Pull $100,000 From My 401(k) To Open A Wedding Venue?

Summary

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Podcast Summary: The Ramsey Show Highlights

Episode: Pull $100,000 From My 401(k) To Open A Wedding Venue?
Host: Dave Ramsey (with co-host John)
Date: October 1, 2025

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Overview

This episode features a 30-year-old caller from Defiance, Missouri, seeking Dave Ramsey's advice: Should she pull $100,000 from her 401(k) to fund her dream of opening a wedding venue in the region's burgeoning wine country? The conversation explores her financial situation, the realities of launching a small business, and smarter, less risky ways to pursue her entrepreneurial dream—all delivered with the show's characteristic mix of tough love and humor.

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Key Discussion Points & Insights

1. The Caller’s Financial Snapshot

• Current Situation:
  • Age 30, works in supply chain for a defense contractor with a $105K salary, plus $10K/year from a bar job (01:00).
  • Recently bought a house with her boyfriend ($450K mortgage); owes $24K on her car; has $15K in student loans (01:26, 01:40).

2. Dave’s Immediate Response: Don’t Touch Your 401(k)

• Debt First:
  • Dave advises not to start any business until all personal debt is paid off (02:45).
  • “I would have you get out of debt before you try it.” — Dave Ramsey (02:45)
• No to Using Retirement Savings:
  • Strongly discourages cashing out or borrowing against the 401(k) due to taxes, penalties, and risk.
  • “We’re not going to tell you to cash out a 401k and take a 10% penalty plus your tax rate of 30%…not doing that either.” — Dave Ramsey (02:54)
• Business Shouldn’t Start in Debt:
  • Encourages funding new businesses from cash, not loans or retirement funds.

3. Understanding Small Business Risks

• Shocking Stat:
  • “80% of small businesses fail. And that number is actually true.” — Dave Ramsey (03:36)
• Failure Cause:
  • Cash flow problems—usually traced back to starting in debt or mishandling taxes.

4. Smart Alternatives & Strategy

• Leverage Existing Wineries:
  • Suggests partnering with local wineries in a joint venture (JV) since they already have property and clientele.
  • “Go over and talk to them about a joint venture and let them build it. They’ll put up the money, they suck at weddings, they’re good at wine. I’m excellent at weddings and wedding venues.” — Dave Ramsey (05:30)
• Proof of Concept in Low-Risk Ways:
  • Start with smaller commitments, like high-end tents, before constructing permanent buildings (06:56).
  • “Let’s prove…let’s get social proof for the concept…before we go build a $100,000 building or $200,000 building.” — Dave Ramsey (07:01)
• Don’t Quit Your Day Job Yet:
  • Run the venture as a side gig first; only transition full-time when income from the venue reliably matches/exceeds current salary.
  • “Pull the boat up close to the dock before you…People who make leaps get wet.” — Dave Ramsey (06:27)

5. Creative Deal Structures

• Option to Purchase:
  • Structure a JV so she can eventually buy out the partner and move the venture to a separate property (07:32).
• If Rejected, Try Others:
  • If one winery says no, approach another; it’s an opportunity for someone (08:43).

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Notable Quotes & Memorable Moments

• On Missouri Wine:
  • Co-host: “I’ve never heard the phrase that’s a great Missouri wine.” (02:07)
    Caller laughs and admits it's more about the region’s beauty than famous wines.
• On Bankers and Risk:
  • “If 73 people get married that day, the banker doesn’t care. The banker just doesn’t care. It’s a freaking banker. And they will foreclose on your little wedding chapel and turn it into a dog park.” — Dave Ramsey (04:21)
• On Minimizing Risk:
  • “I’m not a dream killer. What I am is a nightmare killer. I want to set you up to win at your dream.” — Dave Ramsey (03:37)
• On Innovation:
  • Co-host jokes: “Then get on Amazon and order an Elvis costume and pay some high school kid to stand there next to you.” (08:50)
  • Dave: “You just started another trend.” (09:18)

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Key Timestamps for Important Segments

• 00:06 Caller presents her question about using a 401(k) for the wedding venue.
• 01:13 Caller details her current debts.
• 02:45 – 03:45 Dave explains why pulling from a 401(k) and starting a business with debt is dangerous.
• 04:21 – 05:10 Discussion on what causes small business failures (cash flow issues and the harshness of bankers).
• 05:30 – 06:23 Dave outlines the joint venture strategy with wineries.
• 06:27 – 07:29 Advice about easing into entrepreneurship, minimizing risk, and using a rental tent as a test run.
• 07:32 – 07:45 Option to purchase and structuring deals for long-term ownership.
• 08:43 – 08:45 Advice if the first potential partner declines.

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Conclusion

Dave Ramsey steers the caller away from risking her retirement savings or taking on new debt to fuel her entrepreneurial ambitions. Instead, he advocates debt freedom, leveraging existing resources through partnerships, starting small, and testing the market before committing. His advice delivers tough truths peppered with humor, ensuring dreams don’t become financial nightmares.

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Transcript

[Dave Ramsey]

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[Caller]

I have about $100,000 in my 401k. I'm 30 years old and I've been wanting to open up a wedding venue out here in Defiance, Missouri, which is beautiful kind of wine country. I'm wondering if I should take from my 401k and put some type of equity, equity into this wedding venue dream that I have. But of course, I do have some lingering debts and just wanted to get your opinion on do I take for my 401k or kind of where do I even begin with this?

[Dave Ramsey]

So what do you do for a living now?

[Caller]

I am in supply chain for a defense contractor.

[Dave Ramsey]

So you're making 100k?

[Caller]

I have a second job. I work at a bar on the weekends, so I do serve. So I'm probably about 115.

[John]

Okay. All right.

[Dave Ramsey]

But your supply chain is 100k?

[Caller]

105.

[John]

105. Yeah. Okay. All right.

[Dave Ramsey]

And good for you.

[Caller]

Thank you.

[Dave Ramsey]

And the. How much debt did you say you have?

[Caller]

So we just bought a house. Me and my boyfriend bought a house last November for 450. We have the mortgage. We both have car payments.

[Dave Ramsey]

What do you owe on your car?

[Caller]

I owe 24,000 and I paid 31 to the bank, so I'm a little upset about the car.

[Dave Ramsey]

You owe 24,000. What other debt do you have?

[Caller]

I owe student loans. 15,000.

[John]

Okay. All right. All right.

[Dave Ramsey]

And. Well, a couple things come to mind immediately. One is if you're going to run a wedding chapel, you should act like you believe in your product and you should be married.

[Caller]

Correct. We, hey. We looked at rings. We have a ring picked out.

[Dave Ramsey]

Yeah. Okay. Just. Just.

[Guest/Co-host]

Well, okay.

[Dave Ramsey]

Before we get going, just kind of basic stuff I've never heard of.

[Guest/Co-host]

I've never heard the phrase that's a great Missouri wine. What kind of wine do they have in Missouri?

[Dave Ramsey]

In Defiance? Yeah.

[Caller]

You're not wrong. It's this. They have a bunch of wineries. It's. It's the big. Like everybody, but it's kind of.

[Dave Ramsey]

They're just kind of a little resort area there.

[Guest/Co-host]

Maybe it's up and coming.

[Caller]

It's beautiful.

[John]

Okay.

[Dave Ramsey]

It's a pretty area and an excuse to drink some wine. Yeah.

[Caller]

Ok. Or have a wedding.

[Dave Ramsey]

Or have a wedding. Or both. Yeah. Okay. So. But there's no existing venue that you're trying to purchase. You would build this?

[Caller]

I would build this. So I would have to buy the land. I would, of course, have, you know, everything it would be starting from scratch.

[Dave Ramsey]

Yeah.

[John]

Okay. All right.

[Dave Ramsey]

Well, number one, I would tell you, regardless of what. What business idea you propose, I would have you get out of debt before you try it.

[John]

Okay.

[Dave Ramsey]

And number two, we coach about 10,000 small businesses through our Entree leadership brand. I do an Entree Leaders podcast. It's one of the top podcasts in the small business space. And we teach them to not grow their business with debt, to grow it slowly. So not going to have you borrow on your 401k. And of course, you know, we're not going to tell you to cash out a 401k and take a 10% penalty plus your tax rate of 30%. Or, Dave, I'm going to borrow money at 40% interest to open a wedding venue. No, you're not. And so we're not doing that either. So that kind of takes off those things kind of. I start to be a dream killer. But I'm not a dream killer. What I am is a nightmare killer. I want to set you up to win at your dream, not to get to the end of your dream and be one of the 80% of small businesses that fail. And that number is actually true.

[Caller]

So scary.

[Dave Ramsey]

What causes the 80%? The number one cause of small business failure is called cash flow problems. Now, cash flow problems mean I'm short on money. Hello. And that usually means I'm in debt and I didn't pay my taxes properly and the IRS is chasing me down. So the taxes thing, you can work on with quarterly estimates and do your accounting properly. It's not the end of the world. And just not just. Just be sophisticated enough to run your business properly. The debt thing is you've got to. If nobody wants to get married, the banker doesn't care.

[Caller]

Right.

[Dave Ramsey]

If 73 people get married that day, the banker doesn't care. The banker just doesn't care. It's a freaking banker. And they will foreclose on your little wedding chapel and turn it into a dog park. I mean, in a heartbeat they'll do that. You know that's true. That's why you're laughing.

[Caller]

Oh, yes, yes, exactly.

[Dave Ramsey]

And so what I want to do is, if I'm going to run a business, and I do run one, and we have 14 profit centers, meaning 14 mini businesses inside of the Ramsey Solutions total PL. So I run 14 businesses of sorts. They're all interconnected, but I run all of those as the CEO of this place. And I've grown it from a card table in my living room. So what we Want to do anytime we're trying something new, which is what you're doing in an area where it's never yet been done. Ooh, risk. Which is what we're doing.

[Caller]

Wineries do offer weddings, but there is no wedding. True wedding venue. They're more just wineries.

[Dave Ramsey]

What's the biggest, nicest winery? Put that name in your head. Don't say it out loud.

[John]

Okay.

[Caller]

Okay.

[Dave Ramsey]

After John's comment, for sure.

[John]

Okay.

[Caller]

But yeah. Not a Missouri fan. Okay, go on.

[Guest/Co-host]

I love Missouri.

[Dave Ramsey]

We like Missouri. We just never associated it with Napa. And so the. So go over and talk to them about a joint venture and let them build it.

[Caller]

Wow. Okay. I didn't even think about that.

[Dave Ramsey]

They'll put up the money. They suck at wedding. They're good at wine. I'm excellent at weddings and wedding venues. You can increase your visit. You can increase your visits to the winery. We'll put it right here on property and we'll JV it. And you guys own the building, you own the property, and I run it for a percentage of profits for you. And let's lay out a model and let's start that puppy where you do it at nights and weekends and maybe some days off from your logistics. Don't quit yet. And let's get 50, $60,000 income, $80,000 of income coming into your pocket before you quit your job.

[Caller]

Okay.

[Dave Ramsey]

We always say pull the boat up close to the dock before you so you can step in rather than make the leap. People that make leaps get wet. So get your income from the wedding venue up and let's figure out a way to do this where you don't have to carry the burden of all the downside. And for that matter, these people could start the thing in a really nice high end tent.

[Caller]

Yeah, you're not wrong.

[Dave Ramsey]

You could.

[Caller]

Yeah.

[Dave Ramsey]

And then let's prove. Let's concept proof, right? Let's get social proof for the concept. And they got $25,000 or $50,000 in the tent before we go build a $100,000 building or $200,000 building and we prove out that we're both going to make bank on this. You're going to get a lot more customers to the winery. You're also going to make money on the weddings because I'm not taking 100% of the profits. You got invested in this too. So we're doing this together and do a JV on it. And let's prove it out and go ahead and put in the agreement that someday you can buy them out and you can move it off site.

[Caller]

Okay. So almost like a. Not a franchise, but basically just take.

[Dave Ramsey]

No, more like an option to purchase.

[Caller]

Okay.

[Dave Ramsey]

To go with it. Because if it goes gangbusters later or if they ever went broke, you could own it. You went on the real estate, but you'd own the idea.

[Caller]

Right.

[Dave Ramsey]

And so yeah, let's just kind of. I'm trying to ease into this and limit my risk rather than just take this leap off a cliff and go. I sure to God hope that water's deep.

[Caller]

I know the up front cost of the wedding venue is what is killer. Lingering question. Yeah.

[Dave Ramsey]

And you can't. And you can't start. So yeah, let's, let's start it. Yeah, let's start it with a camping trip and go from there. I mean, I think, I gotta tell you, I think the tying it to the winery could really help the wedding chapel and it for sure will help the winery.

[Caller]

Oh yeah. I mean you could start at the winery and then, you know, move on over to the venue.

[Dave Ramsey]

Go ahead and option the piece of ground next door and buy it out. Buy the ground first with some of your profits later, build the chapel. When you get it built, I exercise your option on the business, move it next door.

[Caller]

Okay, so what if worst case scenario, what if these guys are like, no, we do perfectly fine. We're not.

[Dave Ramsey]

Go to the, go to the other one.

[Guest/Co-host]

Go to the next one.

[Dave Ramsey]

You just missed out. Your competition is now going to have a wedding venue and you should have done it. You're screwed up.

[Guest/Co-host]

And then get on Amazon and order an Elvis costume and pay some high school kid to stand there next to you. I'll go rid of my vows.

[Dave Ramsey]

That's right. A spinner sign. That's right. What are you, Vegas?

[Guest/Co-host]

I'm just trying to think of this up and coming wine country Dave.

[Dave Ramsey]

Yeah, Elvis is known for that.

[Guest/Co-host]

Well, that's. I'm just saying.

[Dave Ramsey]

I don't. People get Elvis weddings in Vegas.

[Guest/Co-host]

I'm on this.

[Dave Ramsey]

I'm just telling you, you just started another trend.

[Guest/Co-host]

I'm starting another trend.

[Dave Ramsey]

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