Should I Use 401k Money To Pay Off Debt And Buy A Home?
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- Äas pĆidĂĄn 7. 02. 2016
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I have a feeling she's going to buy a house anyways... oh boy!
Why does she even call? They want someone to convince them out of the decision they already made?
Lol. Yuup
no doubt.
Lol
She did!
I like how Dave kept repeating "you quit" while listening to a stream of excuses.
28k on cars???? How insecure are these people??????????
Yess
Everything she said made me feel violent! I can't believe I'm glad I grew up poor instead of, ughh, MIDDLE CLASS!!!
I wish Dave would do follow up calls and see where some of the callers are nowadays...
Heather Shayne lolđđ
Kelly is probably in Congress now running the country lol
LOL
@Big Bubba I bet she did.
Probably didnât listen and went ahead lol
"You quit...yeah you quit. You quit." Lol...that was hilarious.
Dave: "You quit.."
Kelly: "jsjdbdhejendb"
Dave : "You quit"
Kelly: "jdjdhevsuenebdh"
Dave: " Yea yea you quit"
Kelly: "shhsyzgwvwjj"
Dave: "Yea you quit"
Love Dave for his blunt way of thinking!
Lol so true
Yeah but what about rjnegsgsjeh?
I'm sorry but this was hilarious! đ
All my favorites things he said:
You quit!
You're broke!
I don't care!
Take a cold shower!
Beans and rice, rice and beans!
Adding to the Stupid sauce !
Test scores 3 blocks over!
He said STOP IT! STOP IT! Please!
Hahaha made my morning!
They gonna be living in the hood
âI donât care what the test scores are!â
âGet on som rice and beans and beans and riceâ
âHold on kelly will pick upâ
đ
Relentless and straightforward
Olga L my fav was BROKE BROKE BROKE!!
Bahahaha i have heard tbis so many times
Kelly, don't feel bad that Dave scolded you. It's because of him that I was able to get out of debt and retire at 55. I now live in Puerto Rico. Hey, Dav, by the way rice and beans and beans and Rice is the main dish here. Don't mess with our rice and beans.đHahaha
Rebecca Gutierrez what steps did you take? I'm 36 hoping to retire by 60. Thanks !
I'm sure Dave meant nothing racially derogatory with rice and beans comments.
Rebecca Gutierrez
Great dish for latinos
Daniel Bennett She is joking, and by the way I could get millions of dollars and I will still eat rice and beans and beans and rice lol.
I like rice and beans
It seemed as if she was just making excuses to convince her self.
+Larry Duran I was thinking the same thing. I only heard excuse after excuse after excuse. They make too much money to not be able to get out of that situation within 2-3 years.
+Larry Duran it is called mental gymnastics we all do it
+Larry Duran its bored and unhappy people buying "stuff" thinking it will make their life better.
the feeling you get when you buy something only last a little bit
we should remember the the sad feeling you get when you don't buy "stuff" wears off fast also it is better to spend money on experiences vice stuff
Larry Duran I don't get why they try to convince Dave. He is the expert if they are going to call him at least me honest and see the reality of their situation!
Wow. Iâm panicked and was seriously considering cashing out my 401k to pay off my credit cards. Iâm so glad I watched this before doing that.
Why not just borrow against it? No taxes.
I dig this guy, wish I had found this before I cashed out my retirement when I was laid off a few years back. I freaked out and cashed out 25k and only got like 15k back after taxes and penalties. This chick needs to move in to a single apartment close to her "high test score" school.
I love when dave snapped!
CodiTheJedi lol he had enough
...but muh test scores...
It made me jump when he snapped on her. She was rambling though. Alot of these people don't call Dave to get his advice, they call to confirm their own personal advice is right
Me too. She was pissing me off too lol
Blows my mind how social norms and yardsticks are more important to ppl than their own sanity and peace in life. Ppl act like the govt is going to throw you in jail if dont buy a house, get married, have kids etc etc by certain pre-determined ages or something. smh. Watching ppl in this country at times is like watching golem running wild.
agree
yes yes and yes to this comment.
Youâre right
Iâve been living the apartment life for years now and I can say I want a house at this point. Having that privacy and not dealing with neighbors makes it worth it for me.
Good for you for puttin' your foot down, Dave. You tried to say it calmly but she just couldn't hear you. I've been there and I've needed someone to yell at me! We all have those moments.
âYou got house fever, kiddo! GO TAKE A SHOWER!â - Uncle Dave
going on vacation while doing the debt snowball, SMH....
family is important though....
The woman is broke, if she hasnât completed all the baby steps AT LEAST, then sheâs got no business.
I know of friends that were looking at a great retirement, huge retirement, only to die before they could retire.
@@RocknRollDina lol
Was kind of dumb she even mentioned that. Had no relevance to the story, until Dave got a hold of it! Sometimes these calls are too unbelievable to be true...
She couldnât even finish her sentence âYour Broke!â âŒïž đ€Łđ€Łđ€Ł... i felt that
He was serious as a heart attack...
TaWanna Lewis he is serious about helping become rich and educate everyone to be financially smart
You ask the MASTER for advice, the MASTER gives you awesome advice and you still try to convince the MASTER how he is wrong; YET.........YOUR B.R.O.K.E.!!!! SERIOUSLY WOMAN!!!
meancarleen Ask God He,s the real Master.
Why do people call for his advice & then don't really wanna hear it?
Whatâs funny is here it is a year later and I bet you sheâs right back in the same situation but with zero dollars in her 401(k).
That was Kelly Jones folks, of the Joneses family.
Don't try to keep up with them.
I love how he rips you then offers help and encouragement at the end. Thatâs honorable
No hope for this girl. She is 100% an impulse consumer spender. I don't understand how anyone can look at that amount of debt/income ratio and consider raising the debt.
Just like Bernie Sanders. Damaged amygdala and no fear of our current national debt.
LibertyFirst, you are an idiot!
But our government does that.. lol
I love his no BS advice. Sometimes you need a swift kick in the toosh to get you to think. I love this man!
She needed him to be tough on her! Wake up woman! *slaps*
I like listening to these calls to realize just how far ahead I am than other people
I'm now apart of the Dave Ramsey . Talking to others about Dave they look like I'm not hearing that but when you look at the positive comments it makes you UNDERSTAND THE BIGGER. THANKFUL
Cashing out a 401k is never a good idea
I gotta hand it to Mr. Ramsey for finally saying to this derp lady what needed to be said, "I DON'T CARE!" Hahaha, it was perfect; I bet it was hard for him to say that, but it was perfect. Props to him for being tough enough to tell her she's wrong.
Dave, Wish I had your videos earlier in my life. You are so real. Thank you.
âStop adding to the stupid sauceâ đ
Yeah that was funny! Don't think I have heard that from him before!đ€Ł
Love that you are brutally honest.
I know how Kelly feels. In a rut and not able to see the big picture and long term consequences. I've made similar mistakes and it takes someone who care to snap you out of it. And it may seem harsh but imagine if she did all the stuff she was talking about. Good advice Dave. IDK if she did it or not but she was calling to find validation and all she found was reality. I know the feeling because I thought I knew what I was doing, but I really didn't.
I like Dave for his honesty.
"I'm not going to participate in your insanity" is a line we should use more often for our loved ones.
dave didn't even care to verify her credit card debt; he already knew she was gonna buy that house regardless.. it's beyond me why she thought dave would cosign buying a house with $28k in car debt and thousands in credit card debt.. she says the rent is going up and thinks that automatically means buy a house for the amount her landlord is charging; they didn't even think to just go find another spot for $1000
Dave, you're the best !
Listen to Dave Kelly, owning a house is expensive, you'll have to pay for your own water, gas,insurance, tax, repairs etc.
âBut your brokeâ -I tried this at Christmas dinner.. and boy I ruined Christmas đ đ€·đœââïžđ
I lost it when she mentioned the test scores đ I knew Dave was gonna tear that apart.
This video is soooo satisfying to hear
I thought you can borrow against your 401k to be paid off in 5 years (or longer for a house (residence)). Dave only addressed this as straight puling the money out with penalty. What about a loan from the 401k? y understanding is that when you do that, you pay interest, but it's paid TO YOUR account, not to a bank.
jsummer979 Dave is aware of that. On past episodes he has said that the reason he doesnât suggest that is if you were to lose the job that holds the 401k, then you are liable for the outstanding balance.
If you get fired or quit, sometimes they require you to pay it back in full.
She was not getting it. I don't understand why ppl feel the need to buy a home when they are in so much debt. I had no debt when I bought my house many years ago. Also, no real savings. Didn't expect monthly expenses to be much higher than living in an apartment. And not to mention the unexpected problems. All those unexpected expenses made me wish I had waited longer. Hope she listened.
*****â you get it. Wish I did years ago. So glad I found Dave. I have learned so much in two years.
So she cashes out her 401k gets 15k, not fixing the problem at all. Guys, listen up, she is burning through 90k per year!! And has no clue. This plays out all over the USA. Stay single, stack cash, do not give it away.
Good one Dave.
awesome info.
When I was younger and used to work for the elderly, they loved watching Judge Judy bc of her sternness and matter of fact way of talking to people.
Twenty years later Dave Ramsey is getting my life together with his no nonsense talk. This is so refreshing. People have lossed their minds with this American debt scheme and itâs time people wake up and take that cold shower đđđ. Bravo to you Dave.
Why I love Dave Ramsey is cause he tells you the truth! People need to hear something is stupid! Everyone wants to hear it's okay when it's not.
"You quit......you quit.....you quit........you quit" I love that đ
The âstupid sauceâ LOL!!!
Stupid Sauce!!! I have sure used it several times...thank goodness the bottle is now EMPTY and will never be refilled.
Dave: YOUâRE BROKE, KAREN!
Karen: *hangs up, turns around and buys house she canât afford anyway...& get more in DEBT*
OMG when he yelled âi donât care!â When she started talking about test scores đ€Ł poor gal but she had that coming lol.
What a lifesaver!! Thank you!
I reckon she hung up long before he was saying he'd transfer her to sign up for the peace university.
Dave Ramsey gives good advice!
Beans and rice. Yum.
Everybody needs Dave as an uncle
Thanks Dave for so passionately telling this young lady the way it really is! I think she might just 'get it'!
When borrowing from your 401k to buy a house ( if youâre a first time home buyer) you pay the taxes but no penalties and you can only borrow up to 10k
Itâs called a hardship withdrawal, you only get taxed as regular income .
I don't understand why people think it's better to rent a house than to buy a house, when nowadays, it costs just as much to rent as it does to buy. When you buy, you're at least putting some of that money towards principal with each payment.
If rent was cheaper (as it should be, and used to be), this would make sense since you're able to save up then buy in full, but when it's equally costly....?
OneShotZero
She. Is. Broke.
No cash. No saving account
Put down the Stupid Sauce.
She Got No
Green backs.
For help call
1 (800)Stupidsauce.
Never thought of the 40% interest example. I wanted to use my 401k to pay 25% of the new home. Awesome info...
You can always borrow against it(Iâm sure itâs a Dave Ramsey no-no though).
Dave is probably the best Iâve seen at slapping reality in people lol
tell her man, tell her, dam those test scores, it don't pay rent. need to find a cheaper rental place like 700 a month
4:40 is the best part
When you listen to people talk long enough it becomes easy to see their value systems and how some couples have different values as well as their mindset about wealth debt investment and money
Kelly , if you're reading this, please call Dave back. I want to know if you listened to Dave and went through FPU or you got deeper in debt.
90k?
My house would be paid off.
Almost same here. We owe $97k on ours. Baby step 6. :)
We make about $100,000 combined and will have mortgage paid off at the end of this year. 7œ years.
Good Stuff Dave -- Like your style and practical thinking. There are so many radio shows, "investment seminars," real estate Gurus preaching anti-Ramsey, commons-sense ways to "leverage you money!" I recently sat in a one that started off by asking:: "how many of you follow Dave Ramsey; how many of you have a paid-off home mortgage?" In a room of about 200 attendees, I was one of about 10 that raised our hands, and was told that's the stupid stuff Dave got you guys to do; and so how much did that paid-off home earn for you?" You could have "leveraged" that $$$, bought 2 or 3 rental properties and earned passive-income 5 different ways!!! After that session some were actually looking at cashing in 401k's to invest in initiation fees, monthly fees and using the rest to buy homes or becoming passive investors in Apartments. Taking the hit and going all in in the hope of prospective riches. WOW!
It's tough to say that you were wrong, but when you are on a budget, sometimes you will mess up, but then you admit it and get back on your budget.
When she said she went on vacation, I knew it was over for her!
Rent around here everywhere is about double what a mortgage would cost or more. You can buy a $30,000 cheap house and rent it for $800 a month pretty reliably.
Dave says, "You quit" six times in a row. She heard zero while trying to justify what she believe she was entitled to.
Dave always give the best advice. I hope she took his advice.
ws279 xL7 she didn't
I agree what Dave with your respond
Her husband's job sounds crazy, he's in a commission based position and they didn't cash in when the money was good. They instead spent when they shoulda been preparing for the future. Now their unsafe income left them in a hole they dug themselves.
Ill never understand people who buy cars new, I'll gladly take hand-me-doens. I'll buy a car for $1500-500 and drive it for years!!! Without problems, insurance is my biggest expense for owning a car, and gas.
$14k each for hunks of deteriorating metal is crazy.
Iâm learning that this thing needs full commitment and it is a lifestyle change.
It's a wake-up call for me. I won't touch my 401k. I'll just pay my debt slow and surely. lol
If its for a home only there is no penalty I do not think.
Amen!! This guy is right /funny / I subscribed
It seems it does't matter how much money people make they still find a way to go into a hole some people who make 12000 a year some how find a way to make it while someone who is making over three figures can't. I think this country is lacking on how we educate children about money but I guess parents can't teach if they don't know themselves.
Consumerism. Nothing is ever enough.
Love people that go on vacation while they are in dire financial straits.
Kelly kept rambling rambling rambling as Dave said Youâre Broke! People donât listen
Just say no to buying a house!!
I was 27 got into CC debt and pulled a loan to get out...I do sometimes think of the missed profit But im still young with more in my retirement than most of the world...I am not complacent with where im at but can't complain of where im at now
I love how patient you were Until you are NOT. đ
This is good. I like the cold hard truth of life. Most people just bee bop along like dave always says đ
They need a plan. Moving can be good rent in the good district cheaply. But get those expenses lower. Fix them around his base salary so you have a lot of room.
I wish dave would respond to the comments which are sometimes more interesting than the videos themselves
I thought when I clicked this video it was going to be someone like me who wanted to make an investment. Not someone who is just being ridiculous. 95K for 2 ppl is not "good" . What is going here đ€ŠđŸââïž
401k will be taxed at an even higher rate when they are 60. Taxes will be increasing by more than 10% by the time they are 60 anyway.
(1) if you make $95k then you are taxed at 28% on the income. When you retired, your income is much lower, so what you pull out is taxed at a lower amount.
(2) As far as tax rates in a couple of decades or more, source? Since I don't have 20 years to wait to finish this comment, lets just pretend you said it 20 years ago:
1998-
Tax Bracket Tax Rate
$0.00+ 15%
$42,350.00+ 28%
$102,300.00+ 31%
$155,950.00+ 36%
$278,450.00+ 39.6%
2018-
$0.00+ 10%
$19,050.00+ 15%
$77,400.00+ 25%
$156,150.00+ 28%
$237,950.00+ 33%
$424,950.00+ 35%
$480,050.00+ 39.6%
I wish Dave would do live calls with people
Can someone explain why itâs not a good idea? you are going to get taxes anyways on 401k and Iâf you put it toward a house you can avoid the penalty? Then why is it not a good idea to put a lot down on a home. Maybe have it half paid off .
Dave kills me! But his advice gives me life đđŒ God Bless! Too funny!!
Dave said stupid sauce LOLOL
Itâs rare to find a good listener.
I just started working today and this is my first job ever. I am planning to go to school in fall 2019. The only way I could fully pay for my tuition is if I take of a 401k loan. I applied for many private loans and they deny me and my cosigner because our credit score is bad. My only hope is the 401k loan, but I have no money vested. I need $50,000 for my tuition do you think i am able to take off a 401K loan or hardship withdrawal with no vested amount.
I think it's funny that she's concerned about test scores for a school her kid doesn't attend yet and won't be taking anytime soon, but has no qualms about giving her kid a front row seat while mommy and daddy teach blowing money 101. Smh, so shamed that she's spreading spend/waste stupidity in my home state.
Many people today don't even have a bank account...the only money they have is whats in their pocket or purse.