Can We Cut Back on Retirement Investing to Get Some Margin Back?

Summary

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Podcast Summary: "Can We Cut Back on Retirement Investing to Get Some Margin Back?"

Podcast: Ramsey Everyday Millionaires
Host: Ramsey Network
Date: December 19, 2025

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Main Theme

In this episode, the hosts take a call from Stephanie in Chicago, who asks if it's wise to reduce her and her husband's retirement contributions to gain more financial margin after purchasing a forever home. The discussion explores how much is enough when preparing for retirement, and offers tangible advice for balancing aggressive investing with present financial needs and peace of mind.

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Key Discussion Points & Insights

1. Stephanie’s Financial Situation

• New Home, Tighter Budget
  Stephanie and her husband recently upgraded to their "forever home." Their mortgage payment increased and now accounts for about 25% of their monthly income.
• Other Financial Strains
  Additional expenses include private school tuition for their son (with plans to move him to public school next year), unexpected home repairs, saving for a vehicle, and a desire to pay off the home early.
• Retirement Savings Rate
  Both are contributing 16% of their incomes to retirement accounts individually (not counting a generous employer match of 8%), plus they’re maxing out Roth IRAs.
• Total Contributions
  With employer match, they’re putting away about 24% each toward retirement—considerably more than standard recommendations.

2. Is It Okay to Cut Back Retirement Contributions?

Host's Response:

• Recommended Rate:
  Recommends saving 15% of income for retirement (not including employer match).

• Order of Contributions:

  • Contribute to the 401(k) up to the employer match (8%)
  • Contribute to Roth IRA up to its annual maximum
  • If more room remains up to 15%, add back to the 401(k)

• Reframing Employer Match:
  Clarifies that the 16% personal contribution shouldn’t be conflated with the employer’s 8%—only 8% of the couple’s own money should go toward the 401(k).

  Quote:

  "So, yeah, you guys are probably putting too much in retirement. So what we would say is 15% of your income needs to go into retirement… Both your 401k, the 8%, not including the employer's match. I just count your 8% going in, and then the remaining up to 15% take to your Roth IRA."
  — (B, 02:26–02:39)

3. Crunching the Numbers

• Annual Income:
  Family makes about $160,000 combined (including commission).

• Practical Application:

  • Max Roth IRA at $8,000 per person.
  • Do the math to ensure total contributions reach but don’t exceed 15%.
  • Any remaining money after hitting 15% can go toward more immediate needs: home repairs, savings for a car, or paying down the mortgage.

  Quote:

  “So again, after you fund that 8%, if 7% of your income left fills up the Roth IRA, then just stop. You guys are good. But again, if you hit that max and you still have one or two percentages left... go back to the 401k.”
  — (B, 03:52–04:09)

4. The Emotional Side: “What is Enough?”

• Anxiety Over ‘Enough’
  Stephanie expresses difficulty feeling secure, even when the numbers on paper look good. She and her husband both grew up with limited financial security.

• Reassurance from Hosts:
  Hosts highlight that at age 38 and with ~$500,000 saved, Stephanie and her husband are in excellent shape. They cite the rule of 72—funds doubling every seven years—as proof of her future millionaire status if they just stay the course.

  Quote:

  "Sister, you're good. So what's crazy is, Stephanie, if you just stop right now and don't do anything, your money will double every seven years. Okay?... You're going to have millions every time."
  — (B, 05:01–05:11)

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Notable Quotes & Memorable Moments

| Timestamp | Speaker | Quote | |------------|---------|-------| | 02:26 | B | "So, yeah, you guys are probably putting too much in retirement. So what we would say is 15% of your income needs to go into retirement..." | | 03:52 | B | “So again, after you fund that 8%, if 7% of your income left fills up the Roth IRA, then just stop. You guys are good...” | | 04:19 | C | “It’s hard for me because I know on paper, like, what we have saved up looks good, but... my mind doesn’t connect with it.” | | 04:34 | A | “So what is enough? What does enough mean?” | | 05:01 | B | "Sister, you're good. So what's crazy is, Stephanie, if you just stop right now and don't do anything, your money will double every seven years..." |

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Important Segments & Timestamps

• 01:01 - Stephanie breaks down their new monthly budget and pressures on their finances.
• 02:16 - Hosts analyze how much the couple is actually putting into retirement.
• 02:26 - Hosts provide the ideal retirement savings structure (401k up to match, then Roth, then back to 401k if needed).
• 04:19 - Stephanie expresses her emotional doubts and feelings of financial insecurity.
• 05:01 - Hosts offer reassurance based on their current retirement savings and the power of compound growth.

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Episode Takeaways

• Cutting back to 15% for retirement won’t derail your future, and offers room for current needs/goals.
• Prioritize company match, Roth IRA contributions, then revisit 401(k) as needed.
• Building margin in your budget is a valid reason to reduce over-aggressive retirement savings.
• It's common to feel like "it's never enough," especially if you come from a background lacking financial security—but the numbers can provide peace if you trust the process.

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Tone:
Supportive, practical, and reassuring, with hosts aiming to provide not just financial strategy but peace of mind.

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Transcript

[A]

This episode is brought to you by SmartVestor. Connect with an investing pro near you at RamseySolutions.com SmartVestor all right, let's go.

[B]

To Stephanie in Chicago. Hi, Stephanie.

[C]

Hi.

[B]

Hello. Hello. Welcome to the show. How can we help today?

[C]

Thank you. I've been a fan for a very long time. I appreciate what you guys do.

[B]

Thank you. Thanks for calling in.

[C]

My question is related to our retirement savings. So my husband and I recently bought what we hope to be our forever home. We sold our starter and our mortgage has obviously increased, as has the rate. So we're wondering if it's ever okay for us to pull back from retirement savings and just kind of give ourselves more margin for our increase in expenses.

[B]

What percentage is your mortgage payment on this forever home compared to your income?

[C]

So I. It's, it's close. It's about 25% of our monthly income.

[B]

So where's the rest of your money going?

[C]

So we do have. Our son does go to private, which is something that. It was kind of one of the reasons that we did move neighborhoods. So it's very likely that he may be going to the local public school next school year. But we also have some repairs to do in this home that were a bit unexpected. And we do have some goals for the future as far as saving for a vehicle and paying off the home faster, which is something that has kind of been weighing on me. I was very comfortable with the mortgage that we had, but we're, we're kind of at odds at whether we should pull back. I'm kind of more on the. I think we should just keep saving where we're at and make it work.

[B]

And my doing 15%, putting 15% away, and that's too much is what you're saying.

[C]

So we're each doing 16%, not including our company match, which is pretty generous.

[B]

Okay.

[C]

And then we're also maxing out our Roth IRAs from our take home pay.

[B]

Okay. Do you know, percentage wise, how much of your income is going to all of those? Because that's going to be way more than 15%.

[C]

I don't. If we're including our company match, we're both each putting away 24% of our income.

[B]

Okay. Yes.

[C]

That's not including the Roth IRAs that we're.

[B]

Yeah, exactly. Okay. Yeah. So, yeah, you guys are probably putting too much in retirement. So what we would say is 15% of your income needs to go into retirement. How much does your company match?

[C]

It's 8% total.

[B]

8%. Okay. So what I would do is go up to the match, and then the remaining percentage that you guys have, I would go then to the Roth. Max out the Roth, and if there's any percentages left, go back to your. To the 401k. But I would just do 15% of your income into retirement. Both your 401k, the 8%, not including the employer's match. So that's not 16. I don't count the employers as 16. I just count your 8% going in, and then. And then the remaining 15% take to your Roth IRA. And if you max that out, depending on what you're making, if you max it out, go back to the 401k. Or it may just be enough just to do the 8%. And then maxing out the Roth, I'm not sure. So you guys will have to kind of do the. The math on that. But, yeah, I would cut back your retirement to 15%.

[C]

Okay, so you're saying just do the 8% to match the company and then put the remainder of that into our Roth.

[B]

Into your Roth, yes. But because how much are you. How much are you guys making a year combined?

[C]

It fluctuates because we both have our base salary and then commission. But I would say, comfortably, it's the most we've ever made. We're at about 161 60.

[B]

Okay, well, then. Okay, so. So the. The max on the Roth this year, I think, is 8. So what I would. 8,000 each. So again, after you fund that 8%, if 7% of your income left fills up the Roth IRA, then just stop. You guys are good. But again, if you hit that max and you still have one or two percentages left of your income to hit that 15%, go back to the 401k. Does that make sense?

[C]

Yeah, it's hard for me because I know on paper, like, what we. What we have saved up looks good, but, like, my mind doesn't connect with it just never feels like enough. I think I maybe worry too much about the future.

[A]

So what is. What is enough? What does enough mean?

[C]

You know, I wish that I knew. I think it just boils down to the fact that we both grew up pretty poor and no one in our family had any financial literacy. And I'm always like, you know, we're. I feel like we have. Really?

[B]

How old are you guys? How old are you guys? Stephanie?

[C]

We're both 38.

[B]

Okay, and how much do y' all have in retirement right now?

[C]

Between all of our IRAs and 401ks, it's just about 500,000.

[B]

Okay, sister, you're good. So what's crazy is, Stephanie, if you just stop right now and don't do anything, your money will double every seven years. Okay? So you guys are going to have millions every time. If you didn't do anything from now, like, if you. Even if you just stopped. And you're going to continue to contribute 15%. So the remaining money that you're going to stop putting in retirement. Yes. Upgrade the cars if you need to and pay the house off early.