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Dave Ramsey tells $40M Ohio couple to avoid HELOC on lake house
Ramsey said the couple has about $4 million set aside for retirement, with the rest of their net worth largely locked up in a business.
A couple in Columbus, Ohio, discussed on The Ramsey Show their plan to use a HELOC on a vacation lake house to supplement income, after consulting their financial advisor, and host Dave Ramsey pushed back hard, saying a home equity line of credit should be off the table when net worth reaches $40 million.
Yahoo Finance, summarizing the call, reported that about $30 million of the couple's net worth is tied up in a business the husband co-owns, with restrictive terms including limited control over redemptions, leaving the couple unable to freely access that capital.
Ramsey said that even with the remaining roughly $10 million, the couple still faced cash-flow pressure: Ashley described $4 million earmarked for retirement, while her husband’s estimated $400,000 in annual income was not enough to cover the couple’s lifestyle, which included maintaining two homes and other high-cost expenses.
The segment also referenced ongoing alimony payments to an ex-wife, according to Ashley’s comments in the discussion recapped by Yahoo Finance.