The Ramsey Show - App - What’s the Best Way To Save for Retirement? (Hour 3)

Episode Date: August 25, 2022

Dave Ramsey & George Kamel discuss: Types of term life insurance, How to choose where to live during retirement, The best retirement savings options, When to know when to move up in house. 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, 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. George Campbell, Ramsey personality, is my co-host today. We help people build wealth, do work that they love, and create actual amazing relationships. Thank you for joining us, America. We're glad you're here. The phone number is 888-825-5225. You jump in and we'll talk. James is in Chicago. Hi, James. How are you? Hello, sir.

How are you doing today? Better than I deserve. How can we help? I love that. That's a great line, better than I deserve. So I'll be honest. Probably two and a half years ago, I'd never heard your name. And then I just watched some videos about you talking directly to Americans and I'm like,

wow, that guy seems to, to get it. And I'm not, I only listen to you when, when I'm in my car, when I'm driving. But I just want to ask you a couple of questions specifically about term life insurance. Okay. Unless I'm mistaken, I think that you and I believe that term life insurance is, is a much far better option than permanent or whole insurance. Um, and that being said, um,

uh, the world of term life insurance has, has changed a lot in the past, uh, several years. We now have platforms you can go on and ostensibly get approved for life insurance in 30, 40 minutes, maybe, you know, 24 hours or 48 hours, no medical exams, no blood. And then, of course, you can get a fully underwritten

policy and, and the consumer, uh, the consumer, you know, I believe needs to, to, to be able to ask, uh, and answer questions about what's important to them. If they don't care about, uh, the getting a policy and doing paperwork in 90 days, then that's fine. But if they need insurance for whatever reason today or tomorrow, then these, these, these kind of instant decision, instant approval policy today, signed today, uh, um, options are better. I guess my question, Dave, uh, and again, I would say you've forgotten more about

term life insurance than I know. But my sense is that maybe the policies are different. You go to the exact same company, the exact same carrier, and get a instant decision or simplified issue, 48 days, 40 minutes, whatever. And it's really like a premium question. How much are you willing to pay so that you don't have to have a doctor come in? You don't have to have the nurse practitioner come in and, and, and you might be willing to pay more. And last thing, I'll let you talk is my, my sense of, of it is that, um, cause I've got four children and that, that these Gen Z's and millennials, uh, don't want to, you know, deal with paperwork and brokers and, and,

and going into a broker's offices as you probably remember when you were, when I think we're probably the similar age, and doing everything online is of high value to Gen Z and millennials, and they may be willing to pay more and not have to go through all that rigmarole. I'm very curious as to what your thoughts are. Yeah, you're exactly right. The market is moving that way um and and the reason that the uh no medical and no underwriting policies are higher in most cases they almost always are is because uh obviously the life insurance company's taking more risk because they're going to get some sick people in the pile and uh so they're they're going

to their risk is higher so they're they're going to charge more premiums for that that's what it amounts to um and you're right but and and here's the problem the insurance the life insurance industry is still very antiquated in general and uh the the their ability to gather data from multiple sources on you medically and make a quick decision with actual real medical data. I mean, you may have had blood work in the last little while doing your annual physical, but they won't use that. They've got to send out their own little guy. And their ability to think outside of that and just pull it all together and make a quick decision with actual data and a low premium is probably not too far in the future. exam a physical medical exam to get life insurance and their ability to underwrite the thing without

going through the laborious manual tasks that they do is in the not too distant future and we know that because the companies because as you said the uh the generation that has grown up with a magic wand in their hand called a cell phone that when you push a button, stuff happens, does not like when you push a button and things don't happen. And it takes a while. It takes 90 days. And you have to go through an underwriting process. And so someone's going to solve for this.

And they're going to charge for it. But it's going to be the person who gets a lot of business. And so we're in talks with many different life insurance carriers through zander having a lot of different discussions about these exact things right now because we've seen the writing on the wall for some time on this and and we're trying our best to convince them that the first one of this party is going to really have a good time yeah um and so in the meantime though you do have the more instant issues like he's talking about the people who instantly issue it at a higher premium would i do that no that's playing

short ball yeah that's just being impatient and paying too much i recently went through this experience to re-up my life insurance through zander and it was interesting to play around with the quotes and i just did it here for fun and up to about a million dollars of coverage there are a lot of touchless experience, no medical exam required at very competitive rates. So I will say they've come a long way. And so it's worth going to our website and click on Zander and go for yourself and check out the quotes. And some of them are going to be very reasonable with no medical exam if you're in good health. So they have preferred, preferred plus.

If you're in one of those tiers, that's when you're going to have a competitive rate. But if you do have health issues, there's no way to skirt the rate system. And you lie about them. The insurance is invalid. Exactly. It's called fraud. So we're not talking about that. But if you are in good health and you want to go with this route.

So, I mean, if you're doing a new medical and you know you have a medical and your doc knows you have a medical problem and you don't claim it and you go take a preferred rate as if there's nothing wrong with you that's called fraud they will not pay on that when you die so don't screw around you're not going to fool them yeah don't screw around with this it's not a it's not a thing you can shyster your way into have some integrity but um but yeah james is on to something there he he's uh he you know obviously knows the business and knows the vibe of what's going on. But for today, I would not pay substantially more. If we can get you through Zander, if we can get you an instant or a quick, you know, with no medical and you don't have to lie to get it. Don't be defrauding somebody.

And it's a competitive rate, then, yeah, that's fine. There's no advantage for that, especially when it's a name like Protective or AIG or some of these I'm looking at right here. Lincoln. Those are all major names. But as a millennial, let me speak. You know, they came to the house. They took the blood. It was no big deal.

I understand. I'm an Amazon Prime member, too. I like convenience, but this wasn't a big deal. So get it done. It's worth it. You heard it here first. There it is. There's your testimonial.

They came to the house. They took the blood this is the Ramsay show george camel ramsey personality is my co-host today we're so happy you're with us thanks for being here hey parents there's a lot you can't control you can't control inflation you can't control the economy you sure as crap can't control washington but you can control how you teach your teens to face life and the sooner they learn the better the best thing you can teach your teen this year is how to handle their money the right way like how to budget how to save how to spend wisely how to handle their money the right way, like how to budget, how to save, how to spend wisely, how to be generous, how to stay out of debt, and foundations in personal finance. Our high school curriculum is in homeschool form as well.

It'll give your teens the tools they need to win with money to pay cash for college and stay out of debt. It's not just another homeschool curriculum. It's completely changing how teens think about money, and it can change how your teen thinks too. So this school year, give your teens the money skills they'll need now and for the rest of their lives with foundations in personal finance. Go to ramseysolutions.com slash homeschool.

That'll get you there. Our question of the day comes from blinds.com. They have a 100% satisfaction guarantee, and that means even if you mismeasure or you pick the wrong color they'll remake your window blinds for free if you screw up they'll fix it for you that's pretty cool you got free samples free shipping new promos all the time window blinds the best there is blinds.com great company use the promo code, the magic word, Ramsey. Today's question comes from Annabelle in Louisiana.

She says, I'm from Louisiana, and the one thing I know for sure is that I don't plan to retire here. Other than personal preference, what are the most important financial considerations to look at in potential states to retire in? Any guidance would be greatly appreciated. That's a great question. That's about as southern as you can get. Annabelle from Louisiana. Oh, my God, I love that. That's fabulous. Sweet tea.

What do you think? Well, I think about things like income tax, of course. Me too. And the other side of that is property taxes, because those can be very expensive depending on where you live. So I would factor those two into my equation. Also looking at quality of life. You know, you don't want to just live somewhere because, you know, Alaska may be great.

She said the most important financial considerations. I assume she's going to, you know, want to live in a nice area as well. Something if she likes the mountains, she'll be in a mountain range. You know, that kind of thing. Likes the ocean, she'll be near the ocean whatever it is that you know that you want to be around in your retirement years um the first thing that comes to mind is if you hate the place go ahead and move don't wait till retirement to be happy okay that's silly um just make your life somewhere else don't spend

two-thirds of your life somewhere you hate there's so many things so there's so many possibilities for me to disagree with something in tennessee but i love this state i have no desire to live anywhere else i really do i love so much about it and only part of that is because of the financial reasons right financial but i mean it's just beautiful i mean there's some it's a diverse everything i like it there's a lot going on here so uh big fan of my state so but if i wasn't i would leave you know i hate chicago but i'm gonna stay in chicago my whole life well don't do that i hate lisa again leave if you love chicago stay in chicago if you hate it leave i mean something for everyone yeah there's just don't don't don't do that so that financial considerations though george is right you want to check your tax issues um there are some states

that just make it unpleasant to live there by the time they tax your butt off uh but uh do you want to name one dave i know what you're thinking connecticut mind reader connecticut uh california yeah i can think of a few. New York. People leave New York all the time because of it. So, as a matter of fact, we've seen a million people leave New York and California, just those two states in the last 18 months or so. During the pandemic. So, pandemic adding to the crap.

But our political garbage around the pandemic, not even the pandemic, it wasn't like the pandemic was worse there. Just the government was more stupid there. And so, anyway, there's that. That's another consideration is how the government behaves in that state as to whether you want to live there. Because you're going to have all kinds of law and order issues. In your retirement years, you're going to have issues of personal freedoms,

like medical freedoms and those kinds of things. I would consider all of that where I'm going to live too, period, but retirement for sure. Yeah, stay out of an income tax state. There's no reason to be in one. There's plenty of states that don't have an income tax. Florida, Texas, Tennessee are three of the big ones that people have been moving to lately. They also have been Alabama, Mississippi even,

and so lots of these states have benefited from the migration that's occurred, but it's all been tax-based. So look at the income tax. I'd look at inheritance tax, probate tax, if you're going to die and leave a will during that time. I mean, how much are they going to tax the size of your estate if you've built up an estate to retire in? Sales tax is an issue.

It's not as big an issue, but it is. A few places it's a little crazy. And, but it is, uh, a few places. It's a little crazy. And, uh, the interesting thing is that retirement, you tend to spend less. So that is a sales tax is not as punitive as income tax. Um, so, uh, you do want to look at that. Uh, you do look at cost of living, you know, um, cost of housing. That's a financial consideration.

So, uh, you know, the most expensive real estate probably in the United States today is probably still Silicon Valley and Manhattan. And it's very difficult to want to retire in one of those two areas. Very few people would consider that a retirement community. But it's cost of real estate that's driving that. Super, super expensive. And certainly other areas that are high, too, and are making themselves untenable. Yeah, we'll look at all of that.

And then, you know, as a ratio against how much you have. But I know, guys, I know three people before COVID, before the Great Migration, that are billionaires, all three of them. And all three of them paid cash for their home, multimillion-dollar homes. And one of them was a lot of money in Nashville for the taxes that they saved in one year from leaving California. Wow.

All three of them left California to not pay income tax there anymore, billionaires. And all three of them paid cash for, you know, $10 to $30 million houses. And that was the savings in one year from moving. And so that's, and all of them in their 60s 70s and 80s you know that kind of thing so that's that those are retirement moves um that were happening prior to covid and uh two of those three and uh you would recognize a lot of people recognize their names if i said them and uh one of them bought a very recognizable house if i said the person's house that they bought uh it would you know a country music house in other words and so um

that kind of stuff so that's the kind of thing that you're looking at and that's the the economics effects and taxation is uh sometimes people think that you can tax people and, you know, we're just going to tax you. No, because they leave. They're not going to be there to get taxed. And the people that leave are the ones that pay the taxes that you thought you were going to get when you passed that law. And so the people that are left are the people that don't pay much taxes. So it really doesn't work. In a state situation united states you

you know you gotta decide if you want to leave the united states of america or not if you don't like that tax that's different that's expatriating right but to decide to not live in new york or california is a fairly easy decision um i had an email from a mutual friend this morning uh uh they're saying you know he he said, I'm gone. I'm done. I'm like, well, hi. Time to migrate. I understand.

So, yeah, that's what you're looking for. That's what's driven this. By the way, it is politics. It is policy. It is a way of looking at things. But when you run a pro forma, if you're a politician and you think, oh, we can just raise taxes on the rich, you make the assumption the rich are going to stay. And we've seen that with businesses, too. And it doesn't work that way.

The businesses pick up and leave. The rich get up and leave. Which drives the economy. It's the people you thought, you know, we're going to tax the rich. They don't stay. They move. Elon said, peace out. I'm going to Texas.

Yeah. A bunch of other people did. Yeah, exactly what he said. And I guess, yeah, that's it. So that's what you do when you're retiring. It's the exact same thing, Annabelle. You're just looking at those kinds of things. We got room in Tennessee, Annabelle, if you're interested.

Yeah, but I really, I wouldn't wait until I retire to be happy or to love the place I live. That's good life advice. This is The Ramsey personality is my co-host today in the lobby of Ramsey Solutions. On the debt-free stage is Alexis. Welcome, Alexis. Ramel Ramsey personality is my co-host today in the lobby of Ramsey Solutions. On the debt-free stage is Alexis. Welcome, Alexis. How are you? I'm good.

Cool. So what's your shirt say? We're trying to read it from in here and couldn't see it. It says melanated, educated, and debt-free. Melanated. Yes, the hue of my skin. Oh, wow. I like it.

Melanated, educated, and debt-free. Good. I'm in. Good for you. Well done. How much did you pay off? I paid $43,000 in 22 months. Good for you. Where do you live? I live in Dallas. Cool. And what's your range of income during that 22 months? Started at 51.5, got up to 79 with all of the jobs back at about 74. I'm still working like two and a half jobs right now. Wow. Wow. Look at you. You get it. So what was your best side hustle? The one that made the most money? Probably the Uber Eats and the DoorDash. Under that was tutoring. So I did tutor. Oh, fun. What are you tutoring? I tutor English language arts. I was a special education teacher for about five years, still working education and was a great way to put my skills to use. Cool, cool.

What do you do now? What's your main job? I'm a student disability services director at a university in Texas. Cool. Which university? Texas A&M Commerce. Go Lions. I like it. Good for you. Good stuff. Fun, fun, fun. So what kind of debt was the $43,000? Medical debt. I had a car loan. I had student loans. I had loans for loans. Basically every loan.

Your loans had loans. My loans had a loan. A bed. I had anything that you could finance. You borrowed on a bed? A cell phone. Everything. You were just normal.

Yes, I was, unfortunately. Normal sucks. So how old are you? thing that you could finance a cell phone everything you were just normal yes i was unfortunately sucks so how old are you i am 31 okay and so you woke up 22 months ago in your 20s 29 years old and you said this didn't work how'd you get connected to the ramsey way what happened tell me your story uh actually i had a a friend who posted a screenshot from the Instagram page and it was a lady. She was holding a sign and she was standing in the ER and she had her number on it. Her number was six figures. And I didn't know my number, but I knew that it wasn't six figures. And I thought, man, I can do this.

So I went to the page. I followed, liked, started listening to the podcast, bought the book. And I was in from from jump i just i went in wow so the book being total money maker yes the total okay and then this podcast you plugged into and that's how you did it yes yes wow you never know about an instagram i know so you by a number you mean you saw the amount of debt she had paid off yes anyway i don't even know how much debt i'm in i gotta look into. And then you got sickened after you saw the number. Is that what happened? Yes. Well, I had, you know, instances where I had more month than money. I was a teacher,

so I'm a type A person. I like organization things to be in its place, but I wasn't like that with my money. Like my money was a mess and I felt like I was working too hard, but I didn't have anything to show for it. I grew up on payday loans housing insecurity so I really never saw these things so I had already been getting tired I tried to budget with an excel spreadsheet I suck at excel so um you know I learned about the app which was so easy for me every dollar yes every dollar and I was just ready. I just went in. Way to go. Way to go. You killed it. How does it feel? It feels good. Like just to even come out here

and to have the money to do all of this, like that would have not happened 22 months ago. It probably would have been on a credit card. So just to be able to do the things that I want to do, I mean, it feels great. Yeah. You got to feel like accomplished. Oh, yeah, definitely.

Like you beat some of your demons down, right? Yeah, I feel like I can't be stopped. Like you can't tell me anything. Amen. I like it. Preach it. I like it. I like it.

I like it. So did you grow up in a household that was, you said housing insecurity. Yes. So there's financial issues there when you were growing up. Yes, I had a single mother um i and and it was two of us and you know she had a hard time just keeping things in place not that she didn't want to but no she didn't have the resources yeah it's tough it's tough but uh but so that's kind of ringing in the back of your head and you're running like your hair's on fire away

from that yes that gives you some intensity right definitely yeah good. Yeah. Good for you. So proud of you. Did you have cheerleaders or family proud of you for doing this? I mean, you changed everything. Yeah, I had a lot of friends and coworkers. This was kind of like a lonely journey. I stopped telling people just at one point because you do get the crazy looks. But I did have like my mom, my friends, different coworkers, my church friends who definitely just encouraged me, prayed for me throughout the way, took me out to lunch, you know, did the things that I couldn't do for myself. So next time the crazy look people are around, just make sure you wear that T-shirt. That's like, na, na, na, na, na.

And they're going to be like, wait, you did what now? How'd you do that? I said, what? I'm listening. I like it. I like it. I like it. Good for you. All right.

What do you tell people the key to getting out of debt is? The budget. So the cash envelopes I still have. That's like my second Bible. The budget is key and changing your mindset. So I really had to change my mindset that, you know, I can make more money, you know, more money is out there, but I have to go and get it. I remember church paying to be praying to be debt free but i didn't see that for myself or i thought that if it happened that god would just give it to me and know like you have to work for it so that would be my two turns out if you want corn you got to plant some exactly good for you well done well done well done well done i'm so proud of you good work very very good work completely changed everything a rock star 31 year old right there reminds me of the quote from you

dave pray like it all depends on god work like it all depends on you and you did a good bit of both there and there's an interesting relationship between the two it's awesome very very good all right alexis we got a copy of baby steps millionaires for you that's the next chapter in your story for sure and uh how how ordinary people build extraordinary wealth how you can too uh financial peace university sounds like you haven't done that yet so maybe you need to do that we got a one-year membership and george and rachel dr john deloney are also featured on the videos with me this time they just came out new ones and uh the best we've ever done total money makeover you can give that to one of those

people giving you the side eye and uh maybe they'll help you get going like it helped you get going back then so we'll give you an extra copy of it to give away so great great job well done kiddo all right alexis from dallas texas 43 000 paid in 22 months, making 51 to 79 to 74. Count it down. Let's hear a debt-free scream. Thank you, Jesus. Three, two, one. I debt-free!

Yeah! Woo-hoo-hoo-hoo! Change your family tree. Change your history to where never again never again never again that's powerful you know when you look back on your childhood or you look back on that hard time i mean like when sharon and i were going through bankruptcy american express calls my house asked my wife why she would stay with a man wouldn't pay pay his bills, I said that's the last time anybody in this branch of the Ramsey family is going to have to endure this.

Not only are we going to get out of debt, not only are we going to build wealth, we're going to teach the next generation. It's the last time. The chains are broken. We're never going back. And that's what she's looking at in her rearview mirror. Her mom worked her tail off, did everything she could as a single mom, but still felt all the stress and the struggle that a lot of single moms face.

And then Alexis has got that in her rearview mirror going, I'm running, I'm running, I'm running, I'm gunning. I'm not doing this. I'm not going to repeat. We're going to be in a different place. What a neat lady. She's powerful. Powerful lady. Very well done.

Very, very well done very very well done uh by the way george these people that uh say the millennial generation is useless and can't do anything uh we see the most powerful millennials anywhere on these stages i see you and raise you one alexis right there there you go boom that's it yeah so we've got um you know we've got the the 28, 29, 30, 31, 32 couples, sometimes singles in here, and they're the smartest and the hardest working, the most passionate. And so you cannot lump an entire generation under some stereotype. It just doesn't work. There's deadbeats in the boomers, and there's deadbeats in the millennials,

and there's snowflakes in every one of those generations, people that think they're special and just are good for melting. and there's Deadbeats and the Millennials, and there's Snowflakes in every one of those generations, people that think they're special and just are good for melting. And then there's the ones that get up and get after it. They're the ones that do stuff like her. That's the ones that make it to the debt-free stage right here, and we celebrate those people. Well, and they make it to so much more. I mean, listen to what she's doing with her life.

It's just amazing. Beautiful, beautiful. Transformation. Very, very cool. This is The Ramsey Show. so Our scripture of the day, Matthew 6, 1, Beware of practicing your righteousness before other people in order to be seen by them, for then you will have no reward from your Father who is in heaven. Mr. Rogers, Fred Rogers, said the media shows the tiniest percentage of what people do.

There are millions and millions and millions of people doing wonderful things all over the world, and they're generally not the ones being touted in the news that would be true pretty much guarantees you're not going to be in the news not exciting enough you got to stir up something you got to stir up a ruckus to get in the news dominic is with us dominic is in denver hi dominic how are you, Dave. How are you doing today? Better than we deserve. What's up? Dave, my question for you today is I'm trying my darndest to become a big step millionaire. And I'm just wondering if I've been saving 15% of my income towards retirement. I had stopped that for a while,

but I've been actively doing that for about two years now. And the way I've set up my budget, I've been able to actually increase that to 21%, and I'm wanting to know if that's going to do the job. How old are you? 40. Okay. What do you make? Uh, currently making 72 a year net. Um,

that will be going up though and planning hopefully to retire by the age of 55. Okay. So you're saving about 15,000 a year. Um. But you cranked that up. Do you have a home? I'm on Baby Step 7, sir. Oh, good. Awesome. Yeah, I would max out all your retirement then. Okay. What's the house worth?

About between $6,000 and $6,000.25. Okay. Well, if you save $20, bucks, 30,000 bucks a year, in 10 years, that's 300,000. That'll be over a million alone. So, I mean, have you run the calculations out on this? Invested in mutual funds, what it's going to turn into? Yes, I have paired with one of your smart investor pros. I have started a Roth through them,

which I can only contribute $6,000 towards per year. I also have an individual account that I have set up with them as well. And through my employer, because I work for a municipality as a first responder, I can save up to, I believe, $20,000 through my Roth IRA through the city. Yeah, your Roth 401k. Yeah. Yeah. So I'm not maxing out through the city. Yeah, you're investing, you're investing $30,000 a year, you're going to have substantial money.

Have you projected what that's going to turn into? $2,500 a month, how quick that turns into a million dollars? It's pretty dadgum quick. I'm sorry. I guess ever since my dad died a while back and I was more or less, daughter, you know, when the good Lord decided to take me. Amen. I'm sorry for your loss. What happened to him? Cancer, sir. How long ago?

2014. You serve in the military? No, sir. 21 years as of now in the fire service. Okay. All right. Good for you. Well done.

Okay. Well, you're on track. I think if you sit with your SmartVestor Pro and you run some projections out, I mean, if the market average is 10%, 10 12 which it has somewhere in there you're gonna um you know at 2500 bucks a month you you know on top of a 600 000 paid for house on top of what you've already put in um you're gonna you know in those tools that we were talking about you're going to get there yeah and then the then the Baby Steps Millionaires book, I mean, he's right on track. He fits the demo perfectly at his age to be hitting millionaire status. And it's a great milestone. I also want to remind him to enjoy his life and live it and go on a vacation and have fun, you know, take your daughter and do

all that kind of stuff too. Yeah. In the midst of it. I mean, we're not just saving money. We're not just savings machines. We're just being intentional and planning and thinking it through. But that's going to be, it's going to be a lot of money. You're going to have a lot of money. You don't need to worry about it. Ryan is with us. Ryan is in North Dakota, Fargo to be precise. Hey, Ryan, what's up? Hey guys, thanks for having me here. You know, we've been on the plan for years. We've listened for a long time, and I know most of your positions, but this one I'm truly curious about. So we're talking about moving up in-house during Steps 4, 5, and 6. So we're two to three years away from paying off the home. You know, we can see seven down the road a little bit, but it is a starter home and we have five people and two large dogs and we're kind of stomping on each other a little bit. So it's not so much the upgrades, it's the space. And I guess the question is, you know, is it worth pushing step seven further down the road

when we're so close to it and getting into the home that we want, you know, versus just kind of staying where we're at maybe five to six years years down the road we could pay cash for something we like. So just curious your thoughts there. So if you moved, you could pay it off in five to six years instead of three years? No, we'd be looking at probably doubling what we want to do. I'm sorry, you said you could pay off your current home in three years, and you said if you pay off your current home in three years and you said if you bought and you said if you paid cash for the upgrade you could do that in five to six years

if you could pay cash for you could pay it off it's the same numbers sure yep but i guess inevitably we would be taking on mortgage for longer no by doing that no you still misunderstood me let me try one more time okay if you can sit there for five or six years and pay cash for the upgrade and during that time your current residence will be paid off correct yep and during that time you would pay cash and so in five to six years you would be in the dream house with cash. If you can do that with cash, you can do that and pay off the exact same amount in a mortgage during that time. It's just going on to a mortgage instead of into a savings account.

Sure, sure. Okay, so if it takes you two years to pay off the house where you are, and it takes you six years to pay off the house you move into that you love, then the difference we're discussing is pushing it out four years. Yep, yep, I follow. i follow okay now it sounds reasonable so how much equity do you have in your current house 175 what's your household income probably pretty close to that same number actually and you're talking about moving into what price range 400 ish you know yeah yeah five 500 max how old are you uh we're 40 so um you know just curious where we're at in the life cycle

there you know you got eight nine year old ten year old kids yep yeah do it i would do it yeah the the family really wants it and i'm i'm stuck. I want step seven so badly, and it almost seems like I may be the only one in the family that wants step seven that badly. That badly, but everybody wants the same thing. They ultimately want a paid-for house, and they ultimately want the wealth. It's just a question of how intense we're going to be to get there. That's the only how hard we're going to turn up the burner here. So let's just say out loud, Ryan, that if you stay and you pay off the house and you save up for the move up, or if you make the move now

and you pay it off in five years or six years, in either case, you're still weird. Right? I mean, you're not normal. I mean, everybody else is going, I'm going to be in debt the rest of my life. You know? And we could pay off a 30-year in 27 if we really try hard.

That's not you, man. You're going to be all right. You're still in the weird bucket, dude. You're fine. You're fine. I would do that if I were in your shoes. No, I wouldn't because I don't borrow money. But within the guidelines of what we teach here, you're fine. I would do that if I were in your shoes. No, I wouldn't because I don't borrow money. But within the guidelines of what we teach here, you're fine. George, good show. James,

Andrew, Zach, Ben, and Austin, good show. I'm 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. Do you love a good day, Brandt? Want to see the latest Ramsey Show videos going viral? Check out your favorite moments from the Ramsey Show on YouTube. Go watch and subscribe to the Ramsey Show channel on YouTube.