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Lottery winner couple advised to prioritize a cash home purchase
Financial experts on The Ramsey Show said a paid-for house would reach the couple's $250,000 goal sooner than their five-year plan after taxes.
A couple, both 26, told The Ramsey Show that they found a $5 bill while on vacation, bought a lottery ticket, and won $400,000. The husband said their prize would net about $275,000 after federal and state taxes.
On the program, George Kamel and Dr. John Delony advised how to use the windfall. Delony said he would buy a house in cash, while Kamel added that they should keep the money 100% in cash in the meantime.
The couple reported they recently paid off roughly $80,000 in debt and are earning about $115,000 a year combined. They said their target is to buy a $250,000 home within five years.
Kamel argued that using the winnings for the house would accomplish what they planned to work toward over the longer term. He also said any money left after the purchase could be enjoyed, donated, and invested, while keeping the home as the priority, in line with Ramsey Solutions' 7 Baby Steps framework.