My Friend Lost $600,000 of My Money Day Trading

[Music] brought to you by the every dooll app start budgeting for free today what's going on jeie hi John hi Jade um I have a very very very big big problem um I lost my ENT I'm 58y old single mom of three grown boys I lost um I had a trusted friend um watching or my money and um we lost it all 600 400,000 in a bokage firm and he went into my retirement fund so it's over 600,000 that I lost oh no um obviously I'm devastated um but thank you Dr John that I've been listening to you for a long time so I've been trying my best I'm in like trauma therapy and trying my best I'm a nurse um I I make around $80,000 a year I took a second job and I'm bringing in an extra $4,000 a month um I own a home that I have $400,000 in equity and I'm just not sure what the next step is for investing I'm I could sell the H should I sell the house because I always LED my life you know correctly no credit card debt I paid for my children's college and now this is where I'm stuck all right um jeie I hate this for you you trusted a close friend huh yes was that friend um like so what my one of my college roommates is my smart Vestor Pro manages my money right so I I'm in the same boat I'm gonna call him right after the show just kidding I know he's doing great but um it did your friend like make stupid bets or was your friend in charge of a mutual fund that just went Belly Up you think he was trying to make a lot of money and he was day trading basically day trading went through hundreds hundreds of thousands of dollars day trading and then he lost all that didn't want to tell me was giving me fake statements and oh so he's a criminal your friend is a criminal that's fraud he is and I've gone we've gone to the white PL you know filing charges and um but then he went outside of the brokerage firm to my retirement account and now I'm having all these tax implications well he robbed you he stole from you I know yeah so we're going to deal with that um on a separate issue okay here's the big one have you forgiven Genie yet because until you do that you're not going anywhere you're going to sit right in the middle of this you have to I think I will be able to but not yet I exper fresh is this December 18th oo child you're you're gonna have to okay let's just be let's just cut right to it be real honest how much of this do you know in your gut things have been kind of shady for a while or were you just caught flat off guard caught flat off guard okay then you got to forgive yourself listen we we have in our in our our culture we have like a process for when a friend stabs Us in the back we don't have a good psychology for when a friend stabs us right in the face and that's what happened to you yeah they looked you in the eye they didn't do anything conniving behind your back he stared you down and you lost everything yeah when he went into my retirement fund he had like paper checks you know hard copy checks cut and took it out of my mailbox yeah I would never take out criminal he's a crook listen you have to set that down here's why your emotional reactivity is going to color what you do next okay and you have to go into this next season as cleare eyed as you can be what does that mean setting down the rage setting down the anger setting down your own self-hatred setting all that crap down so that you can make a true plan moving forward I will listen to you is that is that fair I can't even today just just trying to pump gas I'm shaking because I feel like I'm putting diesel in because I can't even make the decision on which guess that's right because you have lost the foundation with which you walk on which is trust in Genie you got to you got to let yourself know okay I got robbed not by your hand but in your lap this is not your fault yes most people most of the time have a little gut feeling that their Buddy's kind of shady not you you trust this dude I did and he stole from you he was making fake statements but he was handing them hey hey let it you got to sit it down because here's why none of that that will come up in court hopefully this idiot goes to jail but yeah anytime you have to divert into and then he did this and he did this all you're doing is taking energy away from the current moment moving forward and dragging it your into the back okay let's don't go into the back seat anymore we're done back there we have to make a plan moving forward Fair yes it's fair I I we listen to you awesome awesome so let's talk about the financial angle of this so you're living in a paid for home it's worth 400,000 tell me what other assets you have it's not it's not paid for it's worth 600,000 and I have um 200,000 left on the mortgage okay okay so you got 400,000 in equity tell me tell me what tell me what other money you have laying around I didn't have any other money not even an emergency fund but I've built up um an emergency fund of $88,000 since December 18th okay Woo you're getting after it aren't you yeah okay I want I work in a group home all night long I work all night now I want you to keep that intensity I want you to build up six months of expenses whatever that is basic expenses whatever it takes if something were to happen for you to keep things running in your household um you told me you're taking some overtime how much are you bringing home every month um around 7,000 okay and how much of that is margin like how much of it is extra after you pay your bills you get groceries oh well to be honest maybe it's more because right now the margin is 5,000 okay so you got 5,000 a mar margin that's good so I do first things first is you're building up this emergency fund and then after that of all the money that you're bringing home I want you to start investing 15% of it we're just walking we're walking old school baby steps here I want you investing 15% into your 401k Basics all right okay and then after that we can start looking at while you're doing that we can start looking at making extra mortgage payments because I want this $200,000 paid off I want your home paid off by the time in the next 10 years like I want it done and I want you to go into retirement at 65 with paid for house and you've been investing and then at 68 if you decide to retire you will have been investing at least $5,000 a month for the next 10 for the last 10 years fair enough okay okay so let's don't I was thinking of selling the house and using that to build more money no I I want you to want you to be 65 with the paid for house that no one can ever take from you because here's the thing okay if you invest I'm putting this in my you know I'm I love a compound interest calculator if you start with zero and I'm just putting this in here if you start with 0 after and you invest for 10 years so from the time you're 50 to the time you're 68 and you get some great rate of return funds maybe you're in a 10% annualized rate of return and you're doing this every monthly $5,000 a month right if I calculate that that's showing me that you're going to have a million dollars really yes okay so you've got time like John said it's very the the emotions are high right now but our emotions aren't high this didn't happen to us so we we can look at the numbers and we're looking at him clear and focused this is just showing you investing over the course of the next 10 years $400,000 of income and the rest of it is growth I can do that yeah you can you can do that and you're going to do more because you're working like a wild woman right now I am because I can't be home if I am home all I just do is cry but if I'm at work I'm okay okay but hold on don't work yourself into a grave as punishment for what you think you did wrong okay you got hit in the mouth by somebody who said I love you yeah you got taken advantage of you did not do something wrong so you're going to have a season you're going to have a decade when you thought you'd be landing the plane you ain't Landing the plane honey you're going to be working hard yes but we're going to be working for something not to punish ourselves okay that makes sense I'm working for something not to punish okay we're working so that at 70 you're going to be one of those rad New York ladies with huge glasses walking around telling guys like me to get off the sidewalk with our Hacky Sacks that's what you're working for right you don't need to beat yourself up you didn't do anything wrong you got robbed man and now we're going to go make it moving forward hang on the line we're going to hook you up with Financial Peace University we want you to watch all the courses and we're going to hook you up with a session with a financial coach to give you some peace of mind moving forward create your free every dooll budget today the simplest way to budget for your life life

Channel: The Ramsey Show Highlights

Views: 185,811

Keywords: the dave ramsey show, budget money debt cash, real estate, insurance, how to make money, dave ramsey, save, credit card, compound interest, buying house, buy, snowball

Id: ala1v9Q-5vA

Length: 9min 30sec (570 seconds)

Published: Tue Mar 05 2024