I would pay off the mortgage on a heartbeat. I dream of waking up one day knowing I don't owe anyone anything.

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.

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.

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.

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?

We all have envelope systems... Dave has buckets 🤣🤣🤣

I love the formula for how to divide your check... applying that when I'm done with BBS

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.

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.

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

Alot of advice coming from people with zero or very little net worth I'm gonna listen to the debt free rich guy!

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.

Buy a kickass speedboat.

Oneof the best episodes I've heard 😊

"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?

🤦‍♂️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.

Very good message

If you have no mortgage payment you are automatically wealthy

You're not in alignment you're in Accord with tires going different directions.

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

Total side note but this woman next to Dave (forgot her name) is absolutely gorgeous!

wonder where next to nyc where they are able to purchase a home for only 450k

Her husband is absolutely right!

I’m selling the house lol 😂 taking the equity and buying something else and keeping the $300k lol 😂 a win win period.

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?

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.

Risk is different for all individuals.

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

FPU is about behavior. His answers will always point back to behavior.

He doesnt mention physical health enough, with all due respect me not being a religious man but AMEN!

Real Nerd question, How do you determine the risk variable based on career and life choices???

Who’s inheritance is it ? A spouse doesn’t have to share it at all !

Dave Ramsey pays 40% tax rate? I have more respect for Dave now than I already had.

I wonder what’s more liquid investments or Real Estate?

There is no risk of foreclosure if that money goes into a large cap fund. Its an irrational fear

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.

Wow a 300000 inheritance 32 no kids no don't pay your house off make that money your retirement

"100% of the foreclosures are the result of people with a mortgage" Unfortunately Dave is wrong. Tax foreclosure is an exception to this.

Did Dave do anything to change her family tree?

The husband is right.

Did I miss the 2nd question?

What was her second question?

Why is she looking at Dave while talking? You don't need Dave's approval on every word, lady.

What about the risk of not taking the major opportunity cost of investing 300k over a long period of time?

If they were 50 or older, the answer would be paying off the house. At 32, the answer is to invest.

Just split it…half towards house and invest the other half…it’s all free (found)…you’re welcome

Who's inheritance is it your's or your husband's?

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.

At eight percent, in 25 years. That 1.4. That's without putting anything else in.

Pay the house off and start having children

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

One important thing they never mention: Even if you pay off your mortgage there are still yearly property taxes folks.

Dave bragging about all his $ Made off of us lol

Husband right, Ramsey wrong.

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.

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.

This is the only baby step I disagree with.

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?

you're not evil, just pay for the poor please. thanks.

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 /

Compromise, use half for the mortgage. The other half for investing

The husband is absolutely right about this.

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.

If the inheritance is from his family, wife doesnt get a vote on where it goes and vice versa.

Amen

Here goes Dave with his strawman argument. Personal finance is personal for a reason. It is not a one size fits all.

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

Her husband is right.

Dave gets so insecure when callers have a husband. His ego is fragile.

Wrong advice. Husband is right. Nothing wrong with debt if you’re leveraging it effectively.

These people should only take a grain of salt from what that guy is spitting only do about 40% of everything he says 🙄

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.

He is mathematically wrong on this one. Compare the interest rates lol

Passive income is the only way you can be part of 10% population and seprate yourself from the Average population. YASIN NABI~~~

Because she's a woman Dave never angers the wahmen. Bad for business.

Am I 1st 😳