My Friends Say I've Made a Big Financial Mistake

Añadido: 2026-05-17

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[00:00:06]My question basically in a nutshell is 2 weeks ago for my 62nd birthday, I paid my mortgage off 16 years early.

[00:00:15]>> Good for you.

[00:00:17]Well, all my friends, I mean all my friends are telling me I made the biggest mistake of my life and now I'm really terrified that they're correct given the current market situations and things. So, I my question was to try to get some guidance from you based on my current situation.

[00:00:34]>> new friends.

[00:00:35]>> [laughter] >> Well, let me give you just a quick contents. I'm 62, I'm single, I'm in the midst of an 8-year cancer battle and my doctor said I won't be able to return to work for the foreseeable future.

[00:00:50]So, based on that you know, my friends are telling me I took my liquid assets that I had to pay it off 16 years early and that was a big mistake cuz my interest rate was 3.5% and I could have been making more all the things you hear, but now I'm afraid maybe they were right.

[00:01:08]>> Do you still have a nest egg?

[00:01:11]So, what I basically um I have is I'm currently my income I have a disability benefit from my former employer that um separated me last June for disability of $7,070 a month and that will end by 3 years um the way the policy set up when I turn 65, but it could end previous. I get a $3,000 monthly SSDI um payment after the taxes and the Medicare are deducted.

[00:01:43]And then I've got um my assets my I have a $80,000 emergency fund in cash and I have 23,000 in cash for insurance premiums that are going to be changing in November. And then my investments, I've got 1,430,000 in a traditional IRA. You're okay. Your friends are morons. And I'll go I'll go a bit further. They're they're talking about a stratosphere that they've not yet entered.

[00:02:14]So how can they know?

[00:02:15]>> I only one who's actually done it.

[00:02:20]So don't you think you have a better frame of reference than they do? They've only had debt.

[00:02:28]Right. So I'm debt-free. I've got 280,000 >> multimillionaire. You're okay.

[00:02:35]Calm down.

[00:02:37]Okay, I'm just, you know, with the current situation, you know, >> is what?

[00:02:42]Are you If you're not in Iran and being bombed, I think you're okay.

[00:02:47]You are in Seattle, but Because I can't I can't go back to work cuz like I'm going to be in >> Honey, you have a $10,000 a month income and a million dollars. That's your current situation.

[00:02:59]Okay. Um >> You're okay.

[00:03:01]Okay. Well, I was worried that I'm really not okay.

[00:03:05]>> What do you think is going to happen?

[00:03:06]>> What what What how would you not be okay? What current situation are you referring to?

[00:03:11]Well, so for example, my my medical is going to change in November cuz my secondary is co- my premiums are going to go up really high.

[00:03:20]>> To what? You have a million dollars.

[00:03:23]But the million dollars really doesn't they tell me go very far.

[00:03:27]>> does. It goes a long way.

[00:03:30]Cuz it's making a hundred thousand Is it invested in good mutual funds? Hey, George here for Churchill Mortgage.

[00:03:36]Listen, with interest rates dropping, this might be your window to buy a home or refinance. Building equity through home ownership is still one of the best ways to create safety and security in your life. And you decide when the time is right. And my good friends at Churchill Mortgage will give you a custom plan and a special offer so you can buy or refinance the smart way. Go to churchhillmortgage.com/ramseyoffer.

[00:03:59]That's churchhillmortgage.com/ramseyoffer.

[00:04:02]This is a paid advertisement. NMLS ID 1591. NMLS consumeraccess.org. Equal Housing Lender. But the million dollars really doesn't they tell me go very far.

[00:04:11]>> It goes a long way.

[00:04:14]Cuz it's making a hundred thousand Is it invested in good mutual funds?

[00:04:17]Well, yeah. So, the traditional IRA is that and then I've got 218 218,000 in a Roth. I've got 170 >> Is all of that invested in good mutual funds? Yeah. Yes. So, >> Okay. So, it's all going to make around a hundred thousand dollars a year that you're not even touching.

[00:04:36]Right. So, I basically structured you know how you the the four buckets that you advise. They're in they're in the traditional and the Roth because I have [clears throat] to protect against Irma.

[00:04:49]So, any capital gains I make stays in the retirement. And then and then I've got 440,000 in municipal bonds and 342 and some core equities that's managed.

[00:05:03]So, um I but I'm trying not to touch any of that.

[00:05:07]>> You're not touching any of it. You have a ten thousand dollar a month income without touching it.

[00:05:10]>> And you're going to have that for the for sure for the foreseeable next three years.

[00:05:15]Well, the the long-term disability benefit the way my employer wrote the policy it could go away before three years, but the max I have left on it is three years.

[00:05:24]>> Yeah, and depending on whether you remain disabled or not. Yeah.

[00:05:27]>> Right.

[00:05:28]Even if even if it went away you'd still be okay.

[00:05:32]Okay. And you know what?

[00:05:33]>> make a mistake.

[00:05:35]I mean >> mistake you made was in choosing your friends.

[00:05:39]Okay. Cuz >> Or in listening to them. I have some friends that I actually like that are also not smart, but that's okay. Okay.

[00:05:45]They're all over me.

[00:05:47]I just looked up how long it would take to wire the money and have it clear so that I got my letter saying the write-off was closed on my birthday cuz for my present for myself I wanted a debt-free scream. Good.

[00:06:01]>> told my I told my friends and then they just I was in tears because they were like, "That's ridiculous." And that's >> think that's jealousy.

[00:06:09]I do.

[00:06:10]>> Well, or idiocy or both.

[00:06:12]>> Yeah, who in their right mind when somebody has done something incredible like that would not celebrate them? Even if it's not your personal choice that you wouldn't celebrate what somebody else views as a personal accomplishment and it's zero detriment to them.

[00:06:26]Okay, so but I still have like a 600 a month HOA so I have, you know, a lot of expenses but I guess >> uh your worries and your math don't add up.

[00:06:36]Okay. Okay.

[00:06:38]>> Your worries are a 10 and your math is a one. Or let's let's let's be as logical as humanly possible right now. Who do you think knows more about this situation? Dave Ramsey or your three little buddies at home?

[00:06:53]No, I I get it. I Okay. There you go. That's it.

[00:06:57]>> You need to breathe. You need to breathe. You're okay. You are in great >> [laughter] >> shape. You have done a wonderful job. I don't know what the house is worth. If it's worth a million and you're in Seattle it probably is and you got a million dollars. You're you're a multi-millionaire at 62. I want you to concentrate on fighting cancer.

[00:07:16]Not arguing about whether you should have paid off your house or not. I want you to go beat it. Go beat go beat the big C.

[00:07:22]>> Yes. And and live your life, kiddo.

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