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

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.

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)

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..." |

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.

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.

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