roth. Correct. That's just a traditional IRA? Yes. That portion will go into yet another account, into a traditional IRA. But again, you sit down with like your SmartVestor Pro or whoever you do your mutual funds with, and you pick out your mutual funds and, you know, we're going to roll the match portion into a traditional.

We're going to roll the Roth portion into a Roth and so on, you know, and they can look at everything with you and pull it all together. I mean, I get one statement that shows all of my funds a summary statement. But, you know, all the different things I've done over the years end up in separate account numbers, if that makes sense. Yes, that does. Yes, very much. So what are you going to do now? I'm going to go back to consulting and make a heck of a lot more money. Oh, I hate it when that happens. Yeah, it's a good gig yeah now uh let me give you one other piece of information when you're meeting with your smart investor pro they can help you

with this even though your income limits are over the amount that allow you to do a roth there's a way to get into a roth every year if you want to in addition to your sep you can do your sep with your consulting okay and you can do a sep with your consulting, okay? And you can do a SEP Roth with your consulting. But you could do a regular Roth IRA. Sharon and I do them every year. We're way over the income limits. And it's called a backdoor Roth. Yeah, I've heard you talk about it, but I'm not sure I understood it.

Okay, well, if you do it, here's how it works. It's very simple. If you do a traditional IRA that's after tax, not before tax, you also don't qualify for a traditional before tax, okay, because of your income. But you're allowed to do an after-tax IRA. Now, what that would mean if you left it alone would be you put money in and you don't get the tax deduction. Like with a Roth, you don't get the tax deduction like with a roth you don't get the tax deduction for what you put in right right but it would grow in a

traditional tax deferred if you left it alone and then pay the taxes later no no no no no no we're not gonna do that i'm just teaching i'm just teaching you here, okay? If you left it alone, we're not going to leave it alone, okay? But you're allowed to do an after-tax IRA, not a before-tax IRA, traditional. Then the weird thing is you're allowed to roll, no matter what your income is, you're allowed to roll anything into a Roth, okay? Oh. So you do an after-tax traditional, and 30 seconds later you roll it into a roth okay and that's your back door good and and see there's no taxes because you've already you

weren't it was an after-tax contribution anyway and it's an after-tax contribution would have gone into a roth anyway and so there's no taxes You don't get any tax break on what you're putting in, but you don't with a Roth anyway. You only get the tax break on the tax-free growth. Follow me? Yes. So that's how the back door works, and I do one. Sharon and I do one every January.

You know, we drop our – this year is $7,000 because we're over $50,000, and you can do $6,000 if you're under $50,000 each, and we drop it in there and then let that grow tax-free every year. And just, you know, it's a set and roll, set and roll, set and roll. And it's a two-step process, and it's a rollover is really what it is. But it's called the backdoor Roth. Your smart investor pro can help you do it. There's really nothing to it.

It's technically a loophole in the law. I still don't understand why they've never fixed it, but one of these days they're going to stop that hole up. But in the meantime, old Dave's going to be putting all he can put in there because it's perfectly legal, and it is good stewardship from a biblical perspective to not give money to the government. Let that sink in. Kerry is in Washington, D.C. Hey, Carrie, welcome to the Dave Ramsey Show. Hi, Dave. Thank you for taking my call. Sure. What's up?

So last month, my husband and I, we're both active duty stationed outside of Washington, D.C., and we have a rental property in Florida. We were stationed there. Well, the house, everything's paid off for in the last baby steps. We have no debt. The house burnt down. Whoa. And we got a check for $165,000. It was paid for?

Yes, sir. We paid it off. Okay. So they wrote you a check? Yeah, they wrote us a check, and we cashed. We got it in the bank, but we don't know quite what to do with it. Okay. We're looking for your opinion.

We meet with our financial advisor, but we kind of wanted to see what they would do with it. I assume you're scraping the lot and selling it? We love the area. We do want to go back there. Well, but buy when you go back. Don't buy now. Okay.

I wouldn't buy a rental property in Florida if I lived in Washington, D.C. now. I mean, it can burn or something. So, oh, it's not funny. But you do have money, and nobody got hurt, so it's okay. I would scrape the lot, sell it, and invest the $165,000, or use it to pay off your current home, or use it wherever you are on your baby steps. No, we're at the end. Your baby steps, then it's investment money.

You're in the military. How much longer are you going to be serving? My husband's at 21 years. I'm at 11, so probably 9. So you're probably not going to land. Is that going to keep you moving? Yes. Yes, it will.

Okay. And we're kind of interested. We liked having the rental property. We're actually looking maybe into getting another one. We kind of, we've been doing well with it. We like it. Well, you know. Okay.

If you want to do that, the downside is that you're probably going to move off from your rental property. I always recommend having rental property near you, and that's going to be difficult because you can't move the rental property every time you move. So, you know, if you want to buy another one down there, you can. Long-distance landlording is just tough. It adds an element of risk to rental property, and I don't generally recommend it. But you're 100% debt-free.

You've got some extra money. If it's what you want to do, fine. Pay cash for the rental property. And I generally would say let's try to get it where you're going to end up or where you live now, one of the two. This is The Dave Ramsey Show. I love talking about companies that know how to do business right. You've heard of Grip6 belts, right? Well, if you haven't, it's the only belt you can get online with no holes, no flap, and no bulk. I'm talking weightless, and the buckles come in really cool designs and

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Hi, Rachel. How are you? Hi, good. Thanks for taking my call. Sure. What's up? I have a five- and six-year-old, and I want to start saving for their college, but I'm not sure how to go about it

and what is a good ballpark figure my husband and I should be saving each year towards it. Well if you sit down with someone in the financial business like a SmartVestor Pro as an example and they can stick into the calculator you know you can ascertain what you want to have when they're 18, and then that will tell you how much you need to save per month to get there. So you need to start having the discussion of where you think these kids are, what you're willing to pay for in terms of where they're going to school. If you're willing to pay for Harvard, you're going to have to save more.

If you're willing to pay for Vanderbilt, you're going to have to save more than if they go to the University of Pennsylvania or they go to Penn State. Okay? And so, you know, an in-state school, in-state tuition is roughly anywhere from 25% to 30% of what a private college will be. Okay. And so, you know, you just got to start looking and saying this is where did you go to school by the way uh i went to mr cordia university okay what about your husband and my husband went

to penn state okay all right and so you sit down you have that discussion what do we want for our kids sharon and i both graduated from university of tennessee an in-state school okay we met there married got married right out of school, and so forth. And so we were very comfortable paying for in-state tuition for a state university. We were not willing to pay five times more for a private university. In our household, the value was not there. And as a matter of fact, there's no ROI. You can't prove it. But that in our household. The value was not there. And as a matter of fact, there's no ROI.

You can't prove it. But that's how that was our decision. And based on that, you figure out how much you want to save. And, you know, you talk to that school and go, OK, what's the inflation rate on your tuition? And current tuition is this. And so in 15 years, we can approximate it's going to be Y instead of today. It's X. And then based on that, you can put that in the calculator and back out how much you need to be saving towards each kid as young as yours are i will tell you

that a couple hundred bucks a month uh will just about do it for an in-state tuition roughly um so a couple hundred bucks a month per kid going into their college, into their tax-free growth 529 or an ESA. You can do up to $2,000 a year into the educational savings account into good growth stock mutual funds that are performing at or above the S&P 500. If you're in that range, a couple hundred bucks a month will get you very close to most in-state tuitions as young as your children are but if you want to dial it in really really close then you do a little more detailed research and back out of it and um uh you know you can decide from there um the thing is there's so many variables that change in our life over 15 or 20 years from the time a child is born till they go to school that in your personal wealth, your personal incomes, all of those kinds of things.

So with all of that, you know, your projections today are going to be off, but you can make very detailed projections or you can just take a good shot at it like that. Hey, thanks for the call. Jake is in Des Moines, Iowa. Hi, Jake. How are you? I'm great, Dave. How are you? I'm great, Dave. How are you today?

Better than I deserve. How can I help? Well, first, just a huge thank you for your ministry there. It's had a profound impact on our family. I'm just really grateful for what you do. Thank you. Our family is in, I guess, baby step seven. And it just seems recently, though, that I'm really anxious about what the

next few years are going to bring as I'm looking at some college expenses for our kids and weddings and, and buying vehicles for them as they go to college and the increased insurance payments and just all these things. And then also wife is wanting to, uh, I guess, enjoy things a little more now that we are where we are, and I just have some anxiety about not blowing our budget, still staying somewhat within budget, but yet spending more money on lifestyle and things like that. So you have no house payment? You have no house payment?

No. Correct. How much money is in your 401Ks in retirement? About $350,000. And you're how old? Home is worth about $350,000. And you're how old? Home is worth about $240,000. You're how old? Oh, I'm 48. Sorry.

Okay. That's all right. And you're putting 15% of your income or more into retirement? Correct. Okay. And you have money saved for college, or you're saving it for college? Yeah, we have about $150,000 set aside for college. Okay. Total? Total, yes.

How many kids? Three. And what ages? 17, 15, and 13. Okay. So household income? 95. Okay.

So you're a little behind on college. I mean, you're not going to be completely ready by the time the 17-year-old gets there. And so, yeah, there's some turning up the heat there to be done. The thing is, you know, you're on track to be a multimillionaire by the time you hit retirement. There's no question that that's going to happen but you're right there's a a few things here um when you get to baby step seven and you're debt-free have a paid for house and you make ninety thousand dollars a year that does not mean that you can go you know spend forty five thousand dollars on a cruise you don't have that you don't

make that kind of money you know and so you don't can you do some things to enjoy yeah but and you should you should lighten up the budget and have some enjoyment money in there as well um but there's you you never make enough to not have to make choices between the extravagant extravagant vacation and buying the kid a car you know yeah there's always that choice and so you just got to sit down with your wife and uh the thing i don't want to have happen with the budget is her to not be involved and her to go well we should just be able to buy anything now we got everything paid off we did it all and no you're still involved and you still have to help me make these choices between the vacation and the kid car.

Or if we go on this vacation, the kid gets that car. If we go on that vacation, the kid gets a different car. And you just make these choices. But she should be making those with you rather than you feeling the burden of making all these decisions by yourself. And you go, oh, and by the way, we've got to do college here. So let's make it. And she does. It's just I worry about it, and she doesn't.

Yeah. Yeah. Okay. Well, I mean, I think the thing is this. There's two things. Should you be intentional and careful and wise and have some guardrails? Yes. Should you be fretting and wringing your hands?

Good gracious, no. You're debt-free. You're paid for everything. You're tracking towards being a multi-millionaire at retirement and you make almost a hundred thousand dollars a year you should not be wringing your hands this is far from laying awake at night not being able to pay your light bill you know i mean you're way on the other end of that spectrum so but i want to be a grown-up and address the issues but i don't want them to own me and so if you're fretting over it then i think you probably need to back up and address the issues, but I don't want them to own me. And so if you're fretting over it, then I think you probably need to back up and just give yourself some credit for how far you've come.

The stuff you have defeated is harder to defeat than the stuff you have yet in front of you. That makes sense. And so that's why, I mean, you've got a track record of killing this money thing. I mean, you've killed it. And so you're in the top 1% of Americans in the quality of life and the way you're handling money. You've done a great job. Now, does that mean you take your hands off the wheel and hope it doesn't go in the ditch? No, we're going to still hold the wheel 10 and 2, baby, on the wheel.

I mean, we're still doing that. But do we have to grip the wheel white knuckle now no i mean we've learned to drive and you're going to drive your way right through this the stuff you've done to get to this point is tougher than the stuff you've got to do to get past college and cars insurance and your wife enjoying some money um you're probably always going to be a tightwad. She's there to help you enjoy money. I swear, I'm the one that still does that. Sharon is still a tightwad. I'm in Sharon's life to help her enjoy money. I'm a natural spender.

She's a natural saver. So we've always got that. We'll always have that. Good question, sir. It's an interesting discussion. Thanks for letting me be part of it. Open phones at 888-825-5225. Common sense for your dollars and cents.

Common sense is so rare in America today. It's like having a superpower. This is The Dave Ramsey Show. One of the questions I get all the time is, which life insurance company should I use for my term life policy? A valid question since there are hundreds of companies out there with rates all over the place and riders and add-ons that are simply a waste of money. You need to get this done and make the right decision. That's why the only company I use and have recommended for over 20 years is Zander Insurance.

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Hey, Seth, how are you? Great, how are you? Better than I deserve. Where are you from? New York City. Cool. Welcome to Nashville. And all the way here to do a Where are you from? New York City. Cool, welcome to Nashville. And all the way here to do a debt-free scream?

Mm-hmm. Very cool. How much have you paid off? $32,640. Way to go. How long did that take? 16 months. Good for you. And your range of income during that time? About 60 to 80. Good. What do you do for a living?

I'm a video producer. Good for you. Cool. Fre do you do for a living? I'm a video producer. Good for you. Cool. Freelancer, working for somebody. I got a full-time job now. I've been there about five years. Theatermania.com, shout out. Very cool.

Good. What kind of debt was the $33,000? Student loans, all of it. Every bit of it. Sally Mae got evicted in New York City. She did. She's wandering the street up there somewhere oh my goodness so uh what happened 16 months ago put you on this journey sir well it's kind of

complicated um 16 months ago is when i started on the student loans but um before that i uh I'd ignored them for eight years I moved to New York just was stupid with money I maxed out tons of credit cards took loans from family I wasn't working I was, but I wasn't making a whole lot of money and on top of the stupidity I wasn't paying my taxes on that.

So what I did when I, about a year and a half of stupidity, I finally got this dream job of mine. And I got on a budget. And sorry. That's okay. I'm nervous. You're fine. What happened 16 months ago then?

That's when I started kicking my student loans into high gear. I took as much extra work. Is that when you got the job? No, I've had the job for about five years now. Okay. What happened at that point that caused you to say, okay, time to get real now? I've had the job a while. Now it's time to nail this. Well, I'd been working on, like I paid off those credit cards with a budget.

Because I was ignoring the IRS, I had to pause my debt snowball to save up for that. And I got with an EOP. And after I paid the IRS off, that's when I could start on the student loans. I got you. Okay. How did you get connected with us? My dad always referenced you at home when I was a teenager. He'd always say beans and rice, rice and beans. And he gave me your book a couple Christmases ago, and it just collected dust until I decided to take charge. Gotcha. Very cool.

How does it feel now that you're free? I think you'll hear in a second, but I don't think there's no words to describe freedom. Yeah. I don't think there's no words to describe freedom. What do you attribute getting out of debt to? When someone says, how did you do that? What do you tell them the main thing they need to do that you did to get you out of debt? Budget is very important. And setting goals.

And having faith that you can achieve those goals. What else is here? And work your butt off. Yeah, that's. You pick up extra jobs or OT or what? Oh, yeah. All the. I made about 20,000 extra just working on the side.

And knocked it out. Very cool. Good for you. Well, yeah, making $60,000 to $80,000 and paying off $33,000 in 16 months, that's... With New York... Yeah, with New York expenses. Yeah, that's pretty impressive. Well, very well done, sir.

Excellent job. Did you have people cheering you on? I assume your dad was. Oh, yeah, everybody. I didn't have any naysayers. All my friends were super supportive. They're great. Very cool.

Good for you, man. Well done. We've got a copy of Chris Hogan's book, Retire Inspired, for you. Thank you. We want that to be the next chapter in your story, that you're a millionaire and outrageously generous along the way and i think you're heading that way you'll never go back i can tell by talking to you absolutely yeah you're done you're done yeah very good well congratulations seth all right seth new york city

thirty three thousand dollars paid off in 16 months sally may got her eviction notice making 60 to 80. Count it down. Let's hear a debt-free scream. Thank you, Jesus. Three, two, one. I'm debt-free! There you go. Now, if you're ever wondering how to do a debt-free scream, you can just reference Seth.

That was good. That's the way it's done right there, man. Well done, sir. Well done. Justin is with us in Albany, New York. Hi, Justin. How are you? I'm well, Dave.

How are you? Better than I deserve. How can I help? Call and say to get your advice on the topic of the day, I guess, student loan debt. My wife and I were recently married, and we are trying to get serious about our finances, and we have about $50,000 in private loans and about $60,000 in public loans. We're on baby step two right now to pay off the private loans, hopefully by August. What's your household income?

About $150,000 a year. Excellent. Good, good. Okay. And your question is what? The question is, I currently qualify for public service loan forgiveness, and I'm about five years in. And we're currently paying about $280 per month on the federal loans, but it's not really making a dent in any of the payments.

So our question is, do we wait the five more years of just making the minimum payments to get that forgiven for the public service loan, or do we just tackle that and then go towards saving for a down payment on a house? Because we're worried about the next step in saving for a house, and then what if the public service loan forgiveness doesn't kick through in five years, and then we're kind of SOL? So we're just trying to figure out the best way to navigate that. The great news is the ratio of your wonderful income to the actual debt to be forgiven is so high, you can punch it out real fast.

I'm not going to wallow around in this debt for five years and hope the government doesn't screw me up. I'm with you up i'm with you i'm with you on that let's just play on through knock those private loans out then turn around knock those public ones out you'll be done in no time man and it'll all be behind you and you don't have to sit and try to figure out you know who's gonna who's gonna change some policy at the department of education and they are screwing around with these policies you know that you probably read the articles and i lose sleep

about it every day yeah and see that's the point i mean you make 150 000 bucks you know this is just just knock it on out just just finish it and you're gonna be done so fast and you with it all behind you there's a cleanliness a mental emotional spiritual cleanliness that lets you just go forward and start hitting some of your other goals then, like getting a house and so forth. And so, yeah, I'm not a fan of the student loan forgiveness programs that are 10 years long. It's just too long to be in debt. I'm going to find another way to get out of debt. If the ones that were, they give you some kind of credit after three years or five years,

you know, where you're a doc or a lawyer or something and you're serving in an underserved area those are different types of programs that he's talking about that program is currently not under fire and um you know i might go with one of those and i've got some stipulations if you're going to do that but in his case um absolutely not just pay it off pay it off and be done with it pay it off and be done with it pay it off and be done with it. Pay it off and be done with it. Pay it off and be done with it. That simple. Thanks for calling, dude.

James is on Facebook.com slash Dave Ramsey with about 5 million others. Dave, how do you feel about VA home financing loans? There's three primary types of what we call conforming mortgage loans, VA, FHA, and conventional, typically a Fannie Mae. VA of those three is the most expensive. Highest interest rate, the highest fees. I never would do a VA loan. And that's sad, really, because you would think that it's a Veterans Administration,

it's a benefit to people who serve their country, but it's not a benefit. Don't do it. It's a bad deal. Never do a VA loan. Always do a conventional Fannie Mae. It's the cheapest of the three. I wouldn't do an FHA either, by the way. Pretty simple.

Because the fees and the interest rates, it's a simple calculation. It's a math thing. This is the Dave Ramsey Show. our scripture of the day first corinthians 16 13 Be watchful. Stand firm in faith. Act like men. Be strong. Ronald Reagan said, The future doesn't belong to the faint-hearted.

It belongs to the brave. It's true. This is the Dave Ramsey Show. We're glad you're here. Open phones at 888-825-5225. I was just reading bizarre emails coming in to our organization. Yeah, there is a percentage of people out there in the world who are crazy. I was just going to say emotionally troubled. No, they're crazy they're just and here's

the thing it's all on the internet right i mean so you know i mean abraham lincoln said everything on the internet that you read is true and so you know if you read crappy stuff that somebody said yeah obviously that's true right because it's on the internet somebody wrote it with their keyboard and so no one would ever just make up something and just randomly put something on the Internet. Somebody wrote it with their keyboard, and so no one would ever just make up something and just randomly put something on the Internet. No, that would never happen. If it's on the Internet, it's true. Abraham Lincoln said that.

I read that on the Internet. Paige is with us in Lafayette, Louisiana. Hey, Paige, how are you? I'm doing good. How are you, Dave? Better than I deserve. What's up? So I am having a career goal versus baby step conflict.

So currently I am working full time making $60,000. I graduated in May in industrial engineering, and I've had a goal of becoming a professor in this field while doing research on industrial engineering and health care. Okay. So my original plan was to work for a year, save up that money, and be able to go into the program debt-free. Now, in this field, is there an interim step of a master's?

So originally I thought there was, but I was getting my MBA. Well, I recently researched it, and that's how I came across this program, and I won't have to get my master's okay so you found you found a program that takes you straight into the phd candidate process right okay so with researching that i emailed um the dean in charge of the college and there's an opportunity for me to do an assistantship where i would be working on industrial engineering and health care while my PhD is paid for. Amen. And what does it pay?

I have about $14,600 left to pay on a car. What does it pay? Oh, I'm not sure yet. What would you guess? My tuition's covered. No, what would you guess it pays? I'll get a stipend that covers most of my living expenses. What would you guess it pays?

Maybe about $2,000 a month. So $24,000 instead of $60,000. Right. It's not a full-time gig, though. No, it's part-time while I'll be working on my phd okay can you work that and your current job no because it's in class and it's in two different cities the the current job is in a different city than this right i see okay what is your current job is in a different city than this. Right. I see. Okay. What is your current job? I am working in telecommunications.

Nothing with your field of study then? No, not really. And I'm not really. What city is this offer in? Baton Rouge. Okay. Well, here's what I would look to do. I think you take the gig. All right. Okay. Well, here's what I would look to do. I think you take the gig, all right?

Okay. It pays for your PhD. You're going to be studying and researching. I mean, you're going to just be happy. You're going to be a pig in mud, right? I mean, you're going to be happy. This is good. Exactly.

Go do it. Here's the trick. And go do it as soon as you can, as soon as they'll let you in. Okay. it here's the trick um and i can go do it as soon as you can as soon as they'll let you in the trick is i need you to find another 30 grand that works with your teaching schedule whether it be more teaching whether it be online teaching for other universities simultaneously if there's not a uh prohibition that, in terms of like working for the competition, you know. But there's all these online universities where you can online prof and pick up money.

And or, let's just take your current degree and your new studying of that same degree field, and let's walk out into the consulting world and or pick up some part-time jobs with some of those people come in and do some projects and some studies for some of the factories in the area or something and you know start your own little consulting business kind of a thing where it's some contract work where you control the hours but a nine to five is going to be tough for you right right but i'm thinking some contract work where you can, you know, work, you know, come in. As long as you get the project done is all they care about, and you've already got the knowledge base to do some of that.

Okay. Or, you know, you just pick up the other part-time job, whatever we call it. But $24,000 down from $60,000 while still in debt i don't think so so let's add to the let's just promise yourself you're going to find a way to make another 20 30 grand okay and you take a little step down to hit your goals but you'll still be making enough to get that little last last little bit of debt cleaned up okay while eating right but i i really how old are you 22 and the field of study again is what say it again industrial engineering and the program's only two and a half years okay so here's the thing there's a ton of industry, real true industrial, in quotes, in Baton Rouge. Right.

It's like the perfect place for you to go. And so I'm knocking on the door of every one of those oil operations, every one of those plants that are factories around there, everything else, and just going, hey, you know, what do you need? Because I know how to do this stuff, and I can show you what to do here, and I think I can save you some money here, you know, and you contract yourself out and get in there and pick up some half-time, part-time jobs,

or whatever we call them that equals another. You've got to put some other money with this, some other income, and then it makes sense. But if you'll just commit to doing that, then I would do it. Nicky is with me in San Antonio, Texas. Hi, Nikki. Welcome to the Dave Ramsey Show. Hello, Dave. Thanks for having my call. Sure. What's up?

Yes, sir. I have a question about insurance. I've been brought up buying whole life insurance. I think I made my first policy when I was 28, and I currently have a total of $350,000 in life insurance, a whole life.

Good Lord. And it's costing me $364.90 a month. I bet it is. And then my wife has a $150,000 policy for $136 a month. So a total of $500,000. Is anybody sick? No, sir. so you're insurable oh well um i called for term life insurance and i do have high blood pressure and sleep apnea

um so they offered me accidental death and dispersement and but they said they could do no this is through uh americanudential. Oh, crap. No wonder. No, no, no. Just call Zander Insurance. Jump online to Zander Insurance, Z-A-N-D-E-R, insurance.com. Unless this is like super bad medical condition, if you're insurable, you desperately need to get term insurance in place.

And even if you've got a little bit of medical and it's rated, if it's double what the normal term is you're going to save so much money you're just going to your eyelids are going to blow back man you're going to be going oh my god i've been getting ripped off because you have been this is a horrible bunch of product you've gotten in a big pile of mess here dude so yeah get get some term insurance call z Zander insurance, get online, get online, get on the phone with them, whatever, and start walking this through. Do not cancel your whole life with your medical conditions. Don't cancel it ever, but don't cancel it for sure in your case,

uh, without first getting your term life insurance in place. But once you've got that in place, I think you're going to see a tremendous savings and you'll have a lot of money to invest and do other stuff when it's not going down the toilet, this whole life garbage. Oh, my goodness, that's bad. Well, that puts this hour of the Dave Ramsey Show in the books. Our thanks to James Childs, our producer. Blake Thompson is our senior executive producer. Kelly Daniel, our associate producer and phone screener.

I am Dave Ramsey, your host. We'll be back before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, it's Blake Thompson, senior executive producer for the show. You know, you can listen or watch Be Anywhere with the Dave Ramsey Show app on your smartphone. Catch the full show or watch the highlights and check out Dave's upcoming guests. Head to the App Store and download it today.