eMailMax 03/25/17 : Page 2

Page 2 March 25, 2017 www.MailMaxOnline.com MailMax for Michigan’s Great Southwest Dave Says money and not work outside of school, then she might have a difficult decision ahead. However, if he realizes how damaging addi-tional debt could be to their relationship, and he’s willing to work while continuing his education, I Dear Dave, think their future together looks much brighter. One of my rela--Dave tives just graduated from college with $20,000 in student loan debt. Her boyfriend graduated, too, and he has over $100,000 in student loan debt. They want to get Dear Dave, married, so she’s looking for a job. He wants to My husband and I heard about your plan, but go to graduate school, and take out more loans to we’re not sure what to do next. We have between remain a full-time student. The idea of even more $400,000 and $500,000 in a 401(k) for retire-debt hanging over their heads really bothers her. ment, but we don’t have any other savings. We’re Do you have any advice? both in our forties, and the only debt we have is Denise our house, so what should we do about Baby Dear Denise, Steps 4 and 6? You don’t throw away a great, potentially Mary lifelong, relationship just because of debt. Things Dear Mary, like laziness, dishonesty, and irresponsible behav-Overall, you two have done a great job with ior are deal breakers, though. Those are flaws that your money. Let’s go over the Baby Steps you usually don’t go away. mentioned. Baby Step 4 is putting 15 percent of I’m glad she’s looking for a job, but her your income into Roth IRAs and pre-tax retire-boyfriend needs to be working, too. There’s no ment plans. Baby Step 6 is paying off your home excuse for either of them being full-time students early. with more than $120,000 in combined student The thing that worries me is you’ve com-loan debt hanging over their heads. Lots of peo-pletely skipped Baby Step 3, which is having ple hold down real jobs, save money, and further three to six months of expenses in an emergency their educations on a part-time basis. fund. This is money set aside strictly for emer-If she were my niece, I would encourage her gencies. The problem right now is if you have a to have an open and honest discussion with her real emergency, you may have to cash out your boyfriend about their future, and how he plans on 401(k). If you do that, you’re going to be penal-paying for graduate school. She also needs to be ized 10 percent, plus your tax rate. That’s a real very real about her feelings in this situation. If, kick in the teeth just because you didn’t do things after that, he still wants to just borrow more in the right order. My advice is to temporarily stop your 401(k) contributions until you get a fully funded emergency fund in place. By temporarily, I mean six to eight months at most. That way, you’ll be covered when life happens without having make a big dent in your retirement savings! -Dave Financing Available! * Dave Ramsey is CEO of Ramsey Solutions. He Professional has authored seven best-selling books, including Furnace Tune-Up The Total Money Makeover . The Dave Ramsey Show is heard by more than 12 million listeners For Semco or MI Gas Customers each week on 575 radio stations and multiple Exp. 4-30-17 digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey. It doesn’t have to be a deal breaker You skipped one! Corn Chip Photo by Bailey Gruss Please email your favorite photo with a brief description to Photos@MailMaxOnline.com Photos must be horizontal orientation to be considered for Photo of the Week. Run To Your Mother 5k SAT APRIL 22 2017 $45.00 Run Only, Walk Only or Run/Walk We invite you to participate in the 2nd Annual Run To Your Mother 5K , VSRQVRUHGE\$IÀQLW\6DORQDQG6SDLQKRQRURI(DUWK'D\  7KHEHQHÀWVRIWKLVHYHQWZLOOEHXVHGWRVXSSRUW7KH$OOLDQFH)RUWKH *UHDW/DNHV&#0f;ZKRVHPLVVLRQLVWRFRQVHUYHDQGUHVWRUHWKHZRUOG·VODUJHVW IUHVKZDWHUUHVRXUFHXVLQJSROLF\&#0f;HGXFDWLRQDQGORFDOHIIRUWV&#0f;HQVXULQJD KHDOWK\*UHDW/DNHVDQGFOHDQZDWHUIRUJHQHUDWLRQVRISHRSOHDQGZLOGOLIH  %HJLQQLQJDW&#1b;&#1d;DPRQ8SWRQ'ULYHLQIURQWRI$IÀQLW\6DORQDQG6SD&#0f; WKH..LGV·5DFHZLOONLFNRIIWKHHYHQW7KH.5XQDQG:DONZLOOIROORZDW &#1c;&#1d;

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Dave Says

Dave Ramsey

It doesn’t have to be a deal breaker

Dear Dave,

One of my relatives just graduated from college with $20,000 in student loan debt. Her boyfriend graduated, too, and he has over $100,000 in student loan debt. They want to get married, so she’s looking for a job. He wants to go to graduate school, and take out more loans to remain a full-time student. The idea of even more debt hanging over their heads really bothers her. Do you have any advice?

Denise

Dear Denise,

You don’t throw away a great, potentially lifelong, relationship just because of debt. Things like laziness, dishonesty, and irresponsible behavior are deal breakers, though. Those are flaws that usually don’t go away.

I’m glad she’s looking for a job, but her boyfriend needs to be working, too. There’s no excuse for either of them being full-time students with more than $120,000 in combined student loan debt hanging over their heads. Lots of people hold down real jobs, save money, and further their educations on a part-time basis.

If she were my niece, I would encourage her to have an open and honest discussion with her boyfriend about their future, and how he plans on paying for graduate school. She also needs to be very real about her feelings in this situation. If, after that, he still wants to just borrow more money and not work outside of school, then she might have a difficult decision ahead.

However, if he realizes how damaging additional debt could be to their relationship, and he’s willing to work while continuing his education, I think their future together looks much brighter.

-Dave

You skipped one!

Dear Dave,

My husband and I heard about your plan, but we’re not sure what to do next. We have between $400,000 and $500,000 in a 401(k) for retirement, but we don’t have any other savings. We’re both in our forties, and the only debt we have is our house, so what should we do about Baby Steps 4 and 6?

Mary

Dear Mary,

Overall, you two have done a great job with your money. Let’s go over the Baby Steps you mentioned. Baby Step 4 is putting 15 percent of your income into Roth IRAs and pre-tax retirement plans. Baby Step 6 is paying off your home early.

The thing that worries me is you’ve completely skipped Baby Step 3, which is having three to six months of expenses in an emergency fund. This is money set aside strictly for emergencies. The problem right now is if you have a real emergency, you may have to cash out your 401(k). If you do that, you’re going to be penalized 10 percent, plus your tax rate. That’s a real kick in the teeth just because you didn’t do things in the right order.

My advice is to temporarily stop your 401(k) contributions until you get a fully funded emergency fund in place. By temporarily, I mean six to eight months at most. That way, you’ll be covered when life happens without having make a big dent in your retirement savings!

-Dave


Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 12 million listeners each week on 575 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

Read the full article at http://digital.zoompubs.com/article/Dave+Says/2743531/394350/article.html.

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