Planning on dropping Health Insurance. Change my mind.

[BrokeFarmerJohn]

Fellas,

Ones who follow Dave Ramsey, I didn’t buy my house or do a lot of things per his instruction lol.

Been watching videos of his.

He says the house should be bought no more than 15 year mortgage and shouldn’t be more than 1/4 your income lol.

 

[4570Man]

I’ve watched about 3/4s of the Dave Ramsey videos. I think they’re more geared towards people with zero money management not people capable of making smart money decisions that don’t live paycheck to paycheck.

 

[Travelover]

Excellent for you but that has to be about the stupidest thing I ever heard of. I bet the mortgage industry was behind that initiative.

Oh wait... we have a tax structure that says you pay LESS income tax if you have MORE kids using social programs, schools, etc.

What is stupid is that if you own commercial real estate, you can deduct imaginary yearly depreciation even if the property actually appreciates, effectively paying no income tax. And if you claim that most of the value of the property is in the appliances and parking area, you can accelerate that depreciation schedule.

 

[goeduck]

What is stupid is that if you own commercial real estate, you can deduct imaginary yearly depreciation even if the property actually appreciates, effectively paying no income tax. And if you claim that most of the value of the property is in the appliances and parking area, you can accelerate that depreciation schedule.

You are right, that is stupid

 

[BrokeFarmerJohn]

I’ve watched about 3/4s of the Dave Ramsey videos. I think they’re more geared towards people with zero money management not people capable of making smart money decisions that don’t live paycheck to paycheck.

I put 5% down and did a 20 year because I couldn’t swing a 15 year mortgage. He suggests 20% down.

My house payment is almost 1/2 of what I bring home. He suggests no more than 1/4.

I bought a 24k tractor and he prob would say that was stupid! Lol

I bought a 3k JD 455 mower and he would say that was stupid!

I dumped money into the hobby farm for chickens and cattle and he would prob say that was stupid!

There is a whole lot I did that he would prob be happy with like hustling, making money on the cars, van, trucks, project mowers, seasonal equipment I bought out of season etc.

What he says about things going wrong in the house doesn’t apply to me with my trades experience, I will never see those huge repair bills he talks about like A/C going out or roof leaking.

He says to get a great realtor in your corner, I bought my house threw a private sale 8k under auditors valuation, didn’t go threw any realtors. I could sell my house for 40k more today than what it was going for when I bought it 4 years ago.
House across the road sold for 40k more than I paid for mine and my house is bigger, his neighbor paid over 100k more than I did then turned around and put a new roof on that house, I can go on. I wouldn’t have been able to afford my house today even if I did save up like he says.

I like his system, I will use it to blast away the debt I am in but I would be really interested to see what he would say about my situation and the strategy I came up with on my own. Previous to this I just ran numbers and didn’t listen to the advise of anyone like Dave, there is too many of them out there and I didn’t have enough knowledge to know which one would work better than the other guys system.

 

[MossRoad]

Excellent for you but that has to be about the stupidest thing I ever heard of. I bet the mortgage industry was behind that initiative.

Oh wait... we have a tax structure that says you pay LESS income tax if you have MORE kids using social programs, schools, etc.

Yeah, you think it sounds stupid, but you don't have all the facts and haven't taken the time to think about it.

What areas of a town are the most run-down? The ones with rentals. So encouraging people to own their own homes is a good thing. Lowering their property taxes while they have a mortgage is a good incentive.

 

[MossRoad]

Fellas,

Ones who follow Dave Ramsey, I didn稚 buy my house or do a lot of things per his instruction lol.

Been watching videos of his.

He says the house should be bought no more than 15 year mortgage and shouldn稚 be more than 1/4 your income lol.

That's not an accurate way to word that.

He recommend your mortgage PAYMENT shouldn't be more than 25% of your income, not your mortgage shouldn't be more than 1/4 your income.

 

[BrokeFarmerJohn]

That's not an accurate way to word that.

He recommend your mortgage PAYMENT shouldn't be more than 25% of your income, not your mortgage shouldn't be more than 1/4 your income.

Thanks for the correction, that’s what I meant but wording it the way I did could cause it to be interpreted differently.

 

[CobyRupert]

Good points.

A little bit of open-ness regarding fees would be nice too so you have an idea what to expect going in, maybe tests, procedures, add-ons that could be eliminated up front to keep costs low. Every other industry seems to be able to do this.

You're getting at the nature (conflict) of health care in a capitalistic system ("the market").

When it comes to letting "the market" control health care, it isn't like shopping for a pair of shoes. Normal "market forces" don't apply.

It's been long established that most contracts aren't valid when one party enters them under duress. (i.e. when your life is threatened, when you have no options...but to die, I guess...).

Needing health care is pretty close to the definition of duress.


So....

 

[Richard]

To the OP...

You might drop insurance, fine.

Have you ever bought a lottery ticket? I'll presume at least once?

Playing the odds, you are going to have a much better probability of needing and using health insurance verses winning the lottery. (when you win the lottery, THEN you can cancel your insurance)

Until then, it's not a matter of "if" you need it....but rather, when will you need it.

So, along those lines, I'll ask you this (and give the answer that most people never think of when I put it to them)

"When is the BEST time to buy car insurance?"

Well... the answer is "before you have your accident".

Tell me when you'll have your accident and I can tell you when to start buying auto insurance. Since you don't know that, it's prudent to have it from day one. (forgetting about any state laws or moral issues)