Dear Dave,

My husband and I have a rental property in South Carolina we want to sell. The current renters’ lease is up in December, but our property manager tells us the renters won’t let anyone in the home, not even just for photos to post online due to COVID-19. How do you think we should handle this situation?

Tracy

Dear Tracy,

I don’t know much about current COVID-19 restrictions in South Carolina, but this sounds suspicious to me. I’m also thinking your property manager is kind of a wuss, but I have the spiritual gift of cynicism.

I’m old school, and if I own a house, I’d like to go in it any time I want—within reason, of course—if renters are in there. They have the legal right of quiet enjoyment, meaning I don’t get to show up at all hours and harass them. But I’m not letting them stiff-arm me and use COVID-19 as an excuse. I mean, tenants thinking they have the right to give the landlord and owner zero access? Maybe places like the Socialist Republic of California allow this kind of crap, but most states have common sense, plus reasonable tenant and landlord protections. Yeah, the whole feel of this makes me think there’s something very wrong going on inside this house.

I can imagine your frustration, Tracy. It makes me angry just thinking about it. If they’ve got a sick child or adult in the home, or someone’s out of work but actively looking for a job, then I’ll show a lot of compassion and back off a little. I’ll try to work with them to resolve things in a way that’s good for everyone. But if they’re just playing games or misbehaving and using COVID-19 as an excuse on top of that, I’d have no problem removing them.

I think you need to dig a little deeper on this one. Check the current laws in South Carolina, especially any laws concerning a possible eviction moratorium and get in touch with a good real estate attorney. There are times when we’re called upon to be understanding and generous. But I have very little tolerance for someone who tries to take advantage of me.

— Dave

* Dave Ramsey is a seven-time #1 national best-selling author, personal finance expert, and host of “The Ramsey Show,” heard by more than 20 million listeners each week. He has appeared on “Good Morning America,” “CBS This Morning,” “Today,” Fox News, CNN, Fox Business, and 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.

Dear Dave,

My wife and I are expecting our first child in a couple of weeks. I bring home $35,000 a year teaching at a local high school, and she just completed her master’s degree in speech therapy. She has a job waiting for her after the baby is born, and they are being very flexible about when she starts. I have heard you tell some people to leave just $1000 in savings for Baby Step 1, and use any other saved cash to pay off debt. But I am concerned about the new expenses we will have once the baby is home. Should we hang on to our savings, so we have extra cushion for those costs or if something unexpected happens?  

David

Dear David,

Congratulations! I know you two are excited to welcome a little one into the world.

In your situation, I’d advise pushing the pause button on the Baby Steps for now. Forget about paying down debt, until mom and the baby come home, and you’re sure everyone’s healthy and safe. You could even hang on to it all until she decides to start work. But the bottom line is if everybody’s okay, the baby and all those connected expenses—like formula, diapers, and daycare—just become part of a regular monthly budget.

Your wife is going to be making pretty good money once she starts her job. And the truth is babies are not all that expensive. There are costs involved in having kids, but it’s not like we’re talking thousands of dollars a month out of your budget just because you had a baby. Can you buy lots and lots of things for a baby? Can those things cost a ridiculous amount of money? Of course! The list of things you could buy goes on and on. But a healthy, new baby doesn’t need much, and having one at home isn’t going to break the bank.

I think any financial fear or uncertainty you may be experiencing right now will disappear once you’ve got a couple months of adjusting your budget and getting used to the new normal under your belt. Then, when you and your wife decide it’s time to start her career, you can begin paying off debt in a really big way!

—Dave

* Dave Ramsey is a seven-time #1 national best-selling author, personal finance expert, and host of The Ramsey Show, heard by more than 18 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.

Dear Dave,

My dad passed away about a year ago, but he left my mom in really good shape financially. They never had any consumer debt, the house is paid for, and they had about $1 million in assets. Dad also left her a $500,000 trust. Mom is going to be 60 next year. She is in good health, but considering her age and financial situation, do you think she needs long-term care insurance?

Darby

Dear Darby,

I’m so sorry to hear about your dad. Losing a spouse, or a father, is tough at any age. The good news is your dad did a great job of planning to take care of your mom. He left her in fine shape money-wise, but yes, she needs long term care insurance and a good estate planner. You need to help your mom do everything possible to handle her situation wisely.

I usually suggest folks wait until age 60 to buy long-term care insurance, because the likelihood of filing a claim before then is very slim. In fact, about 95% of long-term care claims are filed for people over 70. That’s why, in most cases, it doesn’t make sense to get long-term care insurance earlier than age 60.

Insurance isn’t a one-size-fits-all kind of thing, though. If someone has a family history of illness or other health issues at a younger age, they may need to get long-term care insurance earlier. But you shouldn’t buy long-term care coverage at a young age just because you’re paranoid of what might happen, or because you think you’ll save money. That’s just not true.

In the event your mom becomes unable to take care of herself at some point, long-term care insurance would be an absolute necessity. The cost of nursing home care these days is astronomical. Again, your mom is in a great place financially, but a prolonged stay in a nursing home somewhere down the road could eat up her nest egg in a hurry.

Long-term care insurance is a wise part of any good asset management plan.

—Dave

* Dave Ramsey is a seven-time #1 national best-selling author, personal finance expert, and host of The Ramsey Show, heard by more than 18 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.