@@IRLSuperbsorry you live in a society. There are ways to go live on an island or in the forest and never pay anyone for anything. Taxes are payment for the things you take for granted, there should be more of those things but our country finds it better to pay ridiculous amounts for defense. Regardless, paying taxes isn’t the same as having debt.
To be fair: life isn't all about money, and Dave has reiterated that many times. However, a financial advice podcast IS all about money, lol. Kinda like how lawyers are all obsessed with the law, and doctors are all obsessed with health, lol.
We got a small amount of inheritance when my husband's granny passed away. And his brother attempted to persuade us to invest it in a retirement fund for our kids. I had to remind my husband that we were still paying off debt and it would be ridiculous to set our kids up for retirement when we were still in a hole.
A retirement fund for your children? That's highly bizzare. I could see a college fund for kids but a retirement fund? I am glad you guys didn't listen to him!
Pay the house off. Once you have the mortgage gone you can invest THAT. Then you have a win win. You are no longer paying interest and you are collecting interest.
@@abrahamflores2566 especially when you’re sitting on a pile of fairly liquid investments you can utilize at any time. This money isn’t locked away in a 401k, it’s always available
No amount of "investing your mortgage payment" would make up for the compound growth of investing $300k into mutual funds at age 32. If the mortgage payment is $1500/month, it would take over 16 years to equal $300k, and most of that would not have been invested for those 16 years. That's the issue with Dave's argument. The compound interest from investing early is too powerful to squander
One thing about Dave's formula: whoever sends you the check may have already taken a percentage out for taxes. If that is the case than he is withholding well over 50% or 60% for taxes.
This question always comes up. Personally I’d invest it. But I get why Dave doesn’t budge on this, as his clientele are generally people who are terrible with money, so becoming debt free is crucial. Realistically though, they could easily do both and it’d be a good compromise IMO. Invest half, put half on mortgage. Then they’re both happy.
Agreed with you 100%. Investing it would be the route I'd go but understand why Dave would say no as majority of his listeners/clientele are bad with money. It's the safe route to pay off the mortgage.
it is not that Daves listeners are bad with money, though many start with Dave that way, it is that Dave is teaching financial peace, and there is no peace with debt. sure, ones head can be above water with debt, but only debt free equals financial peace "they could easily do both and it’d be a good compromise IMO. Invest half, put half on mortgage." i disagree. as Dave says "you win at what you focus on." another way to put it is the old Chinese saying "whoever chases two rabbits catches neither." best move is to pay off the mortgage then invest what used to be the mortgage payment
@@eatpigsnot Yeh it's a shame that people online seem to lose all decency sometimes over an opinion lol. Regarding the topic - I completely get it about financial peace. I see it with my parents, who prioritised the mortgage even when they could have invested. Even though they know they would have had more in their retirement now, they always say that being debt free is priceless.
A part of what you earn is yours to keep. Get debt free. Retire with rental properties bought with cash one rental at a time. I am retiring into my paid for rentals. It takes time there is no get rich way to get the FI financial Independence.
I would pretend that the inheritance never happened and continue with the steps as they were going. I also have gone thru a divorce and would never comingle inheritance, life happens and you never know what when divorce may happen.
@@blazethebeat7392 maybe you should read it again, nothing sneaky or deceitful about my statement. Keeping inheritance separate and continuing with the original plan is what I would do, I'm not hiding anything
@@blazethebeat7392 please enlighten me on how I'm being dishonest. Inheritance isn't usually co-mingiled funds. Trust me I life by Christian beliefs, with tithing and community volunteering thru my church regularly
Risk is the key, when mutual funds go down can be the same time people loose jobs and inflation hits. Sorta like now. Then they have to withdraw from their accounts when they are at a low to pay their debts.
"Sharon doesn't question the budget" Well when you're making many millions per year, why would your spouse ever question if you can afford groceries next week?
They didn’t start like this though. They started literally bankrupt and worked their way to where they are today. And stayed married through it all. Imagine that
I’m curious as to who is receiving the check? Most inherited money can be kept separate if a divorce eventually occurred. The interest gained might be divided. I wonder if that’s in the back of the guy’s mind?
The co host seems uncomfortable at his irritability. I guess he has done this for so long and he knows some callers know the answer so he can't be bothered.
Do both. Pay down the mortgage and recast it to lower your monthly payment by $300-$600. You can do this without refinancing and you get to keep your interest rate. This way you don't feel overleveged
@@lvluptoaverage52 because no risk is also a form of risk in today's inflationary times. It's also called opportunity risk. If you could get your mortgage down to a $1000 payment a month you can easily have enough reserves to cover the payment for months and months even if you lose your job. If $1000 is too much get your mortgage down to $600 a month and keep investing without worrying about a $120k mortgage.
I make entertaining videos as well.. i ate a whopper from burger King inside Target on my RUclips channel because I’m trying to get out the hood.. anything to make it out🦅
It would be insane not to pay the mortgage off, imagine having a new baby and no mortgage, or if someone lost their job and no mortgage it would just be amazing
🤦♂️Dave what are you saying. Risk? How much risk is there in a home with about 200k equity. Smh. This is why dave is goofy to me. His rules are stiff. The husband has a very good point on this one.
If you want to invest that badly, then make that your boring, auto-pilot, cost-averaging move instead of the debt repayment. Second, the inflation-favours-debt-to-the-gills argument also sounds math-smort, but I'd rather have more money on hand for rising costs than to keep make payments that are feel less painful.
Mathematically, maybe. Ramsey isn’t just about math; he’s about behaviors and getting out of debt to maximize returns on money. In the long run, he’s about financial peace; peace is best found ehen you owe no one else.
Pay off the house and invest the rest. Now you can enjoy life by living off one paycheck and whatever you decide. There is no guarantee you will live 10 or 20 years from now. To each his own.
99.5% of foreclosures are a result of people with a mortgage. The 0.5% are because of lender errors based on bank errors that result in a foreclosure attempt.
Very true. There are a lot of homeless people in Martha's Vineyard who are there because they inherited paid-for houses and lost them, simply because they couldn't afford the taxes.
I disagree with this part of Ramsey's philosophy. I would invest the money. The mortgage debt is worth less every year due to inflation and you will see more of a return when you invest a larger lump sum.
If you want to win with money, you learn from people that have already won with money not just anybody giving advice in the comment section. I’m sorry if I offended you, but that’s the reality!
If I get 300k. I will leave 50k as emergency fund, throw 100k toward the house and put 150k in a good growth mutual fund. In 7 years the 150k becomes 300k again and throw the profit toward the mortgage and I'm done with it and still have a big chunk of money.
SRB If it did / I would follow mit / but really , / they were all trying to get money /... before getting money. And it .. also wouldn't work /. Because they'd still have to "investigated /
Dave again cherry picking statistics. Yes, 100% of foreclosure are from home loans (duhhh). What he left out was that 98% of them had at least 10% equity. That does not sound so risky after all, does it?
If she’s the one who received the inheritance it’s hers to do with as she wishes. If she puts it into the house she’s choosing to make it part of their joint asset. If she invests it she could do so in her name only. It’s her call.
First off, the arrogance to say he came up with risk analysis is insane. Second, there is no wrong answer here. It is just a matter of risk tolerance. Depending on what other liquid assets, and other assets they have, they may be able to absorb the risk for a greater reward. A 3%-4% mortgage does not need to be urgently paid off, so long as you are behaving with the surplus. That said, I am choosing to pay off my 3% mortgage because I do not want to worry about my home if I lost my job at my age. That said, someone else might be ok with that risk, or be in an area where finding another job is easy, and choose to make more than the interest is costing
God in Heaven... This guy has loose screws Dave is going to cost these people thousands, if not millions in lifetime earnings with this BS advice Put the inheritance into a diverse portfolio of income-producing assets instead of going all-in on a low rate mortgage
I would pay off the mortgage on a heartbeat. I dream of waking up one day knowing I don't owe anyone anything.
One word: TAXES
@@IRLSuperbsorry you live in a society. There are ways to go live on an island or in the forest and never pay anyone for anything. Taxes are payment for the things you take for granted, there should be more of those things but our country finds it better to pay ridiculous amounts for defense. Regardless, paying taxes isn’t the same as having debt.
@@Riggy931it’s worse. If you don’t pay, jail you go
I'm glad that the co-host expressed condolences for the loss of whoever left the money to the caller. Life isn't all about money.
Dave usually does that, too. I'm surprised he didn't this time.
To be fair: life isn't all about money, and Dave has reiterated that many times.
However, a financial advice podcast IS all about money, lol. Kinda like how lawyers are all obsessed with the law, and doctors are all obsessed with health, lol.
Unfortunately yeah, it is. That’s why everybody is going to work everyday and companies know this.
Money isn't everything, but good financial advice is. You need money to live on in the future.
Right but this show is about money, get over yourself.
We got a small amount of inheritance when my husband's granny passed away. And his brother attempted to persuade us to invest it in a retirement fund for our kids. I had to remind my husband that we were still paying off debt and it would be ridiculous to set our kids up for retirement when we were still in a hole.
A retirement fund for your children? That's highly bizzare. I could see a college fund for kids but a retirement fund? I am glad you guys didn't listen to him!
Pay the house off. Once you have the mortgage gone you can invest THAT. Then you have a win win. You are no longer paying interest and you are collecting interest.
I gladly pay the 2.5% interest for 30 years while my investments can payoff the house faster.
@@abrahamflores2566 especially when you’re sitting on a pile of fairly liquid investments you can utilize at any time. This money isn’t locked away in a 401k, it’s always available
No amount of "investing your mortgage payment" would make up for the compound growth of investing $300k into mutual funds at age 32. If the mortgage payment is $1500/month, it would take over 16 years to equal $300k, and most of that would not have been invested for those 16 years. That's the issue with Dave's argument. The compound interest from investing early is too powerful to squander
@@pey7777 yup, time is the investor's best asset and you will never get it back
Worked for me. Paid off in nine years and still retired before 50 as planned.
Inflation isn't even a big deal.
Co host is very good! Really smart, well spoken woman. Glad she is a part of your organization.
What happened to the calls of people having 400k in student loans that make 35k a year?
🤣🤣
Yes I am tired of these successful callers calling in with all this money. I will not watch the channel if these kinds of videos keep being uploaded.
@@costco_pizza You should watch the full show...
I love the formula for how to divide your check... applying that when I'm done with BBS
One thing about Dave's formula: whoever sends you the check may have already taken a percentage out for taxes. If that is the case than he is withholding well over 50% or 60% for taxes.
We all have envelope systems... Dave has buckets 🤣🤣🤣
Oneof the best episodes I've heard 😊
This question always comes up. Personally I’d invest it. But I get why Dave doesn’t budge on this, as his clientele are generally people who are terrible with money, so becoming debt free is crucial. Realistically though, they could easily do both and it’d be a good compromise IMO. Invest half, put half on mortgage. Then they’re both happy.
Agreed with you 100%.
Investing it would be the route I'd go but understand why Dave would say no as majority of his listeners/clientele are bad with money. It's the safe route to pay off the mortgage.
it is not that Daves listeners are bad with money, though many start with Dave that way, it is that Dave is teaching financial peace, and there is no peace with debt. sure, ones head can be above water with debt, but only debt free equals financial peace
"they could easily do both and it’d be a good compromise IMO. Invest half, put half on mortgage." i disagree. as Dave says "you win at what you focus on." another way to put it is the old Chinese saying "whoever chases two rabbits catches neither." best move is to pay off the mortgage then invest what used to be the mortgage payment
@@eatpigsnot Good way to see it, I can't disagree with anything you said on principle even though that's not the route I would personally take.
@@nic_ccc3366 thank you for the polite respectful reply. this is the kind of dialogue we need more of.
@@eatpigsnot Yeh it's a shame that people online seem to lose all decency sometimes over an opinion lol. Regarding the topic - I completely get it about financial peace. I see it with my parents, who prioritised the mortgage even when they could have invested. Even though they know they would have had more in their retirement now, they always say that being debt free is priceless.
A part of what you earn is yours to keep. Get debt free. Retire with rental properties bought with cash one rental at a time. I am retiring into my paid for rentals. It takes time there is no get rich way to get the FI financial Independence.
Dave came up with 'considering risk' lol
I would pretend that the inheritance never happened and continue with the steps as they were going. I also have gone thru a divorce and would never comingle inheritance, life happens and you never know what when divorce may happen.
very good point and so true.
Bingo!! I was thinking the same thing.
@@blazethebeat7392 maybe you should read it again, nothing sneaky or deceitful about my statement. Keeping inheritance separate and continuing with the original plan is what I would do, I'm not hiding anything
@@blazethebeat7392 please enlighten me on how I'm being dishonest. Inheritance isn't usually co-mingiled funds. Trust me I life by Christian beliefs, with tithing and community volunteering thru my church regularly
Risk is the key, when mutual funds go down can be the same time people loose jobs and inflation hits. Sorta like now. Then they have to withdraw from their accounts when they are at a low to pay their debts.
People aren't losing jobs now.
@@superblump87 Oh yes they are losing jobs!! Just reading the news ..
@@alisatjaden3906 the news 🤦
EXACTLY! It seems “the smart investors” here never calculate those “unexpected changes”.
@@superblump87 Pandemic never teach you anything?
"Sharon doesn't question the budget" Well when you're making many millions per year, why would your spouse ever question if you can afford groceries next week?
I agree, that's a different level
They didn’t start like this though. They started literally bankrupt and worked their way to where they are today. And stayed married through it all. Imagine that
Buy a kickass speedboat.
I’m curious as to who is receiving the check? Most inherited money can be kept separate if a divorce eventually occurred. The interest gained might be divided. I wonder if that’s in the back of the guy’s mind?
Very good message
I wonder what’s more liquid investments or Real Estate?
The co host seems uncomfortable at his irritability. I guess he has done this for so long and he knows some callers know the answer so he can't be bothered.
Risk is different for all individuals.
You're not in alignment you're in Accord with tires going different directions.
wonder where next to nyc where they are able to purchase a home for only 450k
Do both. Pay down the mortgage and recast it to lower your monthly payment by $300-$600. You can do this without refinancing and you get to keep your interest rate. This way you don't feel overleveged
What about just not having risk. I mean once you have a home is yours why take the risk.
You can only recast if your mortgage allows it. Most don't.
@@lvluptoaverage52 because no risk is also a form of risk in today's inflationary times. It's also called opportunity risk. If you could get your mortgage down to a $1000 payment a month you can easily have enough reserves to cover the payment for months and months even if you lose your job. If $1000 is too much get your mortgage down to $600 a month and keep investing without worrying about a $120k mortgage.
@@beachbum77762 true, this only applies to conventional mortgages but most servicers allow recasting if it's a normal mortgage
I make entertaining videos as well.. i ate a whopper from burger King inside Target on my RUclips channel because I’m trying to get out the hood.. anything to make it out🦅
It would be insane not to pay the mortgage off, imagine having a new baby and no mortgage, or if someone lost their job and no mortgage it would just be amazing
Real Nerd question, How do you determine the risk variable based on career and life choices???
Thee is no really good way to predict.
Any business can fail.
Some fail because the boss makes a stupid post on Tik Toc... Boom... no more customers.
I’m selling the house lol 😂 taking the equity and buying something else and keeping the $300k lol 😂 a win win period.
🤦♂️Dave what are you saying. Risk? How much risk is there in a home with about 200k equity. Smh. This is why dave is goofy to me. His rules are stiff. The husband has a very good point on this one.
Alot of advice coming from people with zero or very little net worth I'm gonna listen to the debt free rich guy!
No, It's based on common sense.
More money does not mean you know more than anyone else.
Dave became rich because of his show. Not from following his plan
@@musicpro7278 say that a little louder for the stupid people who can think for themselves please !
Did I miss the 2nd question?
If you have no mortgage payment you are automatically wealthy
False
Wrong in so many ways lol
Nope I would think income plays a role in this and how you use it going forwars.
You can't eat a house
If I wouldn't have the 3.3k monthly what I would do?
Total side note but this woman next to Dave (forgot her name) is absolutely gorgeous!
What was her second question?
He doesnt mention physical health enough, with all due respect me not being a religious man but AMEN!
If you want to invest that badly, then make that your boring, auto-pilot, cost-averaging move instead of the debt repayment. Second, the inflation-favours-debt-to-the-gills argument also sounds math-smort, but I'd rather have more money on hand for rising costs than to keep make payments that are feel less painful.
the rising cost of everything over the next 30 years, isn't going to lower your pain. investments are the only way.
@@commonsense-og1gz They have careers with salary every month.
@@jomontanee that makes investing much of it even more reasonable, since salary doesn't fluctuate as much as hourly pay.
Dave Ramsey pays 40% tax rate? I have more respect for Dave now than I already had.
Her husband is absolutely right!
Mathematically, maybe. Ramsey isn’t just about math; he’s about behaviors and getting out of debt to maximize returns on money. In the long run, he’s about financial peace; peace is best found ehen you owe no one else.
Who’s inheritance is it ? A spouse doesn’t have to share it at all !
They do if the receiver decides to share it with their spouse. Obviously she or he decided to share it with the other.
@@KS-cl8br Right , but he doesn’t by law have to it’s only if they agree .
It's supposed to be ours when you get married.
Not "mine!"
If you want a long happy marriage, start thinking that way
Been married for 34 years
@@MikeJohnson-oz7uk 49 years here 😁
Pay off the house and invest the rest. Now you can enjoy life by living off one paycheck and whatever you decide. There is no guarantee you will live 10 or 20 years from now. To each his own.
FPU is about behavior. His answers will always point back to behavior.
Why is she looking at Dave while talking? You don't need Dave's approval on every word, lady.
I think she’s just feeling awkward talking to the camera or the space around her instead of the person next to her
She’s fairly new. Cut her some slack.
@@melissab0515 Yes, I agree.
May be I was a little harsh here !
Why is Dave looking at her? 🤣 It's a conversation and she's engaging instead of just speed balling it at the camera. She's fine.
Did Dave do anything to change her family tree?
🤣🤣🤣🤣
"100% of the foreclosures are the result of people with a mortgage"
Unfortunately Dave is wrong. Tax foreclosure is an exception to this.
99.5% of foreclosures are a result of people with a mortgage. The 0.5% are because of lender errors based on bank errors that result in a foreclosure attempt.
@@gibblespascack1418 source?
Very true. There are a lot of homeless people in Martha's Vineyard who are there because they inherited paid-for houses and lost them, simply because they couldn't afford the taxes.
@@FrenchCruller03 What is a lot? What is the percentage?
Foreclosure definition is on Dave's side.
Just split it…half towards house and invest the other half…it’s all free (found)…you’re welcome
100% of forclosures are not homes with mortgages. Thats just wrong. If you dont pay taxes or insurance they can also seize your home from you.
Good point on taxes. Insurance?
Husband right, Ramsey wrong.
There is no risk of foreclosure if that money goes into a large cap fund. Its an irrational fear
Wow a 300000 inheritance 32 no kids no don't pay your house off make that money your retirement
They could make the mortgage money their retirement.
I disagree with this part of Ramsey's philosophy. I would invest the money. The mortgage debt is worth less every year due to inflation and you will see more of a return when you invest a larger lump sum.
If you want to win with money, you learn from people that have already won with money not just anybody giving advice in the comment section.
I’m sorry if I offended you, but that’s the reality!
The husband is right.
If they were 50 or older, the answer would be paying off the house. At 32, the answer is to invest.
Paid off mortgage is an investment into real estate.
@@mph5896 Paid off mortgage is an illiquid bank account that you can only access by selling the property or going into debt.
Pay the house off and start having children
you're not evil, just pay for the poor please. thanks.
At eight percent, in 25 years. That 1.4. That's without putting anything else in.
Dave bragging about all his $
Made off of us lol
Amen
If I get 300k. I will leave 50k as emergency fund, throw 100k toward the house and put 150k in a good growth mutual fund. In 7 years the 150k becomes 300k again and throw the profit toward the mortgage and I'm done with it and still have a big chunk of money.
I was going to write this almost word for word.
Obviously you're psychic. Put the entire 300k in the market 😉
One important thing they never mention: Even if you pay off your mortgage there are still yearly property taxes folks.
SRB
If it did / I would follow mit / but really , / they were all trying to get money /... before getting money. And it .. also wouldn't work /. Because they'd still have to "investigated /
Dave again cherry picking statistics. Yes, 100% of foreclosure are from home loans (duhhh). What he left out was that 98% of them had at least 10% equity. That does not sound so risky after all, does it?
What about the risk of not taking the major opportunity cost of investing 300k over a long period of time?
This is the only baby step I disagree with.
If she’s the one who received the inheritance it’s hers to do with as she wishes. If she puts it into the house she’s choosing to make it part of their joint asset. If she invests it she could do so in her name only. It’s her call.
The husband is absolutely right about this.
Who's inheritance is it your's or your husband's?
If the inheritance is from his family, wife doesnt get a vote on where it goes and vice versa.
Compromise, use half for the mortgage. The other half for investing
Here goes Dave with his strawman argument.
Personal finance is personal for a reason. It is not a one size fits all.
But they called for his advice
So he gets to give his opinion.
They are watching his show and presumably following his steps (or trying to). So of course he’s going to stick to what he teaches.
They called for his advice, why would he stray?
Which is why every single American screws it up...
Did Saul Goodman change his name to Jimmy Mcgill? Seems like it.
Her husband is right.
If dave wants to take the theories to the extreme you should rent and not invest anything until after you buy the house up front cash
Wrong advice. Husband is right. Nothing wrong with debt if you’re leveraging it effectively.
Almost everyone attempting to leverage has no idea what they're doing...
First off, the arrogance to say he came up with risk analysis is insane. Second, there is no wrong answer here. It is just a matter of risk tolerance. Depending on what other liquid assets, and other assets they have, they may be able to absorb the risk for a greater reward. A 3%-4% mortgage does not need to be urgently paid off, so long as you are behaving with the surplus. That said, I am choosing to pay off my 3% mortgage because I do not want to worry about my home if I lost my job at my age. That said, someone else might be ok with that risk, or be in an area where finding another job is easy, and choose to make more than the interest is costing
Dave gets so insecure when callers have a husband. His ego is fragile.
That makes no sense.
Dave literally said he was just like the husband
Passive income is the only way you can be part of 10% population and seprate yourself from the Average population. YASIN NABI~~~
These people should only take a grain of salt from what that guy is spitting only do about 40% of everything he says 🙄
What's your net worth?
Yea because you know better then dave. Right
He is mathematically wrong on this one. Compare the interest rates lol
God in Heaven...
This guy has loose screws
Dave is going to cost these people thousands, if not millions in lifetime earnings with this BS advice
Put the inheritance into a diverse portfolio of income-producing assets instead of going all-in on a low rate mortgage
I'm starting to realize how wrong Dave is in a lot of what he says.
Which part?
You don't need to follow what he says.
Same.
The more you learn the more Dave is wrong.
@@SeanKmath agreed
Because she's a woman Dave never angers the wahmen. Bad for business.
Am I 1st 😳