Menu
Sign In Search Podcasts Libraries Charts People & Topics Add Podcast API Blog Pricing
Podcast Image

The Ramsey Show

What Is an Index Fund & Should I Invest in One? (Hour 2)

07 Sep 2022

Transcription

Transcript generated automatically by AI and may contain errors.

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

27.588 - 54.574 Dave Ramsey

Live from the headquarters of Ramsey Solutions, broadcasting from the Potts Moving and Storage Studio, 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. We help people build wealth, do work that they love, and create actual, amazing relationships. Open phones here today at 888-825-5225.

0

56.376 - 63.004 Dave Ramsey

George Camel, Ramsey personality, is my co-host. Akosia is on the line in Orlando. Hey, how are you?

0

64.306 - 65.788

Hi, Mr. Ramsey. How are you?

0

66.068 - 67.63 Dave Ramsey

Better than I deserve. What's up?

0

68.691 - 70.674

Thank you for all you do. God bless you.

70.894 - 71.294 Dave Ramsey

You too.

71.695 - 91.682

So I have a question about my mom. Her landlord is planning on increasing the rent by $400. And she has no way to pay this for the next year. She currently makes about $2,400 a month. So with the new rent plus utilities and her personal bills, she's looking at over $3,000 a month.

92.236 - 115.945

As her daughter, I've tried to look for many different places for her to move to somewhere cheaper so she can save money and buy a house for next year. But she keeps tossing them aside because she's very picky. Anything that's not in her taste, she would just disregard it. So how do I convince my mom that she needs to find somewhere cheaper so she can save money?

116.085 - 124.938

She's 54 and she doesn't even have a single dollar in retirement savings. She has nothing, but she wants all the bells and whistles.

Chapter 2: What is an index fund and how does it work?

174.32 - 175.382 Dave Ramsey

They'll evict her butt.

0

177.505 - 181.109 George Campbell

What's her plan currently? Just to go into debt, $600 a month?

0

182.631 - 204.137

She said she's going to get a second job. But here's the thing. My mom is a single mother. She's always worked two or three jobs. So it's taken a huge toll on her health over the years. So I really don't want her getting a second job. And I want her to buy a house and save money for retirement. But she doesn't understand that she needs to find somewhere cheaper and save money.

0

205.906 - 230.901 Dave Ramsey

I agree with your conclusion. I agree with your conclusions. And I appreciate you loving your mom and wanting good things for her. I am really confused why you're the only adult in this conversation with your mom. This is not your job. She's 54 freaking years old. It's time that she learned how to do something.

0

232.248 - 255.514 Dave Ramsey

You know, I mean, I don't, my kids don't run around taking care of Dave and I don't even run around taking care of them. They're like your age. So, I mean, these are supposed to be like adult activities. You shouldn't be having to care, take your mom unless she has some kind of mental disability and then you're taking care of her. I understand that, but she doesn't have a mental disability.

255.534 - 256.956 Dave Ramsey

She just doesn't give a crap.

259.197 - 259.698

Yeah.

260.019 - 263.167 George Campbell

It doesn't sound like she has a lot of drive either. What's she doing for work?

263.388 - 273.274

Exactly. She's a CNA. That's all she's done for many years. Full time? She works three days and then four days.

Chapter 3: What are the benefits of investing in index funds?

333.912 - 363.711 Dave Ramsey

But you're going to have to ask me what I think you should do. I'm not going to tell you anymore. And if she decides to sit over there and do nothing and get evicted, that is her grown-up decision. It is not your responsibility. You need to wash your hands of this. It is not in your, you can't fix her life. She has to fix her life. And even if you could, you shouldn't. It's weird and toxic.

0

365.874 - 378.895 Dave Ramsey

So your love for her and your honor for her, for all the wonderful hard work she's poured in and your wish for her that she has good things is dependent not on you. It's dependent on her.

0

379.263 - 405.928 Dave Ramsey

go get those things you can't do it for her nor can you just nor do i have a sentence that you can say to her that says oh now all of a sudden this lady who's never had any ambition gets some this lady who's chosen not to ever deal with finances at all suddenly wants to go do that now but what you can do is come alongside her and just say mom i love you i'll help you any way i can in terms of coaching you and i'll be your biggest cheerleader

0

405.908 - 418.981 Dave Ramsey

but I'm not going to do it for you. And I'm not going to carry the emotional burden of you not being able to pay your rent when you refuse to carry the own, your own emotional burden of you not being able to pay your rent. Does that sound harsh to you?

0

420.702 - 427.288

No, it sounds, it sounds reasonable. I'm just very concerned about her health. I don't, I don't want to lose my mom.

427.709 - 430.672 Dave Ramsey

She's 54. She's not going to die from getting evicted.

432.213 - 441.716

But she, she's had a lot of health scares because of, um, working so hard over the years. She's always had three jobs because... You can't fix it, honey.

445.301 - 457.419 Dave Ramsey

Okay. She has to fix it. You're more worried about her than she is. She's not worried about it. Is she?

458.04 - 458.14

Yeah.

Chapter 4: How should I handle an inheritance?

577.175 - 583.808 Dave Ramsey

Tom's in Salt Lake City. How are you, Tom? I'm doing great. How are you? Better than I deserve. What's up?

0

585.121 - 611.859 Tom (Caller)

So my wife and I are at the end of the baby steps. We're debt-free, thankfully, in large part to you and your program and just some crazy life experiences that enabled us to get there. We've worked real hard, and that's where we're at now. So we are both now looking into our retirement, but both of us started this whole journey thinking in our 30s.

0

612.22 - 636.178 Tom (Caller)

And so our retirement investments were rather kind of pretty delayed. We didn't start investing until, like I said, our late 30s. And so what we have now is we started with a very modest income. Now my wife works and I own my own business, and we have a much larger income than we had before.

0

636.338 - 637.74 Dave Ramsey

So what's your household income now?

0

638.918 - 640.521 Tom (Caller)

Right now we're close to 400.

641.042 - 642.925 Dave Ramsey

Wow. Look at you. How old are you again?

644.307 - 644.988 Tom (Caller)

I'm 39. Oh, wow.

645.449 - 652.28 Dave Ramsey

Amazing. You're ancient. I can't believe you're getting around. I know. Yeah. And how much do you have in retirement?

654.664 - 658.23 Tom (Caller)

After this year, we'll have about 100.

Chapter 5: What are Dave Ramsey's baby steps to build wealth?

672.586 - 678.038 Dave Ramsey

Way to go, dude. Way to go. What's the house worth?

0

678.372 - 683.277 Tom (Caller)

I personally think it's worth probably about $400 or so, but the market says that it's about $650.

0

684.077 - 701.393 Dave Ramsey

Well, I mean, the market gets to decide. You don't get to decide. So I'm calling it $650 then. Good for you, man. Well done. Well done. And you're making a bank. What a great business you do. This is awesome. So now all you got to do, you're at what we call baby step seven. So now all you got to do is stack up cash now, dude.

0

701.894 - 705.257 Dave Ramsey

And with a $400,000 shovel, you ought to be able to stack it up pretty fast.

0

706.267 - 712.962 Tom (Caller)

That's what we're really excited about, and we're looking at potentially retiring in the next 10 years.

713.163 - 717.693 George Campbell

Yeah, for sure. So what's your question today? Sounds like you're doing great. My question today?

718.174 - 725.673 Tom (Caller)

Yeah, well, my question really is, as far as the 15% of your income into retirement.

725.813 - 731.262 Dave Ramsey

That doesn't apply to you. You're a baby step seven. That's only when you're on baby step four. You can ramp that up once you get the house paid for.

731.282 - 732.164 Tom (Caller)

That's what I needed to hear.

Chapter 6: How can I convince someone to change their financial habits?

801.008 - 802.41 Dave Ramsey

39 to 49.

0

803.972 - 805.975 Tom (Caller)

That's exactly what we're looking at.

0

806.055 - 829.308 Dave Ramsey

Yeah, you don't have to have, like, a calculator or anything to do that. You can do that one in your head. So then you just add some, you know, the growth that you're going to make on top of that during that time is astronomical. And so, yeah, there's another million easy on there. In growth, yeah. Should have doubled over about seven years or so. Yeah, you're going to be in great shape.

0

829.348 - 842.755 Dave Ramsey

Just work with your smart investor pro. Keep laying out a plan. Shovel the cash over there. And here's the trick is to avoid getting arrogant in the middle of this and blowing it up before you get there.

0

843.427 - 862.988 Dave Ramsey

That's the trick, because what happens is you look over there and you got a million dollar paid for house and you got a couple million dollars, million dollars laying in mutual funds in your retirement. And then you go, I can afford to go do this stupid thing now. And people can you can blow the whole thing up by derailing. Just dance with the girl that brought you stick with the program.

863.221 - 880.427 Dave Ramsey

You know, dance with the one that brought you to the ball. Just stick with the program. Don't get over here and go, oh, now I'm going to, and Bitcoin is now my answer. I'm going to put it all in doge. You know, people, you get a little bit of hubris, and suddenly your brain just fries out. So just don't do that. Just mutual funds and paid for real estate.

880.447 - 891.964 Dave Ramsey

Just keep it simple and stack cash, and you're going to be in really good shape, man. You've done a great job. And largely because, A, you're paying attention, and, B, you're making a lot of money. It's a big shovel. That helps. Yeah.

892.385 - 892.485

Yeah.

892.465 - 897.712 Dave Ramsey

Very nice. Proud of you. John's in Houston, Texas. Hey, John, how are you?

Chapter 7: What should I do if I'm considering a career change?

938.344 - 969.621 John (Caller)

Perfect. That's an individual stock. I work in Houston, so it's oil and gas, so it's pretty volatile. What are your thoughts on selling that 45 grand worth getting out of the individual stocks, paying off the $287,000, being completely debt-free, houses current valued at about $650,000, $680,000, $40,000 or so as the emergency fund, and then we can stack some cash from there.

0

970.883 - 980.117 George Campbell

You just saved me some wind. That's exactly what I was going to say. I'd cash it out, pay off the house, and that leftover becomes your emergency fund. Anything beyond that, you guys can do what you want with.

0

980.177 - 994.239 Dave Ramsey

Go take a vacation. Celebrate. I mean, John, you pulled it off here. You got the trifecta. You paid off the house. You got your emergency fund, and you saved George Wendt. All in one answer. It was well done, sir. Well done. Yeah, definitely do all that, brother.

0

994.419 - 995.842

It's an awesome plan. You're right on track.

0

995.862 - 1023.165 Dave Ramsey

What do you make a year? 140 yeah and so now you get your baby step seven and just like the last caller all we got to do now is save more than 15 percent into retirement load your retirement you can load your 401k up you load roth iras up in good mutual funds and how old are you 39 same age yeah you're gonna be a millionaire by the time you're 45 mathematically

1024.63 - 1040.074 Dave Ramsey

Because as the value of the house increases and you save $25,000 or $30,000 a year for the next six years and the growth on all of those things, you're going to be over a million-dollar net worth by the time you're 45. Well done. I'm loving this trend. You are truly a baby steps millionaire.

1040.054 - 1064.335 Dave Ramsey

You know, George, there may not be another radio show or podcast in America where you can call in and be succeeding and prospering and find people happy about it. We'll celebrate with you. We are happy that you are winning. We are capitalist pigs. We are glad you are winning. Most shows are mad. They're angry. We are not angry at success. These guys are crooks. We think success is amazing.

1064.716 - 1069.929 Dave Ramsey

We don't think you're a crook. We think you're awesome. We think you left the cave, killed something, and drug it home.

Chapter 8: Is it wise to pause investing while preparing for a move?

1070.209 - 1093.703 Dave Ramsey

You're demonstrating... work ethic you are demonstrating character and perseverance and you are causing these things to these variables to move you are not waiting on washington to fix your life we love people like you people when you call in here you will get celebrated here and if it starts pissing off the left wing nuts that is just a bonus you're only fueling dave guys that's just a bonus

0

1093.683 - 1110.741 Dave Ramsey

It's just a bonus, man. I just love it. A guy making $400,000 and he's 39 years old. That's just awesome. That's a trend I can get behind. Forget Bitcoin. That's a trend I'm popping off. Let me just tell you. You know what that means? It means he's helping a lot of people. People don't give you money if you're screwing them. You've got to provide value.

0

1111.322 - 1162.915 Dave Ramsey

They give you money when you're helping them. That's how this works. You're providing value. You're adding value to their life in some way. So when you're doing that, you are enhancing humanity. Well done. Well done. This is The Ramsey Show. George Campbell, Ramsey Personality, is my co-host today. Thank you for joining us, America.

0

1163.276 - 1180.548 Dave Ramsey

Have you ever noticed that when you commit to change in one area of your life, it's easier to make progress in other areas? We met thousands of people on their journey to building wealth who accomplished other amazing things along the way, like losing 50 pounds. They found a career that they love. They learn to overcome stress and anxiety.

0

1181.65 - 1204.127 Dave Ramsey

What seems impossible becomes possible when you have a smart plan. You turn up the focus and intensity on your goals, and that's why we're bringing the Smart Conference to Dallas, Texas on Saturday, October 22nd. It is our only live event of the fall that is not yet sold out. Oh, I take that back. There's a few tickets left in Minneapolis for the building wealth. But that's it.

1204.287 - 1231.747 Dave Ramsey

Other than that, this is it. And you can come live in person all day. Total top of the line, number one bestselling authors and thought leaders in each of the subjects, whether it's marriage. Craig and Amy Groeschel will be there. Pastor Craig will be there from LifeChurch.TV over in Oklahoma City. Our friend speaking on marriage, Dr. John Deloney on mental wellness. Rachel Cruz on money.

1231.767 - 1248.731 Dave Ramsey

Ken Coleman on career. George Camel on money. There's going to be a few other surprises. I'll be there. We're going to be talking about relationships, career growth, everything. It's all day long. You will leave smarter. You need new information and new inspiration to keep moving. It is a giant pep rally.

1248.751 - 1274.716 Dave Ramsey

There will be about 8,000 of us there, and there are about 2,000 tickets still left, so we can still get you in. The VIP and Platinum are all sold out, but the general admission is still available, and it's a great, great event. Dallas, Texas, Saturday, October 22nd, RamseySolutions.com slash events for the Smart Conference. Our question of the day comes from Blinds.com.

1274.736 - 1290.86 Dave Ramsey

They have a 100% satisfaction guarantee. That means even if you mismeasure or you pick the wrong color, they'll remake your blinds for free. Free samples, free shipping. And with the new promos they run every month, you'll save even more. Use the promo code Ramsey to get the best possible deal.

Comments

There are no comments yet.

Please log in to write the first comment.