The Ramsey Show Highlights

Episode Title: My Financial Advisor Told Me To Take Out A HELOC
Date: December 10, 2025
Host/Panel: Ramsey Network (Financial Coach 1 & Financial Coach 2), Caller: Dan

Episode Overview

In this concise yet thought-provoking episode, Dan, a soon-to-be retiree, seeks advice from Ramsey Network financial coaches about whether he should follow his financial advisor’s suggestion to fund a major home addition using a Home Equity Line of Credit (HELOC). Dan’s personal preference is to pay for the project in cash, relying on his substantial retirement savings. The discussion centers on values versus financial maneuvering, tax consequences, and, above all, peace of mind.

Key Discussion Points & Insights

1. Dan’s Dilemma: Funding a Home Addition

• Problem Statement [00:02 - 01:14]:
  • Dan is planning a $100,000–$120,000 home addition as he retires.
  • His advisor suggests using a HELOC, citing:
    • Lower interest rates than investment returns.
    • Tax advantages / write-offs.
    • Keeping Dan in a favorable tax bracket.
  • Dan is uncomfortable going into debt after decades of working to be debt-free.

2. Advisors Question the Value of Debt in Retirement

• Debt vs. Values [01:14 - 01:48]:
  • Financial Coach 1 expresses skepticism about advisors who overlook client values:

    “Some financial advisors are so stupid. They don't even think about your values and what you want out of life.” [01:48]

  • Coach underscores the importance of honoring Dan’s desire for a debt-free retirement.

3. Cash Flow Is King

• Support for Dan’s Plan [02:21 - 02:38]:
  • Dan confirms he has sufficient funds—$2 million in retirement accounts and a $40,000 savings account.
  • Coach 1: “If you have the ability to cash flow, right, Daniel?” [02:21]

4. Assessing the Emotional Impact

• Emotional and Psychological Factors [02:50 - 03:22]:
  • Coach 2 shifts focus from dollars to feelings:
    • “How do you feel emotionally about your plan? Any stress?” [02:50]
  • Dan admits he feels at peace with paying cash:

    “No, I don't think so... it's just some play money...that would do this project for us.” [03:00]

  • Family context: Seven kids, now frequent large gatherings—a genuine, meaningful reason for the addition.

5. The Math vs. The Emotional Cost

• Minimizing the Financial Impact [03:38 - 04:11]:
  • With $2 million in retirement, $100k is a small percentage:

    “If you go and burn that amount in the middle of the room, you're not gonna have any emotion towards it. Cause it's such a small percentage of your net worth. So that's where the peace of mind...overrides his snaking and maneuvering.” [03:43]

6. Coaches’ Final Verdict: Trust Your Gut

• Simplicity & Peace of Mind [04:52 - 05:58]:
  • Coach 1: “No, I would not go borrow on my house to do an addition when I freaking have the money for it. Yeah, that's. That's the bottom line.” [05:48]
  • Coach 2: “Trust your gut, Dan. There's a whole bunch of science on this...Listen to your heart, listen to your body. You were right.” [05:58]

Notable Quotes & Memorable Moments

• On Values:

  “Some financial advisors are so stupid. They don't even think about your values and what you want out of life.”
  — Financial Coach 1 [01:48]

• On Emotional Impact:

  “Yours is simple. Boom, we're done. We're done.”
  — Financial Coach 2 [05:16]

• On Debt-Free Living:

  “I would not go borrow on my house to do an addition when I freaking have the money for it.”
  — Financial Coach 1 [05:48]

• On Trusting Yourself:

  “Trust your gut, Dan...Listen to your heart, listen to your body. You were right.”
  — Financial Coach 2 [05:58]

Timestamps for Key Segments

• Dan’s Situation & Financial Advisor’s Suggestion: 00:02 – 01:14
• Coaches Address the Value Question & Borrowing Hesitation: 01:14 – 01:48
• Cash Flow vs. Debt, Assessing Emotional Comfort: 02:21 – 03:22
• Retirement Savings Context & Family Motivation: 03:22 – 03:38
• Math vs. Peace of Mind, Advisor’s Tactics: 03:38 – 04:11
• Simplifying the Decision, Trusting Instincts: 04:52 – 05:58

Tone & Closing Thoughts

The tone is candid, affirming, and straightforward, with the coaches emphasizing that personal peace of mind and values matter more than squeezing out marginal tax advantages. Dan is encouraged to trust his instincts, avoid new debt in retirement, and feel confident in spending what he’s worked a lifetime to earn, especially with ample savings and a meaningful reason for the expenditure.

Bottom line: If you can pay cash for something without stress, do it—especially if being debt-free is one of your key values.