"Hi Dave, I have a question." "What's your household income?" "Woah, what's with all the invasive questions?"

maybe they were thinking they would never get through the line. I dont know

Or even on their minds in a real way

@@HunterShows lolol WHY ARE YOU ASKING ABOUT MY MONEY!!!!

LOL I know. I don’t even have to look at the numbers. I already know them. I know how much we owe on our home, what our household income is LOL

Wow. Good point

I hope so I love success stories

When he didn't hear an automatic no, i bet he pulled the trigger that same day.

🤣

100%

'Her' lake house

precisely what I was wondering... why didn't Dave ask him what he is spending his money on?

I think because the guy is in relatively good shape. None of the numbers were alarmingly "out of line". Just as he said if he builds the lake house now, he should be in fine shape. He could simply be in _better_ shape should he pay off the house and build up retirement first.

It's called THE WIFE

Donnis Bagby nope he just married the wrong woman lol. My parents have been married 30+ and my mom is the one who reminds my father to save constantly. She has never bought any name brand goods because she thinks there no reason to pay more for the same item lol. Some guys just need to look at the whole picture before marrying. What’s the point of marrying someone pretty when she will send you to the poorhouse with her spending.

maybe they own horses. lol! Don't ask me how I know this!

That just shows how much we really pay attention to our money

Well said!

The reason he didn't think to do that is the same reason he had to call into a financial advice show

He started making that money not too long ago.

@Darkfarfetch - About $500k. And I make half what he makes and am a decade younger.

@@colin1818 B.S

Wait, people buy a lakehouse and don't plan to buy a boat?

@@superblump87 Some don’t. Most do though! It’s the redecorating of the house that snuck up on me! 😬

Exactly!

raustadt exact same scenario.... Except enjoyed for 5 yrs. It's gone up in value no question not quite doubled yet

That’s what I’m saving up for

You paid with the cash you borrowed from the bank in the for of a mortgage since all the money you've made, was already spent the moment you decided to have your bank lend you money for a house so you've been paying interest for nothing😂

Yea I was thinking the same thing. Can rent it out with Airbnb while you're away. They're short term rents so you can come back whenever you want basically.

I wouldn't say that they are terrible with their finances at all. Certainly they could be _better_ off, but saying they are in _terrible_ shape is an exaggeration. $150,000 cash, $350,000 in retirement, -$220,000 mortgage. Most people would be envious of that position.

knpstrr ...I have 150K - 18K(school) ...I only make 55K.... that's why the guy's numbers sound crazy... albeit I have taken some business risk, so my numbers at 55K/yr may be abnormal also.

Buy fancy cars. Send your kids to private schools. Expensive vacations. That kind of money is easily spent.

The guy is 44 with 500k between cash and investments. Most people listening to dave would love to be in that situation. If he buys the lake house and just keeps doing what he has been doing with investing he will have 2 to 5 million at retirement. Calling that terrible is a little harsh.

Vehicle payments, vacations and eating out will burn up money fast.

👍

😂 pure savage

sounds great but by then the properties will have ballooned in price. You pay more taxes on them that way. I say buy the lake house after paying off the mortgage. People are reproducing like bunnies and not dying, so all these lake houses are going to become daily residences very soon.

I would suggest to wait until the caller reaches age 59 and half so he will not have to pay.

@@gladlock Sounds good, but the average birthing age is actually increasing and people are having less children. In 20-30 years when the baby boomers (largest generation) are moving to retirement homes/dying, more homes will be available.

Live on 50 and put 200k towards the house? People forget about paying taxes first. How much is left after taxes? 250k minus 100k in taxes or tax sheltered investments. 150k left maybe. Live on 50k assuming it's possible with their current outflow. Then maybe have 100k to put towards the house. Doubtfull.

Live off of 50 and he’s living now off of 250 you not dealing with reality.

Being married to a woman like that ages you

@@JustinFH marry a man then 🙄

DO it !

doubled in value

2.75% is a nearly if not entirely negative interest rate. Never pay off that house.

My thoughts too

amorphous face because they don't really know. They call in a financial advice show without Really knowing where their own finances are.

Agree. They don't know how much they have in their retirement accounts?!

And VRBO house owners are making the money....hahaha

According to self reflection.

Could be his wife doing most of the earning.

Yeah, he's making it up as he goes, too many pauses in his voice. He literally only has what he said initially.

You don’t have to sound smart to make a lot of $ you just have to be great at one thing.

Never heard of Cardi B huh?

dont judge someone based on their voice... maybe he is a smoker. having a raspy southern accent doesn't mean you're old or dumb.

Only 350k saved?

@@dancer1 300k saved is great actually most people don't even have 1k saved 😂😂🤷 believe it or not .

Dave Girr it is , but not everyone wants to manage vacation rentals . Air bnb requires time , outsourcing and most definitely upkeep & wear and tear on the property. It can be time consuming.

Samin Alam not true. AirBNB hires cleaners and the property is insured against damage. I have a vacation rental. I know. If you did not rent it out, YOU would have to personally do the upkeep. With Airbnb, THEY do the upkeep, and you get paid for it. I like Dave Ramsey, but he's just not with the times on this one.

Dave Girr lol what's not true?? That some folks don't want strangers in their houses and to manage a vacation property that's definitely a fact . I have multiple Air bnbs in multiple states , they do have insurance , but their have been plenty of horror stories where homes were complete destroyed , had squatters and they weren't paying out to the host's as they should have . Look them up they are on KZfaq & other sites . It's a risk /reward thing . Hosting occupies your time , that's not something everyone has the time or desire to do . You are right it can be income generating for the right type of person , but that's a generalization. I wouldn't use a AIR bnb affiliate to clean the houses , they are probably overpriced and u can negotiate a better rate with a sub .

@@davejgirr I've seen how well AirBnB does on the "upkeep" of their properties. At least in my area. They aren't worth the money.

A “potential” asset. It’s not an asset until it makes BEYOND what it costs to own. Until that time, it’s called a “liability”.

yes

poor people like them too, we just cant afford them.

Daryl A I am poor and my lake house is a tent on lake Huron in the state park campground.

Even Bernie Sanders has a Lake House! Lol!

@@franniefargo9454 HI Debra. You are the smart and rich one😊👍. Sometimes life brings surprises: job loss, medical bills, etc. Life's curveballs can push us into debt. Not you... you have that covered with the tent idea. I know of a family who is on the verge of having to sell a lakeside cabin (actually a great tiny modular home) because the father died and the members cannot handle the maintenance or costs any more. Extra insurance, taxes, utilities, etc. Debra- you have a smart way to get connected with nature! Good for you 👍.

Exactly some people would rather have a lake house they can go to after a week of work can just drop it all and head to the lake house with no hassle it’s a great feeling. Also something you can keep in your family for generations

Michael Dalton just being greedy, be happy with the home you own.

There are many kinds of assets

Really? Because where we are planning to buy they are renting them out for over $1000 a week when they aren't using them! And that's the low end!

Wish I had heard of Dave when I was 44

Considering his income he is behind. Based on the book, “the millionaire next door”, someone’s net worth should be their age x their income / 10. In this case he’s 44 making $250,000 divided by 10 would be $1.1 million. It’s just a guideline but he’s nowhere near that. From what we know, he has $350,000 in retirement + $150,000 cash - $220,000 mortgage, which would put him at $280,000 if he were to retire right now and pay off his house. That’s only a little over a year of his income. I know Net Worth and retirement savings are not the same concept but the idea is, they have not been the best at accumulating wealth given his income.

Big Bubba and a retirement nest egg doesn’t necessarily have to be made up of only Government sponsored 401ks and IRAs with contribution limits. You can use Real Estate as an investment that will appreciate considerably by the time he retires and serve as consistent income in the meantime and when he retires. Just food for thought.

Big Bubba you said that there are limits to how much someone can contribute to their retirement accounts. My response was that someone’s retirement plan doesn’t have to just include 401ks and IRAs (which have limits to how much you can contribute as you pointed out). Someone’s retirement plan can include, as I mentioned, investments in real estate (to which there is no yearly contribution limits) or collectibles etc.

abraham chapa - point taken, however you subtracted his mortgage from his net worth without adding the value of his property on which he has the mortgage as an asset. His number would likely be higher.

You mean the next few months

@Big Bubba not if you use the profits you make to pay off your mortgage faster. The whole house is a tax deductible until you pay it off and you get an asset that you can use for more loans and income.

@UCxodhvvU5KNa6TRPZvbUTXg What do you mean hope you get profits do your research before getting into rental properties and you will profit. Get the highest credit score you can, maximize your income, ask interest rates and quotas from different lenders and compare, estimate property value after repairs from other properties near by, compare rent from other landlords in the area, get home refinanced after repairs, save at least 20% down payment, try not to take out a loan for the repairs, learn how to do the repairs and DIY, estimate closing cost, compare how the other properties have been increasing in value

@Big Bubba you guys must be really dumb in not researching and knowing this

that's what I told my husband! And it's true! We know way too many people who have died young from cancer, freak heart conditions, etc. Or the people who "coulda, woulda, shouda".

@@ResQmomKim Agree!!

Gambling*

some people enjoy very lavish lifestyles because YOLO. They can easily spend all that if they buy new cars, electronics and throw parties all the time.

@@Simon-oy7kf Spell check strikes again. I spelled the incorrect word properly.

His wife wants to buy a lakehouse, but you think the problem is he has a gambling habit?

I think it’s more of a psychological reason. Since having a payed off house brings a sense of comfort and security that allows you to then fully-focus on saving for retirement. That’s why he recommended both paying off the house AND beefing up his retirement portfolio before investing in a lake house. In my opinion, it doesn’t make much financial sense to pay $220,000 in order to save $900 a month on the mortgage expense. Especially at 2.75% interest. That money can be invested elsewhere (in maybe an income producing lake house that’s listed on Airbnb whenever you’re not using it). As long as it brings in at least the $900 a month you’re already paying in mortgage, which is only a couple of nights rented on Airbnb, you’re coming out ahead. Then you can throw in all of that Airbnb rental money at the house to pay it off faster while getting your lake house at the same time. But I’m just a broke college student so I wouldn’t recommend my approach. Then again if you’re not willing to list your lake house on airbnb and it won’t produce an income then it doesn’t make sense to buy it while you still have a mortgage. I’m sure if he had mentioned an intention of producing income with the property Dave would have taken that into account.

Big Bubba Im sorry you’ve had a bad experience with renting out your properties. I would like to suggest that perhaps it’s not all as bad as it seems when you “look around”. If renting out a house was not a great investment then there wouldn’t be such a thing as residential real estate for rent. Of course some people’s homes get trashed, but there is insurance for that and legal recourse based on the terms of the contract. Not everyone is a terrible human being. Vetting your tenants would also go a long way in reducing the risk of your home being trashed.

It's because he believes more in make believe sky gods than he does in the reality of math. Claims he can make a 12% return every year investing in front load funds, but then tells someone to pay off a house at negative interest rates. His advice is useless to anyone who isn't completely broke.

@Big Bubba Yes, because emotions are so reliable.

@Big Bubba People lie, Dave Ramsey for example, math does not.

23 years!? rhis guy is retiring at 60 not 68

Go get a lake house. life’s short get life Insurance on your mortgage and make sure a lawyer checks out the insurance and go start making memories

Most people aren't happy about being in debt, especially in their mid 40s like this caller. Especially if he let's his debt follow him into retirement age.

Anna Witte They will have around 3-5k a month when they retire

As Dave said about time shares, there is always a hotel nearby.

If you can afford it, no problem. I am a hard core atheist, third generation. Dave has a lot of good ideas about finances. I will back him up on his financial wisdom.

@Mikey ...he has a lot of bad ideas also.

mikeyvester what does being an atheist have to do with finances and a lake house?

@@flanker0761 " I am a hard core atheist, third generation." Wow. No one cares. Atheists are prone to having an aneurysm if they do not declare their militant non faith every so often.

If they don’t rent it out you mean?

@@baphomet36 They can rent it out in retirement to subsidize their lifestyles and enjoy it until then. Still an income producing asset, especially when calculating the capital gains in there.