you're listening to Ramsey every day millionaires where we talk retirement building wealth and outrageous generosity.

All right, let's go back to the phones. Next up we have Andy calling from Dayton, Ohio. Hey, Andy, welcome to the show.

Hi, thanks for having me. Thanks for calling. So my wife, my wife and I are about to have our second kid and we're looking forward to reading.

Oh, thank you. And it's a birthday today. Happy birthday, honey. Happy birthday, Andy. We're looking forward to having a third kid shortly after.

So the question is kind of centered around in about two years from now, we're looking to kind of move into our forever home.

So my question is I've got about 38,000 left and student loans, but I also have about 250,000 in my 401K.

So the variable interest rate just went up to like 8.8% or something crazy high on the student loans. But given the fact that I'll have a really good pension and my 401K is on pace to be around 2 million when I retire, if it completely found upon to maybe borrow 30K against the 401K to pay up the student loans.

So then when we're looking to move into our house in a couple years, we'll be completely debt free and that 401K will be paid back.

Yes, it is for on the bottom here. Yeah, no, I would not borrow against my 401K. I would not. How much do you make a year? 120.

Okay, Andy, pay off your student loan. You guys could take 18 months and pay this off. 18 months, you could pay that you're 14, 12 months. You guys could pay this off.

Yeah, well, you know, we're growing our family. We've got other expenses. You know, we're just in a new house now.

And we're just trying to think about how to free up some liquid in a couple years from now. We're moving to another forever.

Okay, I don't want you to move into your forever home with debts. Do you have any do you have any savings besides retirement?

We've got about 18,000 right now.

Okay, so here's here's what I would do Andy since you called the Rams you show we're going to give you the rams the advice.

And I would throw $17,000 there at your student loan. And then you got 21,000 left on it.

Pay it off this year, Andy, and then you guys save up get a big emergency fund then save up for a down payment and then move into your dream home where you're not you're not broke, you know, you don't have debt.

You have cash in the bank. You're not borrowing from your 401k. And you have the ability then to really step into your home and be like, okay, yeah, we have this like very, very solid financial foundation under us in order to do that.

And so I think that the problem, especially with student loans in Christina, you can probably speak on this is it's so it's a bigger debt usually from people.

And it's so normalized that it kind of can become a little bit apathetic of like, I don't know, it's just here. And this is what it is.

And it's not this like intense like get this thing out of my life.

Yeah, well, I mean, cultures told us that it's normal. Culture tries to make it seem like it's what everybody takes out for college and that you're going to have it for the next 15 to 20 years. And that does not have to be true.

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