“I’m Getting Ready To Knock You Out of Your Chair”

[@karlabritfeld7104]

I've been debt free and mortgage free for 20 years. Now a retired millionaire next door. Life is good when you owe nobody anything.

[@Kazerex]

Goals!

[@TinaMyles]

Dave Ramsey's insights have been a game-changer for me! His practical approach to financial management has empowered me to take control of my money and work towards a debt-free life. The Total Money Makeover is my go-to guide, and I appreciate how he breaks down complex concepts into easy-to-follow steps.

[@janet8982]

Dave Ramsey, I have been listening to you and am on a mission to pay off debt in a year. I’m half way there and am so excited. By October, I’ll be debt free and 30k in the bank. Thank you for all the inspiration and touch common sense talk. Merry Christmas to you and your family!

[@tubenachos]

Thanks Heather for telling us your life story in 2 minutes

[@Nater9-9]

Seriously…just went on and on and on 😂

[@dougparson4407]

I was raised that if you can not pay cash for it - then you dont need it. The only thing I borrowed money for was a house and they were always discounted due to work needed. Never had a car payment. I believe buying a new car and making payments on it is one of the dumbest things a person can do. Of you have cash and want a new car great - go get it. Credit is one of the reasons everything cost so much to buy these days.

[@jasminebaby3375]

I was not expecting 20k worth of Apple stock!! I thought she was going to say millions 😂😂😂

[@austintomkewitz3981]

I got put options open on apple I want it to CRASH 😂

[@penguin12902]

Why would you expect it to be that much? She said herself her stock has tripled...that means she would have had to put in $330k to have a million in AAPL. To make even $1M you would have had to put in over $3000 way back in 2002 when the stock was only like $1 a share, that's a huge risk. It's not like AAPL has done a 1000x or anything crazy, unless you were literally one of the founding investors back in the 80's before computers were even popular.

[@penguin12902]

@@austintomkewitz3981AAPL will never crash as long as the iPhone exists. Women universally (incorrectly) have decided that the iPhone is superior to Android so that's what they buy. Look at any young woman's phone and its always an iPhone.

[@michaelatchison2325]

$20k in APPL is 100 shares. They may have to pay some capital gains tax depending on their basis.

[@nicomyth]

​@@michaelatchison2325long term capital gains may actually be zero. It depends on what the household income is but I would bet they don't reach the threshold for capital gains tax. If they do it would be 15% , I believe.

[@brandonwaddell2583]

It cracks me up that people call Dave with 2 car payments and ask if they should pay them off…..

[@frankish5314]

Cracks me up when people have car payments!

[@John3.36]

@@frankish5314 Cracks me up when people comment!

[@InternetUser._]

@@musoui You don’t “own” a damn thing if you have payments. 🤣

[@superblump87]

​@@musouilol you have no clue

[@frankish5314]

Umm OK then..🤷‍♂@@musoui

[@elainepatterson5587]

Always back to basics with Dave! People think they're special. 😂

[@TresWash]

We are all the main character in our minds

[@stephensullivan1011]

She's just new and calling for advice. She's never heard it before

[@ryant2568]

because simple works. complicated might work for some and not others but just a simple plan of no debt, a good emergency fund for when life happens and regular payments into a good mutual fund is a guaranteed way to retire wealthy.

[@clwest3538]

I think Ramsey team misses a great opportunity to stress when the cars are paid off you are no longer paying out interest (and the car cannot be repo'd) ... then as you add the 'car payment' to your savings you are gaining interest. So many people miss this point and I rarely hear them actually say this.

[@samsunguser6608]

That's a good point. A common pitfall is whenever a car gets fully paid, people rarely realign the monthlies as savings. Worse, it gets realigned into another car payment. While both old and new cars depreciate non-stop.

[@freebird7284]

they pay the most interest on car loans in the first payments so not a lot of savings later down the road, but you are right.

[@yourhomeisyourbusiness2221]

You are so correct! Once debt free, the next big thing is the next budget item.

[@bucknut9475]

They used to say it often. You are right I haven’t heard them say it in a while.

[@Mr.Boring_Man]

Well articulated

[@mustangthings]

3:29 The way she says “twenty one thousand” is so adorable. She thinks she’s rich!

[@achavez78]

$20,000 in Apple stock....I was expecting her to say like $5 mil 😭😅🤣🤷🏽‍♂️

[@machutson5493]

Me,Too

[@bighuskermav7175]

She said she had “good wealth”…she got good returns, but $21K ain’t wealth.

[@TheRealDealNeal]

Y’all so negative

[@NinoInTheComments]

@@TheRealDealNealI was thinkin the same thing.. it’s better than avg

[@bighuskermav7175]

@@vitaliid.2730not for her, it ain’t

[@6toomany]

Thank you... I had 20k in savings that people tried to push me to "invest".. and I've kept saying No.. 3 months ago I found 2 leaks in my house roof.. I didn't have to panic at all. Insurance wasn't going to help much and would probably raise my premium next year.. I called a couple companies and found the one I liked, signed paperwork, I wrote a 5k check to get the materials moving.. They did the work, fixed any damage they found.. I wrote a second check for the balance after they were done and moved on with life.. I have pulled off of paying extra principle until the savings is back and then... Slapping the principle again! No sweat.

[@oldbloke204]

I had people trying to tell me to invest or spend what we were saving but I just kept doing what we were doing. Eventually we had enough cash that I could stop working and live off these savings. We still put money into retirement savings as well but being able to do what I want with my time and pay for life's ups and downs is priceless.

[@dickkrab6280]

@@oldbloke204ok and you could’ve had triple the money you saved if you just put it in the sp500

[@Tre2cool96]

I agree that you shouldnt take any money out of your emergency fund to invest it. Also, if you have a fully funded emergency fund, there is no reason to keep adding to it. At that point, any additional funds should be put in investments.

[@laundrygoddess4]

It's wise to invest an emergency fund in a high yield savings account. It's still an investment but it pays much higher interest and is completely liquid.

[@karlabritfeld7104]

You're doing well. Keep on plugging.

[@ariston5433]

Remember you do not own your home or car until you pay the bank that very last payment….Kind of mind boggling when a bank could foreclose on your home even if you only owe $1000 same with your car. And that is really something people need to remember.

[@barnabusdoyle4930]

With that logic, you don’t own anything. Your home could be taken by your HOA for $450 fees. Property tax foreclosure. Even your car can be stolen by the police using civil asset forfeiture

[@davidhill850]

Even if you own your own home you miss the property tax payment and you'll be out on your ass in a hurry. I paid of my home a while ago. I got the property tax bill from the county two weeks ago. Turn the paper it over and read the fine print. If you don't pay by December 31, January 1 they will put a tax lien on your house and then you have till May. Because in the second week of May the lien will be auctioned off and you'll be homeless.

[@Jay_LeCaprio]

Like a wise man once said it’s called the American dream because you got to be asleep to believe it

[@davidhill850]

George Carlin.@@Jay_LeCaprio

[@aolvaar8792]

@@jp23baz33 May not have property tax. over 100 years old, Some Cities don't have, You bonded out, Deferred till transfer, .....

[@melrosehawkins8294]

My pet peeve is when callers call in and use Dave's patented response "I'm better than I deserve.".

[@philipgerry5228]

No other debt, just those things. She’s in denial.

[@bucknut9475]

It’s amazing how many people who claim to have no debt and then two sentences later they list three different kinds of debt they have.

[@susanmarie2231]

I would like to know how much the house cost they just bought and what is the mortgage payment? What type of work do they do “living paycheck to paycheck, job to job?” Do they work together job to job, or are they in different types of work?

[@tennysoneffie6943]

This is a woman who likes the sound of her own voice.😢

[@gloriaday3859]

😂

[@johannesswillery7855]

Yep.

[@teresabeau]

Like she said.... she doens't understand finance.......

[@Thurgor_Supreme]

"I'm not very wise as far as financially" Yes.

[@miketheyunggod2534]

She’s speaking like she’s rich.

[@user-mv9tt4st9k]

That is not a bad thing. "Rich" is about income to debt ratio. I am not impressed if someone has a four bedroom, three bath, two car garage townhome in a gated community with an Escalade or BMW in the driveway--I would be VERY impressed if it was all paid for. My husband manages our finances so that we carry no debt except the house, we have investements, and savings. Neither of us spend to impress and our home is humble and really old because we 1) loved it, and 2) we could afford it. Rich is living within one's means. People who have millions need to be on their game and have trustworthy people to manage it because that money has to be moved around to work. Stupid money may seem nice, and yet my humble life is "rich."

[@Lordperson3]

For real lol

[@kevinduden9222]

I would love to have a $100k income.

[@teresabeau]

@@kevinduden9222 - When she said she had 20K in savings...... she seemed to be really proud of that. Yet with that income, I was expecting should be more. But, could be living in a high cost urban area.

[@Kurtdog63]

Even if you have the assets to pay off a lot of your debt, it can be a little terrifying to watch those savings get smashed as you pay off debts.

[@jodylarson4697]

What you can't see immediately is the increase in her income from not having to make the payments! That's where the payoff is!

[@chasesmith4121]

If you have money in savings but owe people money then can you really say that money sitting in your savings account is actually yours?

[@M22Research]

Shouldn’t be at all terrifying! You’re exchanging income-vacuuming debt for an immediate future of income going instead into investing!

[@Rashaadthegr8]

@@chasesmith4121 nope!

[@Rashaadthegr8]

A negative net worth should be the most terrifying thing especially if you have kids, which is the situation most people are in.

[@tehSlushie]

Imagine telling Dave that you're "better than you deserve" and then turn around and say we live paycheck to paycheck because we have 2 car notes and a mortgage that we just purchased

[@Theartofhappytravels]

Lol! I was thinking “ You clearly watch the show. You know the first question is going to be what you owe on the cars”. 😅

[@alexpietsch7997]

Better than I deserve is a religious belief. If you deserve eternal hell than credit cards and car loans is better than you deserve

[@cathyholcombe4674]

The "Elephant in the Room" was not mentioned......the mortage. Heather said they just bought a house. How does that fit in the scheme of things?

[@KellyBoettcher-qo9tx]

Best dave quote" you don't see the inside of a restaurant unless your working at one" get out of debt!!

[@symlexbrn5396]

Has anyone noticed there're bots in this comment section claiming to be making £250K per week ? and the bot replies itself with over 100 comments pretending to be real people

[@sophiaallen655]

It’s been happening on all the recent Ramsey videos. 😬

[@raiden031]

Yeah it's amazing the bot writers have not figured out how to make bots talk like real people

[@PinballPreparedness]

NO! They are forgetting about the capital gains tax. If she tripled her money she has to pay taxes on about $13000 or about $2600. Paying off both cars does NOT leave her with $7000, it leaves her with nearly zero. There is no logical way in these times you can convince me that not having 3 months cash for bills in the house is prudent. Cut somewhere else and pay off the cars.

[@jeffreypinder9398]

Well done, Dave.

[@TingTingMelody]

Selling the stocks will trigger additional tax liabilities on the capital gains, so approximately 2/3 of the 20k will be laid to IRS instead of loan payoff. She will be netting $16-17k from the liquidation, depending on her tax rates

[@lepoj]

We just going to ignore the tax bill that comes with selling that apple stock or?

[@rayhill5767]

Pay your taxes. There I fixed it.

[@harrychu650]

Indeed, selling a 3x gain has to be timed with Tax write offs. That might mean doing it over a period of years.

[@justinc8293]

To be fair, if she bought it years ago in a brokerage and not in a retirement account, the only thing it will be subject to is long-term capital gains tax.

[@harrychu650]

@@justinc8293 and subject to ordinary tax rates at the state and local levels. Selling without consideration of the tax consequences is not sound financial advice.

[@owenson7969]

Ya it's only going to be long term capital gains and at the amount she's selling for she will easily be able to pay that tax at any time.

[@pilauopala843]

Cars are one of the biggest wastes of money. Even bigger waste is taking out loans on them. And then people complain that they don’t have money. Duh!

[@CarnivoreStork]

The team forgot to ask how big their mortgage was 🤦🏻‍♀️

[@susanmarie2231]

Yes. And I would also like to know what type of work they do where they are living paycheck to paycheck, job to job.

[@chrissmith-yg5xn]

The lady sounded like she had millions worth if apple stock 😅

[@ryanmaris1917]

Needs to note that the capital gains tax will need to be taken into account. I don’t know enough about taxes to say what they percentage will be but it could be 15-20%. She should have enough funds to cover it and the car but needs to make sure the taxes are handled.

[@jim1680]

If her taxable income is less than $89000 the cap gain rate is 0%. Not a typo

[@Lon1001]

How do people get as far as calling in to the show without ever having seen the baby steps? This call needed about 20 seconds to answer.

[@oldfordman68]

With no payments owed to a bank and you took those payments and stuck it into what Dave teaches you would be amazed at how fast that will build.

[@JT3446]

She said 20k like it was really 10 million 😂

[@wingabouts]

I've been poor my whole life. I feel rich when I get $100 left at the end of the month.

[@tracypulley9785]

Maybe that’s what it feels like to her! Did the investment thing!Maybe I didn’t have a good firm!My money is in Money Market !I was pleased with interest I made!Not willing to take chances at my age!

[@roolyfe]

Condo paid for; No car payments-The Notorious B.I.G

[@terricox3559]

What?

[@roolyfe]

@@terricox3559 rapper lyrics

[@FloydofOz]

Super Nintendo; Sega Genesis. When I was dead broke man I couldn’t picture this.

[@uncle_tones1222]

My Man!!!

[@rileymeinke8419]

At my arraignment note for the plaintiff

[@DadinWA]

She could sell her cars and get cheaper cars as an option. I’m not a huge car person. Great video.

[@alinatamashevich3354]

So you are like a Miata VS a Tahoe,

[@mstberg523]

With that lady's $100K income, why can't she just sell one of her two cars? Then she can pay off the 1 remaining car loan. All while keeping her $20K of aapl stock for her retirement, which continues to appreciate in value. Lastly, she should fire her financial advisor for advising her to sell all her aapl. Guy is probably looking to get a commision by steering her into "investing" in his brokerage firm's family of mutual funds and not even advising her to use it to pay off any debt!

[@stevenporter863]

Investment plan? Dave is the wrong guy to ask unless you want real estate or an expensive actively managed mutual fund. He is more of a get out of debt and put you on the right track guy

[@alinatamashevich3354]

And yet he has made more millionaires than you have teeth.

[@d_all_in]

​@@alinatamashevich3354 right, but most people would be better off parking in the SP500 than trying to be a landlord or pick a mutual fund that beats the market.

[@rr8253]

Right now MM's are paying high yields. Most MM's are paying 4 - 5+%! What do you mean they aren't paying much. Or put her savings in an online savings account like Marcus or Sofi - 4.4 - 4.5% and access to emergency funds.

[@valeriekehrt7566]

Your'e right. Dave Ramsey & daughter don't know everything.

[@mstberg523]

Selling off your entire AAPL stock holdings, if you've had it for any considerable amount of time, is ill-advised. You're essentially robbing from your own financial future for the sake of short term gain. If you absolutely must, cash out 10% of it, max, and hold onto the rest for retirement. If I were the Tampa caller, I'd sooner sell one of her two cars (which are depreciating assets) before I'd sell 1 AAPL share (an appreciating asset).

[@rr8253]

The Apple stock sale is a 15% Federal tax event and depending on what state.... Have any tax loss harvesting? So, I don't see much difference in keeping the stock and making monthly payments on the cars - Selling the stock gets taxed and you're paying interest on the cars payments - if those car loans are 4%, you can arbitrage a MM fund at 5% and be 1% ahead.

[@ozarkman1478]

Dave I think u messed up here. They do not need two cars that cost this much. Sell the 2 current cars and buy 2 lesser cars costing 7-8k a oc. . Put the extra cash from the cars into funds immediately, plus the monthly car payments now go into mutual funds and add another 1500 a month to the mutual funds , with a 100k income should be very doable.

[@scottbailey244]

Reasonable advice except that she will need to pay taxes on the gains from the Apple stock so she will not have $7000 left after paying off the cars. She will probably end up with only $3000. So, it is going to take some time for her to save enough money to benefit from the added interest of a money market account. Secondly, the stock market DOES CRASH. Where in the hell did you get the idea that it doesn't crash!? The stock market is a Ponzi scheme but sometimes we need to hold our noses and buy in to the scam. Side note, it is so scammish that literally no one holds stocks overnight except us dummies in our 401k's.

[@jimmymcgill6778]

Wrong. She would not get 3k from the stocks.

[@jodylarson4697]

The capital gains tax rate for joint filers who make under $89,250 is zero. They might have to pay 15% if their income is higher.

[@jimmymcgill6778]

@@jodylarson4697 They make 100k. So it will be higher.

[@larrybeagle66]

The stock market is not a ponzi scheme. Unlike a ponzi scheme, there is underlying value in the companies that it represents. And there are metrics indicating the value of the shares relative to the fundamentals of the companies. The total stock market has consistently gone up since its inception with a few short term downturns including the great depression, 2000 tech bubble, 2008 housing crisis, start of covid. In each case, the only losers are the folks who panic and sell when the market drops. The winners are those who stay invested for the inevitable turn around. I've experienced each of those (except the Great Depression), and saw friends and collegues panic sell and lose. Calling it a "scam" is lazy and short sighted. Do a little more research before such a proclamation. KZbin can help you with that. I've been consistently invested my entire working life and through compound earnings in the market was able to retire at 57. You'll never get that kind of return in bank deposits.

[@John3.36]

10% earning on what? military industrial complex? slave labor? human trafficking?

[@SPY_0-DTE]

8% withdrawal rate 😂

[@Observer100-cn7gv]

You cannot say that you have a chunk of savings if you have loans such as car or credit card, and even overdue student loans. That money belongs to the creditors. It is not for you to save but to pay off what you owe.

[@owenson7969]

Ya that is always a strange concept to me. Like my friends will say oh we have 10k in savings already so we aren't worried about money... But yet they have 50k in care debt. So you have really have -40k in savings. Lol

[@aolvaar8792]

You could have $500K in a self-paying Trust (That makes money inside of the trust). I don't pay bills, my bank does it for me.

[@michaelpalumbo4880]

Not mutual funds - LOW COST INDEX FUNDS!!!!

[@amberpayne5150]

Would your invested interest be better than paying off the cars? Wonder what the rates are on the cars. I'm new to investment strategies so may be a dumb question. Just thinking if you are making 10% in the market but paying 5% on the cars, is the money better served in the market?

[@jamisonmunn9215]

Pay off both cars even if it means selling the Apple stock. Those car notes are GUARANTEED investment returns. Even if the notes are 4% you just made that and most importantly you start adding to your investments so that 4% grows fast.

[@quixomega]

It's a little insane to say there isn't going to be a stock market crash, because statistically there will always be a stock market crash. It's just a matter of when, it could be next month, next year, or next decade but it's coming eventually and statistically "eventually" happens every 10 years or so.

[@scroogemcduckismyspiritanimal]

But she's not old enough to worry about the crash. She's got enough working years left to ride out any volatility so there's no point in speculating what the next election cycle will do

[@shecravesit7072]

It goes up it goes down

[@Frank-James]

My employees used to constantly come to me and ask if they should move their money out of the market when it was trending down. I would explain to them that the Dow was at about 1200 when I left for boot camp in 1982. Stop looking at it and keep investing, I would tell them. Invest, work hard and you'll have a very nice retirement. And now it is at about 37,000. If that doesn't wake them up......They'll never understand.

[@katiecartier5153]

would you suggest paying off a car debt with an emergency fund if one partner/income is a seasonal worker?

[@Nonsense116]

So we are going to empty the 20k in cash while liquidating a 3x of stocks? So we aren't considering capital gains?

[@damondiehl5637]

$3000 set aside for taxes. Pays one of the cars off.

[@tockpro105]

Him saying the stock market is not going to crash is as bad as those saying it is going to crash! Truth is no one knows! However the market is due for some downside for an extended period.

[@Doc1855]

The only thing we’re in debt for is our mortgage. We make 2-3 extra payments every year so we can get our house paid off in 12-15 years

[@enthused7591]

I mean, the stock market IS going to crash because it's 200% overvalued, like housing. But that's besides the other points Dave made.

[@speedybna5746]

Rachel Cruz I hope takes over Ramsey when Dave retires. She is a focused business professional and brings in the bilateral hemisphere thinking of a female. I can tell she’s refined and personable yet principled, driven, and focused.

[@grantv2313]

Oh boy. Dave wouldn’t want to know my situation. I won’t bother calling.

[@r.o2938]

Why didn't he tell her to sell the cars and buy something cheaper? You can get a decent sedan type car with great gas mileage, under 40K miles, here in OH for under 16K.

[@DaveM-FFB]

Well, her first step should be to become financially literate. That will help her to differentiate good advice from bad advice. Dave never asked her age. She might be 2 years from retirement. Who knows?

[@rpboynton]

Don’t forget the capital gains tax on that great appreciation in your Apple stock.

[@imxploring]

Dave hates car payments.... yet you know that he isn’t driving a 1974 Pinto.

[@MyAirMyles]

But he does buy all his cars cash so what's your point?

[@imxploring]

@@MyAirMyles Like all the other financial gurus... debt is bad.... but the idea of the average person saving enough to buy a new car isn't realistic for most. And the concept of only buying used has its on problems. The proper use of credit is unfortunately a fact of life today... and this is someone with an 850 FICO score saying that. The problem with most people is knowing the difference between want and need.

[@amireallythatgrumpy6508]

Using credit is only a fact of life in backwards countries like the USA. Most countries laugh at the USA because of their obsession with the absurd and asinine concept of credit scores. @@imxploring

[@robloxvids2233]

HYSAs pay 4-5% right now. That's about 1k per year on a 20k efund. That's not nothing.

[@Dan16673]

That will change in a year

[@shirleycombs2878]

What about the taxes and penalties you will pay for cashing in the stock

[@bethanyroberts7640]

The thing we struggle with is after all that is done, how do we upgrade cars through the years??

[@ytr8989]

She makes $100,00 a year. Why sell the Apple stock?

[@jimmymcgill6778]

YEP. That is just stupid.

[@RoyelNotRoyal]

I think ppl just call to be dumb tbh

[@naomirachel9161]

Because of the car loans, were you listening? 😅

[@patriotdrone9566]

If you're asking that question you know very little about Dave's approach to wealth building.

[@goforbroke2]

Selling her Apple stock is insanity. Dave doesn’t like stocks. Apple and small handful of 6-8 other stocks CONTROL the entire stock market. Look at Apples growth year after year, decade after decade, the numbers are incredible. No mutual fund is competing with Apple’s return and track record.

[@goforbroke2]

No way in hell I’d be selling my 20K in Apple stock to pay off a vehicle. Dave doesn’t like stocks and his bias is showing. Apples return on investment is legit insane, especially when you buy and hold. There is only like 6-8 Stocks in the market that keep the entire market up, and Apple is one of them.

[@davidhill850]

Dave also lives in a world of no taxes. If she made triple on the stock and say bought $7K of stock a while back and now it's roughly $21k thats a capital gain of $14K and she seems to have held it for more than 18 months so you owe 20% to your uncle plus maybe your state depending on where you live. This April the Feds are now taking $2,800 in tax plus if she owes the state. This is just shitty advice and I'm surprised Dave did tell them the usual and just sell the cars and get clunkers. Keep the $20K and go from there.

[@mjlaramore]

That’s why you are broke

[@jim1680]

​@davidhill850 you need to brush up on the cap gain tax code. If they on make 100k and take std deduction of about 27000 then their Max taxable income will be approx 73000. The 2023 cap gain rate is 0% if taxable income is less than 89000. 15% until income hits 492k. Then jumps to 20%

[@mathematician1234]

FYI: 10 best performing S&P500 stocks January 2000 to March 2023, including dividends, were #1 Monster Beverage Corp #2 Old Dominion Freight Line #3 Tractor Supply Company #4 NVIDIA Corp #5 Apple Inc #6 IDEXX Laboratories Inc #7 ANSYS Corp #8 Pool Corp. #9 United Health Group #10 O'Reilly Automotive Inc The 10 worst S&P500 stocks included AIG, Carnival Corp, Ford, GE, and Citigroup. (From Bloomberg, using MRR Command for SPX Index.)

[@mrbigglesworth375]

You are correct sir! And a great reason to open a "taxable" brokerage account! As for most people it isn't "taxed" a funny thing hey:::@@jim1680

[@michaeltoland5170]

The cars were 16k & 18k , how you pay it off w 20k ?

[@randymillhouse791]

My Roth IRA sucks. I have put in 21K since 2021 and am up only 2K. I'm going with money markets with cash savings and retiring outside of the debt-ridden USA.

[@avidwaterfowler7522]

I’m in a similar situation. I’m down to a small truck payment and a below average mortgage with about 30k in savings.

[@mlrtime529]

Dave, what do consider “good” mutual funds ?

[@VenerableBede2510]

Anything that historically outperforms the S&P 500 over time

[@TopShot501st]

Money market accounts pay like 5% right now. Good place to store cash over a bank, Not long term investments

[@freebird7284]

CD's almost 6% at banks

[@TopShot501st]

@@freebird7284 yeah but you can pull Money out of a money market instantly CDs are locked out for 6 -12 months

[@catherinewilke5583]

How are these people so far behind? 20 years and they have almost nothing to show but debt. Wow what a mess.

[@L.O.R.DRecords]

She’s like Good & Bad With Money 😂 But truth be told she doing better then a lot of people

[@boomn216]

I have a classic car rainy day funds a must

[@larrygunn3796]

I learned my lesson. I never been in a bank so much in my life.

[@kevins5268]

High yield is at 5% not bad for direct access to your money

[@carterwgtx]

I would consider this bad advice - she will have a long term gain tax of 15% right off the top. She’ll be better just stopping new investment and just plowing extra income into paying off debt…in a year she’s got no debt and a good investment portfolio base together.

[@rcdyer]

What is the ROTH money IN?? And look into some good ETF's not mutual funds unless they're a money market fund. Money market returns are very good right now but watch out for high expense ratios.

[@LadytLadytX]

Do not sell your stocks!! The capital gains tax afterwards would excessive.

[@enthused7591]

Hope she takes the advice, she can change her life drastically for the better in a week, but her savings and investment accounts are going to look scary for a while because she doesn't really understand how basic math works. Of course the other option (the better option) is sell the 2 cars and get a couple $6,000 cars that run good, and use the leftover money for investing. Wonder what the mortgage payment is on the new house, because I live in Florida too and all of our insurance premiums went up 50% this year AND home prices are up 120% in the last 3 years.

[@wewhoareabouttodiesaluteyo9303]

$6k cars are ones that are sold to you by a used car salesman. It is going to cost more just trying to fix it.

[@enthused7591]

@@wewhoareabouttodiesaluteyo9303 Unless you have cash. Only an idiot would buy from a dealer if they have cash in hand. Private party and you'll get a car that easily lasts 4-5 years for $6k.

[@michaelb.8953]

@@wewhoareabouttodiesaluteyo9303 I'm sure some people wouldn't agree with me, but buy a brand new lower end model Toyota (Camry, Corolla, Rav4) and drive it until the wheels fall off as that way you're the sole owner and you know exactly how it was taken care of. My paid for $24,000 2016 Corolla is well taken care of and maintained and drives exactly the same today as it did in 2016, and the same with my paid for 2018 Rav4. My total annual car costs for both cars including full coverage insurance, gas, oil changes, and maintenance is 4.5% of my after tax pay. Buy and hold long term.

[@L.O.R.DRecords]

I’m selling them cars before I go completely broke paying them off 💯✔️

[@rossmcgreg6r642]

More questions were needed about the cars before advising the lady to pay them off. Maybe they don't need 2 cars? Maybe they are high end luxury cars which could be sold to purchase something more conservative?

[@CrankyGeek]

I’m not sure if Dave mentioned this but if she sells her stock now, will she have to pay a commission or some sort of price per share to sell the stock she’s gonna need to pay some sort of taxes on it. This call really needs to sit down with a tax advisor to figure out what she needs to do. Let me know what you take is on the guys and gals.

[@Cuirenteria]

If she 3x her investment she has more than 1 year holding the stock, so the tax will be low.

[@debragiovine9797]

You don’t know how long she had the apple stock ,,,,@@Cuirenteria

[@Gila699]

I feel like it's probably less than she'd pay in interest if she drug the debt out over years. Regardless, the Ramsay way is to make calculated decisions to negate risk and safeguard the future. It's not about playing the odds to min/max and squeeze every last (unsecured) dime. It's a broad net tailored to average outcomes. He teaches not to invest in play stocks until you've paid what you owe. She's invested in play stocks, and now he's just telling her to go back and sell em to get where she should already have been. (According to his teachings) Morally, I can agree with it... As long as you owe somebody, it's not really your money to gamble with.

[@rizzydx7532]

Tax on long-term capital gains is 20%

[@DMaster81]

@@rizzydx7532likely 15%. 20% is the top rate but it’s for pretty high income earners

[@dcashgotem1]

Classic Dave advice here

[@WealthGameNation]

when it comes to mutual funds... it is a crappy advice. Dave just said, his majestic mystery mutual funds which he never disclosed which those are, year to date made you 10%, simple ol' s&p made 20%... nasdaq 45%. He knows this.. but he cannot monetize index funds & efts... however mutual funds he can.

[@ondogaorivu8114]

I would elect to sell the cars, pay off car loans and buy a used car @5K, instead of liquidating apple stocks....rather add more stocks to the equation instead.....

[@Melifter]

Ton of car debt and over $100K in mortgage debt. Get rid of the cars.

[@vicg3206]

2:24 she obviously just learned of Dave Ramsey 5 minutes prior 😁And she has a financial advisor… Funny when she told Dave be kind haha.

[@karenwalters1211]

I don’t fully understand why he suggests paying off cars. Yes, you get rid of that car payment and safe on interest, but I’ve seen many people pay cash for a car and then total it in a car accident. To me it’s a bad idea.

[@Andy-lr8qp]

If you finance it you would still owe the total amount even if you total it ?

[@wingabouts]

If you drive a nice car, you should get full coverage insurance - pd off or not.

[@Dan16673]

So dave forgot about 07 08? Lol

[@takethecurseOFFwashingmachine]

Let’s not forget about the long term capital gains on the sale of the Apple stock. Something to plan for that I didn’t hear Dave mention.

[@owenson7969]

I don't think he mentioned it because long term capital gains tax with the amount of Apple stock she's selling for really won't be that much. She will be able to pay that anytime especially with less car debt. If it was 100k of apple stock then yes, you would need to set aside the amount in taxes right away so it doesn't bite you in the butt later on.

[@takethecurseOFFwashingmachine]

@@owenson7969 that was my thought as well. The liability will be low enough that it will probably get handled by her emergency reserves

[@larrybeagle66]

@@owenson7969 She won't be able to pay that "anytime" because Dave has her liquidating all her savings. The tax bill for that needs to be set aside at the time of the sale and an estimated payment made as soon as possible. Otherwise, she will get a horrible surprise at tax time. Dave never spends time talking about the tax impacts of his advice. Must not be part of his professional accreditation, which is.......?....oh right. He has none. He leaves that job to the financial nerds living in their mothers' basements.

[@Hostyl176]

Married filing jointly the long term capital gains is only 15% (+state tax) at worst. Liquidating $14K of that $21K is ~$2100. Not *nothing* but probably not a deal breaker. Plus, it is likely with even taking the standard deduction, not even all of that $14K is even subject to *any* capital gains taxes. And I didn't even address her "cost basis" which would further reduce the amount of proceeds from the $14K that is actually "gains" and this subject to tax. $2100 on $14K is really the worst case scenario.

[@harrychu650]

@@Hostyl176 You have to factor in state and local taxes which tend to treat the proceeds as ordinary income.

[@WealthGameNation]

Good mutuals funds year to date made you 10%, simple ol' s&p made 20%... nasdaq 45%.... yeah dave... just keep peddling those mutuals funds.

[@aolvaar8792]

In 2007, I went to Cash, in 2011, I bought a $250K house for $50K Look at the last 15 years to Date. Great Recession and Covid.

[@WealthGameNation]

@@aolvaar8792 I fail to see how your house purchase 15 years ago is correlated to Dave peddling his magical mutual funds. My comment was that mutual funds are not good investment which Dave is constantly recommending. BTW, the s&p500 returned 13% annually, nasdaq-100 returned 27%... any of those investments are better than mutual funds.

[@Sherp8008s]

she can easily place the 20k in savings account that give 4-5% that other banks offer. it doesnt have to be money market funds.

[@GF-po4lb]

Completely disagree with this, I would never sell my apple stock

[@arthurtreibs4174]

INSTEAD OF SELLING APPLE STOCK HOW ABOUT SELLING CARS TO PAY OFF DEBT?

[@alanj9978]

I'd still love a list of these mutual funds that make 10% a year.

[@damondiehl5637]

VTI is up 20% so far this year. VOO is up 21% XLK is up 50%

[@georgeslupski5987]

Exactly

[@georgeslupski5987]

​@@damondiehl5637but you would have to guess right, he acts and correct me if I'm wrong that if you invest in mutual funds you will make 10 percent or more

[@frankish5314]

On average the whole stock market has made almost 11% per year since the early 1900's

[@ProCoach2373]

I'm with you. If you have a financial advisor or even if you don't, it's going to be very difficult. An index fund is the only way to go for over 10% in my opinion.

[@mstberg523]

To the caller in Tampa: DO NOT, I repeat, DO NOT sell your AAPL stock! I agree with most of Dave's advice, but selling AAPL would be so very unwise, tantamount to cashing out of one's 401k retirement, due to capital gains tax and penalties. I know some one faced with this same dilemma in that awful year 2008, whether to sell his AAPL to pay off his car debts/mortgage. Against his financial advisor's advice, he held on to the stock. He has since paid off his debts, and is now semi-retired, partly due to their dividend he collects, for doing absolutely nothing except hold it. He looks back on it as one of the single greatest decisions he ever made for his family.

[@MichaelJones-rn2pq]

Factor in how much they will pay in interest on those car loans and it makes the hit a lot less.

[@simopr09]

You have so weigh the interest she is paying for the car the return of AAPL stock. if AAPL yields more than the interest in that case, it's stupid to sell.

[@insideoutsideupsidedown2218]

Came for the short story advice, stayed and had to hear a life novel.

[@mysticaltyger2009]

*advice

[@innocentingredd5189]

The stock market is 100% about to correct to the downside. The Bank of Japan is about to raise rates and a tremendous amount of our FX swaps are tied to the yen. Puts FTW