The Ramsey Show Highlights “She’s So Full of Crap She’s a Christmas Turkey!”
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Nov 4, 2025 In this lively discussion, a caller ponders the risky decision of cashing out a 401(k) to buy a house. Dave passionately outlines the financial pitfalls, including hefty penalties and taxes that could eat into profits. He emphasizes the importance of seeking reliable financial advice, cautioning against flashy influencers and advocating for wisdom from understated millionaires. The show wraps up with a reminder to start budgeting for financial stability.
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Ex-Wife Flipped Houses After Withdrawing 401(k)
- Caller described an ex-wife who cashed half his 401(k) to buy and flip homes.
- Dave highlighted she actually lost money after penalties and taxes despite selling at a profit.
Don't Cash Out Your 401(k) To Buy A House
- Avoid cashing out a 401(k) to buy a house because of penalties and taxes.
- Don’t borrow effectively at ~35% interest by taking early retirement distributions; keep retirement intact.
Choose Financial Mentors By Behavior, Not Flash
- Vet who you take financial advice from and ignore flashy highlight reels.
- Seek understated, steady people who live within their means and can teach long-term money habits.