The Ramsey Show - App - Think Twice Before You Buy a Fixer-Upper… (Hour 3)

Episode Date: December 12, 2022

Dave Ramsey & Ken Coleman discuss: Pausing house saving to buy a car, Keeping a job just for the pension, Why you should stop and think before you buy a fixer-upper, Investing in a Roth until you get the company match, When to get long-term care insurance. 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/3nInETX 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 of Moving and Storage Studios, it's the Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. We help people build wealth, do work that they love, and create actual amazing relationships. Ken Coleman Ramsey Personality, number one best-selling author,

is my co-host today as we answer your questions about your life and your money. Thank you for joining us. Merry Christmas. The phone number is 888-825-5225. Amy is with us in Salt Lake City. Hi, Amy, how are you? I'm well, how are you? Better than I deserve.

What's up? Good. So we are on baby step three, and our family car has about 185,000 miles on it, and it's starting to give us trouble, and we're planning on driving it until we can't anymore. But my question is, do we pause our Baby Step 3 and start saving money for a newer replacement? No, Baby Step 3 is your emergency fund, and your replacement is not yet an emergency you're saying it may become one but right now it's not and so yeah since it's not an emergency

um no uh i'm gonna drive it and hopefully you can finish baby step three and then save up enough to buy the next car before it gives out on you if it does give out on you before that then some portion of the next purchase becomes an emergency but you're going to have to limit severely the car you purchase to replace it okay and if it does like stop working before we finish baby step three what's a good price for a car to pay while we're still in baby step three what's a good uh price for a car to pay while we're still in baby step three if that happens well the minimum possible because transportation is the emergency upgraded transportation is not the emergency okay so basic you know basic transportation i'm looking just for some old beater that i can drive around here's the thing

you probably can patch the car that you've got and make it through this even if it lays down a little bit i don't think it's going to suddenly just completely the wheels fall off the thing it'll probably be a nickel and diamond drive you crazy for a little while and i'd rather you do that and buy the proper car that's going to be a car you keep for a little while then uh you know buy a two thousand dollar car and then later on have to buy an eight thousand dollar car okay what's your household income um 138 okay you're gonna get there so fast it doesn't matter yeah yeah that's the point and so yeah get there as fast as you can that reminds me i think this is a good insight for folks i I remember years ago, Stacy and I were paying off debt.

We were living in Atlanta, and we had the three little ones. And we had an older Suburban. It was a great thing, ran forever. And the transmission was starting to go on it. So we went and took it in, and it was going to be about $5,000 to replace the transmission. Well, to me, I'm sitting there looking at that going, oof, until you do the research. And you go, I've got the money and the five grand to fix that thing the mechanic was like it's going to keep running for a long time if you spend the five grand versus 15 or 20 or whatever else you

and so in that situation it was a no-brainer to replace the transmission and we got five more years out of that car yeah and it was still running when we sold it yeah oh yeah here's the thing you there's uh i would estimate and i'm making this up but i'm not far off that less than five percent of the time do repairs make selling the car a better situation you're almost always mathematically better off to fix it yeah and keep driving it i agree with that fix it and keep driving the thing that happens though is twofold um one is you start to have just this downtime and the hassle factor yeah starts to be just a complete pain in the butt but mathematically not emotionally not i'm worried about my wife ending up on the side of the road at 10 o'clock at night okay that not not that kind of thing. But just the math of the repairs versus what I would spend to replace the car,

it almost never makes sense to upgrade in car. But it does make sense, not mathematical sense, to move up in car because you get rid of hassle factor, you increase convenience and reliability and things that are not math but that are quality of life. And so, yeah, you do move up in car later. Oh, yeah. And I'm telling you, I was reading something the other day. It depends on the make and model, and I'm not going to get into this now.

But, I mean, it is very normal now for a car to go into the 250,000, 300,000 miles. I mean, I see old, like, Land Cruisers, which i'm into that kind of older stuff but these cars have 250 300 000 miles on and they keep running forever if you take care of them oh there's a lot of models that'll get three four hundred thousand if they're taken care of yeah it's but again it just reaches the point that the technology parts replacement finding somebody to work on them and they will you know they're gonna leave you and you got to get them fixed you know and then you got to you got to deal with it and uh but new car will leave you on the side of the road i got a friend driving a dadgum bentley left him on the side of the road the other day so uh you know it was a flat tire but um okay but uh but just the same i mean uh you know you can still

there's no guarantee you're not gonna be stuck does a person with white gloves come out and change the tire for you? I have no idea. I suspect a helicopter came in with a hook, picked it up and him up and fed him caviar on the way back to the dealership. I don't know. But yeah, but I mean, the point is that all these all the stupid cars, they all break down. That's true.

That's just the thing. So you just you're not going to get completely away from that. Hey, folks, if you're a small business owner and you've got small business questions, we're going to be doing an Entree Leadership Theme Hour very soon. We want to hear from you about your current pain, whatever it is you're dealing with, managing your team, managing your budget, marketing questions, small business questions of any kind, maybe family business questions, anything you want to talk about for Entree Leadership, for business and small business questions,

we need to set you up to be part of this upcoming Entree Leadership Theme Hour. Text your questions or email your questions, rather, to ask at ramsaysolutions.com. Put Entree Theme Hour in the subject line. Ask at ramsSolutions.com. If you've gone through Financial Peace University, chances are it's because someone in your life lit a fire under your little butt. Mom and Dad gave it to you as a gift. Your pastor offered it to you at your church. The one friend that wouldn't stop talking about it, someone got you moving.

So you finally took the class. You finally started working the baby steps, and now changed everything. You're out of debt. Well, maybe now you can light a fire under somebody. This Christmas, give someone you care about, Financial Peace University. You can share the same hope that you've discovered with money, the same freedom that you've discovered with money, the same freedom that you've discovered with money, the same power that you've discovered with money.

And they'll also get the premium version of every dollar and group coaching with our team of financial coaches. So this Christmas, give the people you care about a gift that actually matters. Hope, freedom, power. To give Financial Peace University as a gift, go to RamseySolutions.com slash giveFPU. RamseySolutions.com slash giveFPU. And there's no shipping involved, so it'll be like instantaneous. Well, we'll send you a gift card so they'll know they got it and all that but uh if you do it right now we can still get it to you for christmas hey that's pretty cool

this is the ramsey show We'll see you next time. ken coleman ramsey personality is my co-host today Open phones at 888-825-5225. Tommy's in Cincinnati. Hey, Tommy, welcome to The Ramsey Show. Hey, thank you guys for having me, gentlemen. How are you doing today? Better than we deserve, sir. How can we help? Sir, so I'm just kind of first and foremost grateful to be on the call.

My wife and I, newly debt-free. Thank you guys for your leadership there and your guidance. Between the two of us, we make roughly $138,000 per year. I have been in a job, I'm 35 years old, for about 15 years with the federal government, working for a government agency. And at 30 years, so at the time I'm 50, I'll be eligible for a monthly annuity or pension. Kind of growing up, I've heard of my grandparents having pensions, so on and so forth. They obviously are doing well, but aside from them, I haven't really encountered anyone with a pension. So I have this kind of perfect ideal picture of what it's like to have a pension, and especially at the age of 50, you know, just kind of enticing.

You're how old now again? I'm 35 years old. Okay, so 15 more years. Yep, yep. Well, today I was just offered another job working in the private sector, making about $40,000 to $50,000 more, depending on the bonus, but an annual base salary of about $40,000 more per year. And just kind of curious, you know, which way would you lean on going that would bring our household income to roughly $80,000 per year.

I thought you were getting a potential raise. He did, $50,000. Okay, so that last part. From $130,000 to $180,000, right? Oh, you said $80,000. I thought you said $80,000 for a second. Well, so let's remove the money from the conversation. When you heard about this job opportunity, okay, i understand the bump uh and it's in the private sector but do you get excited about the actual work itself and then where it

might lead yes i guess yes and no um yes and just in terms of doing something different right i've been doing my current job for 15 years um on the younger side of things, but really don't know a whole lot else. All right, let me ask you this. What's your enjoyment level of your government job right now, on a scale of 1 to 10, 1 being suck and 10 being you love it? I would say 8. I like it pretty well.

So here's the deal. Number one, I wouldn't stay in any job for any pension, just for the pension. The pension to me would never be the reason I would stay. All right. And the good news is, is you got an eight. That's a pretty high level of enjoyment. Most Americans aren't experiencing an eight in their work. So that's good. On the other hand, you know, going to the private sector with an opportunity to move up the ladder and make more money, I would do that in regards to just staying for a pension. So you're kind of in this middle area for me. There's not a clear winner because you could take this job, the private sector job, make more money,

even have an opportunity for advancement. But if you don't enjoy the work and it's just, oh, I'm doing it because it's something different. Let me tell you something. You got about 40% of people who change jobs in the last two years regret changing their jobs because the paycheck wore off the promotion wore off and they realized they were better off where they were and that concerns me your answer of it's just something different well once the different way wears off now you could be stuck. What do you do now? Like what agency? What's your day job?

What's your title? What do you do? Yeah, so I am like a customer service person working for a state agency, or excuse me, a federal agency that helps with grants. So you're in customer service. Okay, and so you would be doing what at the new place? I would be working for a telecommunications company, working with local municipalities and managing their contracts. So kind of in the same field. Correct. Yep. Absolutely. So theoretically, you could have an eight on the enjoyment meter at this new job as well, correct?

Yeah, yeah, for sure. I think you need to dig in a little bit more, you know, because it's a no-brainer for me. If you were to tell me that you could enjoy the private sector job and it provides you a ladder for financial and professional growth, that's a no-brainer to me to take the private sector job. If you've got as good an environment or better, you've got as good a chance of progressing or better, and your level of enjoyment is as good or better, 100% take the new job. Yeah. Okay. Because the pension versus 50 grand is an easy decision.

Yes. You know, let's just say 15 years you're talking about sitting there waiting on this pension. 15 years of 50 grand is called 750 grand. That'll build you a pension, my man. For sure. For sure. Self-induced, self-owned, self-run, self-everything. That's correct. own self-run self-everything and you'll you know so the you're gonna make a lot more money

in the private sector than your pension would ever even come close to um and uh the you know well it's secure not listen there's nothing is there's nothing secure though your position is only as secure as you are your ability to go get something is your security, and you've already proven that. So yeah, as long as the company is solid, there's not a bunch of toxic environment, and you're not just going just for the money. The people that have had the regret went just for the money, and they ignored the other variables, and they stepped in it. Yep, that's exactly right. So they get there and they realize, wait a second, I was really excited about the paycheck bump and maybe a nice new title, but I don't enjoy coming into work.

Yeah, these people, their values are screwed up. Yeah, they may treat you like you're just a commodity instead of a human being. Because you acted like one. Hello. You were able to be purchased. That's a very good point. That's a very good point. They dangled the carrot and you went after it.

If you act like a commodity, then guess what? They might treat you like a commodity, and you might sign up for being a commodity. And then you get dumped on the street the first time they decide they're going to raise profits by decreasing payroll. That's called layoffs in corporate America for no reason other than increasing profits, and they do it every day. They've been announcing them left and

right like crazy so that's the thing you don't want to get into if you've got but if you got a solid company they're going to treat you well you feel like your enjoyment is there your your chances are progressing in the field are just as good or better um you know you're never trade a pension or benefits for that always take the upside always. Yeah, the purported security will always let you down. Well, I mean, we have an investment strategy that you've been teaching for decades, and it works. And that's what we're talking about here. The pay raise plus you using that strategy, you're going to get further, faster than the

pension ever would get you. Yeah, I mean, 50 grand, 750 in 15 years. That'll- That adds up. Before you're eligible for the pension, you made an extra three-quarters of a million dollars. And that's not counting any raises. You would have gotten over and beyond what the federal government is going to give you.

So take the job if all things are equal. That's the answer to the equation. Yeah. So many people in government. But don't take the job without making sure all things are equal. That's the issue. Like, you've got to dig. And it's as simple as, like, talking to people who work there or talking to somebody who

knows somebody that works over there. Now, again, you don't take one squeaky wheel and say, oh, well, this is a horrible company. You've got to get real feedback, get real mature people who are going to tell you what it's like there. And that is not hard to find out, but you got to be intentional. Yeah. I mean, you can find people that don't like anything. That's right.

I'll guarantee you. I mean, we have an incredible culture. Ramsey Solutions is a world-class place to work, but you can find people that are pissed off that used to work here. I've read nonsensical, straight-up lies about our organization as if I wasn't in the building. I've read this crap on social media, and people do this. People, squeaky wheels, will do that in any company, not just Ramsey, any company. And it's like, you've got to talk to enough people to know whether or not we've got somebody who's angry or somebody who's hurt or straight-up crazy.

Because I've seen it all. Yeah, and you can find somebody displeased with anything. And some of them have an agenda. So anyway, us included. That's right. And in that place. So don't just take one. That's right. Do your homework.

Make sure that you're not just trading your soul for money. That's what you don't want to do. But if you can keep your soul and have a great work environment and make more money, yes, trade 50 grand for a pension in about a nanosecond. This is The Ramsey Show. We'll be right back. Ken Coleman Ramsey personality is my co-host today. Our research team did the largest study of millionaires ever done in North America, over 10,167 of them. And we discovered the top five careers of people who become millionaires. Turns out it's controversial.

Who knew? I never thought it would be controversial, but it's actually a fact. Sometimes facts are controversial. Who knew that? Yeah. This is a fact. The number one career in the largest study of millionaires ever done was engineers. Number two was accountant.

Number three was teacher number four was management number five was attorney doctors didn't make the top five they came in at number six md doctors interesting and when i post this on the internet um it's like the whole world came to an end because we suggested teachers can win well teachers can win and they do it all the time uh and the actual study proved that now uh well teachers don't get paid enough i wasn't making a comment on that one way or the other i just said that the largest study of millionaires ever done concluded that the number three most likely career to become a millionaire is a teacher you might disagree with that but you would be what's known as wrong because it's a fact facts aren't controversial see this is the

reason i wrote baby steps millionaires can is because these people are out there who are just bound and determined to lose. They want an excuse to lose. They want an excuse to be a victim. And I'm not going to give you an excuse. I'm going to tell you you can win. And I'm going to show you the facts on how becoming a Baby Steps Millionaire is real. And now it's available at only $10.

My latest number one New York Times best-selling book, Baby Steps Millionaires. I'm not on the New York Times because I said they sucked on the air, so I'm not on there anymore. But anyway, so yeah, but it was number one in the nation. And yeah, $10 at RamseySolutions.com before the deal is gone. Don't miss this. Cindy's with us. Cindy is in Louisville, Kentucky. Hi, Cindy. Welcome to the Ram is gone. Don't miss this. Cindy's with us. Cindy is in Louisville, Kentucky. Hi, Cindy.

Welcome to the Ramsey Show. Hi, Dave. It's a pleasure to meet you. Your program really made a huge difference for my family, and it's just been a big deal for generations of my family. So thank you for that. Well, thank you. How can we help?

So my husband and I have been saving up for a couple years. He's been saving up since before we got married and so have I. And we've got about $100,000 saved up. I have deferred some of my retirement savings, but he's doing the 15% he's supposed to do because we want to buy our first house. We're currently renting from a family member and I've done a lot of the repairs on that. Well, I'm fairly handy. There's a house that we're looking at that is an old Victorian house. You can probably see where this is about to go. It's a bank-owned property. They're asking about $250,000 for it. And I think it would be worth easily that if it were fully repaired. I think it would be worth a lot more.

The problem is that it needs some significant repairs. And when I say significant, I mean probably needs to be completely rewired. It still has old black metal pipes that are going to have to get torn out. And obviously some of those go through the walls, which are old plaster walls. It could be a lot of work getting that out. The HVAC systems have some obvious issues with the way they've been wired in and installed. So my question really is how much we should be willing to offer it. Also, my husband and I are expecting a baby in February, so I'm pretty handy.

There are a lot of things I can do. There are a lot of things I can't do pregnant or postpartum. The bank was pretty adamant that they did not want to take less than the 250 they were asking i think they're getting that number personally based off of uh property taxes were just reassessed on it and city says that's what the property taxes are but um they weren't really willing to come down on the property please, please, please walk away. Nothing in you said in this entire conversation sounds fun. Listen, I've done historic rehabs. They don't build them like they used to.

Thank God. We have learned a lot about construction techniques since 1916, and that's why we don't put knob and tube wiring in things and why we don't put those black pipes in there and why we don't use plaster anymore and why we don't and why we don't and why we don't and why we don't. This is your very first house and your very first rehab and your very first series of things, and you keep telling me how handy you are.

You ain't that handy. Yeah. This is a disaster. You ever seen the movie Money Pit? No, I can't say I have. Well, you ought to go watch it. It'll tell you not to do this deal. Yes.

Okay? Please don't do this deal. Here's the thing. This sounds cute, and you're looking for a deal, and you're willing to do some repairs, and you're signing up for 10 to 15x what you think you're signing up for in hassle, in unknowns. It's almost impossible to run an accurate estimate on the rehab, because every time you open up a wall, there's another dadgum mess in that wall. Yeah.

And you can't half do a plaster. You get one shot, the whole wall or nothing you can't patch plaster you patch drywall you can't patch plaster you can tell it it's a you know that there's no technique that does this so you take the whole wall off and then you get to the whole wall back and oh god it's you know if you want to do that you need to be an experienced rehabber that knows something about historic renovations this is a massive project let me just tell you if you want to build a home from the ground up it would be 10x easier than the project you're talking about and i've done

lots of both lots of both i actually know what i'm talking about. And I've done lots of both. Lots of both. I actually know what I'm talking about. Yeah, I definitely appreciate that. Yeah, do not do this deal. The bank is too high. They're out of their dadgum minds. You're pregnant, and the last thing you need is another child that's a problem child house. Yeah, Cindy, I think you need a new vision i think you've had

a great vision for this you guys have looked at this your vision got your vision got uh uh kidnapped yeah you know by this by this one stupid house because it's it's so cute and ginger bready yeah and looks like it could be so cool on the outside inside is hell on earth yeah it's a great vision but not a great decision you know that's the issue you can do this somewhere else hold walk away on this deal and find another thing that's a much better deal where you can let that vision kind of go but that's that's what they're wrestling with yeah you're gonna have to strip every wall and come back with every single piece of plumbing every plumbing fixture every piece of wiring every plug the the the main the electrical main the water main all have to be replaced

everything in there or you're never going to get it right you can't patch this because the the system is bad and it's ancient yeah i think that we when we were talking about it originally we're like if we were going to do it if we were going to be able to pull this off the only way we could do it is really to take it you know first floor and get the first floor functional and then over the course of a couple years get that second i can't stop you can i i? I admit I really, really am attached to the place, which is the problem. Yeah, it's a problem. You're getting ready to pay too much, and you're underestimating your costs, and you're underestimating the emotional pain it's going to take to finish this project.

Dramatically. Dramatically. Cindy. Not just a little bit, Cindy. Dramatically. I don't hate historics i hate historics as your first rehab i hate historics being done by a woman who just had her first baby i hate historics for the first home you ever own in your life oh it's like buying a car out behind some old farmer's house it's rusted and you're going to take it all the way down to the frame and you're going to build it back with your bare freaking hands

and end up with a car when you're done that's not as good as a new car cars are the same way i love old cars but they don't build them like they used to thank god we got these new things called disc brakes they're amazing you know oh geez this is the Ramsey Show Our scripture of the day, Psalm 32 and 8, I will instruct you and teach you in the way you should go. I will counsel you with my eye upon you. Tony Dungy said, I am a firm believer that the Lord sometimes has to short circuit even our best plans for our benefit. Open phones at 888-825-5225. Ken Coleman, Ramsey personality, is my co-host today. You jump in,

we'll talk about your life and your money. Oh, Kevin is with us in Tampa. Hi, Kevin hi kevin how are you i'm good how are you guys better than we deserve what's up oh this is my first time talking to you dave so i'm really nervous but excited so thank you for that um for answering my call well we're honored how can we help i've been a long-time listener basically so um i paid off my debt um saved up um my three to six months of expenses for emergencies way to go to investing way to go so now i'm basically new to investing and i'm also new to the company the company that i work for um they match up to six percent but they don't start matching until i reach one year so i was was wondering, because I already know you always talk about matching Beats, Roth, Beats traditional.

Should I wait for the year and just invest in my Roth IRA, and then once I hit that one year of service, start matching up to 6% and then 9% to Roth? Is your 401k Roth available without the match? Or you can't be in it at all? I think it is, but I have a Roth account with Vanguard. But, I mean, you can't be in the company 401 at all for a year. Is that what you're saying?

I can, but they don't match. They don't start matching until I reach the year. I didn't look into it that far. Okay, because some 401ks are Roths and some don't offer that. So it's up to your company to offer a Roth 401k. If you can do a Roth 401k with no match for the first year and after that it's a match, I would do that. And the reason is that way you don't end up with this one loan account

sitting out over here as a Lone Ranger just stuck off to the side. I'm just trying to keep your life simple. It's not wrong to invest in the other. It's just one more file you've got to keep in your file drawer, right? Right. So I'm just trying to keep it simple. So if you've got Roth 401K with good options without a match for year one and after that with a match, that would be my first choice. If they only have traditional with a match after a year,

yeah, go ahead and do your Roth because you're going to want to do that anyway because you only want to take up to the match after they give the match. You're going to need the Roth anyway. Awesome. Thank you so much. You see how I'm doing that? Does that make sense yes sir hey thanks for the call brother merry christmas to you open phones at 888-825-5225

sue is with us in austin texas hi sue how are you i'm great how are you better Better than I deserve. What's up? Well, I'm pondering a long-term care policy or a short-term care policy, but I also am weighing that against self-insuring. So I don't know which is more advisable. Okay. I don't do short-term care policies. Long-term care is nursing home insurance. Most of those policies today last about three years. Is that what you're seeing?

Yes, sir. How old are you? 55. Okay, I would not buy it until you're 60. The statistical probability of being in a nursing home before 60 is close to zero. Okay. But after 60, it goes up every day. So if you're going to buy, we would buy after 60 it goes up every day so if you're gonna buy we would buy after 60 you know

buy long-term care and it would cover usually about three years worth of care which by the way almost every nursing home stay does not exceed three years once you go in you that's usually that's about it okay so statistically now that's not some people make it 10 years in a nursing home other people make it 10 days but the average is the average is 2.7 years okay i got it so uh you do the hype i'm sorry go ahead you're fine what i would you do the hybrid the long-term care hybrid or just the traditional long-term care insurance hybrid meaning what the one that has the life insurance no i would not do that no that is not that's horrible no stay away from those completely no you don't need life insurance you need long-term

care or you don't now you said self-insure so the average you're in texas your average nursing home care there's going to be about 85 000 a year and if the average stay you're in Texas, your average nursing home care, there's going to be about 85,000 a year. And if the average stay is 2.7 years, your average exposure, and if your average coverage is three years with a policy, which is about what they'll cover you, is let's call it 300 grand, okay? So that's what you could burn through on average. Now, you could burn through 400 or 500 grand. You could burn through 100 grand.

But somewhere in that range is where we're playing. What's your net worth? Let's see. I don't really know. I mean, I think about $600,000, maybe $700,000. Okay. I don't know how to calculate it. Okay.

Well, it's what you own minus what you owe. Okay. So you have any debt? A house, $123,000, but I have $90,000 in the bank. And then about $600,000 in IRA. What's the house worth? $380,000. You would say pay off the house. Yeah, but okay, let's call that. Yeah, and so you got a $400,000 house and $600,000 in your retirement accounts, give or take, okay? If you paid

the house off, that's where we'd be, roughly. So you got about a million dollars. Way to go. Good job, Sue. Oh, here's the neat thing. Every seven years if that's invested and it's making is it invested in mutual funds uh yes okay if it's invested in mutual funds every seven years it'll double okay if it's averaging 10 or better it'll double in seven years so in seven years when you're 62 you're gonna have 1.2 million it sounds like the way we're having this discussion that you're single are you single no oh okay my husband my husband

is 70 okay and already retired obviously does he have long-term care insurance? No. Okay. We don't have kids either. Okay. So if he went into a nursing home, because he's older than you, and he burns through $300,000 or $400,000, are you okay? I think you need long-term care insurance on him. He doesn't qualify. Okay. All right. That's your big risk. you're not the big risk he is and then the but you got six hundred thousand bucks to work with and you got a house

that's almost paid for or could be paid for if you decide to pay for it today so you've done a great job i'm not going to fret and wring my hands over this, but you need to be thinking about how you're going to care for him. You could do in-home care. It's actually a high quality of care where you bring in a nurse in a hospital bed and just take care of him in the home with some help. And that actually ends up being a high quality situation if it's done right, and can be cheaper in some cases. So if I'm hearing this, Dave, so right now we want to take care of – he's not qualified, so we wait five years for her to get her own long-term. And by then she's going to be self-insured for hers.

Right. And he's not going to be left with her needs to be covered. It's going to be the other way around. So 75% of you ladies outlive your husbands. That's the statistics. And the normal statistic that happens is, let's say Papa and Mama got six, they got 300,000 bucks saved up or 400,000 bucks saved up. And Papa goes into the nursing home and he burns through 300 and leaves Mama broke.

After they worked their whole lives and they did have a pretty decent nest egg. So that's the situation where you desperately need to get long-term care insurance when you turn 60 years old. You need to go get long-term care to take care of to protect the nest egg for mama because statistically, usually it's mama left behind. And then she's got the $300,000 or $400,000 because you had insurance to cover his $300,000 or $400,000 worth of nursing home need. If you've got $10 million or you've got $3 million, well, self-insure through it.

Mama's going to be okay, right? That's right. That's the plan. Ken Coleman, good show today. Well done. Austin, Ben, James, Zach, and Will in the booth. The booth dudes did a great job, as always. I am Dave Ramsey, your host.

We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes.

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