The Ramsey Show - App - What to Do if You Don't Qualify for Life Insurance (Hour 3)

Episode Date: May 8, 2019

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid off home mortgage has taken the place of the BMW as the status symbol of choice. I am Dave Ramsey, your host. Thank you for joining us. Open phones at 888-825-5225. That's 888-825-5225. Margaret starts off this hour in Fairfax, Virginia. Hi, Margaret.

Welcome to The Dave Ramsey Show. Hi, Dave. It's such an honor to speak with you. Thank you for taking the call. Sure. What's up? Well, I've called in before. I wish I made the millionaire book that Chris Hogan wrote,

but my call actually has to do with my mother-in-law. She has just entered an assisted living facility at age 97, and she's in very good health. She just can't live on her own because of her mobility, but she's sharp as a tack. She has about $250K invested or a little bit over in investments, but we just helped her sell her house. And there's a little bit of a rift going on between some family members. My husband supports my thoughts because I've always handled the money in our family and I've

done well for us. But she's going to be receiving some proceeds from the sale of her house of about $200,000 or more. I am of the feeling that she should keep it liquid and safe just until she gets through this emotional time in her life because she's going from driving to a home on her own in very short order. She's in an assisted living facility. I'm thinking of parking it and suggesting. It's not my money, so I'm not saying it's my decision, but my suggestion to my sister-in-law is that she parks it in something safe like a money market or savings until she decides what to do, whereas my sister-in-law feels that she should potentially hand it all over to her stockbroker, which works for one of the big banks, and have them assist.

It's kind of like putting the fox in charge of the hen house, in my opinion. Assist her where she should put this $200,000. So I wanted to get an idea from you. Based on her age, she's in good health. I don't, I mean, she's doing great. I mean, there's no cancer, nothing in the family. She's going to be around for a lot longer. I'm afraid of putting everything exposed to the stock market at this point in her life,

and I wanted to get your thoughts. I'm not. I'm not afraid of that at all. She's 97 years old. She's got $450,000. If the stock market went in half, which it's only done one time in modern history, if it went in half, it would only drop it to $250,000. She'd not be in jeopardy.

Okay. And it's not going to go in half. I'm not afraid of that at all. So I don't mind investing it, you know, because you're not really investing it for her. You're investing it for her heirs. She likely will never touch any of this money. Right? Yeah, because right now she is able to live off the small amount that she has in investments currently.

She's able to live off. Yeah, and she can live off the income easily from this and pay her assisted living and never touch the principal. And so most likely it is invested unless something very unusual happens for her heirs. Now, the fox in the hen house, I do not use investment advisors at large banks. As a matter of fact, I don't do anything at large banks. Large banks treat people like crap. And so I'm not a fan of dealing with that and so no i'm not going to an investment advisor at chase or at uh wells fargo i'm not

exactly where she's going as well as fargo i mean they fired 24 000 employees for fraud yeah i know i mean who even has 24,000 employees? But they fired 24,000 for fraud. Right. So, you know, no. I wouldn't do business with them. I wouldn't do business with Fifth Third. I wouldn't do business with Bank of America. I don't have any money with any of those people.

And I don't do any investing with a bank ever. I do all my investing with an advisor that places the money in mutual funds that I understand. So that part of your concern, I do agree with who she's using is a problem for me, if I'm in your shoes. But the idea of if, for instance, you were using a SmartVestor Pro that I use that's a real stockbroker investor, he's not a banker that wishes he was or something. You know, this is someone who really does this stuff and you want to sit down with them and you wanted to pick out some mutual funds.

You're really not investing it for the 97-year-old. You're really investing it for her heirs and she's going to live off the income. That part doesn't scare me. The volatility of the market doesn't scare me because it doesn't put her in jeopardy. If you want to hold some of it in cash, that's okay. If it makes to hold some of it in cash, that's okay.

If it makes everybody feel better or somebody feel better, that's fine. If it makes mom feel better, I for sure would. But it sounds like mom has handed off the handling of this to someone else, right? Exactly. She has. And actually, my sister-in-law, she has some tremendous ideas. It just seems that she wants to put it in the hands of someone at this Wells Fargo, the stockbroker. And to me, I mean, I've got to be careful because, you know, I'm just trying to.

You're trying to help. And you've been handling money so far. So to the extent that you can gently and not belligerently cause a family row over it, I would say, you know what, if you were to ask me, maybe you're not asking me, but if you were to ask me, I would say I'm okay with investing in mutual funds. I'm not okay with using Wells Fargo for anything. I wouldn't put my dog's toenails clippings over there. I think the reason why she's thinking of Wells Fargo is because her current investments are already there. I know.

And she wants to make it easy for her from an accessibility. But you're making a good point. She doesn't really need to access that. She can't even touch a computer. Exactly. So it really doesn't matter. Well, your sister-in-law is managing the money. She may need to access it on behalf of your mother-in-law.

Right. That's possible. But you can have web access with any sophisticated investment advisor. So the investment choice and the access I'm okay with, I personally, and I've been pretty clear about that, wouldn't use a large bank for my investing ever. So that would be kind of coming down between the two of you in a sense but those are my reasons for all of that i don't mean between you two of you i mean i'm like you're on one side she's on the other and i'm kind of in the middle i'm taking parts of your side parts of

her side in other words um but uh in terms of if this were an argument but i think you're being very gentle and kind and it's probably not the other world i don't think wells fargo's gonna steal her money i'm not saying that um at least i probably not the end of the world. I don't think Wells Fargo's going to steal our money. I'm not saying that. At least I hope they don't. But, I mean, I really don't think they're going to, all kidding aside. They just don't care. They're just people are a number when you're dealing with the big banks.

And I just don't deal with big banks. And I never deal with any bank ever, small, big, or anything, to do my investing. You know, if you want to have a checking account, get you a debit card, that's fine. Deal with a bank. I got one of those. Several different banks. But got some cash in some banks, that's fine. I don't have any debt, certainly, with any banks.

You don't either. But you just don't, you know, you got web access. You can do a lot of stuff yourself. But if you actually needed to talk to a human, they all hate their job and they hate their customers. You're a necessary evil for them to make a profit. That's all it is. It's the evil empire. And so I just stay away from it. That's just me and you're asking my opinion.

So there you go. This is the Dave Ramsey Show. This is big news, guys. You need to stop and listen. The Fed decided not to raise interest rates. That means you've got a small window of time before rates rise again. Here's the deal. Most people are paying too much interest on their largest expense, their home. So you're freaking crazy if you don't take 10 minutes to call Churchill Mortgage right now

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Welcome to the Dave Ramsey Show, Heidi. Hi, thank you so much for taking my call. How are you? Better than I deserve. How can I help? So I'm going to try and keep this short. I have $200,000 of student loan debt and unfortunately not a doctor or lawyer. I just got a business degree from a private school and I'm currently making $45,000 a year just with my main job. I also have two part-time jobs. I'm at a point where even if I live on rice and beans, beans and rice, it'll take me 10 years to get out of this hole. And so I have a shovel problem. And I don't really know where to go with my career.

And so I'm just kind of needing some guidance in where to go with my career and how I can get out of this mess as fast as possible. Okay. So you have a business degree. Yes. And what are you doing today? I am an academic financial specialist at a university. Mm-hmm. Okay.

So you're not using your... It is also part of the problem. Yeah, so you're not using your degree. Correct. Okay. So you're not using your... It is also part of the problem. Yeah, so you're not using your degree. Correct. Okay. All right. What was your dream when you started this? I wanted to go into music business.

That was the goal and the dream. The business side of the music business? Yes. Okay. And when are you going to do that? I don't know that i want to um i when i graduated i wasn't finding anything and so i just jumped into the first job that full-time job that offered me money and it was in the university and i have been with universities ever since,

moving up within universities. You haven't moved up much. You haven't moved up much. No. This career track's not working for you. It's not. So how old are you? 27.

Okay. So the thing I ask myself always about me, and I'm going to ask it for you about you, is so what are you going to be doing when you're 37 that makes $150,000 a year? I don't know. No, I'm just saying that's what we need to aim at because it's not the track you're on. It's not going to take you there. Right.

It might be a business side of the music business. You got turned off on that somehow? Or you just got distracted trying to eat? I think mostly I just got turned off to it, and then I also got distracted because I wasn't finding anything. And even with the connections I was making, it wasn't going anywhere. So you got turned off because of rejection? Yeah. Okay.

All right. That's cool. I don't blame you for that um so maybe we broaden um so what was it about the business side of the music business that was attractive to you originally um i've always had a business mind so i've always been very um numbers minded as well as planning things and helping people reach the goals that they need to meet. Why the music business?

I fell in love with music, and I wanted to do, I wanted to help the artists get to where they needed to go. There you go. And that was the passion that I had for that. Good for you. Okay, now we're talking. That's good. This is talking. That's good. This is good.

That's perfect. So there's lots of things you can do where you help people get where they want to go. And they could even be doing something that you kind of are a fan of, like music or something else. You could be a sports. You could be doing the same thing in sports, right? You could help people get where they want to go with acting. You could help the entertainers. You could help people people get where they want to go with acting or all you could help the entertainers you can help people get them where they want to go so um you know

there's uh um what i want to do what i want to do is have you pan back just a little bit i'm thinking that your music business the business side of music business might have been a little bit narrow and that caused you to have a smaller field from which you could get options. I might pan back. I don't want to pan all the way back and go, anything in business. That's too far back because it's not specific enough to give you a track to run on, right? But I want to pan back far enough that I have more than two options or three options to work for to get this going, or two or three things to work for to get this going or two or three things to do. So bottom line is you have an administrative gift and a math gift,

and you see business models in your mind like I do. I'm the same way. That makes us entrepreneurial and business-minded. You have a natural business acumen. Am I wrong? That's correct. That sets you up to do a whole lot of different things, almost too many different things.

Virtually any business. I think that's part of the problem. Virtually any business, except what you're doing now, could utilize that. You're using none of those gifts where you are. Right. And that's why you're underpaid by double. You should be making 90 by now. Okay.

And so I'm not picking on you. I'm just saying we've got to get you back to using your gifts because that's where the money is for everybody. No, that actually gives me a lot of hope. Yeah, when you use your gifts, that's where you make your money. And you and I have enough things in common here that my brain kind of works like yours, and so i can kind of see that so what you need to do is is figure out like three or four different things that touch the same nerve that the music business touched for you where you can apply these gifts in a way that helps you help people that was a big thing so the financial planning field you know our smart investor pros for instance they help people do the

exact same thing you're talking about. From a finance perspective, they're coaching them along. You could be in a situation where you're running a business for someone and being a general manager of whatever. You could fall in love with construction and be running the office and helping the business run that builds houses for people that is their dreams. I mean, that's the exact same thing, but in a very different, weird way. But it's touching the same nerve and using the same gifts. Am I wrong? No, you made me fall in love with all of it.

Yeah, yeah. So you've just got to look at it that way. Now, you don't want to use your business acumen in a way that you cannot see how people are helped. Because that will dry you up and shoot you. You'll die. Okay? Okay. But you've got to be able to see the end of it and say, this is how I use these gifts.

And when I do, people are served in this way. And I see my customers smiling because I use these gifts with this company or in this career field. And then that gets you there. Ken Coleman is our Ramsey personality that coaches people on careers. He does a great job. He has a podcast called The Ken Coleman Show. It's also a live show on SiriusXM. There's a new book coming out next week called The Proximity Principle.

And it's the proven strategy that will lead you to the career you love. You desperately need this book, and I'm going to send you one. Okay. Thank you so much. The stuff he talks about in that book, getting in proximity with the people that are doing the things you want to do and the places where the things you want to do are happening and defining what it is you want to do, then you can get back on track. But you're right.

You have a shovel problem. You defined it properly. Absolutely. You have analyzed your situation. You're very self-aware. You've got a good handle on where you are. You cannot stay where you are. It is not a good plan.

Right. It's not working. I mean, the math of $45,000 income plus extra jobs with a $200,000 student loan, that math is very, very hopeless. Yeah. And the good news is you don't have to stay there. Right. And it may take you a year to get this fixed and get the income going,

but at least let's get on track to where the 37-year-old you looks back at the 27-year-old you and goes, Way to go, girl. Okay. Hold on. I'm going to have Kelly pick up. We're going to send you a copy of the book, The Proximity Principle. We'll get it to you as a gift. They come out next week, but I know a guy.

Open phones at 888-825-5225. Matt is in Salt Lake. Oops, I ain't got time. I'm not going to Matt. Matt, I'll come to you after the break. We'll do that. Hey, graduation season is almost here. If you have a college grad in your life, graduating from college, same situation she's in,

The Proximity Principle, the proven strategy that will lead to the career you love. It's a brand-new book from Ken Coleman. You don't want to miss it. It's only $19.99, and if you buy it before it comes out next week, you get all the pre-purchase bonus items, $20 worth of free items, which includes the e-book and a video from Ken as well. Also, we've got for your high school graduates, the Graduate Survival Guide, a bestseller. Five Mistakes You Can't Afford to Make in College by Anthony O'Neill and Rachel Cruz, Ramsey personalities. All sale today, only $15.99.

You can pick up both of these at DaveRamsey.com. They make great gifts, by $15.99. You can pick up both of these at DaveRamsey.com. They make great gifts, by the way. DaveRamsey.com or call Ramsey Concierge at 888-22-PEACE, 888-227-3223. Matt's with us in Salt Lake City. Welcome to the Dave Ramsey Show, Matt. Thanks, Dave. I appreciate you taking my call. Sure. What's up?

So I'm just calling to get some advice from my parents. My dad's 65 and my mom's 63. And over the past five or ten years here towards the end of kind of their careers, they've had some business adventures go bad and some financial ups and downs. And they found themselves a couple years ago in quite a bit of debt with very little income. And so I've been involved in trying to help them kind of figure out a solution for this. And they had quite a bit of equity in their home that was much too big for their needs. And so we've just gone through the process of having them downsize and sell their home.

And they're now debt-free, and they have their six-month emergency fund in place. Good start. Yeah, so we're kind of now in the situation where there's a little bit of money left over after finishing the emergency fund. And so we're talking about what would the next step be. Is the next step over the next however long that they work and can make as much money as they can, do they save as much as they can for retirement?

Should they save to buy a house to live in outright once they retire so that they have a secure place to live? The home they're living in is not paid for? So the home they were living in... No, the one they're living in now. They downsized already. Yeah, so I guess I should have clarified. So they downsized, meaning they actually moved into an apartment that we have temporarily.

Oh, so they don't own a home right now? Right now they don't own a home, correct. Okay, and how much money do they have in excess of their emergency fund? Probably about $20,000. Okay, good. All right, cool. Okay, so here's the thing. By the time their income is gone, whatever the year that is, 75 years old, 70 years old, whatever, okay,

whenever they stop earning money, we need to have, our goal is to get them a paid for home and as big a nest egg as we can build. That's our goal. They really don't have any other goals. Right. Okay. And so I'm going to work on both of those at the same time, but we're going to buy a home in the future that we can get paid off by that date. Okay.

What's the price of the home they just sold? The price of the home they just sold was $750,000. Wow. And what do they earn today? So during this process, my mom had retired. She was a schoolteacher. She went back to work teaching, and my dad got a new job. And so their income now is quite good.

It's about $140,000 a year. Phenomenal. Phenomenal. That's a great answer. They're doing all the right things, and you're coaching them well, apparently. Good job. Okay, so what we're going to do is i'm aiming at a 200 maximum 250 house that they can get paid off yeah and that's what we were looking at in 10 years okay because we

have to pay it off in 10 years that's if your dad's working to 75 yeah okay and the house is paid for because you need a paid for house to settle into because paying a house payment is going to mean you'd have to have a bigger nest egg. That's not a plan because one's offset and the other then. Now, past, okay, so we've got a $250,000 house. We lay that out with a schedule to pay that off in the next 7 to 10 years. We get into the house first, and then we get it paid off all in 7 to 10 years from today. Okay? Okay.

You lay that money out, any money we can find above that in the written budget that they do every month is going to go into their nest egg. We're going to load up retirement accounts to get ready to have an income in addition to social insecurity. But I think they can probably end up with about a half a million dollars and a paid-for house if they both work 10 years okay i think so you would oh sorry go ahead that's okay i think i'm not positive but i think they can't yeah so so your recommendation would be for them to find something now put would they would they well maybe

maybe next maybe next year 20 000 down is not 20 000 i'll go cut it because you're gonna get pmi right so save as much as they can which they think they can save about 60 grand this year 20,000 down is not going to cut it because you're going to get PMI. Right. So save as much as they can, which they think they can save about 60 grand this year. Then they'd be ready. And then next year they buy, and then they'll finance something that they can pay off within 10 years. And then anything above that, they'll just sock away and save. Yeah, I mean, I'm thinking 250, and I put it on a seven-year schedule. Worst case, worst case, 10 years.

Because the faster we get that sucker paid off, the more we can throw to the nest egg, right? Yeah, right. Absolutely. Oh, sorry. You're fine. Go ahead. The follow-up question would be, so both of them have a match at work. It's a very small amount.

My thought would be that they should do that because it's the free money. Yes, and they desperately need every dollar they can get right now. And then the follow-up question to that is, should they consider, maybe not this year, I guess, that they're saving for the down payment, but should they this year invest in their Roth while they have the time to help them? Yeah, that's fine. I would put 15% of their income into retirement right now, and I would live on beans and rice and throw everything at a down payment. I would purchase a home 12 to 18 months from today,

put it on as short a schedule as you can, 10-year, 15-year schedule, pay it off in seven years is the plan, maybe 10 years. And then once you've got that in place, then above attacking the house on that schedule, lay a schedule out, even regardless of what the payment is, you lay out a schedule to get the house paid for. Above that, then load up retirement. Okay. So you wouldn't attack the house harder and sacrifice the next nest egg building

if it's within the seven years? No. I'm going to put at least 15% into retirement and at least have the house on a seven to a ten-year schedule. Above that, I'm going to roll more towards retirement here. You really got this dialed in, Matt. You're going to be a huge help to them. They've got the opportunity to save this. Hold on. huge help to them they've got the opportunity to save this hold on i'm going to send you a copy of

chris hogan's book retire inspired because he makes the case very strongly in there that it's never too late and you're proving that right now dawn is with us dawn's in cookville tennessee hi dawn how are you i'm good how are you better than i deserve what's up well i have a question i don't know really where to start. My husband and I have been married for almost three years. This is our second marriage. His first wife passed away after an extended illness. I was divorced.

I have two children. The older child, 29, is a small business owner, self-sufficient, doing great. My younger child is on a full ride scholarship at a major university we're in really good financial shape both of us we've really worked hard to get our act together and we're doing very well we have no credit card debt we owe we owe for my what's your question honey the problem the question, his son still lives in his house. He promised to sell his house. We were going to move to my house. His house is paid

for, but he has allowed his 32 year old son to stay in the home, to live in the home, and my husband pays all the bills, all the upkeep, utilities, taxes, insurance, everything. Why? I don't know. Well, you asked him. You've had this discussion. What's he say?

He really won't even talk to me about it. He tries to keep his marriage and his son and that home separate from our marriage. Well, that's a marriage problem because you're married to the home man. Now, here's what I think I hear, okay? I think your husband is a very nice kind gentle man isn't he yes and he has a real problem telling his kid to get out yes okay that's called codependency right that's giving a drunk a drink because you think you're being nice. And when you support a 32-year-old so that he doesn't become a man,

you're not helping him, you're hurting him. I've tried to tell him that. Listen, an eagle that doesn't leave the nest is eventually known as a turkey. Yes. But am I being ridiculous? I see what comes out of the bank account every month between $700 and $50. But you're griping about the wrong thing. You have a wonderful husband you're married to. Almost all enablers are the kindest, gentlest people.

They just don't have the gumption to say no to somebody. And he needs to get the gumption to say no because he's actually bringing harm to his son. It's not that you're, and he's shutting you out because he's ashamed he's doing that. Hold on, I'm going to send you a copy of a book called Boundaries that he needs to read. This is The Dave Ramsey Show. show. Our scripture of the day, 2 Thessalonians 3.13 And as for you, brothers and sisters, never tire of doing what is good. David Brinkley said, A successful man is one who can lay a firm foundation with the bricks others have thrown at him. That's good, David.

What a classic. Our question of the day comes from Blinds.com. You can find out for yourself why Blinds.com is the number one online retailer of custom window coverings. You get free samples free shipping and with the two new promos they run every month you'll save even more use the magic word the promo code ramsey today's question is from aaron in colorado my husband and i have been married for five years two years into our marriage he was diagnosed with liver disease. Unfortunately, he had not purchased life insurance before his diagnosis, and now he has not been able to qualify, of course.

What life insurance options are there for people with pre-existing conditions? Well, pre-existing life-threatening conditions is the key word. Well, number one, the thing you're going to want to do is follow the baby steps very closely because the more you build wealth and the more you're clear of debt, the less you have need for life insurance. In other words, if you're debt-free and you have a million dollars in mutual funds, you have no need for life insurance. You probably could survive on the investments where you, God forbid, to lose him. So, in other words, asset building and debt freedom causes you to become ultimately self-insured. So that's your long-term goal.

That doesn't fix you today. Today, you've got to go with what's called guaranteed issue policies. And they're basically gimmick policies, and they're roughly five times as expensive. It's a guaranteed issue regardless of medical condition. The biggest one, and it's about 5X what normal term insurance is, but it's insurance that he can actually get, is mortgage life insurance. It's a complete gimmick, and it's about five times more. So don't buy it, folks, unless you cannot get life insurance otherwise.

You just buy term insurance to pay off your house but in your case aaron what you're going to do is get mortgage life insurance call your mortgage company they would love to sell it to you they make a ton of money on it and that pays off the mortgage in the event he dies that's a nice chunk right there that's a big help right there okay now to get other insurances, number one, if you can get something through his work, through group policy, his work, it may be, it's not always, but it may be guaranteed issue. And you may be able to load up on it there. That's probably the least expensive of all of them you could find. Other guaranteed issue policies are typically the gimmick stuff you see on TV or it comes with your checking account and that kind of thing.

You can get $10,000 or that kind of thing. But some of those are like 10X. In other words, what you paid for that $10,000, if he were healthy, he could have bought $100,000 in term. But at least you got something. So, I mean, if you pick up four or five of those and you've got some you're paying you know you're not just getting slammed with the premiums too heavily maybe you got fifty sixty thousand dollars in extra coverage and you got a mortgage paid off you're starting to get to where you're in better shape i doubt you're ever going to get to the 10

to 12 times his income on him that we normally suggest because i don't know how to pull that off for you unless you just made it. You'd be paying too much for it to make it worthwhile. But let's get the house paid off and get some other cash around if, God forbid, something happens to him from some of the guaranteed issue policies. Beyond that, what you would do, of course, is continue to revisit his health with traditional insurance, talk to Xander and find out under, you know, what number of years and so forth can you get there and that kind of thing.

So, all right, can you actually get a policy issued? Cesar's with us in Baltimore. Hi, Cesar. How are you? I'm doing good. How about yourself, Dave? Better than I deserve. What's up?

So I just accepted a new job as a full-time ministry, and I will have to be moving from this side of the country all the way to Idaho. I'll be making that move in July. So the ministry is paying for all of our moving expenses, so we don't have to worry about that. Go ahead. It's going to be a significant loss and downgrade in payment from what I'm making now. So, with that in mind, we decided to start Financial Peace University, knowing that we think we're going to be tighter in Idaho.

And we just now finished Baby Step 1, but my question is this. Would it be okay to stay in Baby Step 1 until July, until we move, and just take these next few months to just save and save and save so that we have a little bit of a cushion when we move there for like first month's rent and to be reselling a lot of the stuff? Yes, that's exactly what you need to do. That's exactly what you need to do. You need to make the move and then start. So in a sense, what you're doing, you're not staying in Baby Step 1. You're just pushing pause on your baby steps.

You're pushing pause on your total money makeover, and you're piling up cash to make the move. And then when the smoke clears, any cash above $1,000 you got left over after the move, and you're settled in and in a rhythm again, you use that when you push play on your debt snowball. Wonderful. Yeah, so if you had extra cash. In other words, it's impossible to save too much because any cash you got left over after this, you're going to use to restart when you push play again. James is with us in Lewiston, Maine.

Hi, James. How are you? Hey, Mr. Ramsey. Thanks for taking my call. Sure. What's up? So my question is, about two years ago I purchased a rental property and my primary house, and I did super, get truck payments, and got out of that.

Finally on baby step six, and I get about $30,000 in equity in my apartment building, and I owe $106,000 on my house. I'm just curious, would you recommend selling that apartment building, selling my truck and putting that towards a house? That would put me right around like $60,000 on my house and snowball that. What's your household income? I make about $65,000. How much do you own the apartment building?

I own 34 and it appraises at like $70,000. It's a three-unit. Yeah. And what about your home? What do you owe on that? I owe $106,000. Okay. And what about your truck?

It's paid for? Paid for. Good. Okay. No, I'd keep it all. Let's just work it in Baby Step 6. Okay. It slows down when you get to Baby Steps 4, 5, and 6.

It's just going to take you some time to work through that. But you'll get there. You know, you're not that far out. $130,000 makes you 100% debt-free with an apartment and a house. That's not a bad thing. Tucker is with us in San Diego. Hi, Tucker. Welcome to the Dave Ramsey Show.

Hey, Dave. How's it going? Better than I deserve. What's up? Awesome. So I just had a quick question for you. I'm newly married, and we've been married for about two years. Very happily, no issues or anything yet. And I'm working on paying off my debt.

But I watched one of your videos about a post-nuptial agreement, and I just wanted to get your views on that for a newly married couple with no assets or anything like that. Yeah, you watched one of my videos which said, why would you need a postnuptial agreement? If you watched one of my videos, that's what it said. Yes, yes, I did. So why would you need one? For future assets, because I'm following your entire plan and plan on being retired. Is she not going to?

What, for your plan? Is she not going with you on this journey? She is. Then why would you need a postnuptial? To protect you from your wife who is going on the journey with you? Yes. Why would you need to be protected from her? You never know.

Both of our parents are divorced. I'm sorry for that, but here's the thing. There's probably a reason they're both divorced. And so the old-fashioned marriage vows say, for richer, for poorer, in sickness and in health, unto thee all my worldly goods I pledge. The only time I recommend a prenup or, for that matter, a postnup, which is very rare, would be if someone has extreme unequal wealth. If you had $10 million and you're marrying a lady who has nothing. Yeah, I probably would do that so i told

sharon if i die and she decides to get remarried um that she would need a prenup because very likely whoever she's marrying would not have the same level of wealth that she would have it's extreme and really it's not even to protect you from the person you're marrying it's to protect you from your crazy freaking relatives who have influence over them. That's the problem in these situations. And that's only when it's weird wealth. Dude, you're both broke. You're starting off life together. Hold hands and look towards the rocking chair on the porch and walk all the way there, man. Don't talk about anything else. That puts this hour of the Dave Ramsey Show in the books. 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. This is James Childs, producer of the Dave Ramsey Show. Did you know you can now listen to the Dave Ramsey Show on Pandora and Spotify? For all the ways to watch and listen, check out our show page at Daveveramsey.com slash show.