DAVE SAYS

Dear Dave,

My mother-in-law is 85, and she’s had some health setbacks recently. The family got together with her, and as a group, we decided it was time to sell her property and move her into an apartment at a nice senior living facility. She should see a little over $300,000 from the sale of her house. Aside from that, she has about $10,000 in a savings account. The problem is, she’ll only receive $2,100 a month in Social Security, and rent at the facility is $2,600 per month. Plus she loves making donations to charities. With interest rates wheretheyare,isaCDladder a good place to put the money tohelphercashflowexpenses in the future?

— Ed Dear Ed,

If this were my motherin- law, I’d want her to do better than a CD (certificate of deposit) ladder. Even with the deficit between her Social Security income and the cost of rent, she’ll only need to see $6,000 a year from the investment to make up the difference. And plus, she’s 85. Even if she got nothing in terms of interest, the chances of her burning all the way through her nest egg before she dies are almost zero. I know the thought of her passing away isn’t pleasant, but it’s something you have to take into consideration.

As far as the charities go? Right now, she’s the charity. Maybe not in the traditional sense of the word, but it’s time for mom to come first. Only the strong can help the weak. I didn’t let my toddlers carryournewborn.Andwhen it comes to money, you’ve got to have the financial strength—the free and clear assets—to carry others. Take care of your own household first. That’s her responsibility at this point.

Ed, you’re not going to mess this up unless you put the money in crypto, or something stupid like that. If you want to do some high-yield savings as a part of it, that’s fine. If it were me, I’d probably end up investing some of it too. Here’s the thing: Overall, ifyoucouldmake8%onit, that’s $2,000 a month, and it lasts indefinitely. That’s not even touching the principal. But like I said before, even if you make nothing on it, just divide $6,000 into $300,000. See what I mean? It’s probably going to last as long as she does.

Of course, there may be some other medical bills, and you’d probably want her to have a life other than just paying bills. That’s why I’d like to see that extra $2,000 a month happening. It would provide a little cushion. And there may be a few other little things from time to time the family would have to pick up, but that’s not unusual in a situation like this.

You all can make this work for her. Don’t be super aggressive, but don’t be super conservative either.

— Dave Dave,

I own a small residential tree service company. Last year we made a little over $300,000 in revenue, and this year we’re on track to make around $750,000. We have five employees, and one of them is my brother. He’s the kindofguywho,whenhe’son, is really good. But when he’s not, he can be antagonistic and hard to be around. Most of the time everyone just shakes it off, but I’m beginning to think his inconsistent attitudes and behaviors are becoming detrimental to the culture I’m trying to create within the company. Can I get your thoughts on this?

— Mo Mo,

It’s great your company is growing like that, man. Congratulations!

Now, are you ready? Because I’mgoingtohityouwith a pretty stiff jab. Allowing someone you love to misbehave isn’tgraceormercy—it’s cowardice. Grace and mercy mean you love someone enough to approach them about their misbehavior.

If I were in your shoes, I’d have a serious heart-to-heart talk with the guy. I’d tell him I love him and that he’ll always be my brother, but I can’t allow him to disrupt the company with how he’s acting. I’d give him the chance to address the behavior and fix the problem, but if he can’t or won’t do that, I’d let him know he can’t be a part of the business anymore.

A lot of people might say that’s mean or you shouldn’t treat family that way, but those folks would be wrong. If the other employees don’t like or respect him, he’s not dependable, and he’s causing other issues within the company, the job and the kind of work you do may not be for him. If that’s the case, keep loving him and let him know you’ll help him any other way you can, but you won’t allow him to continue being a thorn in everyone’s side. I mean, he’s your brother. But right now, he’s also an employee and a coworker.

Understand I’m not saying the guy’s a bad dude. He’s probably got a lot of good qualities inside. But he thinks he’s got a get-out-of jail-free card just because he’s your brother. And it’s time you revoked that card.

Walk with him in the process. Let him know he doesn’t have to be perfect from here on out, but that you want to see clear signs he’s trying to change and improve some things about himself. Because he’s not going to have his best life—no matterwhathedoesorwhere heworks—untilheaddresses these negative behaviors.

Good luck, Mo!

— Dave Dear Dave,

My wife and I just bought a new home, and we only need one or two more things to furnish the living room. Over the weekend, we found a couch and love seat set we both like for $3,000. The owner of the store said he would take 15% off the price if we get a store credit card and pay for it that way. We are in pretty good financial shape, and can afford to pay cash for the furniture, but what do you think about the idea of taking advantage of the 15% off offer, then paying off the card immediately and closing the account?

Jackson Dear Jackson,

Playing with snakes is always a bad idea. Sooner or later, you’re going to get bitten.

Everyone thinks they’re the exception to the rule, or they’re somehow winning or getting rich by doing stuff like this. It doesn’t work that way. So, stop playing around with debt products. This guy’s just trying to hook you and make more money.

Your idea might sound good on the surface to a lot of folks, but the problem is the vast majority of those same people don’t have the discipline to follow through on a plan like this. Having that store account, even for a short period of time, would be too much of a temptation. Another issue is many places like this hit you with a fee when you pay off the card. They’ll fee you to death on other things, too, if you’re not careful, until you end up wishing you’d never even seen the place.

If it were me, I’d just talk to the owner again and let him know I’m taking my business elsewhere unless he discounts the furniture 15% on a cash purchase. There’s no way I’d take out a stupid credit card for a place like that whether I had the cash on hand or not!

— Dave Dear Dave,

I don’t really see eye-to-eye with my dad and older brother on many things. This is not a new realization on my part, but over the last few years it has led to hard feelings and various arguments at family gatherings about religion, finances and other things. With Christmas coming up, I would like to avoid conflict and try to handle things a little better with them. Do you have any advice?

Cam Dear Cam,

It takes a strong, levelheaded person with a good heart to want to approach a situation like this with maturity and love. I’m proud of you for trying to create better relationships within your family.

My initial advice would be don’t take discussions too deep, and make a conscious effort to stay away from any

Dave Ramsey is a seventime #1 national best-selling author, personal finance expert, and host of The Dave Ramsey Show, heard by more than 16 million listeners each week. He has appeared on Good Morning America, CBS This Morning, Today Show, Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, build wealth and enhance their lives. He also serves as CEO for Ramsey Solutions.

hot button topics you know already exist. I’m no family counselor, but the chances of you changing a lifetime of differences and toxic behaviors, or bringing them around to your way of thinking, in one brief interaction are probably pretty small.

Don’t tell them you think what they’re doing is wrong or that you feel they’re bad people if things get a little tense. My best advice is to be a model of sanity and reason if you feel a confrontation brewing. Situations like this are hard to deal with, especially when the conflict is between a father and son or two brothers. It’s hard on you and them, plus it has a negative impact on the rest of the family during what is supposed to be a joyful and loving time of year.

These are people you love and care about, even if they are hard to get along with or understand sometimes. Pray for them, Cam. And ask God togiveyouguidance,patience and understanding in this situation, too.

— Dave