Listen: Tiaa Cref, Whitney, Dave Ramsey discussed on Clark Howard
"Call triple eight eight to five five two two five. Then some say the advice is worth what you pay for it. Ricky is with us in Fayetteville, Arkansas. Hey, Ricky, welcome to the Dave Ramsey show. Hey, dave. Are you doing better than I deserve? What's up? All right. So my wife, and I have been we went through FPU back in August. And we started with eighty thousand dollars worth of debt, we currently have fourteen thousand dollars left, and so we almost in baby step three and will soon be four five and six and so. Yes, sir. Man, you're killing it. Thank you. Thank you. Might work retirement plan. TIAA cref has a brokerage option. There's no CD you the brokerage window or transfer finds there of the current plan that I've been using don't have all the specific types of mutual funds you recommend. So I currently have about one hundred and seventy thousand in retirement. So my question is shoved me with a Smartvestor pro and use the brokerage went to invest my curve retirement and future contributions to the extent, you're gonna use your 4._0._1._K, you're gonna use TIAA cref, which is fine. And there's no problem with that. But for your overall, investing your kids, college funds, your Roth IRA's or any of the old 4._0._1._K's that you roll over from old jobs into new IRA's? And that way, you're controlling all of that and doing that investing. That's what you'd use your Smartvestor pro four, and they can look over your shoulder and give you some advice about the about your 4._0._1._K. But obviously, they're not implementing the 4._0._1._K that's managed by craft in your case. Okay. Okay. Stay in the current plan that I mean, and you that they have their well for their 4._0._1._K. If it's if you've got good mutual fund selections there, and if you don't you don't have a choice, you've got to either go to Roth IRA or your 4._0._1._K. These are your two options and does your wife work outside the home. She does. Okay. And so what does she make? Ninety five thousand what do you make? I mean, seventy thousand very good. Okay. Well between the two of you. We've got to take a hundred and sixty five thousand times fifteen percent. So we want a total going in a twenty five thousand dollars, basically. Okay. That's where you're going to end up. Now. How are we gonna get that twenty five thousand well, you can put it all at your place and all of her place and do some Roth IRA's, and that'll get you up over twenty five thousand probably so you're probably not gonna wanna put it all in any one of those places. Does she have 4._0._1._K option? Match. Yeah. They do does yours match. My my matches ten percent and her majesty five percent perfect. First thing we do take the match are either one of them Roth options. Yes. My retirement off his law office. Ron Harris does not excellent we'll put yours in a Roth and take it up to the match for sure put hers in an intake up to the match for. Sure. And then look and see how much are closed that gets you to twenty five thousand because that's what we're trying to get to to the extent. It doesn't do that. Then you can look at your Roth 4._0._1._K and say are my options. They're reasonably good. If they are you can just finish it out there, if not you can go do your Roth for Iraq IRA on your own and each of you can do six thousand dollars unless you're over fifty years old, and he knew seventy seven thousand dollars each, but that's still only going to be twelve thousand. That's still not gonna get us up to twenty five. Probably. So you may end up going back to that craft and doing some non matching their or if hers has got great options, you may wanna do some non Matt. Now, you want do your 4._0._1._K Roth? I so. Okay. So here's the here's the order of attack matches. I Roth is second. Traditional third. Okay. So we're gonna do both matches. And then we're going to either your cref Roth or Roth IRA's if those two things together. Don't get us to twenty five percent are to twenty five thousand dollars. Fifteen percent. Then we're gonna go finish up and hers because she's got traditional the only place you got traditional in hers. Does that make sense to you? Yes, sir. He does. Thank you very much. I appreciate them matches. I then Roth than traditional and you'd use craft only for the non matching portion only to the extent, it's got great mutual funds and cref has some good funds. Generally, speaking of 4._0._1._K, run by them is generally a pretty good for a one K. So you may find good funds in there, and you may not need to do as much in your. You know, your Roth IRA's your individual Roth IRA's, but you also have kids college and other stuff. So yeah. You'd be meeting with the Smartvestor pro and help you coordinate every bit of what we just talked about. And then that's what they do. So perfect question, man. Thanks for the call Whitney is in Salt Lake City. Hi, Whitney, welcome to the Dave Ramsey show. Hi, hey, what's up? So I have a question. So is going to be starting a doctorate program here at the in the fall, and we've got about ten thousand dollars saved out. So not very much. And so obviously, we're looking at doing some allowance. We have we have a baby. And so I don't really want to take all of our money and just school and live with no saving. But also I'm wondering if there's anything we can do with that money while we kind of have it in savings, but still be like making more money with it. You know? Like what you recommend putting it into some kind of account would you recommend just be mantra and just having their safety net. Yeah. Okay. Well, Whitney, you're new to our program. Obviously what we teach folks is to avoid debt period. Yeah. And what we teach folks is to work through a process of getting out of debt and building up your savings to you know, to put together a financial plan towards becoming wealthy. What is your what's your husband's studying for his PHD? Chiropractic. So it's like similar to medical school not quite as expensive. But we're looking at like two to three hundred thousand dollars. Okay. Well, I you're going to do what you're going to do. I can tell you that I have counseled in thirty years a lot of chiropractors that really wished that they were not two thousand dollars in debt because they don't make anywhere near what a medical doctor makes on average. And they take on and they take on about the same amount of debt when you're doing that. And so I don't think a chiropractor degrees worth two hundred thousand dollars in the marketplace. Because a lot of them make fifty or sixty thousand dollars a year for the first five years they're out outbuilding their practice, and that's not the case with an MD. And I can't tell you to go two hundred thousand dollars in debt to do that. As a matter of fact, I think that's stupid. So I wouldn't tell you to do that. I I would find another way to get at becoming a chiropractor. I'm not saying, no one should be a chiropractor. I'm saying it's not worth two hundred thousand dollars to be won.."