Robert
Appearances
Health Chatter
Pediatric ER Concerns
Yeah. I'd like to know, with the crisis that you're experiencing in the emergency room, how is that affecting the other patients?
Health Chatter
Pediatric ER Concerns
Can you hear me? Yes. Okay. I'm having a little technical difficulties at times. But as I'm sitting here thinking about this, what message do we want to have community to know about the issue? And what can the community be able to assert to help?
Health Chatter
Pediatric ER Concerns
in terms of trying to address the issue, because it is something that, you know, as Dan was saying, mind-blowing to me, to think about, you know, young people having to be boarded in the emergency room. And so what is it that we should be, what should we know? I mean, so that's, I want to just put it out there like that.
Health Chatter
Pediatric ER Concerns
and that's it's just that's it's wild all right clarence what do you what do you this is really sad and disturbing go ahead it's very very sad and disturbing but i want to i want to know what uh impact does the substance abuse issues have on the number of young people coming into the department as well because i think that um
Health Chatter
Pediatric ER Concerns
Is that, I mean, with the increase in substance abuse and those kinds of things, is that also a factor in you seeing more young people?
Health Chatter
Pediatric ER Concerns
What you're saying is that right now the hospital system or the system is not set up necessarily to deal with those young people with both of those issues, right? I mean, it's either you're in one silo or you're in the other silo. And you're saying that there's a need for a special silo, right?
Health Chatter
Pediatric ER Concerns
Let me do a follow-up question. Go ahead, Clarence. Let me do a follow-up question because you brought up something. You talked about the lack of practitioners. What kind of effect is this having on the practitioners who have to work in this environment?
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
Well, it's a million, don't forget, it's a million four plus the other 200 and what do they call paid-up additions? Okay. So it's 1.6 minus eight. Yeah, all right. Well, minus six, yeah. So it's a million. So look at the statements and the death benefit amount for each one of these things added together is just over a million. So why walk away from that payout for...
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
Hey, Dave, thanks for taking my call. Sure, what's up? So I'm calling to talk about your favorite financial instrument, the whole life insurance policies. I have a question about policies that my parents bought years and years ago, and hopefully you can help me figure out what to do with these things.
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
Um, so, uh, long story short, me and my family, me and my parents and my brother opened a small business about five or six years ago. When we did, we borrowed money against my parents, whole life insurance policies to help fund, uh, the real estate purchase and construction. It's a dog daycare boarding and doing facility that opened five years doing well, profitable, growing. It's in good shape.
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
Uh, the first two years we didn't make any payments on those loans. So the unit grew as a capitalized the interest. Then I started making monthly payments on those loans, uh, for money that we were making in the business once we became fairly profitable. Uh, so here's my question. Uh, these loans, they, there's six total loans, uh, excuse me, six total inch policies.
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
And my parents took out about $1.4 million in, uh, in face value insurance. plus the additional insurance they purchased over the years as they were, I think they made some overpayments in the past, things like that. I have borrowed about $600,000 against the policy. So here's my question. What's the remaining cash value?
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
The remaining, the net cash value is that today is about $200,000 and the death benefit as of today and all of them combined is about $1.06 million. Uh, my question is, do I bother paying these loans down? And if I do, do I use your snowball effect and go for the lowest balanced loans first? Or do I pay them off all evenly? Cause, Technically, they all have the same interest rate.
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
It's basically like one large basket, right? So am I even benefiting from the snowball considering there's no minimum payment on these things, right? I can pay them at any time, any way I want. I could make the payment. I could not let the interest capitalize. You know, you can manage them any way you like. So what do I do with them? Should I pay them? Should I not?
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
There's also an extra $200,000. They also, over the years, purchased an extra $200,000 of insurance by overpayments. Paid up additions. Yeah, paid up additions. So they actually have a million-dollar in-depth benefit. But you are right, though, by the way. My parents... So they have an interest in our small business. They have income through that. That's actually my second job.
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
I have another job where I'm a trader. I flip the syndicate market, you know, I trade IPOs. I borrowed money from my parents to seed that as well and gave them a percentage of what I make off of that. So basically, my parents have income through me. Do your parents have other wealth? Yes. How much? The business insurance. How much?
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
Uh, so I, I'm going to be honest and I don't have total transparency, but I'm going to say all in, they probably have assets that a million and a half dollars in addition to all this. Okay. Yeah. So yeah. And, and the income, even though they are retired, they have income from two businesses that I run that they have interest in.
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
I had a funny feeling you'd say that.
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
No, you're right. You're right. Well, let me ask you this, just because you definitely understand these instruments better than I do, right? So say I was to cancel these policies today. They're not yours.
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
Well, you're right. We'll put it this way. They basically, I've been managing their finances for them other than some just assets that they own that somebody else has helped them out with because they're both kind of, frankly, you know, they're a little older and both a little bit underprivileged.
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
So they basically ask me what to do with these things and do, you know, they, they take my advice and trust me and I, I don't want to put them in the wrong direction here, you know? Okay. Um, but, but say, say that I advise them, say you should close these things down today. Right. So they do that. They get out of it.
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
What the net cash value that's left at that $190,000 check for that one 90 and then they have the 600 that is owed to them from the start of our business. Correct. And, and that's it. That's it. Right.
The Ramsey Show
Delayed Gratification Is a Key Ingredient to Building Wealth
Yeah, exactly. Yeah. Okay. That all makes sense. The only counter I'd have to help convince me here, Dave, is... So there is... Say that they were to pass away soon, unfortunately, right? I mean, my parents, to be frank, they're, you know, they're elderly. There's... just over a million dollars of death benefit left over after accounting for the loans, right? No.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Well, we try to be really wise with our income, and I'm afraid we may have made ourselves artificially house poor. Tell me more.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Yeah, it tracks. So almost two years ago, we took out a construction loan and built our forever home out on the family property next to my folks. We didn't get the land. We didn't build our home in someone else's land. So that was smart, I think. Um, the issue we is we kind of painted ourselves in a corner when we did it because we did it in an adjustable rate mortgage.
The Ramsey Show
Your Future Self Deserves Better Choices Today
And now it's forcing us to in a situation where we're kind of having a snowball pay off the mortgage before the adjustment hits. So I'd appreciate your perspective on whether it'd be a better choice to continue power paying this mortgage or maybe loosen the belt a little, live our lives and plan to refinance before the adjustment happens.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Um, December of 33 is a 10-5 ARM at 5.375. Okay. And we built it in March of 2020. So it was like the worst time in modern history to both retire from the military and build a home.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Before 10 years is up is what I'm thinking because we're able to make the payment and stuff right now. So we built it for $675,000, but we only financed $549,000 because we tried to pay as much cash as we could for different parts. The builder worked with us really well. What's your household income? So my military retirement is $35,000 and then I have a VA disability of $45,000.
The Ramsey Show
Your Future Self Deserves Better Choices Today
That part's tax-free. And I do have a phenomenal job. I'm making $190,000.
The Ramsey Show
Your Future Self Deserves Better Choices Today
$3,100 is the mortgage. And we're taking home about $9,000 a month. Because I have some payroll deduction for the Roth 401k. I'm at 9%. The company matches 6%. And they also have an ESOP loan. of an additional 5% on top of that. And then we're real generous, so I got about 18% of my income going out of our take-home to tithes and just being generous.
The Ramsey Show
Your Future Self Deserves Better Choices Today
So you're saying, hey, we can pay this thing off before it adjusts. Right. I think it's a great goal to have. Because we snowballed our dead, I mean, I've got both of our vehicles. I think the youngest one is 16, and the lowest miles is like 230,000.
The Ramsey Show
Your Future Self Deserves Better Choices Today
We're still driving Junkers right now. I figure one of them is going to blow up here pretty soon. It will.
The Ramsey Show
Your Future Self Deserves Better Choices Today
See, I was – And should I still do the full 15%? Yes.
The Ramsey Show
Your Future Self Deserves Better Choices Today
You know, I used to, but it's because it's been a marriage of three. God has been in our relationship since we got married back when we were 19. Awesome. We just hit 28 years. Congratulations, dude.
The Ramsey Show
Your Future Self Deserves Better Choices Today
I was really good at picking up the pieces after I made a bunch of mistakes.