This woman is living on around $45,000 a year, has a paid for house, put her kids through college, and has 15-20 years to save for retirement with no monthly payments save for regular bills. She was embarrassed to ask the question, but she is actually doing amazing, particularly in her circumstances. Many people with far higher incomes and less life obstacles are in far worse situations. She should be proud of what she has accomplished.

@camus83489

7 ай бұрын

she's probably doing better than 80% of america

@goldenlifelove7251

7 ай бұрын

I agree!

@gdc1231

7 ай бұрын

Couldn’t agree more! She has accomplished so much for her family after a lot of hardship AND as a social worker is making her part of the world a MUCH better place. She should be proud. She’ll be fine for her retirement following Dave’s advice especially since she has budgeted well while at the same time not making a lot in her lifetime - managing to live on a relatively modest income. She may also have the option of switching jobs and bumping up the salary even a bit and/or finding a place with a match. An extra $5-$10K will help a great deal. Nothing to be embarrassed about!

@delsmith8140

7 ай бұрын

True, though she did mention her husband's life insurance, but not the amount. Also said something about getting his pension, not sure if now or later. Good job nonetheless.

@dialac1

6 ай бұрын

I was thinking the same thing

I’m 56 and earn about 31K with a paid for home + about 3 months of savings. This advice gives me HOPE! Thank you!!

@Djd271

7 ай бұрын

I’ll have a decent ira but no paid off hime

@kirushraveen8564

7 ай бұрын

You will do amazing! Wishing you all the best!

@kjohnsonshelton0923

6 ай бұрын

@@kirushraveen8564 thank you❣️

What an amazing mother. She lost her husband, put her kids first and paid for their home and their college, and was probably crying to herself worried about what she would do and wouldn’t dare put that on her kids. God bless her.

A lot of parents expect their kids to take care of them financially later on. She puts her kids through college by herself, has no retirement and doesn't even consider her kids helping her out. Respect.

@fotochikyo

7 ай бұрын

Yes!

@devpav9880

7 ай бұрын

If her kids are successful professionals as a result of her sacrifices then it'd be absolutely heartless of them not to help her when she needs it.

@fonebook

7 ай бұрын

@@devpav9880 sure, the point is that she doesn't expect it.

@costco_pizza

7 ай бұрын

Its really hard for a lot of people. A lot of people are struggling out there. We are suffering and don't know where our next meal is coming from. Student loan relief and a proper UBI would go a long way to helping us all out. We could pay our bills and put food on the table.

@fotochikyo

7 ай бұрын

@@costco_pizza you serious right now? Where exactly is this universal basic income supposed to come from?! Do you realize our country is 33 TRILLION dollars in debt? You're going to have to get creative on ways to earn more income. If you indeed have a Costco card you better get rid of it, Costco is not affordable for low income folks.

She has a paid for house and 3 months for emergency. That's way more than all of these complainers have for themselves 😂😂

@adamlynch9153

7 ай бұрын

she lives alone? might as well find a roomate to kickstart some income

@puthyx

7 ай бұрын

Yeah but she didn't EARN it. That's the problem. She knows it kinda just fell in her lap.

@animegeek3109

7 ай бұрын

Way more than me lol at 33 I have 40k retirement out of debt with a paid off car and phone but no house💀

@r8alvar

7 ай бұрын

​@@animegeek3109"paid off phone?" Come on man! Don't do that again.

@clarifyingquestions

7 ай бұрын

@@puthyx Didn't earn it? How so? She was both mom and DAD. Dad contributed some financially but anyone who has raised kids understand they also need physical and emotional support too.

This lady has had many challenges but managed to put her kids through college. I have seen people at work lose it because they can't go to lunch on time. Let's show her some grace.

@dcg590

7 ай бұрын

Prob was insurance and help from her husbands death. No way she’s paying for college at 40k a year.

@DoctorSmartyPants

7 ай бұрын

She and her husband put the kids thru college.

@1riggs

7 ай бұрын

What is so great about sending your kids to lefty indoctrination camps?

@bigh8121

7 ай бұрын

@@DoctorSmartyPants She coul have squandered the money. She paid homage to her husband and marriage by doing what is right.

@bigh8121

7 ай бұрын

@@dcg590 That is understood, but she was a good steward of what he left behind.

She has her home paid off and is a genuine mom, one that loves and cares. God bless her.

@ruthirwin8222

7 ай бұрын

Yep amazing lady

I doubt she will ever read this comment, but given your circumstances, ma’am, you were actually rocking it and doing better than most people you have done well I understand you have nothing for retirement but to have a paid off house and do a put two kids through college you’re rocking it, ma’am you go

I am proud of her. She has done better than she thought.

She's in a better spot than most of America.

@sarahw.mcelyea5655

7 ай бұрын

Most of AMERICA is clueless and doesn't even know it.

@uwone7778

7 ай бұрын

Like the 81M that voted Joe

Commenters are pretty rude this morning, yeesh. I didn’t hear excuses, I heard a 50yr old that doesn’t know where to start, feels embarrassed about asking questions at this age, but doesn’t have a mortgage, and just needs some direction and rough numbers about how much to put away.

@dylanfogarty2771

7 ай бұрын

Yeah, I agree. Sometimes commentators on these shorts and just so brutal. These callers are the average American - very low retirement, usually in debt, etc. we should be more supportive and action-oriented

@johnsyler8580

7 ай бұрын

I would rather hear a call like this than someone calling making 250K and can't make ends meet.

@JustinCase780

7 ай бұрын

No kidding. She's a young widow, payed off her house, her kids are through school, zero debt of anykind and has a steady gov't social services job and is well aware of her net take home. She is in much better shape than most people at 50. She could work some part time to live off of and put more of her steady pay into retirement.

@TopVillain

7 ай бұрын

Don’t read the comments

@fsmoura

7 ай бұрын

what do you mean "this morning"?!?? ( o.o)

What a lovely conversation. From the humility and vulnerability of the caller to the warmth of DR and George’s responses…

@Dividendflywheel

7 ай бұрын

Yes. Compassionate with her while Educating her. I hope she finds a financial advisor with a similar approach

she's a trooper and in much better financial shape than she thinks. 50 years old with a paid off house, no more kids to put through college and a pension from a deceased husband means that by 65 she should be able to retire pretty stress free. now is just the chapter in her life where she puts away $15k/year.

At least she is 100% debt free. Even not having any retirement at this time puts her ahead of most people at her age not being chained to debt. So she can start investing aggressively. Plus, her not having any debt, when she retires, she doesn't need as much money to live every month.

@Ria24Ria

7 ай бұрын

Exactly when you have no debt whatsoever you do not need that much money to live off of, depending on where you live. She might be able to live on just 2k a month which a lot of people can live on if the place is affordable and you are debt free.

I LOVE the fact that this lady has no debt. She's doing a lot better than she thought she was. Go lady!

At least she has her house paid off Emergency fund steps 1 and 2 done. She will be okay

@christinehopping

7 ай бұрын

I understand her concerns because I was in her position debt free with a house paid off but no retirement at age 48. I was scared making a clerk salary living in California everything was so expensive. Dave's advice gave me so much comfort. I focused every penny into retirement and now I am a net worth millionaire before age 50. Just stay focused and keep saving.

This is the BEST financial advise I heard in a long long time. I am single income making a clerk salary just like this lady with no debt and paid for house. Daves' advise really puts me at ease. Thank you, Dave! I will invest into my retirement accounts.

@bennyl7224

7 ай бұрын

The mindset of her current financial position is true. But his investment advice is really bad. 10% a year is too much to withdraw. Closer to 4-5% is something that will last 20 years

@robertbell525

7 ай бұрын

Agree, take as little as possible. Mostly SS and maybe a part time McJob in the early years. So she can still work a little and have freedom to have some fun.

@devpav9880

7 ай бұрын

Whatever you do, don't listen to Dave and assume a constant 10% annual return from an S&P 500 index fund during your retirement.

@user-bt7qw8io4s

7 ай бұрын

@devpav9880 who should she listen to lol? You? lol

@kennyfit9877

7 ай бұрын

I wonder how markets will perform while going through world war 3.

For anyone feeling hopeless because of not having anything for retirement...... My mother in law became a widow early. My father in law was a grave digger, literally. He got out of the service and that's the only job he ever had. My mother in law was a drapery seamstress and she sewed for local decorators who didn't pay her anywhere near what she was worth. Fast forward.... she's now 81. She's been retired on SOCIAL SECURITY alone. Nothing else. No government assistance whatsoever and she didn't even try for any because she said in her generation that wasn't something they did. She has a mortgage on a small house, pays all her bills on time, no debt, TITHES 10% of her social security check and is the most frugal, resourceful person I've ever known. She told me years ago she has the bank automatically take out $100 and put it in her savings every month. 🤯 I ran the numbers in my head, on paper, with a calculator, lol. IT DOESN'T MAKE SENSE. By all means, she should be starving. She always said, "the Lord will take care of me." And it's true. I hope this encourages someone.

@Nicole-un5on

7 ай бұрын

It did

@deepthinking8633

7 ай бұрын

God is Good

@dcg590

7 ай бұрын

No one should EVER think they can live on social security alone. It’s not supposed to be lived on, it’s supposed to be supplemental.

@grace-2127

7 ай бұрын

@@dcg590 true. However, my in laws were very poor. They were very hard workers but had no financial literacy education. So my comment was to encourage anyone in this situation because unfortunately people DO find themselves surviving on social security alone.

Dave is so right, something coming in each month in retirement is a whole lot better than having nothing but social security coming in each month. This lady is debt free, has a paid off house and lives within her means. She's going to be o.k., she just needs to start putting some money away for herself. I hope she does check back in a year to say how things are going.

@ToOpen6seven

7 ай бұрын

She absolutely will and thank goodness she is not me at 56 with not a lot saved for retirement and I still have a mortgage. I will sell my home in a heartbeat to get a way lesser home that is paid for or almost paid for. This lady will definitely be OK.

@goofygirl1311

7 ай бұрын

@@ToOpen6seven I'm 57 and we still have a small mortgage on our house, too. We plan to downsize in the not too distant future into a smaller, paid off home. As long as you have a plan, you're o.k.

@ToOpen6seven

7 ай бұрын

@@goofygirl1311 Thank you dear, I needed to hear that. Dave Ramsey has helped me a lot.

Thanks for being so nice to her!! With that paid off house, she's way ahead of most of us.

She's doing better than me. I'm going to be 50 in a little over a month, and I've never even bought a house, much less paid one off.

Problem is, what Dave forgot, is that she can only put in up to $7,500 a year in her Roth IRA. She needs to put the remaining 5K in a Roth 401K or something else.

@vlharmon

7 ай бұрын

The smart vestor pro will put her on the right track

@djpuplex

7 ай бұрын

On track to paying fees.

When my in-laws died they were penny less, my husband had to support them, I will do everything to avoid situations like my in laws

@seankmath2214

7 ай бұрын

Why does he have to support them? They are dead.

I'm widowed for the same number of years and have 2 children, and debt free. . Thankfully my husband and I were amazing at saving , and he had 2 retirement funds, and 2 life insurance policies. . I'm in my 60s now, and will have a very good SS I can tap into any time. She does need to find a good financial adviser. I hired one within a year after my husband passed. Best decision.

What a great heart she has, you can just hear it. She’s so well off and doesn’t even know it!

Thanks Dave! Your numbers give millions of listeners HOPE! ❤

it would be a cool idea to do some sort of follow-up with some of these callers, and post them on the youtube channel. Specifically the ones who took the advice and did well would be great testimonials for the program, and even a recap of the callers who may have found themselves in trouble could still be good insight into the pitfalls people face along the way following the advice given to callers on the show

He's assuming a guaranteed/fixed return of 10% impossible nothing ks guaranteed.

What a great lady. So much respect to her.

At 50 she still has 15 years to crank it out. Without a mortgage, she should be able to invest a fair amount. With a part-time job in addition to her social work, she should be able to do quite well.

@brucefredrickson9677

7 ай бұрын

Or a better paying social worker job.

@Dis_is_fine

7 ай бұрын

@@brucefredrickson9677for sure, with her amount of experience she should be able to get something better

@jamesodell-ky1vu

7 ай бұрын

Do you guy know there’s a thing called “Death”

@tjames525

7 ай бұрын

So because she is going to die someday she shouldn't invest or what is the point you are trying to make?

This is a wonder Mom. What a lady. She is going to be in my thoughts. She's not alone 💓

Say what you want about whoever you want. I love Dave Ramsey for his ability to slow down, think, and properly assess someone’s situation; and to find the best way through. Thank you sir n

How big is her home? She had kids so it’s at least two or three bedrooms. She should sell now and downsize. Invest the equity.

@MsQ275

7 ай бұрын

lol good luck selling

@jorgesalazar818

7 ай бұрын

​@@MsQ275why? If she prices it competitively enough it'll sell.

@untouchable360x

7 ай бұрын

Inventory is still at an all time low.@@MsQ275

@jordanlavalley

7 ай бұрын

@@jorgesalazar818I think he means buying. Sometimes it doesn’t make sense to sell if you have to buy. She should sell when she actually retires and move up north somewhere.

@ashleygrandberry1186

7 ай бұрын

Why? It is a paid for house. That is as much of an asset as anything. She shouldn't have huge expenses now, and with SS when she's older, she should be fine.

This is my worst nightmare.

@fauxbro1983

7 ай бұрын

it's most women nightmare.

@tracym8952

7 ай бұрын

Losing a spouse is a nightmare. No retirement is a nightmare. I feel for her. Hopefully it comes together for her

@momoney855

7 ай бұрын

@@fauxbro1983facts! America has the highest rate of single mothers or women that thinks they don’t need a man has to step up and start saving for retirement before it’s too late.

@YoutubeNeoconskeepcensoringme

7 ай бұрын

Retirement is a fantasy!!! You be working hard as hell to keep what little you have

@georgewagner7787

7 ай бұрын

Save and remarry

What a lovely positive lady. There should be more people like her in the world.

Love the content guys!! Thanks for sharing!!!

She has done an awesome job. Sorry for her loss. Her house is paid and no debt, shes in a good spot and can definitely improve.

You've got plenty of time!!! Start now. I didn't have a dime in retirement at 47. I'm 65, still working and investing in retirement, and all is well. Start today and do not think twice that you don't have time. You do!!!

Honey, You're ahead of me and I'm 71, just getting started on Dave Ramsey. I had planned an IRA but it disappeared (complicated).

Dave’s final ‘ding ding’ is utterly perfect, exquisitely time.

This is why I’m in my 20s putting extra contribution every month. Nothing worse than being old, not able to work and broke

@chrispnw2547

7 ай бұрын

Live long enough and you will find life brings expenses you never realized. When I was in my 20s, I thought water was free.

10% is entirely too aggressive. 4% is more likely to last her 30 years.

@douglassmith9445

7 ай бұрын

10% would be her investment gains. 4% would be her withdrawal rate. These numbers are fine. She can’t afford to invest in bonds since she joined the party late. Shouldn’t impact much anyways.

@M22Research

7 ай бұрын

@@douglassmith9445but he also said it would “generate $50K per year without touching the principal, more income than you’re currently making.” Taking out 10% per year would be long term foolish if you need that $500K to last your entire lifetime. He did not say 4% withdrawal.

@danlopez9146

7 ай бұрын

Where’s this 10% from?

@M22Research

7 ай бұрын

@@danlopez9146 watch the video prior to commenting.

@thedude5040

7 ай бұрын

​@@danlopez9146many mutual funds earn around 10% a year over 10 year

What a sweet lady! She's embarrassed yet she's further ahead than many people her age.

House paid off, Debt free, covered Calif, small pension and SS got me living my best life. Retired at 62

This is not a financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!

@hunter-bourke21

7 ай бұрын

Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional

@maryHenokNft

7 ай бұрын

Very true, I started investing before the pandemic and that same year I pulled a profit of about $750k with no prior investing experience, basically all I was doing was seeking guidance from MARY ONITA WIER who's a guru in the game, you can be passively involved with the aid of a professional.

@maggysterling33254

7 ай бұрын

@@maryHenokNft It took me 3 years to stop trying to predict what's about to happen in the market based on charts studying because you never know. Please, i need the help of your Investment advisor.

@maryHenokNft

7 ай бұрын

I'm guided by *Mary Onita Wier* An experienced coach with extensive financial market knowledge. While you can consider other options, her strategy has yielded positive results for me. She offers valuable insights, including entry and exit points for the securities I concentrate on.

@BiancaSherly-qt6sb

7 ай бұрын

Thanks, I just Googled her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes.

MOST AMERICANS ARE LIKE THIS! I CANT STAND IT WHEN EVERYONE THINKS EVERYONE HAS 500K in the bank 🏦

@brucefredrickson9677

7 ай бұрын

Not "everyone" thinks that...some have more, others less.

I love you! Thank you for this advice because I'm in the same boat , I see a bright future.💕

I love this and needed this information. Sounds like my situation

She’s in a way better place than most people these days.

Can't deny the fact that LVRCH CAPITAL is the strongest bet to bring power back to this industry after we suffered FTX, Celsius, Tera and so on. Sure if they fail it's done for good, but I don't see that the biggest tech company in the world would put everything at risk just for that.

She is highly underestimating herself. Wow she has done amazingly well.😊

Quickly putting 1k into the compound Interest calculator with an annual return of 10% (S&P does on average of 9%) is $398k. Love Dave Ramsey but sometimes have to wonder where he gets these numbers from... 🤨

I feel that the last bull run was bolstered by all the money being printed. Major returns next bull run but I think they will be tamer in my humble opinion. A 10x on LVRCH CAPITAL and a 15x on polygon are fair considering how much those two coins are interwov

@stephensullivan1011

7 ай бұрын

Bro wth

@charlieauxy

7 ай бұрын

Bot

@MichaelHasebroock

7 ай бұрын

What are you talking about? This has nothing to do with the call.

@Becanwal

Ай бұрын

​@@MichaelHasebroock its a bot to advertise for that crypto

Don’t underestimate the government pensions. When you add your own savings it is a whole lot more than we end up thinking it would be. Over the life of your retirement, it is hundreds of thousands of dollars. Also, if she owns a large home, sell and downsize and get a head start on investing the equity plus Dave’s plan of a $1,000 a month for 15 years. This lady will be fine.

@suen5006

7 ай бұрын

She doesn't have a government pension.

With her attitude you know she’ll do well. She’s panicking because she has no goals. She’s achieved so much because it was her goal. Listen to her excitement at the end of the call: “I’m gonna do that now!” A new goal for her to accomplish. Good for her, what an inspirational lady. Love to hear her follow up call.

Good for her.

Bless dave ramsey, i dont always agree with him but he definitely put this lady at ease.

10% on investments year over year is not realistic. Don't go to a Ramsey Endorsed Provider. They will put you into high fee mutual funds. You will never see half a million in value at $1,000.00 a month for 20 years in high fee mutual funds. Rather, open a Fidelity or other self directed account and pay low fees. Also, Ramsey never tells us what mutual funds net him that bogus rate of return. Ramsey tells people to go to his endorsed providers because they pay him to be endorsed, and if he recommended self directed index funds they would all leave him.

@oldscratch3535

7 ай бұрын

People don't realize that the high fees will absolutely kill your returns over 30-40 years. And why does he do mutual funds? Why not stocks or low cost ETF's? I just buy individual stocks that I think are good buys over the long term. I also put money into S&P500 ETF's, total stock market ETF's, etc.

@michaelpalumbo4880

7 ай бұрын

If he were to recommend low cost index funds and ETF's, that would ruin his business model on having endorsed providers. He claims that he gets an 11% rate of return, that's nonsense. Most of what he states is inaccurate, incomplete, and out of date. He preaches risk avoidance yet never recommends a prenup. Other then his advice to get out of debt, it's all bullshit. It's sad that good Christians follow him and pay for his content. @@oldscratch3535

@robertrecchia2642

7 ай бұрын

Absolutely correct! Dave is NOT to be listened to PAST the get out of debt & emergency fund stage! He is self-motivated & irresponsible when it comes to investing! He’s also condescending to those of us who use ONE credit card for convenience & pay off the balance weekly or monthly. As if I’m only filling my tank up 3/4 of the way with a debit card. Give me a break!

@michaelpalumbo4880

7 ай бұрын

I'm glad that I am not the only one that sees through his bullshit. @@robertrecchia2642

@recabitejehonadab2654

7 ай бұрын

He’s a scammer.

You need to factor in 7% yearly for Fed Printing Presses.

4:11 _"Let's pretend it produces 10% a year on the mutual funds."_ Dang, times really are tough. It used to be 12%.

@alinatamashevich3354

7 ай бұрын

It is, sadly she does not have the luxury of time to see that.

@ChrisMFlorida

7 ай бұрын

Lol pretend 😅

I've always thought this whole podcast/youtube/radio show couldn't survive without Dave. But after trying different personalities, I think he's got a great team now. George, Jade, Rachel, John are all great hosts and likely to appeal to a younger audience, as well. Ken's OK too.

Even if Dave's mutual funds, get 12% rate of return that would be extremely risky and unwise for someone that is entering their 60s. To achieve those types of returns, someone would have to be in 100% stocks and if you have a bad year you're screwed if you're 60.

@recabitejehonadab2654

7 ай бұрын

👍

She was way better than me when I started the Dave Ramsey plan. I was 46 yo with $74,000 in credit card debt and a car loan. I worked almost everyday for 14 months and paid the $74,000. We paid off our house in 2023. Thank you so much Dave Ramsey!

As a widow. I paid off our debt and invested the life insurance and put a hefty amount in savings and worked part time and lived off survivor benefits.

That would have been a completely different conversation if she still had debt and a house payment! Great that she was debt free. NICE! :)

My husband and i paid off our house, about 2yrs ago. For that reason, in case something happens to him. Last year he had a heart attack. Fortunately he made it on time to the hospital. We are debt free. But we need to up on our savings and retirement more. The cost of living is going up.

How much is her husband pension?How much will her social security be. They fell to ask some important questions .

@Ria24Ria

7 ай бұрын

Exactly, she might be able to live on ss and pension depending on what her living expenses are.

From age 24 to age 44, I worked 20 years for a non-profit organization working with low-income and homeless families, with zero benefits. I did not have a retirement account nor retirement match. What I had was a feel-good job that never paid me more than $40k. However, I cannot change what I didn't know about investing. I look at the good side. This job kept me grounded! When I saw a large portion of those families living beyond their means and causing homelessness unto themselves, I paid extra on my home and stayed out of debt. And much like her, I was in exact same situation. In my 20th year I upped by skills and have been in the construction industry since. Today, at age 50, I have managed to save $70k, albeit still too scared to invest, I have it saved in a high interest savings account. I would have $15k more, but my HVAC just went out (sigh). I'm learning what I was never taught. I rent out one room which brings me extra income. Overall I live below my means and I am never stressed about money. It can be scary at times, but I say she did great! She has time.

@georgewagner7787

7 ай бұрын

Maybe try investing just a little of it.

@NoemiSoria

7 ай бұрын

@@georgewagner7787, thank you...I'm dabbling with index funds. I only have about 5k in Vanguard, but just seeing how the market behaves, and obviously it's down a bit. I'm aware it's a long-term commitment, but just seeing if I can handle the volatility without the stress! That's what's most important to me. In the meantime, I keep educating myself. And while I often wish I can beat it into others (including my adult daughter) my once-too-idealistic self has also grown up. It's an eye-opener for sure.

@oldscratch3535

7 ай бұрын

If you don't invest then you're just letting inflation eat away your savings.

Do baby steps 1-3 with Ramsey. After that The Money Guy* *always get the 401k match

Dave is wrong. She would need at least $1mil to safely withdraw $50k/yr.

@11warnjames1

7 ай бұрын

Absolutely. This kind of advice giving of thinking you can withdraw 10 to 12% annually from an asset and not end up crashing the asset is downright dangerous advice. Has Dave ever heard of a Montecarlo analysis?

@11warnjames1

7 ай бұрын

This is where annuities come in. She could grow the asset for the next 15 or so years, and then place the funds into an immediate annuity that guarantees her a lifetime income stream she can never outlive.

@brucefredrickson9677

7 ай бұрын

@@11warnjames1 problem is annuities don't adjust up with inflation...they flat-line.

@jamesodell-ky1vu

7 ай бұрын

@@11warnjames1 it’s really not that big of deal 😂 her house is paid for and I’m sure she’ll get over 1,200 in social security smh ppl seriously do too much

Thanks for this! I wish Jodi well, and think she's going to be okay. That's great she has a fully paid off house and no debt.

What a good eay yo motivate people well done

Very aggressive “safe” withdrawal rate in retirement. Saying you can pull 10% every year during retirement leaves fate in the hands of the market. 3% or 4% is more reliable to not run out of money.

@joefunk76

7 ай бұрын

No mention of the effect of 15 years of inflation, either. I’m all on this lady’s side, but Dave exaggerates his numbers whichever way supports whatever point he’s trying to make at the time.

@robertatkins272

7 ай бұрын

Dave is going off historical market returns at 10%. If you had a million you could withdraw 100,000 a year without ever getting into the principal.

@erikaho1857

7 ай бұрын

Correct, however if you were to retire on let’s say May 1st 2000, over the next 10 years, the overall return is about -20%. There are no gains to take 10% from every year. You have to dig into the principle. This lady would be out of money. A 3% safe withdrawal rate gives markets time to recover, because stocks can we unpredictable in the short to medium term.

@robertatkins272

7 ай бұрын

@@erikaho1857 agreed, but you are pointing to a particularly underperforming decade in the S&P 500 that had not been seen since the 1930’s. That being said even if all her investments were moved to bonds or CD’s at 5% she would still be ok earning 25k a year plus social security and her husband’s pension. She was only making 40k in her working years.

@bennyl7224

7 ай бұрын

@@robertatkins272we understand where the 10% comes from. But 10% withdrawal every year off a capital base that *averages* 10% a year doesn’t work, as the market goes up and down, but withdrawal is constant. Safe withdrawal rate is significantly less. The reason is when the market drops 3%, and money is withdrawn, to replace that capital 87% needs to grow 15% just to return back to the original amount. It’s the withdrawing the average return rate when the market is down or even when market is growing less than 15% that’s the problem.

She’s ahead of the game with that paid off house. Wish her the best! She seems sweet

I listen to you guys every single day because you help so many people who really need help and direction and I always learn something. You are very special people.

Illinois has a state employee retirement. Most county and city governments do also. She needs to research this more.

Luckily for her, Springfield, IL has a very low cost of living. Combined with no other debt, she should be able to save aggressively for the next 15 years

This is a great example of why baby step 4 comes before baby step 5. Paying for kids college is not as important as investing for your own retirement. The kids can work their way through college. Great advice from Papa Dave, as usual.

@amireallythatgrumpy6508

7 ай бұрын

Actually steps 4, 5 and 6 are designed to be done concurrently.

@MichaelAnderson-wk1no

7 ай бұрын

​@amireallythatgrumpy6508 They are designed to be done concurrently but STARTED in that order. As in, if you can't afford to move on to step 5, then you should just focus on 4.

@amireallythatgrumpy6508

7 ай бұрын

There's no way you can't afford to start all three simultaneously. That is simply an impossibility,@@MichaelAnderson-wk1no

@anthonydooley3616

7 ай бұрын

@@amireallythatgrumpy6508 but they didn't do that, did they? They funded college only, and now they are broke and running out of time.

Dave is exactly right about the numbers 👏 👌 To many people don't like mathematics. Math is our friend when it comes to building wealth. I never felt wealthy until I had no payments to make. Deat free is the way to be.

My mom is 79 years old & has saved about $225,000. She has no debt & works 3 days a week as an admin. I'm her only child & often ask her if she'll spend some of the money on something she wants. She says she'll just keep saving to leave to me when she passes away. As much as I appreciate her kindness, I'd love it if she even took a couple thousand to go on a fun trip somewhere she wants to go.

Dave is the only person in the personal finance space who claims you can withdraw 10% per year in retirement. Most financial advisors say 3 to 4 %. It is ill advised to withdrawn 10% and can hurt them down the road. Lets say the market goes down 30% and you withdrawn 10% in that year, your portfolio is going to be hurting.

@goofygirl1311

7 ай бұрын

I think he was saying that IF her investments earn 10% a year that she could live off that 10% without touching her principal. He was simply using that as an example. He wasn't saying that she could take 10% out of her investments each year.

@jeffreywhitaker5154

7 ай бұрын

@@goofygirl1311EXACTLY! WELL SAID. 👍🏾🙏🏾💪🏾

@brookslindblad2202

7 ай бұрын

Yeah but he’s implying that. Apparently market volatility doesn’t exist when you’re retired

@jeffreywhitaker5154

7 ай бұрын

@@brookslindblad2202 I think 10% is too generous I’d say more like. 6 to 8%.

@Excalibur2

7 ай бұрын

​@@goofygirl1311why not suggest she take 20% per year then? Just as an example.

Very smart and sweet lady

This is a GREAT CALL. Quick and to the point. DR didn’t overtake her too much. She sounds like she’s going to get on it. Hope she calls in a yr to follow up.

I’m only curious how Ramsey calculated 500000$? Because 12000 a year at 10% return is about 350k. 12000k a year for 17 years at 11% is 500k that’s kinda optimistic. But either way the lady still has time she deserves suppport and guidance

@DoctorSmartyPants

7 ай бұрын

Did you use a compounding calculator?

@Dividendsmattertoo

7 ай бұрын

@@DoctorSmartyPantsyea a advanced one with dividend growth and taxes too still didn’t get 500k and i assumed she started out with 0$

@foodmens

7 ай бұрын

​@@DoctorSmartyPantsyep he's still off by $100k but Its the idea he has that matters so. Touche

@riceball777

7 ай бұрын

he always uses 12% as a rate of stock market returns. 12% annual average return after 15 years with a consistent $1000 per month of investing is 500,000. The stock market has adveraged about 10-11% over he past 100 years and well over 12% over the past 20 years

@MrDonny27

7 ай бұрын

​@@riceball777my s&p 500 stock been flat since 2021😅😅😅😅😅. It almost same in put in

How can 12K a year for 15 years (180k) turn into 500k? Sorry, but no way.

@Bigtimeinvestor414

7 ай бұрын

Exactly he’s just about hype

Admittedly I’ve acquired to much debt. I’m over 50. The jobs I’ve had hasn’t allowed me to acquire a lot of skills. I can do a lot . But don’t have many credentials or experience . Getting laid off permanently from my job of 13 years. Was finally able to save a little in my 401k. Now I see no choice but to cash out and pay off debt. Kids , stay out of factory work unless you can get a skill like maintenance or supervision. Factories use you up. Then throw you away . when they are done with you. Leaving you to start over with less pay and no vacation.

He’s 100% right

I'm rooting for her.

I am 46 still no retirement

@Dontagerivera39

7 ай бұрын

You still young u have alot of time to make it happen

lots of people are in this situation. wish now I'd saved more for retirement, had to leave job at 56 due to cancer, got a pension and have SS check, but it goes real fast

Glad that their are resources that Ramsey provides to setting them up for financial success. And like they said, “we are not here to beat on you” that’s why many stay in the same situation, cause where can they turn?? When they’re so much criticizing from our peers. God Bless

My wifes grandmother is in her early 70s. She still has a mortgage. Shes living off her social security. She saved nothing for retirement. I think she makes like 2000 a month from social security. She complains about money all the time. Trust me, it could be MUCH worse. This lady could be in a great spot by 70.

In case anyone was wondering. For tax year 2023, the contribution limit for a Roth IRA is $6,500 for those under 50 and $7,500 for those 50 and older

dave never ask how much her house is worth, i mean it might be worth selling house and buy a condo if it just her. plus she said she has a retirement from her husband work. i would look into that.

She is better than my in laws, they have not home, no retirement and only 50k in savings, a truck loan and they are in their lates 60s. But, they took two trips vacation this year because they deserve it and who knows what future brings, my father in law exact words. She will be ok, now just focus on savings and retirement. Good luck lady.

@xyz987123abc

7 ай бұрын

We see. Your husband, his son, is his retirement plan. When he comes a knocking show him where the job applications are. After all who knows what the future holds. Your husband and you have bigger priorities than them: your own retirement. Gotta shake my head at these Yolo 's ( you only live once).

Better than my dad who is 73, has a 340,000 mortgage and no retirement and less than 1,000 in the bank.

@darionfranklin

7 ай бұрын

Put your dad on blast 😂😂

Anybody else love it when the question takers match? 😅😂😂😂

Shes doing fine The only priblem is Illinois has incredibly high property taxes.

Here Dave goes again suggesting a 10% withdrawal rate. Completely insane.

@TheFlyingZulu

7 ай бұрын

@@robertrecchia2642As long as you check to ensure cash isn't a cheaper option when you buy gas and groceries then go for it.

@parisa9resident456

7 ай бұрын

and the returns...I have been a steady contributor to vanguard managed 401k...I don't get close to 10 to 12 percent a year...especially not the last 5 years

So glad to hear she paid off the mortgage with the life insurance money. Unsure where the rest of her money is going after food, property taxes, homeowners insurances, etc. Wish her the best. Atleast she's not trying to get advice at 65 with debt and no savings.

@georgewagner7787

7 ай бұрын

Social workers don't make much