Dave Ramsey, Smartvestor, Chris Hogan discussed on Dave Ramsey

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They'll drop down a list of the Smartvestor pros in your area. They'll be happy to sit down with him. And you and explain how mutual fund works. What it is help him to choose one. But he needs to learn about it as a part of the process. The only reason to do that is for him to learn. Okay. What's happened though, is he seen some of the compound interest examples of how when you invest early how it turns into a lot of money, and you've probably seen those I've certainly seen them. And they're really motivating it makes you want to do it. And he wants to be that guy someday. And so he wants to get started now. And that's why he wants to do this. He wants to put a little money, and that's fine. But let's also discuss something else. Okay. What's what's more important than him actually doing? The invest is what he learns from it that he learns to be an investor not that he and he learns how to do it and all that kind of stuff, and there's no longer intimidated by because it feels like first day in class in school or something. You know, when you go meet with one of these guys the first time so that part of it is something really cool that that is good. The fifteen hundred dollars is not going to change his life. It'll turn into some money over time. And that's just fine. But the what will change his life learning about and getting comfortable with and being sold on being an investor now were heat a call me. I would I ask him how he was going to pay for his car before he did this and how he was going to pay for college before he did this. Okay. His mother. And now, we're starting to your program. But I fear is going we're we're saving money for his college. Okay. So those things are taken care of. So he doesn't need to participate in either one of those two then. Well, okay. Good. Good sound like a hardworking young guys got a good head on his shoulders. He's thinking, and I think it's an opportunity the investing. You're already doing you may already have a person, that's helping you a Smartvestor pro or someone else's helping you with your investments. Just sit down with them. And they need to have that heart of a teacher, and they're not making any money on a fifteen hundred dollar investment. I mean, the commission they make on that won't pay the postage to mail the thing in so, but but what they will do is if they're one of ours. They'll take the opportunity because they enjoy teaching young people. Enjoy teaching anyone for that matter and wanna calls them to go ahead and be ahead and win. And so that's a good. It's a good opportunity. And I think it's something you ought to do. Gayle is in Raleigh, North Carolina. Hi gail. Welcome to the Dave Ramsey show. Thanks so much for taking my call. Sure. What's up? So my ex-husband recently passed away and left her life insurance policy until my daughter, but she is thirteen so she cannot accept it. So I have guardianship which means I have to prove to the court every year that that money is still there and that like, none of it has gone. You don't typically recommend like. I wonder if that might be the best option for me. No, it wouldn't be. I would invested in good mutual funds for her good. You don't have an annuity. If you wanna use a variable annuity, you can't how much money's involved. Okay. If you wanna use a variable annuity, she's thirteen. Okay. 'cause she's going to need that money for college. I assume right, right. But I have five years, and I have to prove every year on an annual basis that all about money is still there. Yeah. Get a minimum. That's not a problem. And if you invested in good mutual funds that. That have a good long track record. And you've got a good diversification. It'll go up, and it might go back down it'll go back up. But as long as the two fifty is still there that originally started you're not gonna have any issue. So you can you can meet with one of the Smartvestor pros. Like, I was just telling the gentlemen before sit down with them. And you could look at a variable annuity, the only difference is that gives a guarantee, and you can show the court that you have a guarantee on the principal, but you're paying extra fees for that. And you can get you can get to the same mutual funds or a lot of the same funds inside of a variable annuity. So the returns would be good. But you've got that guaranteed a wave at the judge if you need to if the market happened to slip down and so. You know, you can. I would not do a fixed annuity under any circumstances. Ever horrible horrible product. The downside of even the variable annuity is if you using any of the money for anything for her good, and you have the right to do that. Even if the money is. I mean, if there's something comes up, and you use the money reasonably for her, and you can document that that is a time you can reduce the principal in this. And the show the judge where the money went. But you can't show that you took her on a world clerk cruise with you that won't work. But I'm talking about if she had a medical condition or something like that. Then you took care of her with that money. That's what it's for. But you probably ninety nine percent chance. That's not going to happen. If you use the variable annuity, it has a seven year most of them have a seven year surrender charge. If you touch it inside a seven years, you're going to get hammered with all kinds of fees, the surrender charges are horrendous. And so that's another reason I'm not a big fan of those. They're okay. But you're leaving this alone to- college. Now when she gets out, you know, when she's. What we're talking about? She's thirteen so seven years puts her at twenty. I I'm not putting it all in a variable annuity if you're gonna use them over for college. She's going to be in college before you can get it out. Or you've got to get into a variable annuity that does not have the long surrender charges like that. Not all of them. Do you can probably find one so answer the question. What the easy answer the proper answer is sit down with Smartvestor pro talk through your options. One of those things is there. But not a fixed annuity may be a variable annuity, and maybe a variable annuity for a portion of it. But certainly a good mix of good mutual funds with long track record over that many years is going to be fine. You're going to be safe. I wouldn't I would've sweat it. And you're not going to Vegas and rolling dice here. I mean, it's just if you took two or fifty thousand dollars and bought a house how many times would that house? Go down in the next seven years. One time out of one hundred you know, it's just not going to show. Unless you bought a ridiculous house. You know, the worst deal in the real estate history. Right. But most of the time houses go up in value over the next seven years. So you'd be be the same kind of thing is that that's what I'm looking at and. The obligation to make this money. Make more than one percent. So do a better job than that. By meeting with a Smartvestor pro coming up at the bottom of the hour as I said Chris HOGAN, Ramsey personality, millionaire expert is going to be here. If you have questions about how to be a millionaire what our study found Chris can answer them for you. He is the millionaire expert, and and if some fun stuff that we found in this study, so you may want to stay tuned, and we'll talk some about that. And we'll take your calls as well here on the Dave Ramsey show the phone number if you wanna get in his triple eight eight to.

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