The Ramsey Show - App - What Should I Do With a Car Accident Settlement? (Hour 1)

Episode Date: July 4, 2022

Dave Ramsey & George Kamel discuss: Whether or not to buy a newer car, Where you should direct your retirement funds, Term life insurance

Live from the headquarters of Ramsey Solutions, it's the Ramsey Show. Where debt is dumb, cash is king, and the paid off home mortgage has taken the place of the BMW as the status symbol of choice. This is the Ramsey Show. We help people build wealth, do work that they love and has meaning. We help them create and have actual real relationships. George Campbell, Ramsey personality and host of the Fine Print podcast and the Entree Leadership podcast is my co-host today as we answer your questions about your life and your money. It's a free call at 888-825-5225. That's 888-825-5225. Shannon starts off this hour in Carlsbad, New Mexico. Hi, Shannon. How are you?

Good. How are you, Dave? Better than I deserve. What's up? Good. So I'm calling because I have a 2019 Suburban that literally broke down on the side of the road in the middle of nowhere about two months ago. I finally found out that it needs a new engine. It's under warranty. And basically, we are getting nowhere with GM and finding out an answer on when we will get a new engine. I have a friend that owns a body shop where we live and I kind of said, hey, can you give us some advice? When do you think we would possibly get a new engine? Because we're getting nowhere with GM. He said, let me

make a few phone calls and get back to you and basically said, I would start shopping for new vehicles. So here we are unplanned trying to figure out should we wait you know possibly the three four however many months to get my vehicle back since it is under warranty. It's completely paid for you know we have the cash to pay for the difference for a new vehicle but it's just not the ideal time. We weren't planning on getting a new vehicle at all. Now in a crummy time to buy a car right now. It's terrible. I'm sorry.

What a mess. So when you talk to the General Motors folks, what are they telling you? So it's basically a back and forth of, of you know my husband's at this point trying to see where we are in line you know we could be 30 in line we could be 900 in line and so they told us last week you know we'll get back to you we still haven't heard back um it's basically going nowhere well it's going somewhere based on the size of the foot you put on their butt true that's true they said they would try to escalate it but that you know that they actually might actually escalate for them

so you know i call the general manager of the dealership and explain to him you're getting ready to hire an attorney okay because they're not they're not honoring their warranty and you being without a car is not okay and you know let's jack them up because this i'm guessing this is a supply chain problem because it's not general motors dna to be this uh uncooperative usually they're very good about stuff yes and they basically are blaming everything on COVID. Yeah. Supply chain. They can't get an engine out of the dadgum factory. Well, I'm going to be calling them every day for updates. You're the squeaky wheel who gets the grease.

And on top of that, I'm going to go to the dealership and say, you're going to let me use a car until this is fixed, and you're going to do it for free. There's a good idea. We've tried getting a loaner. They don't have any cars. Again, yeah, they said they don't have any loaners because of COVID. And the hard part about it is, too, is that we live in the middle of nowhere, and our car is in El Paso, Texas, two hours away.

So it's not a thing, you know, where we can go in there every day. We have been on the phone with, you know, the person in the shop every day, but basically that's where they escalated it to GM corporate, and my husband's been in communication with them. Yeah, I think I'm going to be in touch with the regional corporate guy, and so you guys need to get me a loaner. I'm with George on that. That's a brilliant idea.

And, guys, we understand that you've got supply chain problems, but you need to understand I also don't have a car yes and so that's a bigger deal for me than your supply chain problems so get me a car exactly give me a car you know i'll be real understanding if you get me a car bring me a car okay now like bring me a car now yeah yeah like okay yeah that's that's what we've been trying to do. Yeah, I know, but I think you're being, what we're saying is we think you're being too nice. Yeah. Channel your inner Dave Ramsey when you show up. I know.

Well, and that's why we're going back and forth, and, you know, we've been saying, you know, should we just go get a different car because this is the second major issue that we've had with this car. Well, if you want to sell it, that's fine. Sell it after it's fixed. But in the meantime, they should provide you a car. If you jack everybody up, you still don't get a car, and you still don't get an engine, and you've got the money, I guess you're going to have to go buy a car, aren't you?

I know. And then sell that one when it gets fixed, right? Yes, and that's another thing, because they're low-balling us because we've tried to say hey what would you give us for this and they're low-balling us and we do have the money to go we are in a very blessed situation where just go buy a car and then get that car fixed and get it sold if you can't get a loaner and i really am going to be talking to the regional guys. I've actually had two people work for me over the years that used to be General Motors regional customer service reps. And so they had regional guys, and I don't know if they still do or not, but that was a few years back.

And honestly, they are trained like no other to make customers happy. Now, I understand they can't make cars or engines appear out of thin air, but they can if you make it a big enough deal and go, listen, I really don't want to go legal on you guys, but I'm getting ready to hire an attorney, and we're going to make you guys wish you would loan me a car. Yeah, I agree because I'm at the point where I almost don't even want to buy want to buy another gm vehicle ever yeah well i mean you can tell them that too i mean that that's understandable and the sad thing is they make great cars i've owned them all my life but um yeah you know it it is

what it is but here's the thing companies there listening, you have legitimate supply chain issues, but your customer has legitimate problems, and your job as the company is to solve the customer problem. They don't really care about your problem. They don't really care. Yeah, and a big part of this is to realize you have options. It's when you realize, well, we've got to go get a new car. I'm going to be beating down their door until we have a solution here,

and the worst, worst case is we get a temporary car, we resell it, and hopefully we don't lose any money on it. Drive the car or buy the car you want to replace it with and then sell the Suburban when you get it fixed. That's a fine answer, too. You've got the money to do that. It's just inconvenient. And you shouldn't have to.

You shouldn't have to. They should take care of you. And I got a feeling if you lean in hard enough and often enough that probably you're going to get that result. That was a good fix, George. That's a good fix for the problem. I always start with kindness, and then I get a little more firm when things aren't going the way they should. And it's a hard thing to do with customer service. A lot of people have a hard time being the bad cop.

Yeah. Well, I don't want to just start in shooing somebody out yeah but we do need to you know click up click up click up the heat as we go along and um i mean you know if the food's not coming from the kitchen it's like hello been an hour we need some food you know and we've talked about this a couple times now do i need to talk to a manager how How can I help you? Do you need me to go back there and help you cook? I mean, what's the deal? I would love to see you back there in the kitchen.

Food needs to come out of the kitchen, baby. You can grill. I've seen you grill. This happened the other day, I'm just saying. This is the Ramsey. It's called Gazelle and it's a digital banking experience that will help you spend and save the Ramsey way with banking services provided by Pathword NA. You'll get a single spending account with no monthly fees and it's FDIC insured through Pathword NA. We're offering early access to our beta customers so you can help us make it the best experience it can be. Just go to ramseysolutions.com slash gazelle to sign is my co-host today. Michael is in Daytona Beach.

Hey, Michael, how are you? I'm wonderful. How are you? Better than I deserve. How can we help? Yeah, so I had gotten in a car accident about two years ago, and just now I'm finally receiving the settlement. And instead of blowing it, I want to try to invest in it, invest with it, should I say. After paying some debt off with it, I'll probably have like $20,000. But my big question is, so I also owe on my car, and that's about $500 a month. I owe about $10,000. Um,

so I'm wondering if I should take that $10,000 and invest it and make money off of that, or should I just pay my car off, um, and get rid of debt in general? And then, but the problem is, is hard for me to save money in general. Do you have any uh permanent damage from the accident oh yes i do have a back i have a lower back injury so i'm kind of limited to work sometimes do you need some of the money to continue medical? Yeah, so I'm thinking that I'm going to keep about half of it, keep it in the account just for, you know, days that I can't work, days, you know, I'm having to pay for some type of medical,

and I'm thinking about keeping about 10 of it for either paying the car off or using it to invest. And I was thinking about doing some investment in like vending machines, but, you know, doing it like new, I mean, I'm only going to get about one vending machine. And, you know, if I'm lucky, making $600 a month off of that, you know. How old are you, Michael? I am 35. Okay. And what's the settlement amount? So I received about 33, but I have to pay off some family debt when I got my house. And there's, you know, some things that I need to work on my house, some investment,

you know, fixing up my house, doing some gutter work and stuff like that. How much debt do you have total, just consumer debt, non-mortgage? Non-mortgage, so I owe about $10,000 for the car. I do have another personal loan that I owe a few thousand dollars on. I'm not exactly sure. I haven't seen it in a while. That just comes out of my bank account, like, monthly, so I haven't really looked at it. It's probably maybe $3,000 or $4,000, if I'm not mistaken.

Okay. And how much is the family loan? I'm sorry? How much is the family loan? What do you mean by family loan? You said you owe family some money. Oh, okay. That's about thirty four hundred dollars okay so i'm at sixteen four plus the gutters are going to be how much it's about uh fifteen hundred dollars okay so i'm gonna call it twenty thousand it's gonna

leave you thirteen thousand after you pay off everything is that all the money you have to your name at that point uh yes right now i've got about um i haven't quite got up to what i'm uh paid off yet but i've got about 27 in the bank still um so like i said about seven of that's going to go towards the gutters and 27 27 000 or 2700 thousand you said seven towards the gutters but you just told us it's going to $27,000 or $2,700? $1,000. You said $7,000 towards the gutters, but you just told us it's going to cost $1,500. No, $1,500 for the gutters. And then about, I think I said it was either $30,000, I think it's $34,000. So, you know, plus I was just kind of like giving a rough estimate.

Okay, so here's what I would do. I would be debt-free. I would set aside an emergency fund, and no, I would not kind of like giving a rough estimate. Okay, so here's what I would do. I would be debt-free. I would set aside an emergency fund, and no, I would not buy vending machines. I would think about what your new career is going to be that doesn't strain your back, and if you need to take some classes, I'd spend some money on that to work your new career that doesn't strain your back. You have an income problem going forward, and you're going to have to get some discipline because you're going to burn through the rest of this money like nothing in two years and you're gonna end up with nothing out of this well i do work but uh not enough like uh fool i mean i work probably close to 40 hours a week yeah but you were setting money aside for when you can't work which means you're in the wrong job

you told me you wanted to set money aside for when you can't work that doesn't have a good plan over a 30-year period of time you're not going to have this money for 30 years of doing that so you need to create enough of an income to live on and have enough disciplined process in your budget where you don't overspend what you have coming in so you don't need any money except for maybe a future surgery because you have enough income coming in so you don't need any money except for maybe a future surgery because you have enough income coming in and enough discipline on that income to control it with a budget and and living you know straight up on that hold on we're going to send you a copy of the book the total money makeover which has helped 10 million people

do what you're trying to do and if you'll read it and do it it'll work i promise you and restocking a vending machine sounds like it would hurt my back exactly it does hurt your back have you ever listed cate lifted cases of cokes and water no it does hurt your back it's not and besides that that means he's been on get rich quick scam tiktok crap that's exactly wherever you get that because nobody else is teaching you to buy vending machines as an investment except idiots on TikTok. It's coming back around, all the old trends. Well, all the old trends in a new way. I mean, we just found out a high-tech way to do stupid now.

That's all it is. All right, Jancy is with us. Jancy's in Orlando. Hi, Jancy. Welcome to the Ramsey Show. Hey, how are you doing this afternoon? Better than we deserve. What's up?

Great, great. Okay, I have a question i just did the uh five minute coverage checkup for the confidence in your coverage and you have a question there that says do you have life insurance yes i have life insurance but when you ask cash value or term mine is i have a level term good policy you're the right guy is that do i keep that yes level term because it does have a cash value it's not level term if it has a cash value term insurance does not have a cash value that's what they're calling level term life insurance um and it has a cash value it sounds like you have cash value who is the company uh horace man okay no you don't keep it it's crap don't keep it at 20 years i can turn around and

give them the cash value back no no no no no this is horrible it's horrible horrible horrible investment it's too expensive. Way too expensive. How much coverage have you got? It's $100,000, and I pay $84 a month. I bet you do. How old are you? 51. Okay.

Jump on ZanderInsurance.com and get a quote on real 20-year level term insurance. It has no cash value buildup. The only way it pays is if you die, and you're going to find it to be less than half of what you're paying now. And if you'll take the money that you save and invest it, you'll have a lot more than old Horace will give you later. Okay, that's what I wanted to know. Okay, so thank you for taking that checkup.

That's cool. I'm glad it activated you. That's perfect. Yeah, yeah, it is good it's interesting but i've been wondering about this policy for a while what's your thoughts on it yeah they're an old old old antique uh whole life company right and at the end of the 20 years the the uh payout dropped yeah your grandpa probably bought that all the money that's an old company that's an old school backwoodwoods, oh, nasty stuff.

Sounds like it was marketed to her as level term, but it really was just whole life by their name. They just lied on the cover of it or something. I don't know, because it's not term. Term insurance is for a term and has no cash value built up. That is the actual definition. So even if you name it a duck, it's still not a duck. It's still a hog.

So confusing. Horse the hog. But there you go. So it's been around for a long time. The idea with cash value is that you have the cash value while you're alive. Isn't that great? But you don't get both. So you don't get the face of the policy and the cash value.

Right. So it's a terrible deal. So when you die after you paid extra to build up the savings they pay only the face amount and they don't pay the cash value they keep the money you paid extra to build up a savings account that when you die they keep it's a really horrible if that was part of the sales pitch no one would buy it cash value insurance is the payday lender of the middle class it's a complete screw job it's nasty bad horrible product.

So if you've got it, get term life in place and then cancel the whole life policy. Never cancel a policy until you have the new one in place, Chansey. Don't cancel it until you get the new one in place. But get on the phone, get on the line with Zander and they'll get you a quick term policy and you're going to be blown away at how much you've been overpaying. This is The Ramsey Show. I'm going to go life and your money. Bradford and Emmy are with us. They are in Salt Lake City, and it says on my screen you guys are debt-free. Congratulations.

Thank you. Way to go. How much debt have you paid off? $252,000. Wow. Yeah, we're super excited. How much debt have you paid off? $252,000. Wow. Yeah, we're super excited. How long did this take? Took us about four years.

And your range of income during that time? Well, when we first started, it was about $90,000, and then until now, it's about $150,000. Cool. What do you all do for a living? So I am a hairstylist. I work in a salon. And I am a funeral director. Cool. All right. And what kind of debt was this? It was our house. All right. Yeah. How old are you guys? Well, I'm 32. And I'm 34. Man, I'm talking to weird people. I know we are weird people to our friends.

That is true. I love it. You are weird people. I love it. What's this house worth? I think it's about $750,000 now. Whoa. Ding, ding.

I love it. Way to go, you guys. How much have you got in your retirements investing? We're probably around $200,000 to $250,000 as well. So that, like, makes you Baby Steps millionaires? Yeah, almost. We're trying. Well, that means $750,000 and $250,000 is a million where I come from.

Okay, so I think you're, look at you, and you're what, you said you're 32? Yeah, and 35. 32 and 35. My goodness gracious. Okay, so tell think you're, look at you, and you're what, you said you're 32? Yeah, and 35. 32 and 35. My goodness gracious. Okay, so tell us a story. What happened four years ago at 28 and 31 that made you guys decide, hey, we're paying off the house? Well, I think it's safe to say that I'm a Dave Ramsey super fan. And so since the beginning, we've always worked your baby steps. About four years

ago, we found this house and bought it using your principles to make sure that we had as much down as we could. How much did you put down? Sorry, say that again. How much did you put down? We put about $100,000 down. At 24, 28 years old. 28 and 31 years old, yeah. Yes. Yes, sir. Man, that's impressive. Like I said, super fan, for sure. He's a super fan.

This is like the best day of his life calling today. Well, it's not a bad day for George and me. We can just tell you, we like people like you guys. You guys are incredible. Well, thank you. So you guys, you pre-decided that you were going to pay this house off really fast. Absolutely. And just worked extra and threw everything we could at it. Wow.

George, is this your cousin? It must be. And they sound a lot like me. These are the kind of friends I need. Yeah, George is 32. George is 32. He just paid off his house, and he's a millionaire. So, you know, there we go.

This is how it goes. So what inspired you guys? I mean, obviously you've been a Ramsey fan for a while, but what made you go, hey, what if we had a paid-for house in our early 30s? What would that be like? Well, we're really interested in traveling, and the funnest thing we've ever done with our money is been able to give it and share it with others, and we just want to be able to do more of that.

Wow. So you use that as your fuel in this journey of, man, we want to give more. We want to have more amazing experiences. And to do that, maybe not having a mortgage payment would help. Absolutely. Wow. So how long ago did you start doing our stuff, Bradford? I would say about 10 years ago.

I listened to you on our local radio. I bought the book. I bought the financial piece packet that had the book, the workbook and all that. And I'd listened to you as much as I could and worked it out and kept Emmy on board. And we just kept rocking and rolling. So did you guys have debt previous to the mortgage that you paid off or did you just kind of stay debt free? We just kind of stayed debt free. We did have debts before, like we had some car payments and that's probably pretty much it.

And then we just paid those off. But, yeah, we've pretty much lived. We've tried to live debt-free. Since you've been married. We've been married for 10 years. And when we very first got married is when we jumped on board, and we started our marriage off by selling Emmy's really nice car. And we've never looked back since then.

Wow. This is what it looks like. Now Emmy's a 32 year old millionaire so it worked out good it worked out pretty good now i can drive anything you want whatever i want so right drive like no one else later you can drive like no one else i'm so proud of you guys you're amazing very well yeah we're excited okay you've been working this really for 10 years, the last four years paying off the house, been living smart, wisely. Have you had a life while you were doing all this, or did you just live in a cave and collect lint and triple coupons? Right. We actually did have a life.

We decided, because I'm the spender in the family, and so I told him, like, we can't live, like, with doing nothing. Agreed. And so I just, so we decided to live like with doing nothing agreed and so I just so we decided to do at least one vacation each year good um and so that was something that we got to look forward to and you know plan towards but so yeah that was kind of our motivation to keep us have something to do fun you know absolutely and we're looking at the youtube pictures they're flashing on the monitor looks like you got three babies during that 10 years.

Yeah, we do have three babies. That's awesome. Our greatest accomplishment. Amen. Amen. Now, the greatest accomplishment will be when they have babies. Those are called grandbabies. Those are the best things on the planet.

Okay. That's true. I've heard that. Well done, you guys. I'm so proud of you. It's amazing. Thank you. What do you tell people?

Thank you, David. What do you tell people? It's been an honor to talk to you and work your plan and actually get a visit with you. It's a pretty cool accomplishment. Well, we're proud of you. What do you tell people the key to getting out of debt is? Just stay the course. Of course, everyone says to do a budget, and that definitely helps.

And just keep with it, keep motivated, listen to the show, or do whatever it is that motivates you and stick with it. It seems like a huge mountain to climb, but you take it step by step. You follow the baby steps, and before you know it, you're on top going, look at what we can do now. Unstoppable. That's just absolutely incredible, you guys. Very well done. Well, we've got a copy of Baby Steps Millionaires for you. That is the next chapter in your story for sure. Also a copy

of Total Money Makeover for you to give away. I'm sure you've told a few people about this during this decade-long journey, but thank you for that. We appreciate you spreading the word for us, letting other people know this can be done. You're proof positive. You're a wonderful case study of what it looks like if you start this stuff, and particularly if you start it early. Yeah, it's a 10-year journey, and now they're millionaires, just like that. Who was your biggest cheerleaders, guys?

I would definitely say each other. We kept each other accountable. We had some good friends, and we had some friends that told us we couldn't do it, and I think that was a great motivator as well. Absolutely. Yeah, you've got to have friends like the second bunch, the ones that don't know what they're talking about. Yeah, I like it.

They're so dumb, they don't know. The haters are like free gasoline in the tank. It is. That's great. So it's kind of nice to be able to say, yeah. Say thank you and these days free gas is a big deal that's amazing all right guys well done well done well done bradford and emmy from salt lake city utah

two hundred and fifty two thousand dollars paid off that's their house and everything they did that in four years at 32 and 35 they have a $750,000 paid for home to 750,000 already in their retirement plans making them early young baby step millionaires i'm so proud of you guys count it down let's hear a debt-free scream three two one Three, two, one, we really could. Here's what's interesting. Americans last year spent $70 billion on Christmas decorations. Now, I'm not against Christmas decorations, and I'm not against Christmas. Papa Dave would be liking some Christmas lights, all right?

But here's the thing. If you had a whole community full of bradford and emmys they could put up christmas lights and just a handful of them come together and build a hospital another handful of them come together and feed every hungry child in the city and another handful of them come together and there'd be nobody in foster care that needed a forever home because they pay all the adoption expenses. It wouldn't take but about a 6% or an 8% shift in giving to completely clean up a whole lot of the social ills that we have in America.

We the people taking care of we the people when they act like those two. Be impressive. That's a vision right there. This is The Ramsey Show. Thank you. George Campbell Ramsey personality is my co-host today. Open phones at 888-825-5225. Matt is in Minneapolis. Hi, Matt. Welcome to the Ramsey Show.

Hi, Dave. Thanks for having me on. Sure. What's up? Well, my wife and I finished Baby Step 2 last June, and we currently had sold our house now this past November. My wife had a calling and works at our church, and through that, we just decided the best plan for our budget was to sell our house.

We're currently renting, looking for a little bit of a downsize. We did have a net gain of $190,000 off of the sale of our house. And my wife and I also have some traditional 401ks from previous jobs that we had in the amount of just under $200,000. I'm wondering if it makes sense to take some of that profit that we have from the sale of our house and roll those into a rock. No. Not until you get a house purchased and have it paid for. Okay. Because what you're doing is creating a tax bill that you're paying with money that you would use to put a larger down payment on the house and thereby getting you out of debt faster on the house.

And so the net result after you've purchased the house would be as if you borrowed on your home to pay the taxes from doing the rollover. Because it's going to create more debt on the house if you use some of this money for taxes, right? Yep. Yeah, that makes sense. Yeah, I don't want to do that. I do want people to roll to Roths as you get into Baby Step 7 and can find extra cash to do it.

So I've converted everything into Roth years ago and paid those taxes, and I convert even the match. Any of you that get a match, it's not allowed. If you have a Roth 401K like we do, I do a Roth 401K for myself at my company. The match by law cannot be in Roth, and so it's traditional. But once a year, I go ahead and roll it at the end of the year, all of the match over into the Roth portion and pay the taxes on it. I create a tax bill to keep moving it that way.

But I've got the extra cash after being 100% debt-free in Baby Step 7, which is where I'd want you to do this. Yeah, so this $190,000 would then become, sounds like you're down payment on your next house. I put as much down as possible to get it paid off as early as possible. Yes. And then continue to invest 15% of your income aside from that into retirement. Yeah, and then get the house paid off.

And once it's paid off, then we'll do this. It's a wise decision, just wrong timing. Yeah, very, very good. And it's a good question. I like the question. Donna's in Hartford, Connecticut. Hey, Donna, what's up? Hey, Dave.

Thanks for taking my call. Sure. So my question is really surrounding whether or not to look into long-term care insurance. How old are you? I'm 59. My husband's 57. Oh, okay. surrounding whether or not to look into long-term care insurance. How old are you? I'm 59. My husband's 57. Oh, okay. Basically, our health care coverage when we retire at 65 or 67 will be great.

It's government-sponsored after Medicare. And our income, not including investments at 65 or 67 going forward forward is going to be about $100 a year. And how much will you have in your nest egg? Pardon? How much will you have in your nest egg? Currently in investments we have a million. By then I would say a million and a half. And then, like I said, our income not including that will be about 100 which was kind of our goal to be at that time yeah well the statistical evidence is is that the less than

one half of one percent people use long-term care insurance for nursing home or in-home care prior to age 60 and you're approaching 60 uh and so do you want to insure against nursing home stay? The average stay is 2.3 years. The average cost right now is about $90,000 a year, so it's about a $250,000 exposure on average. And, you know, can you insure through that for a while? Yeah, I probably would in your case because i mean if you use 300 000 out of a million that's a pretty good chunk

now if you get to 2 million and you say all right i'm going to take a 300 000 risk out of my 2 million so your husband goes into a nursing home stays there three years you pay take 300 000 out of your three million um pay his care he dies you're left with 2.7 you self-insured through the nursing home at that point you see what i'm doing i don't really want to do that with just a million yeah i think we'll have a million and a half yeah but still i mean do you want to be if you want to if you're okay with a million two on average yeah it might be longer it might be less but 75 of the ladies outlive their husbands true and so and i don't even know how much it costs i've heard it's ridiculous and they cancel on you uh the the uh long-term care insurance yeah yeah they don't know i've never i mean there's a few of them have been.

Some of the companies were weak and they collapsed. But I think that most of that's behind us. Don't buy any cash value insurance versions of it. But you can shop it. I mean, we recommend long-term care insurance. And I probably would look at it in your case until you get up above a couple million dollars and then drop it. So you might keep it like three or four years or something and then drop it and self-insure after that point. But just check long-term care, ELP, endorsed local provider at RamseySolutions.com.

You'll find the people we recommend. They're a broker. They'll shop among different companies, explain it to you, help you get the right coverage. You don't need to buy it until you're 60, but you're coming up on it pretty quick here so you can start learning about it shopping it being ready get ready to budget for it yeah yeah and it's doable i mean you got the money either way you're not it's not going to take you out the ones that concern me the most out there george are the ones that have three hundred thousand dollars you got no money in retirement goes in the nursing home scrambles that nest egg you have scrambled eggs right i mean you got nothing left crack and

scramble the nest egg and that 300 is wiped out and you're broke and he dies and she's left broke and nursing home you know the nursing home take his care used up what they had and so in a situation like that it's just absolutely vital that you get long-term care insurance. But I'm 61. I don't have it. But I've got – You're self-insured. I'm self-insured.

You're okay to foot the bill. I think we can handle it. I think we can handle it. And Sharon will outlive you, you're thinking. I think that's pretty well assured. Okay. She's in great health. Yeah.

On top of everything. I mean, all of our estate plan is predicated on me pre-deceasing her, so I'm kind of sleeping with one eye open. I think she has a plan. I'm kind of worried about it. Those must be fun family meetings. The Dave's Gonna Die meeting. Matt's in Rochester, New York.

Hey, Matt, welcome to the show. Hey, how are you guys doing today? Great, man. What's up so i'm 23 years old and i've been investing in both 403b and then my roth ira and since listening to you guys i've been learning about the rollover roth iras and i was just wondering if that's a route i should do on when i'm this young um so it's kind of a question about that. A rollover Roth, there's no such thing unless you're rolling an old IRA into a Roth.

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

would you recommend doing that? No, because it's going to create taxes. Okay. I mean, if you move $10,000 over there, you're creating a three thousand dollar tax bill would that save me and more taxes come long term since in the roth it could grow tax-free and come out tax-free yes which is why we recommend a roth instead of

traditional but you paying taxes while you've got probably some other goals i'm guessing you're going to pay off some debt have an emergency fund fund in place, pay off your house. You need to do those things first, right, George? Yeah. Are you in debt right now? I'm guessing he's not. Probably, yeah. Okay. But yeah, that would be the order to do it. Like we were talking with the other caller, we got to do this. Once we have a paid-for house, then we can afford the tax bill, and we have no other big financial goals in front of us other than to build wealth. All of your future contributions, if your 403b offers a roth 403b i like that make your future contributions all roth if you can everything you can do roth now is good but um but i'm not going

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