Did We Make a Mistake Moving Our 401(k) Into CDs?

Summary

---

Podcast Summary

Podcast: Ramsey Everyday Millionaires
Episode: Did We Make a Mistake Moving Our 401(k) Into CDs?
Date: December 24, 2025
Hosts: Dave Ramsey, Jade Warshaw (Co-host, Financial Expert)
Caller: Lisa from Charlotte

---

Episode Overview

In this episode, Dave Ramsey and Jade Warshaw take a call from Lisa, who is seeking financial guidance after moving her and her husband's retirement savings out of the stock market into Certificates of Deposit (CDs) during the pandemic. Concerned about missing out on market gains and nervous about re-entering the market as retirement approaches, Lisa looks for reassurance and advice about her next steps. The hosts use the opportunity to address common fears about investing, the costs of emotional financial decisions, and long-term strategies for building wealth and peace of mind.

---

Key Discussion Points & Insights

1. Lisa’s Situation (00:14 - 01:31)

• Lisa and her husband, ages 54 and 59, have substantial retirement savings:
  • His 401(k): $535,000
  • Her IRA: $275,000
  • CDs: $200,000
• During the pandemic market dip, Lisa moved retirement funds into 4- and 5-year CDs (earning 4-5% interest) due to fear and her own health concerns (on disability for lupus).
• Lisa is worried they made a mistake by missing out on market recovery and wonders if they should shift the money back into stocks.

2. Analysis & Advice: Leaving the Market (01:31 - 03:13)

• Dave Ramsey:

  • Acknowledges Lisa’s move was a “mistake” but very common:
    • “What we always say is the only person that gets hurt on a roller coaster ride is the person that jumps off. And essentially, Lisa, you did... you jumped off.” [01:52]
  • Explains missed returns:
    • "...seven times what you’ve been making is what you would have earned." [01:59]
  • Stresses importance of staying invested for long-term growth.

• Jade Warshaw:

  • Confirms the sums mean Lisa still holds nearly $1 million in savings.

3. Should They Get Back into the Market? (03:13 - 04:53)

• Dave Ramsey:

  • Encourages Lisa and her husband to “get back in” despite market highs:
    • "You still have a long term, if you will, time to get back in the market…just picture 30 years as an example of what you guys have to kind of ride this out." [03:53]
  • Recommends consulting a financial advisor (SmartVestor Pro), especially to address Lisa’s fear and learn about market recovery stats post-crisis.

• Jade Warshaw:

  • Highlights that missing out on the market growth costs much more in the long run compared to the safety of CDs. Encourages Lisa to do thought exercises on “what would have happened” if she hadn’t moved the money for perspective. [06:41]

4. Paying Off the Home Mortgage (04:53 - 08:59)

• Lisa’s house: worth $900,000, owes $168,000 at 2.5% interest.

• Dave Ramsey:

  • Advises being aggressive about paying off the house, even with low interest.
    • “…the peace part of that. You guys are…your husband’s about to be in his 60s. There’s nothing better than having no payments in the world and owning the place where you live in.” [07:16]
  • Notes no one regrets paying off their house:
    • “I have not gotten one message or one comment that someone who pays off their house regrets it.” [07:57]
  • Cautions against the “math game” of leveraging low-interest mortgage for higher market returns, highlighting emotional and psychological benefits.
    • “…the peace of mind of knowing that my house, I don't owe anyone anything. And there's something so powerful about the autonomy of our money.” [08:27]

• Jade Warshaw:

  • Suggests the worst-case scenario of entering retirement with both a mortgage and reduced investment account balances:
    • “Suppose you go into retirement in a really down or really low year. Now you’ve got less money in your accounts currently and you’ve got your mortgage and this whole life of debt to keep up.” [08:38]

5. Encouragement & Closing Remarks (08:59 - End)

• Lisa’s nervousness is common—hosts encourage her to educate herself further and trust the long-term process.
• Dave and Jade affirm that Lisa and her husband are in a strong financial position and with the right steps, can secure both peace of mind and financial prosperity in retirement.

---

Notable Quotes & Memorable Moments

• Dave Ramsey:

  • “The only person that gets hurt on a roller coaster ride is the person that jumps off.” [01:52]
  • “Even if it's two and a half percent, you're making 3% on your CDs, you guys are…you have a wash right now. So, yes, I would be aggressive on paying off the house.” [04:54]
  • “I have not gotten one message or one comment that someone who pays off their house regrets it.” [07:57]
  • “…what you can't calculate, what you can't put in a spreadsheet or a formula is that peace of mind of knowing that my house— I don't owe anyone anything. And there's something so powerful about the autonomy of our money.” [08:27]

• Jade Warshaw:

  • “You gotta account for the peace…your husband's about to be in his 60s. There's nothing better than having no payments in the world and owning the place where you live in.” [07:16]
  • “No one has ever said, man, I wish I still had my mortgage.” [07:57]
  • “…if you…play it out in your mind what would have happened if you hadn't made that error…that’ll help with some of the nerves to say, well, everybody who stayed in is actually doing better ahead.” [06:41]
  • “Suppose you go into retirement in a really down…year…you’ve got your mortgage and this whole life of debt to keep up.” [08:38]

---

Key Segment Timestamps

• 00:14 – Lisa introduces her question and financial background.
• 01:31 – Dave addresses the “mistake” and the roller coaster analogy.
• 03:13 – Discussion of Lisa and her husband's age and outlook for retirement.
• 04:16 – Evaluation of total assets, loans, and income.
• 04:53 – Discussion returns to investing strategy and paying off the home.
• 07:16 – Psychological value and peace of mind from paying off a mortgage.
• 07:57 – No one regrets paying off their home.
• 08:38 – Risks of entering retirement with outstanding mortgage debt.

---

Takeaways

• Emotional, fear-driven decisions can cost substantial long-term gains in investing.
• Even in mid-50s to late-50s, there’s ample time to benefit from long-term stock market investing.
• Paying off a mortgage offers peace of mind that no spreadsheet or market return can equal.
• Consulting a trusted financial advisor is especially valuable when facing anxiety about investment choices.
• Financial peace is as important as mathematical optimization in retirement planning.

---

Transcript

[Dave Ramsey]

Foreign.

[Podcast Announcer]

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

[Dave Ramsey]

To Lisa in Charlotte. Hi Lisa. Welcome to the show.

[Lisa (Caller)]

Thank you.

[Dave Ramsey]

Yes, absolutely. How can we help today?

[Lisa (Caller)]

So my husband and I, we have between our Roth IRA and our 401K, he has 535 and I have 275,000 plus 200 in a CD. And I think we messed up during the pandemic when at the beginning, when it took like a big dive, I got nervous because I'm on disability right now. I have lupus back. And so we're not contributing to our IRA anymore. And so what I did is I moved everything. I kept it in the Roth IRA and mutual funds, but I took it out of the stock market. So it's kind been sitting there earning a little less interest. So I'm wondering if we messed up for retirement or if we should move it back into the stock market at our age or what we should do.

[Jade (Co-host or Financial Expert)]

So the 535 and the 275 are no longer invested?

[Lisa (Caller)]

They are, but not in the stock market. They're more in a secure. I put them in the CDs, so 4 and 5 year CDs. So they're earning 4 and 5% interest.

[Dave Ramsey]

Yeah. Okay, so not to just lay it on like said, but did you make a mistake? The answer would be yes, because I just want to use this as a teaching example that what you did, you know, is pretty normal people do freak out if they start to see a dip in the market. They're like, oh dear God. And they pull their money out or they put it somewhere else. And what we always say is the only person that gets hurt on a roller coaster ride is the person that jumps off. And essentially, Lisa, you did, you jumped off. Because the last, you know, few years have been 23. I mean, it's been like, it's been crazy. So it would have been, I mean, yeah, yeah. I mean, seven times, you know, what you've been making is what you would have earned. So did you make a mistake? I'm going to say yes, because I think long term investing, you just stay in. Whether it goes down and you get freaked out, just stay on the roller coaster because it's going to go up and down. It's what the market does. But when you pull your money out, if you pulled it all the way out, which I can't tell if quite, which I don't know, I don't know exactly how that transfer looks.

[Lisa (Caller)]

I didn't, I didn't pull it out where I'm paying taxes on it.

[Dave Ramsey]

Yeah. So it's still under the 401k but in the money marketplace. But what, but what's difficult now is when, because I want to say, yes, put your money back in. You're now going to be buying back in at the top where you would have, you know, you would have lost all those returns. So it's not too late. We can, you can still get Becca and Lisa. So I didn't mean to harp on you, but I did want to make that a kind of a teaching point because what you did was very common. People do that a lot. But, but just not to freak out next time because, you know, you guys did lose out on a, on a, on a lot of interest that you could have earned. So what I would do is, yes, I would get back in. How old are you guys?

[Lisa (Caller)]

I'm 54 and my husband's 59 and 59.

[Dave Ramsey]

Okay, perfect. Yes.

[Lisa (Caller)]

That's what we're worried about is retire, retirement. Like we don't want to go back in and then worry a little bit about, about that. But our house is almost, is almost paid off, so we feel better about that. But we still, we owe 168,000 left on your house.

[Dave Ramsey]

Okay. How much you guys make a year?

[Lisa (Caller)]

So again, right now I'm not. So he makes 122,000 and I get about 30,000 with my Social Security.

[Dave Ramsey]

Oh, that's right. Okay, perfect. Okay, that's great. So you guys, it's about 150 and then. Yeah. So I'm just thinking, you know, at 54, 59. I mean, you guys, you know, I mean, it could be another 30 years, 35 years that you guys live, you know, if you're, if you guys are, you know, healthy and doing all the things. So that's why you still have a long term, if you will, time to get back in the market that even if it does dip for a little bit, a few years, think you got, you got, you know, just picture 30 years as an example of what you guys have to kind of ride this out. Yeah.

[Jade (Co-host or Financial Expert)]

And am I if I'm understanding the numbers right, you have a million dollars. Right. Right. You had 5, 35, 275 and 209.

[Lisa (Caller)]

900 our house is worth. And we owe just 168 left at two and a half percent interest. So I haven't been paying that much extra on that right now just because our interest is so low.

[Jade (Co-host or Financial Expert)]

Right. But just the CDs alone, the 535, the 275 and the 200. Did I get those numbers right?

[Lisa (Caller)]

Yes, yes.

[Jade (Co-host or Financial Expert)]

Yeah. So if you're saying, hey, today I'm going to plug in a million dollars, that's not bad, right? I mean, of course, keep three to six months out in cash, but I. You're going to be just fine.

[Lisa (Caller)]

Okay.

[Dave Ramsey]

Yeah. Put that money in. And I would. Lisa, I think you're a little hesitant to even get back in the market. But I would. Because if you think about even. Okay. In your house, you've got to get aggressive on that house. Lisa, Even if it's two and a half percent, you're making 3% on your CDs, you guys are, you know, you're paying what you're making and you're kind of washed. Yes. You're. You have a wash right now. So, yes, I would be aggressive on paying off the house. And then we just talked to a couple, we literally just had debt free scream that they, you know, they paid theirs off, which is amazing. So, so it can be done. So I do that. And then I would, I would even sit down. We have great smartvestor pros there in Charlotte. And I would sit down with someone and look to see and tell them about, about, you know, a little bit of your nerves around the, you feel like it's risky, like you don't want to lose your retirement. You know, these kind of things, because a lot of people can feel that way. But what I want you to do is listen to someone that you trust, someone that you like. You know, find a financial planner that you actually, I think, personally enjoy because I think it's important that you trust them and let them show you some of these numbers. And to be able to say, hey, here's the facts of the track record of the markets on the. On. Yeah, with the COVID I mean, what was the stats we. We taught on this? Gosh, it's been five years now, but when it went down, I think it only took nine months to get back to what. Where it was and beyond. You know what I mean? So, like even that was a quick. When you look at these massive, you know, 0807 was a little bit different. But you look at, you know, things like Covid, September 11, you look at these major events that do take kind of a dip, but then a lot of them return so quickly that the news doesn't talk about it, that it all gets back up, you know, within a few months. So So I do want you to do some digging and some learning.

[Jade (Co-host or Financial Expert)]

Yeah.

[Dave Ramsey]

When it comes to it, because it is worth it, Lisa, you guys still have plenty of years ahead of you that you guys could really be making some gains. When it comes to your money versus it just sitting in CDs. It'll be a detriment long term.

[Jade (Co-host or Financial Expert)]

And I think if you. I think what will help you with your fear is play it out not just the way it went down, but play it out in your mind what would have happened if you hadn't made that error. And then you'll see.

[Dave Ramsey]

Oh, gosh, the juxtaposition.

[Jade (Co-host or Financial Expert)]

Yes. And you'll. I think that'll help with some of the nerves to say, well, everybody who stayed in is actually doing better ahead. Right. So.

[Dave Ramsey]

Yep. So. Yeah.

[Lisa (Caller)]

And then as far as the house goes, you do recommend paying? Because I have money in a cd, I could.

[Jade (Co-host or Financial Expert)]

Yes.

[Lisa (Caller)]

When that expires, I could just pay the house. But I was thinking since the interest rate was low. Okay.

[Jade (Co-host or Financial Expert)]

No, I would do it.

[Lisa (Caller)]

You recommend.

[Jade (Co-host or Financial Expert)]

Yes. You gotta account for the peace that. The peace part of that. You guys are, you know, your husband's about to be in his 60s. There's nothing better than having no payments in the world and owning the place where you live in.

[Lisa (Caller)]

Okay, great.

[Dave Ramsey]

Yep. Absolutely. Thanks, Lisa, for the call.

[Jade (Co-host or Financial Expert)]

We.

[Dave Ramsey]

We appreciate it. Yeah, there is that house portion is. It's an interesting one because I think every single person we've talked to, Jade, that sounds extreme because we've talked to a lot. Yeah. Tens of thousands, hundreds of thousands of people that have paid off their home at events or been here on the debt free stage or contacting us on, on social or something to let us know. I mean, I have not gotten one message or one comment that someone who pays off their house regrets it.

[Jade (Co-host or Financial Expert)]

That's right. No one has ever said, man, I wish I had.

[Dave Ramsey]

I wish I still had my mortgage. Oh, I just wish I still had my mortgage. Because here's the thing, too. You can always go back and get another mortgage if you want. You can go back and borrow on your house.

[Jade (Co-host or Financial Expert)]

Right.

[Dave Ramsey]

Once it's paid off. So. And from a mathematical standpoint, you know, the game is that people play that I can make more in the market than what I'm actually, you know, invested in, a 2 1/2% interest rate. But I could be making 15% in the market. You know, my gosh, like, I have this huge spread. But what doesn't. Yeah. What you can't calculate, what you can't put in a spreadsheet or a formula is that peace of mind of knowing that my house, I, I don't owe anyone anything. And there's something so powerful about the autonomy of our money.

[Jade (Co-host or Financial Expert)]

Absolutely. And then I think about, I mean, this is just worst case scenario, but I think about the person who doesn't pay off their house and they go into retirement. And suppose you go into retirement in a really down or really low year.

[Dave Ramsey]

Yes.

[Jade (Co-host or Financial Expert)]

Now you've got less money in your accounts currently and you've got your mortgage and this whole life of debt to keep up. So there are things to think about.

[Dave Ramsey]

Absolutely. Such a great point. But yeah, Lisa, thanks for the call. And I think that's a great, you're a great example of what people are feeling and thinking sometimes. And so I really appreciate you calling in.

[Podcast Announcer]

Thanks for tuning in to Ramsey Everyday millionaires Need help with your investments? Connect with a smartvestor [e-mail] smartvestor or click the link in the show notes. Ramsey Solutions is a paid non client promoter of participating pros. Learn [e-mail] SmartVestor.