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| 'Dave Ramsey Advises Caller With $5 Million Net Worth To Put Money Into High-Yield Savings If Flipping Houses Isn't Bringing In 20% Profit |
| 2024-04-11 |
| [Bazinga] During an April 8 call on the "Dave Ramsey Show," Trisha from Jersey Shore, a divorced mother of two, asked how to generate a $200,000 annual income by leveraging her assets, including a fully paid-off home valued between $3.6 million and $4.1 million. With $760,000 in savings and a background in profitable house flipping, albeit challenged by recent economic conditions, Trisha inquired whether selling her home was the most advantageous path or if alternative strategies existed. Ramsey questioned the impact of adjusting to an annual income of $200,000, given her high-value assets and lifestyle. Trisha revealed her annual expenses range between $170,000 and $185,000, indicating careful consideration of her target income. Trisha suggested downsizing to a $1 million home and investing the rest of her money. Ramsey raised a concern about the potential disruption for her son, who might need to change school districts if they moved to a less expensive home. Trisha insisted it is possible to find a home in the district in that price range. When asked what she did for work, Trisha said she used to flip properties but the market hasn't been ideal for that. Ramsey suggested that selling the home and downsizing could generate significantly more than the desired $200,000 yearly income. Highlighting her success in flipping 17 properties without a loss, Ramsey probed the level of risk Trisha had encountered and discussed the financial prospects of continuing in the flipping business with a $2 million budget. Trisha estimated a profit range of $200,000 to $300,000 per flip, to which Ramsey emphasized the necessity of higher margins, cautioning that anything less than a consistent 20% profit margin may not justify the risks involved. |
| Posted by:Besoeker |
| #5 All the privately held wealth in the US would not fill the bottomless pit of the national debt and unfunded entitlements. If every last dime were expropriated the economy would implode faster than a supernova and there would still be debt and unfunded liabilities. |
| Posted by: M. Murcek 2024-04-11 09:14 |
| #4 /\ Wahhahahahaa.....snort, wahhahaha. |
| Posted by: Besoeker 2024-04-11 08:57 |
| #3 So, let me see, a so-called expert at flipping houses is asking for advice if she should sell her ca. $4 million house. O.k., got it, just making sure. |
| Posted by: DooDahMan 2024-04-11 08:55 |
| #2 Is start by getting out of New Jersey |
| Posted by: BrerRabbit 2024-04-11 08:46 |
| #1 Regardless of income or assets, 'downsizing' or smartsizing in today's housing market can produce handsome results. Lifestyle changes can also be of great benefit. Also consider home location. As mentioned, when considering "High-Yield savings" being mindful of the FDIC insurance limits is essential. Multiple institutional deposits should be considered, as well as kid's accounts and trusts. Anyone with those kinds of assets should seriously consider a Swiss vacation. As Ramsey recommends, APY's are the place to start. Certainly an interesting problem to have, ha. |
| Posted by: Besoeker 2024-04-11 08:26 |