DAVE RANT: Of Course Your Banker Wants You To Stay in Debt! (Hour 1)
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How can I get started on the baby steps for financial planning?
from the headquarters of Ramsey Solutions, broadcasting from the pods moving in storage studios. It's the Ramsey Show, where debt is done, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. We help people build wealth, do relationships the right way. and get in a career where they can change their lives and do work that matters. It's a show about your life. It's called The Ramsey Show. Rachel Cruz, number one best-selling author many times over, Ramsey personality, and my daughter is my co-host today as we answer your questions about your life and your money. The phone number here is 888-825-5225. That's 888-825-5225. Starting off this hour is Rob in Pittsburgh.
Hey, Rob, welcome to the Ramsey Show.
Hello, Mr. Ramsey. It is an honor to speak with you. You too, sir. What's up? Hey, yeah, I was wondering how my wife and I can incorporate your baby steps into our our financial planning. Um, we kind of started off on our own and then, um, we found you. So we are trying to just, uh, get that all integrated and incorporated.
That's awesome. So where are you guys at Rob financially? What's your, where, where are you guys at with just income and debt and everything?
So actually I'm going through a job change right now from the construction field to, uh, becoming a financial advisor.
Um,
Yeah. So we are on one income right now and that's, um, roughly 50,000 a year.
Okay.
Um, we have between my wife and I, we have $66,000 in our Roths. Um, we have 90,000 in traditional IRAs, um, non-retirement mutual funds. We have about 44,000 and cash. Um, we have about 40,000 as well. Um, So we have no debt other than our house, which we owe $175.
Okay. Dang, you guys are doing great, Rob. Well done. Yeah, thank you.
Well done.
Yeah, well, the great thing about your numbers and you guys doing as well as you've done and being wise with it is that within the baby steps, you're jumping ahead many steps all the way to four, five, and six. So continuing, yeah, to put money in your retirement and then looking to pay the house off will be your next big goal. Do you guys have kids?
Yes, we have two kids. We have, um, two, five 29 started with, for them, um, each with roughly $5,000 in it. Um, but my, I have another just little question about the mutual funds that we have that are in non-retirement. We are down roughly 11% right now. And my other question was, should we wait for the market to rebound before we pull that, um, and put it towards the house? I understand, um, That's the goal. I just didn't know what being down right now. Should we wait for it to rebound or just kind of put it towards the house now?
Well, so you've accurately figured out that Baby Steps 4, 5, and 6 you do simultaneously. So you have your emergency fund with the $40,000 in cash. You're debt-free except the house. And you're putting money into your 401K, putting money in the kids' 529. And then any money we've got other than that, we're going to throw it at Baby Step 6, which is pay off the house. And that brings us to the discussion of them. the mutual fund account with $44,000, and it's down 11%. So you're asking the question, you obviously understand this, so you do know where you are. How do we incorporate this? You find out where you are in this process, and four, five, and six is 15% of your income into retirement, addressing kids' college, and everything above that that we can find reasonably with intentionality, we put on the house.
So I'm going to put the mutual fund on the house. Now, It is down 11%. Will it rebound? Yes. When? I don't know, and you don't either. By the end of 23, I'd bet big money it rebounds by then. But I don't know. I don't know. Here's the thing I figured out. If you follow this process that so many people have followed that is so proven, $4,000 doesn't matter. Okay. And that's how much this account is down. Okay, I understand.
Why should you avoid keeping your mortgage to prevent fraud?
If you make a mistake by pulling the money now and it jumps up 11% in Q1, you missed out on $4,000. Well, $4,000 doesn't make you rich.
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Chapters
8 chapters
1
How can I get started on the baby steps for financial planning?
0:28–5:01
2
Why should you avoid keeping your mortgage to prevent fraud?
5:01–9:47
3
What should I know about managing a friend's will?
9:47–13:28
4
How can I effectively integrate financial advice into my planning?
13:28–17:06
5
What are the implications of having a handwritten will?
17:06–21:21
6
How can I navigate the probate process without an attorney?
21:21–24:21
7
What steps should I take to protect my assets during probate?
24:21–28:10
8
How can I ensure my financial decisions are legally sound?
28:10–39:31