The theme this week on the Retirement Quick Tips Podcast is: Answering Dave Ramsey’s Most Popular Questions

Today, I’m talking about one of the most frequent questions I get asked and a question that Dave Ramsey addresses on his show with nearly 2 million views. It’s no surprise that this one is popular as it’s a very common problem. 

A caller asks: “I have $65k in the bank and I don’t know what to do with it. Is there something better to invest it in rather than sitting in the bank with very little interest?”

Dave’s answer: A mission for every dollar (depends on where you are in the baby steps) - pay off debt, have emergency savings…then invest 15% for retirement…save for kids college…pay off house early…

My answer: Pay off Debt vs. Investing it - it’s not always a clear cut answer. (why - because you might be paying off large debt for 10+ years and that’s a decade lost in saving for retirement) But with extra money in the bank, I would use it to pay off debt first. Then, set aside anything that’s earmarked for a specific upcoming purchase, especially in the next year (big family vacation, new roof, etc)...Then whatever is leftover, don’t let it sit there. It’s a big drag on your money over the long-term if it’s just sitting there, not doing anything for you. 

I really recommend watching this video, because in under 6 minutes, it walks through the entire 7 step baby step process. This video is solid gold…I’ll link to it in the show notes if you want an introduction to Dave Ramsey or you need a refresher. 

Link to video: https://www.youtube.com/watch?v=6DoGbBQ1Eao 

That’s it for today. But before you go, you probably know someone who is close to retirement and could benefit from listening to this podcast. If so, please share this podcast with them and encourage them to check it out by adding it to their flash briefing in Alexa or subscribing wherever they listen to podcasts! 

Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast. 

----------

>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance