I'm 59 Years Old With Nothing Saved For Retirement!

Mary is with us in Florida welcome to the Dave Ramsey show Mary I'm Dave thanks for taking my call sure what's up well I just recently sold my home and paid off almost all of my debt and but I'm 59 and I do not have any money in retirement so I was wondering what your advice would be instead of taking all the money that I have and putting it into a home I was thinking that maybe I should beef up an investment account but I know that your steps say that's like borrowing money to invest right okay so how much how much debt do you currently have that you have not paid off well I have a lease that has 30 months remaining and it's 400 a month but I just didn't think it would be wise to turn that over yet okay and do you have anything else you debt no I am cash flowing my daughter's college right now and no other debt okay and how much money do you have that is in your account today with the sale of your house after you paid off some of the debts well I have a total of 290 I put ten thousand in my emergency fund and I have about five thousand in an account because I haven't done my eighteen taxes yet and let's get ready to do them that's right but if I was going to do a step I'm self-employed and if I was going to do a step I wanted to I've been waiting to figure out what to do before and what do you earn what's your household income you it's about $70,000 in here what kind of a business have you got I do small business bookkeeping individual very good yeah okay so it's fairly low impact so you can do more of it and do it longer that's a good news yeah okay all right so what price range was the home you sold it was it sold for five hundred and eighteen thousand got it okay and what city do you live in in Florida I am just north of Palm Beach Florida okay all right huh as in the Jupiter market like that just just about you okay I don't know where you are okay well I would like to stay in the $300,000 range for home and so I was thinking maybe invest 200 into the house and take a small mortgage for ten years and here's where here's what we've got to get here's our ratios here's the three or four numbers that are the big numbers in your equation okay the by age 70 something okay 15 years 75 okay 15 years from now we have to have a nest egg in a paid-for house mm-hmm we currently have 290 thousand to do that with and we have $70,000 a year to do that with mm-hmm okay and so that's you're working to 75 okay mm-hmm if we you know or 272 or whatever if we say 12 years I don't care but you've got $70,000 a year and two hundred ninety thousand to accomplish that because if you do not have a paid-for house when you're through working you're going to have a major problem because it destabilizes your whole situation have a mortgage when you are retired do not want to go into retirement retirement with note with a mortgage so we've got to clear the house the second thing then every dollar we pay into this house obviously means we don't have it in a nest egg and borrowing it doesn't fix that because we got it if you borrowed on your house and say ok I'm gonna put 200 down and end of my have $100,000 mortgage well then you know you still gotta pay the hundred thousand off and that's still a hundred thousand it's not going into my retirement nest egg so what would I do if I woke up in your shoes ok here's what I would do if I woke up in your shoes I don't know what you'll do but this is what I would do I would buy a $200,000 house for cash which in your area ain't much of a house ok it's an OK house it's certainly not a Shack but it's a pretty far step down from where you were living I understand that when I'm saying this I'm going somewhere with this don't quit on me till we finish talking ok so I would start there and I pay off my car today find out what the early buyout on it is is probably around 12 grand probably 11 10 11 grand something like that and find out what the buyout is and just pay the stupid thing off and own the car okay or sell it and get one that you pay cash for I don't care spend ten or twelve thousand dollars doing that twenty thousand bucks whatever it takes let's get out of this car lease no more payments now we got zero payments now in my little scenario of the world I just invented okay and we've got $50,000 or so to start investing start our investing process into good mutual funds then you load up a SEP you load up a Roth IRA and you do everything you can to increase the number of accounts you keep books for and let's increase your income and let's bust it for a few years now if we can get you up to a half-million dollars in savings for your retirement in a few years and you want to move up in house and pay cash for the move up that'll be okay that means we've gotten past the danger zone but you retiring with zero money or close to zero money and a nice paid for house is not a plan and so I'm gonna scale your house back to get the other stuff started and then you know in five years when you see that this is working and you want to move up in house again move up to about a four hundred and pay cash for it and you know I think you'll be able to do that later in this plan but I want you to make sure we first have got the wolf away from the door mm-hmm so I would live in that $200,000 house for three to five years while I got my nest egg roaring and when it's roaring and it's going big it's on fire then I'm talking about saving up paying cash moving up in house a little bit and we know we're gonna be okay I think you'll be okay if you do all of this and you live on a tight budget but you have not done that to date today you've not saved a dime in 59 years on the planet so you got some proving to do to yourself not to me but to yourself that you can do this and you need to scale this house down with no house payment to enable that to happen and you need to get on the every dollar budget so hold on I'm gonna do two things I want you to go through Financial Peace University and I'm gonna show you how to be a millionaire in 14 years and you can do that making $70,000 a year especially in your situation because you get two hundred nine thousand bucks in the bank you got a good start on this okay so um you hold on I'll have Madison sign you up and that's gonna hook you up with every dollar plus when you do the membership it includes the class every dollar plus all the other classes legacy journey everything's in there so you hold on and we'll give you that as our gift the other thing we're gonna send you is Chris Hogan's book retire inspired his first number-one bestseller and you that's what we're trying to do here we're trying to take you a 59 years old and get you respite it's you're retiring inspired and that that's what I would do if I woke up in your shoes I'm not I don't know if you'll do it or not but that that's a really good mathematical system I just gave you there and it will work I promise you it will work if you push it through

Channel: The Ramsey Show - Highlights

Views: 1,854,740

Rating: 4.8502975 out of 5

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, I have nothing saved for retirement!, retirement, retirement savings, personal finance, saving for retirement, money, retirement planning, savings, finance, investing, how much to save for retirement, no retirement savings

Id: 8LBLIBirxzo

Length: 8min 26sec (506 seconds)

Published: Tue Oct 01 2019