Building Wealth Starts With Setting Aggressive Goals
The Ramsey Show
Deep Dive
Why is whole life insurance often considered a poor investment choice?
Whole life insurance has a low rate of return and high fees, making it unprofitable. It does not grow tax-free unless you lose money, and the cash value is often less than the premiums paid. Additionally, if the policyholder dies, the insurance company keeps the cash value, paying only the face amount.
Why might someone feel guilty after paying off a significant amount of debt?
Guilt can persist due to residual effects of financial stress, even after debt is paid off. The body may still react to familiar financial situations with anxiety. Additionally, feelings of guilt can arise from comparing one's financial situation to others who may be struggling more.
Why is it important to consider the downside of major financial decisions?
Considering the downside helps in making informed and prudent decisions. It prevents actions that could lead to devastation if things go wrong, ensuring better risk management and financial stability.
Why might a loan officer advise against a 20% down payment on a home?
A loan officer might advise against a 20% down payment if they have a conflict of interest, such as earning a higher commission on larger loan amounts. This advice is often not in the borrower's best interest but benefits the loan officer financially.
Why is it beneficial to set specific, measurable, and time-bound goals?
Specific, measurable, and time-bound goals create clarity and accountability. They allow individuals to track progress and make necessary adjustments, fostering a sense of accomplishment and confidence in their ability to achieve objectives.
Why is it not illegal for an insurance company to deny coverage based on a low credit score?
While low credit scores may correlate with higher claim rates, it is not illegal to deny coverage based on credit scores. Insurance companies use credit scores as one factor to assess risk, but it must be done in a manner that complies with state regulations and does not unfairly discriminate.
Why did the 401k plan of Ryan's father get liquidated without his consent?
The 401k plan was liquidated because the company had a policy to close such accounts if not rolled over within five years. This policy was likely not communicated effectively to Ryan, leading to an involuntary liquidation and significant tax implications.
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