Ramsey Everyday Millionaires – Episode Summary

Title: My Financial Advisor Told Us To Take Out A HELOC
Date: December 8, 2025
Hosts: Dave Ramsey, Rachel Cruze
Key Topic: Whether it's wise to use a HELOC (Home Equity Line of Credit) for a home addition upon retirement

Episode Overview

In this episode, Dave Ramsey and Rachel Cruze speak with Dan, a soon-to-be retiree from Grand Rapids. The main theme revolves around evaluating financial advice regarding debt in retirement, specifically whether to fund a home addition via savings or to take out a HELOC, as suggested by Dan's financial advisor. The discussion emphasizes personal values, peace of mind, and the importance of listening to one’s own instincts when making financial decisions.

Major Discussion Points & Insights

Celebrating Retirement | (00:19–01:49)

• Dave asks Dan about celebrating his wife’s retirement after 40 years of work.
  • Rachel encourages a small celebration, regardless of personal habits:

    “Champagne. Pop the bottle right outside the door.” – Rachel Cruze (01:39)

  • Lighthearted banter when Dan mentions neither he nor his wife drink.
  • The hosts stress the importance of acknowledging life milestones.

Dan’s Financial Dilemma: HELOC vs. Savings | (01:56–03:41)

• Dan’s plan: Pay for a $100-120K home addition in cash, using funds from a 401k and savings.
• Advisor’s recommendation: Take out a HELOC to:
  • “Pay a lower interest rate than he can make me” (02:04)
  • “It’ll definitely be a tax write-off” (02:10)
  • “It’ll save me 20 plus thousand dollars next year in taxes because of the tax bracket that he’s aligning us with.” (02:13)
• Dan's reluctance: “It’s very hard for me to think about going into debt immediately as I retire.” (02:31)

Hosts' Analysis & Advice | (03:41–07:50)

• Rachel strongly opposes the HELOC suggestion and highlights the advisor's failure to consider Dan’s values:

  • “Some financial advisors are so stupid. They don’t even think about your values and what you want out of life. And clearly living a debt free life has a price tag for you.” – Rachel Cruze (03:41)

• Both hosts endorse using cash to fund the addition:

  • Rachel: “Just cash flow it.” (04:00)

• Discussion of Dan's financial position:

  • Dan confirms comfort with his retirement nest egg (~$2 million in total) (05:34)
  • Hosts note that taking out $100K for the addition is a small percentage and will not significantly affect their long-term security.
  • Rachel: “If you go and burn that amount in the middle of the room, like, you’re not gonna have any emotion towards it because it’s such a small percentage of your net worth.” (05:35)

• Peace of Mind Over Tax Maneuvering

  • Dave: “His plan gives me a little bit of heartburn. Enough that the pepcid AC is not working. And you called us today. Right?” (06:03)
  • Rachel reemphasizes: “The peace of mind is worth that so much more.” (06:44)

Trusting Your Gut & Personal Values | (07:47–08:15)

• Rachel: “No, I would not go borrow on my house or do an addition when I freaking have the money for it.” (07:48)
• Dave underscores the value of gut feeling in decision-making:

  • “Trust your gut, Dan. There’s a whole bunch of science on this…that we feel it in our body. That’s a real thing. Has the same validity as the logic. Listen to your heart, listen to your body. You were right. Thanks for calling. Tell the financial advisor thanks. No thanks.” (07:50)

Notable Quotes & Memorable Moments

• Dan, expressing his unease about new debt in retirement:

  “Dang it, you know, just got myself 40 years of work to get out of debt and retire. And then just thinking about going back to that just kind of scares me.” (02:31)

• Rachel, critiquing the advisor’s approach:

  “Some financial advisors are so stupid. They don’t even think about your values…” (03:41)

• Dave, emphasizing how little the HELOC ‘benefit’ truly is:

  “Your plan is simple. Boom, we’re done. We’re done.” (07:08)

• Rachel, reiterating the importance of values over technical strategies:

  “The peace of mind is worth that so much more.” (06:44)

• Dave, on the legitimacy of your instincts:

  “Trust your gut, Dan. There’s a whole bunch of science on this... Has the same validity as the logic.” (07:50)

Key Timestamps

• 00:19 – Dan introduces his situation and dilemma
• 01:04 – Lighthearted chat about celebrating retirement
• 01:56 – Dan details the advisor’s HELOC suggestion
• 03:41 – Rachel challenges the advisor’s advice and centers on Dan’s values
• 05:34 – Dan confirms nest egg is $2 million
• 06:03 – Dave highlights emotional discomfort with the HELOC plan
• 07:47 – Final advice: Cash flow the addition, trust your values

Summary Table

| Time | Speaker | Key Insight / Quote | |---------|--------------------|----------------------------------------------------------------------------------------------------------| | 01:56 | Dan | “It’s very hard for me to think about going into debt immediately as I retire.” | | 03:41 | Rachel Cruze | “Some financial advisors are so stupid. They don’t even think about your values...” | | 05:34 | Rachel Cruze | “You guys have $2 million. … it’s such a small percentage of your net worth.” | | 06:03 | Dave Ramsey | “His plan gives me a little bit of heartburn. Enough that the pepcid AC is not working. And you called us today.” | | 07:50 | Dave Ramsey | “Trust your gut, Dan...” |

Conclusion

The hosts firmly advise against taking on new debt (HELOC) in retirement—especially when sufficient savings are available. They champion the intangible value of financial peace and being debt-free, affirming that personal comfort and core values should always outweigh schemes promising marginal financial or tax advantages. Dan is validated in his instincts and encouraged to move forward with his original cash-flow plan, celebrating both his financial discipline and his wife’s retirement with confidence.