Dave Walks Through His Retirement Investments

Summary

Podcast Summary: Ramsey Everyday Millionaires

Episode: Dave Walks Through His Retirement Investments
Host: Dave Ramsey (with Ken Coleman)
Date: January 14, 2026

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Main Theme

This episode centers on demystifying retirement investing by spotlighting Dave Ramsey's personal investment strategy. The discussion, sparked by listener Chip’s real-world retirement questions, explores why simplicity and discipline win over complicated financial products. The focus is on building wealth with mutual funds, avoiding unnecessary risk and fees, and ignoring “noisy” advice from various planners. Both the theory and lived experience of Dave and callers reinforce the episode’s core message: “Do what we do, not just what we say.”

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Key Discussion Points & Insights

1. Listener Story: Navigating Post-Retirement Decisions

• Chip, recently retired at 59 after 30 years with a phone company, calls in for guidance.
• He and his wife have followed Dave’s plan for years, even teaching Financial Peace University.
• Chip is overwhelmed by differing advice from brokers and planners urging index funds, ETFs, annuities, and especially a “60/40” stocks-bonds split.
  • Quote: “I feel like I’m in the toothpaste aisle, Dave… People want me to do index funds and ETFs and mutuals and annuities and bonds and oh my.” (Chip, [01:12])
  • Chip’s situation: 2.2 million dollar nest egg; starting a part-time financial coaching business post-retirement.

2. Dave’s Retirement Investment Approach

• Dave recommends avoiding bonds and annuities for healthy 60-year-olds, criticizing the outdated “60/40” rule.
  • Quote: “See, the bond thing is based on a theory called asset allocation...if you don’t smoke, you’re not obese, and you’re fairly healthy at 60, the data tells us you’re going to live to 90… so that means these morons are putting you in bonds for 30 freaking years. That’s stupid.” (Dave, [04:11])
• His personal portfolio:
  • 1/4 in Aggressive Growth
  • 1/4 in International
  • 1/4 in Growth
  • 1/4 in Growth & Income
    (All with long, preferably 10+ year track records. [03:01, 08:48])
• Dave emphasizes Roth IRAs for tax-free growth and inheritance, describing his own journey converting to Roth.
  • Quote: “Mine’s all been converted to Roth over the years, so it’s all growing tax-free...I don’t touch any of it. It’s all just growing more and more and more and more. And it’s very simple. You do not need bonds.” (Dave, [03:47])

3. Simplicity Over Sales Pitches

• Dave and Ken highlight the financial industry’s tendency to overcomplicate with products that confuse and often underperform.
  • Quote: “There’s enough opinions out there in the financial world. They’re like armpits. Everybody’s got one that usually stinks.” (Dave, [05:10])
• The show’s advice has not changed in 30 years; what they recommend is what the hosts do themselves.
  • Quote: “I don’t have, like, a Dave plan and then a plan for the little people...No, I’m not in a different situation. I’m the same situation all y’all are in.” (Dave, [06:19])
  • Quote: “We eat what we cook. I mean, we cook what we eat...If you actually do the crap we teach on this show, you actually are gonna be where Chip is—$2.2 million at 60 years old.” (Dave, [07:17])

4. Fundamental Strategy—Repeated for Clarity

• Listeners are urged to stick with the basic four types of mutual funds, check performance annually, and not to “chase” fads.
• Emphasis is placed on long-term commitment and resisting emotional or reactionary moves.
  • Quote: “This is not a suggestion, Dave, that’s kind of worked out for you. It’s worked out for everybody who’s ever adopted that plan.” (Ken, [07:04])
  • Quote: “A fourth in growth, a fourth in growth in income, a fourth in international and a fourth in aggressive growth. All with the longest possible track record, preferably 10 years or more.” (Dave, [08:48])

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Notable Quotes & Memorable Moments

• On resisting unnecessary complexity:

  • “I feel like I’m in the toothpaste aisle, Dave… People want me to do index funds and ETFs and mutuals and annuities and bonds and oh my.” (Chip, [01:12])
  • “There’s enough opinions out there in the financial world. They’re like armpits. Everybody’s got one that usually stinks.” (Dave, [05:10])

• On the “four buckets” plan:

  • “My personal mutual fund portfolio...is 1/4 in Aggressive, 1/4 in International, 1/4 in Growth, and 1/4 in Growth in Income, all with long track records. I hardly ever change funds.” (Dave, [03:01])

• On keeping it simple (and honest):

  • “We eat what we cook. If you actually do the crap we teach on this show, you actually are gonna be where Chip is—$2.2 million at 60 years old.” (Dave, [07:17])

• On longevity and risk:

  • “If you don’t smoke, you’re not obese, and you’re fairly healthy at 60, the data tells us you’re going to live to 90… so that means these morons are putting you in bonds for 30 freaking years. That’s stupid.” (Dave, [04:11])

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Timestamps for Key Segments

• [00:22] – Chip’s Retirement Background & Questions
• [01:41] – Overwhelm Over Investment Choices (“Toothpaste aisle”)
• [02:33] – Revealing the Nest Egg and Mindset
• [03:01] – Dave Details His Personal Investment Strategy (“Four Buckets”)
• [03:47] – Roth Conversion and Tax-Free Features
• [04:11] – Critique of Bonds for Retirees and Asset Allocation
• [05:10] – On Overabundance of (Bad) Financial Advice
• [06:19] – Emphasizing Transparency (Hosts Follow Their Own Advice)
• [08:48] – The Four Mutual Funds Repeated Clearly

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Final Takeaways

• Clarity Beats Complexity: Stick with a simple, well-diversified mutual fund strategy. Ignore industry pressure for unnecessary products.
• Authenticity: What the pros teach is what they do; the advice is time-tested and based on real-world millionaire behaviors.
• Discipline Pays Off: Consistency and discipline over decades, not hot tips or trends, yield results—echoed in both Dave’s and listeners’ stories.
• Don’t Fear Missing Out: Resist the urge to chase new shiny investments. Trust long-term historical performance.

Summary:
If you want to build lasting wealth, copy the “four mutual funds” strategy used by Dave and countless Everyday Millionaires. Avoid bonds, annuities, and financial products you don’t understand—especially in healthy retirement years. Simplicity, discipline, and trust in proven principles will get you where you want to go.

Transcript

[A]

This episode is brought to you by Smartvestor Connect with an investing pro near you at ramseysolutions.com Smartvestor chip is with us in Atlanta. Hi Chip, how are you?

[B]

Fantastic. Dave, Ken, I hope you all are doing well today.

[A]

Better than we deserve. How can we help?

[B]

Well, you know, Dave, I've had the blessing of being married at 30 years. No, 30 years. So I can't even get it right. Retired. 30 years, 20 some odd years. But because my wife introduced me to you many, many years ago, I thought she was having an affair, but it was just Dave Ramsey she was listening to every day. Who is this Dave? Got me some round glasses and a goatee. No, I'm just kidding that way. But we, we've also been teaching financial Peace University for many years and making a difference in people's lives and we appreciate it and graduated from SCMT this year. So, wow, a lot of thank yous for these things, but really my call is on the retirement. So I've been with a big phone company for 30 years and as you know, the big AI and everybody else kind of pushes us out the door. It was kind of time to go, but I've started a financial coaching business on the side, so still going to be doing some work.

[A]

Good for you.

[B]

Just helping people and trying to make a blessing and a difference in their lives. Got an NFL player that was broke to zero and trying to get him out of debt. That's terrible. But we can do. But the question is, is when it comes to retirement planning, the funds. And I've talked to some of your smartvestor pros. You know, I feel like I'm in the toothpaste aisle, Dave, because, you know, people want me to do index funds and ETFs and mutuals and annuities and bonds and oh my. And I feel like hunting season.

[A]

Who are the people?

[B]

Well, the different ones are different. Different brokers. So you have your major brokers that I'm talking to their fiduciaries, but I'm also talking to financial planners through my church that are quote unquote, qualified, certified. They may not vestor pros. And none of your pros have sent me in any weird direction. They've given me some good advice. But like I said, it's just a lot of confusion with the ets, the, you know, mutuals, the bonds. And you know, the biggest one was, you know, one of my financial planners wanted me to put a million and a half in an annuity. I'm thinking, no, why? And then another one wants me to do at least the old 60, 40 rule where he puts about 40% of my money into bonds, which I'm like, yeah, why my dad did that.

[A]

How old are you?

[B]

I'll be 60 in April.

[A]

Okay, and what size is this nest egg we've got?

[B]

2.2.

[A]

Okay, good for you. Good for you.

[B]

Okay, good for my wife. She's the one that kicked my rear.

[A]

Well, you know, let's just quiet all the noise. I don't do any of the things you're talking about.

[B]

Yeah, I know.

[A]

65.

[B]

We don't teach it either.

[A]

I'm 65, so why would you.

[B]

Yeah, I'm in agreement.

[A]

Okay, well, that pretty much.

[B]

This is what we teach. I'm going to have your four buckets.

[A]

My personal mutual fund portfolio with my smartvestor Pro is 1/4 in Aggressive, 1/4 in International, 1/4 in Growth, and 1/4 in Growth in income, all with long track records. I hardly ever change funds. I buy funds that perform as well or better than the funds in their same categories and they almost always do, and I just don't worry about it. And they just grow. I mean, the S and p was up 17% this year so far, and my funds are up more than that.

[B]

It's been a crazy couple of years.

[A]

Yeah, so I mean, why do I need to do anything else? Mine's all been converted to Roth over the years, so it's all growing tax free. It'll all be left tax free in the inheritance. There's no RMDs on Roth, so I'm completely free of tax and free of tax constraints. And I don't touch any of it. I don't need any of it. It's all just growing more and more and more and more. And it's very simple. You do not need bonds. You do not. See, the bond thing is based on a theory called asset allocation. And the theory of asset allocation is, is that as you get older, you should take less risk. And the problem is, is that the financial planning community, some of them have over indexed on that theory to where they take a 60 year old and start putting him in bonds. Now, if you don't smoke, you're not obese, and you're Fairly healthy at 60, the data tells us you're going to live to 90 on average. So that means these morons are putting you in bonds for 30 freaking years. That's stupid.

[B]

Agreed.

[A]

Okay, then why do we, why are we even entertaining this?

[B]

As I said, I'm like looking in the toothpaste Now. And I should know better.

[A]

Yeah. I mean, your teeth are clean and your breath smells good. Just keep using the one you've been using.

[B]

There you go.

[A]

Just, you know, I mean, it's that simple. It's. Yeah, there's enough. There's enough opinions out there in the financial world. They're like armpits. Everybody's got one that usually stinks. So, you know, it's like.

[C]

Well, I think this is. You know, this is actually an interesting. This is a great guy, but here's a guy who has taken our financial training, has lived out the principles. He gives his wife a lot of credit, and yet he was allowing all of the flashy sales pitches, what he kept calling the toothpaste aisle to create some doubt. And I think that. I appreciate him calling you, but I think this is important that everybody rewind and listen to what Dave said, because these are facts and how the stock market has performed over decades. And so if you can return to the fundamental facts of the investment strategy that Dave teaches and that we teach here, it's a nice reminder. So write it down, save it, and listen to it when people come at you with all these pitches.

[A]

And I think it's important, too, to say that not only is this what we teach, we've taught it for 30 years, but also it's what we do.

[C]

Correct.

[A]

I don't have, like, a Dave plan and then a plan for the little people. You know, there was a financial person that was big in the news for years ago and had their portfolio on Money magazine. And they're like, well, that's not what you tell people to do. And the person said, well. Well, you know, I'm in a different situation. No, I'm not in a different situation. I'm the same situation all y' all are in.

[C]

You eat what you cook.

[A]

That's it all the time. I kill it. I drag it home. I eat it. It's that simple. And then I tell y' all exactly where the deer are. Let's go get one. You know what I mean? Come on. This is not. This is not. This is where the ducks are. Go get you a duck. I mean, what is it you want? I mean, so it's not a. This is not a thing. It's. By the way, there's no secrets of the rich.

[C]

No. And I want to point out it's not a suggestion, Dave. That's kind of worked out for you. It's worked out for everybody who's ever adopted that plan. It is a solid strategy. Those four types of funds.

[A]

Never had anybody call me and say, I did this for 25 years and I hate you. Never had that hate mail, correct. Most of my hate mail is on people who think something's gonna turn out some way and they don't like the suggestion and they've never done it. And that's where the hate. That's where the trollers come from. The trolls. And so I get to be Billy Goat Gruff, you know, and so that's it. But if you actually do the crap we teach on this show, you actually are gonna be where chip is $2.2 million at. At 60 years old. This is. You're not going to have 40 million in Bitcoin, but you're also not going to be bankrupt. So you get to choose. What game do you want to play here, boys and girls? But we eat what we cook. I mean, we cook what we eat. We eat what we cook. We are not in here telling you to do something and then we don't go do it because we've got more money or whatever. I didn't hit a certain point and quit doing the stuff. I hit a certain point and did more of the stuff. You know, I was like, well, this is fun. Let's do it again. I mean, it's called touchdown. That's how you score a touchdown. I want to score another one. Let's do this again. Let's do this again. Let's do this again. Over and over and over and over and over again. Rinse and repeat. My pastor was making fun of me. He said, dave, you say the same thing over and over. And I said, so do you.

[C]

Fair point. You know what, Dave? I think it would be awesome. Hit the four funds. Hit our core financial strategy for people so they don't have to rewind. This is how much we're going to serve people.

[A]

A fourth in growth, a fourth in growth in income, a fourth in international and a fourth in aggressive growth. All with the longest possible Track record, preferably 10 years or more. If you're buying an independent mutual fund for an IRA from your SmartVestor Pro, like a Roth IRA, you definitely can choose funds that are longer than 10 year track record inside your 401k. They may or may not, but get good long track records and then, you know, look at them once a year and go, wow, look at this. This is what's happening. And some years ago up, some years ago down, but most years ago up, some years ago way up. And like this year.