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The Ramsey Show

How Should I Be Investing Right Now? (Hour 3)

04 Aug 2023

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What is the main topic discussed in this episode?

31.283 - 56.16 Jade Warshaw

Live from the headquarters of Ramsey Solutions and broadcasting from the Pod's moving and storage studio, it is The Ramsey Show, where America hangs out to have a conversation about your life, your money. This is where we build actual amazing relationships as well. I love it. I'm your host, Jade Warshaw, joined by George Camel, about to be... A dad. Yes!

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56.292 - 58.475 George Campbell

Oh my gosh, Jade. Thanks for the reminder.

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58.856 - 59.417 Jade Warshaw

I know, it's coming.

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59.437 - 61.62 George Campbell

Existential crisis. Yeah, this is baby month.

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62.181 - 62.742 Jade Warshaw

This is baby month.

63.423 - 63.944 George Campbell

Pray for us.

64.044 - 64.885 Jade Warshaw

You're doing good.

65.005 - 75.381 George Campbell

You're here. You're focused. Well, the dads are kind of like useless up until, you know, other than just supporting mom the whole time. And then baby's here and then I'm ready. That's right. I'm ready to change some diapers.

75.361 - 80.807 Jade Warshaw

Whew, so get at him while you still can. The number is 888-825-5225.

Chapter 2: What should I consider before buying a tiny house?

337.214 - 341.539

I basically live in this thing. And a lot of truckers do. We basically live in our trucks.

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341.559 - 352.732 Jade Warshaw

I mean, you've got the options you've got in front of you are you're in baby step two. So even if you wanted to buy a home right now, I would say let's get out of debt first. So that's that kind of shelves and tables that.

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353.332 - 357.497

And if if you decide I'll be out of debt by February or March of next year.

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357.477 - 374.203 Jade Warshaw

Excellent. That's great. And then you can kind of start saving up and see what happens next. But in the meantime, you know, what you're talking about, my husband and I used to work in entertainment for cruise lines and we would travel like 52 or like 35 weeks out of the year. So there was this thing of like, we're never home.

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374.584 - 389.016 Jade Warshaw

And so we got the cheapest townhome that we could find, which happened to be one that his mom was renting out. And then we got roommates. to cut that in half. So it was like, okay, now this is more like it. We're paying like 600 bucks a month. We're only there sometimes.

389.217 - 399.583 Jade Warshaw

So I think you can get creative and find the right situation where it's like, okay, I'm not overpaying, but I'm also not getting into something that's too expensive for my purposes.

399.968 - 413.827 George Campbell

Yeah, I don't think a tiny house, micro house is the right move for a whole lot of reasons. Number one, you need the land that it sits on, which is expensive. You need all kinds of permits. You need to build the thing, and it's way more expensive than you think, and it depreciates in value because there's just not demand for it.

413.927 - 425.863 George Campbell

Even if it's on a foundation, it still won't increase much in value because there's just simply not much demand. So I don't want you sinking all this money into this thing, and then all of a sudden you're like, I don't even want to live here anyways. So for a lot of reasons, don't do it.

425.943 - 445.689 George Campbell

I actually did a whole video on this exact topic on tiny homes on my YouTube channel called the only way to afford a home question mark, where I dive into this for about nine minutes in detail. So go watch that for my full answer. The solution I think for you is my friend in Chattanooga rents out a room in his house to a guy who does like he's kind of travel nursing.

Chapter 3: How should I be investing right now?

2059.978 - 2081.102

I'm just trying to figure out, um, you know, if I should take this money from this investment account and put it into a, uh, put it into a real estate unit, maybe even live in it like a duplex or a fourplex, um, and then generate income off of that. So then, On top of my $45,000, I'll have rental income as well.

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2081.543 - 2101.866 Jade Warshaw

Here's what I would do. You've got two years left of college. You've got this money sitting there. It's parked in the right place. Go to college. Finish that. And then, this is just me. George might tell you something different, and that's his prerogative. I personally would not invest in real estate until I was an owner of my own personal residence.

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2102.133 - 2121.925 Jade Warshaw

Then I'm able to see, hey, this is what ownership looks like. This is what it feels like. These are the types of repairs that I have to do. This is what it costs. Because you have, I'm not saying this in anything negative at all, but you, my friend, have been extremely fortunate. You got parents paying for college. You got inheritance. That is incredible.

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2122.265 - 2142.108 Jade Warshaw

But sometimes it's like, like you said, you've never had a budget yet. You've never had to pay for real things yet. And I would love, love for you to get that experience, just that real life, I'm using my income to make my life go round. And then we can start talking about what it might look like to invest in some real estate, paying cash for it.

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2143.969 - 2150.876 George Campbell

Okay. Simon, the other piece of the equation is the 10-year rule on that inherited IRA. Does it apply in your situation? Have you looked into that?

2151.076 - 2180.503

That's a good point. So I'm pretty sure what happened was I got it about, I'd say six years ago. And the rule with it was I could legally inherit it after 18 years of age. So I'm 20. So as soon as I turned 18, I changed it from a custodial account to my own because my mom's name was on it. And now it's all in my name. And I talked to my advisor and I'm pretty sure I can just take it out.

2180.703 - 2186.269 Jade Warshaw

but there's no required like 10% per year for 10 years type deal. No, no, no.

2186.669 - 2206.13 George Campbell

Okay. I'd get some real firm answers on that and do some homework and digging. And I'd also get a tax pro in your corner as you begin to do this thing. Cause you are so far ahead of the curve. And I love that you're trying to go, Hey, I want to manage this way. I want to be a good steward of this. What I don't want you to do is get so hung up on this idea of like, I got to have cashflow, bro.

2206.15 - 2223.361 George Campbell

Like that's all you see on social media. It's all about cashflow. And, uh, I don't want you to look up 50 years from now and have regrets because it wasn't all about cash flow and you had to also live your life and you wanted to start a family and buy a house and not have all this risk going on. And so there's nothing wrong with just investing.

Chapter 4: What are the benefits of a Roth IRA versus a traditional IRA?

2249.182 - 2273.704 Jade Warshaw

me george well jade uh i'm you're not out there yet pale red face telling people to brown complexions listen to jade and i anyone that doesn't look like joe rogan's angry telling you about real estate that's who you should listen to oh man that does it for this hour of the show man when it comes to your life and money you can tell me that you won't do it but don't dare tell me that you can't with all with christ all things are possible

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2274.967 - 2300.468 George Campbell

Do you love a good day brand? 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. Hey, it's James, producer of the Ramsey Show. This episode is over, but check the episode notes for links to products and services you heard about during this episode.

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2300.668 - 2301.43 George Campbell

Thanks for listening.

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