Davis Motor Sales banner ad
davesays300 green2KENTUCKY (7/7/13) – This week Dave discusses "Her blessing was to be a blessing" and "Thinking long term"

Dear Dave,
My mom died a few years ago, and she left me an inheritance of $60,000 in stock. She was always investing and saving money. I could sell this and be debt-free while still having plenty left over, but I feel like I’ll lose a part of her if I do this. Do you have any advice? - David

Dear David,
I didn’t know your mom, but from what you’ve told me, it sounds like she was a pretty smart and responsible lady. I don’t visualize her as the kind of person who would’ve said, “I’m going to leave you this stock. Always keep it and never cash it out, no matter what happens.”

A gift like this is someone wanting to bless another person with some of the good they accomplished in this world. It’s your mom’s way of giving you an opportunity to have a better life. In my mind, the best way for you to have a better life is to use the money to become debt-free then use the cash that used to go toward debt payment to invest.
I know you loved your mom, but I think you’ve given this stock more power than she gave it. You’ve gotten her blessing, and that was to be a blessing to you. You know, you can be a blessing to others in lots of different ways. She just accomplished it with the stock.

Honor your mom and go be debt-free today. The time is now! - Dave
 
Dear Dave,
My husband and I are in our 60s, and we don’t have long-term care insurance. It would cost us $8,000 a year at this point, and our annual income is $200,000. Do you think we should get this type of coverage? - Toni

Dear Toni,
I’m a strong proponent of long-term care insurance once a person turns 60. Prior to that age you have less than a one percent chance of spending time in a nursing home, so I wouldn’t spend a dime on it until then.

A lot of agents and companies try to sell long-term care insurance to people who are 40 or 50 years old, and I just don’t believe in that stuff. But once you hit age 60, your chances of using it increase almost daily. At that point, it’s a smart buy, and you’ll get a great return on the investment. Eight thousand dollars annually is a lot of money, but nursing home costs can run $50,000 a year.

My advice, Toni, is to buy long-term care insurance. I believe in having this type of coverage, even if you can afford to pay for care out of pocket. It takes a lot of stress and worry out of growing older. Most ladies outlive their husbands, and a frequent scenario is that the man goes into the nursing home and drains the nest egg to pay for everything. Of course, this can happen the other way around, but I’m sure neither of you wants to leave the other in a bad situation. - Dave

* Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.


Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

In Other News...

Endowment Partners with Cheri for Free Screenings of Unique Film

MURRAY, Ky. (3/1/15) — On Thursday, March 26, audiences in Murray can attend free screenings of “Alive Inside” at Cheri… Read More

Carhartt Relay Team Aims to Capture Memories, Raise Funds

HOPKINS COUNTY, Ky. (3/1/15) — Carhartt employees have devised a way for someone to capture family memories while… Read More

Most Read This Week

February 25, 2015 7166

Multi-Agency Investigation Nets Large-Scale Meth…

in Top News For All Sites by Trooper Stu Recke
February 24, 2015 7029

Two Charged in Central City Meth Bust

in Local (Muhlenberg) Top News by Trooper Stu Recke
February 22, 2015 6902

Easter Cuties Pageant in Memory of Shanice Bean

in Top News For All Sites Touching Hopkins by Tammy Holloway, SurfKY News
February 25, 2015 6071

New Asian Restaurant Coming to Madisonville

in Local (Hopkins) Top News by Gary Gates, SurfKY News
February 23, 2015 4684

Fire Departments Respond to Wester's Body Shop

in Local (Muhlenberg) Top News by Shawn Freels
February 24, 2015 4393

School Board Holding Special Called Meeting

in Muhlenberg News by Sherri Miller

Most Read This Month

February 12, 2015

UPDATE: Name of Pennyrile Fatality Officially…

in Top News For All Sites Touching Hopkins by Doreen Dennis, SurfKY News
February 09, 2015

Police Pursue Man after Fight at Taco Bell

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center

Stories Trending Today

March 01, 2015 1465

HCCHS Student Has Unique Eye for Art

in Local (Hopkins) Top News by Amber Averitt, SurfKY News
March 01, 2015 953

4H Penguin Plunge Draws Hundreds to Poolside

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News
March 01, 2015 844

West Broadway Vendor Event, Tag Sale Planned

in Local (Hopkins) Top News by Tammy Holloway, SurfKY News
March 01, 2015 766

Dave Says - March 1, 2015

in General News For All Sites by Dave Ramsey
March 01, 2015 699

Legislator's Log - Week of March 1, 2015

in General News For All Sites by Brent Yonts
March 01, 2015 648

Whitfield Meets with American Financial Services…

in General News For All Sites by Robert Hankins
March 01, 2015 621

Outdoor Truths - March 1, 2015

in General News For All Sites by Gary Miller
March 01, 2015 596

Libraries’ Drawing Contest Begins March 2

in Local (Muhlenberg) Top News by Amie Waltrip
March 01, 2015 573

Kentucky Offers Tax Credit to Small Business…

in General News For All Sites by Joe Hall
March 01, 2015 486

Endowment Partners with Cheri for Free Screenings…

in Lakes News by Kyser Lough