How Do We Build Wealth Once Our House Is Paid Off?

Summary

Podcast Summary: Ramsey Everyday Millionaires Episode: How Do We Build Wealth Once Our House Is Paid Off? Date: April 10, 2026

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Episode Overview

In this episode, the Ramsey Network team, led by George Kamel and Rachel Cruze, answers listener Scott’s question about building wealth after achieving the milestone of a paid-off house. The conversation centers on next steps for someone who’s debt-free, managing an emergency fund, and expanding investments, especially for those later in their career. Scott shares his journey and financial status, leading to a focused, practical discussion on investment strategy, retirement planning, and financial freedom.

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Key Discussion Points and Insights

1. Listener Scenario: Debt-Free and House Paid Off

• [00:22] Scott (Listener) announces:
  "I am completely debt free."
  • Paid off his house at age 65 and is working on replenishing his emergency fund.
  • Financial stats: $100,000 annual income, $214,000 in IRA, $36,000 in mutual funds, $325,000 house.
• [00:32] Rachel Cruze:
  “[Step seven] paid off house. Yes, sir... Oh, everything. Oh, my gosh. Well done.”

2. Emergency Fund Prioritization

• [00:49] Scott describes:
  Pulled ~$12,000 from his emergency fund to pay off the house; wants to restore fund to $50,000 (currently at $25,000).
• [02:08] George Kamel recommends:
  “I would keep that emergency fund in a high yield savings account... the rates are currently over 3%... you're at least keeping up or beating inflation with that money.”
  • Suggests Fairwinds Credit Union for an online, no-fee high-yield savings account.

3. Investment Strategy: Next Steps After Debt-Elimination

• [01:09] Scott's Plan:
  Looking to expand mutual fund investments; interested in understanding allocation (large cap, mid cap, low cap, international).

• [02:20] George Kamel’s advice:

  • Focus first on tax-advantaged retirement accounts (IRA, Roth IRA).
  • After that, use a taxable brokerage for further investing.
  • Diversify across four mutual fund types:
    • Growth and income fund (large cap)
    • Growth fund (mid cap)
    • Aggressive growth fund (small cap)
    • International fund

• [04:14] George Kamel:
  “Once you've funded the emergency fund, park in the high yield, maxing out the IRA, the next move would be a non-retirement account if you've run out of retirement options… we're going to even go further by going into a growth and income fund... then the international fund to balance it out.”

4. Working With Financial Advisors

• [04:32] Rachel Cruze asks:
  “Do you work with a financial advisor or have you ever?”
• [04:35] Scott responds:
  He’s worked with the same advisor for 15 years—credited this guidance for his current position.
  • Relates a casual story: “I was in Sam’s the other day and he was walking through Sam’s and we got to talking. I told him where I was at and everything. He’s like cool, let’s work, let’s talk.”

5. Living in Baby Step 7: Your Options

• [04:52] George Kamel clarifies:
  "You're in a different place. Baby Step 7, it's live and give like no one else, build wealth... you could, you know, pay cash for real estate if you wanted to do that. The world is your oyster at this point, especially making 100 grand with no [debt]."

6. Retirement Philosophy: The Value of Work

• [05:15] Rachel Cruze:
  “What is your plan for retirement to sort of replace your income and cut your expenses?”
• [05:19] Scott answers:
  “Work. Just work. I'm gonna work until the good Lord says, hey, look, you can't work no more, or, or somebody... pisses me off. And I say no.”
  • Emphasizes desire to work as long as possible.
• [05:31] George Kamel:
  “That's the Dave Ramsey strategy — why would I stop working? I like what I do, which is great.”
  • Notes that continued work means compound growth can work longer.

7. Social Security Timing and Strategy

• [05:49] Scott:
  “I'm 65 now. 67, I can double dip, so I can go in and, you know, get my regular paycheck and then also get, you know, drop Social Security. And that's just more money that I can stack.”
• [06:02] George Kamel:
  “Yeah. And the longer you delay it, the more you'll get in that Social Security. So if you don't need it, just, you know, kick it down the road and take it at 70 to get the max amount.”

8. Catch-Up Contributions for 65+

• [06:10] George Kamel:
  “You have catch-up contributions, which is great because of your age. You can actually put more into those retirement accounts than the average person.”

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Notable Quotes & Memorable Moments

• [00:27] Rachel Cruze:
  “Yeah, you are. Great job, baby.”
  (Celebrating Scott's debt-free status)
• [04:52] George Kamel:
  "The world is your oyster at this point, especially making 100 grand with no [debt]."
• [05:19] Scott:
  “Work. Just work. I'm gonna work until the good Lord says, hey, look, you can't work no more, or... pisses me off. And I say no.”
• [06:10] George Kamel:
  "Catch-up contributions... you can actually put more into those retirement accounts than the average person. Young bucks like me love it."

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Timestamps for Key Segments

• 00:22-01:05: Scott shares his financial status and goals.
• 01:56-02:20: Inquiry about investment options; mutual fund allocation.
• 02:08-02:50: Advice on emergency fund strategy and best account types.
• 04:00-04:52: Diversification, taxable brokerage vs retirement accounts, advisor relationship.
• 05:15-05:49: Discussion on work-life philosophy and retirement approach.
• 05:49-06:10: Social Security claiming strategies; catch-up contribution details.

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Tone and Takeaways

The conversation is practical, optimistic, and encouraging, reflecting the Ramsey Network’s empowerment-driven financial philosophy. The hosts celebrate Scott’s achievements with enthusiasm and reiterate the importance of living below your means, disciplined investing, and leveraging every available financial tool for continued wealth-building, especially after reaching a debt-free lifestyle.

Listeners are reminded: Being debt-free with a paid-off house opens the door to real wealth-building, where disciplined saving, diversified investment, and wise use of retirement tools can secure your financial future at any age.

Transcript

[A]

This episode is brought to you by SmartVestor. Connect with an investing pro near you at RamseySolutions.com SmartVestor Scott is in Bowling Green up next. Scott, what's going on?

[B]

Hey, George, Rachel. How are y' all today?

[A]

We're wonderful. How can we help you?

[B]

I am completely debt free.

[A]

Whoo.

[C]

Yeah, you are. Great job, baby.

[A]

Step seven paid off house.

[B]

Paid off house. Yes, sir.

[C]

Oh, everything. Oh, my gosh. Well done.

[A]

I could tell in his voice he had an ease and, like, he was kind of flexing like, I am debt free. How old are you?

[B]

I am 65 years old.

[A]

Wonderful.

[C]

Good for you.

[A]

Okay, what's your question today?

[B]

I'm at that point, so, you know, well, let me go back. I do have to replace some money back into my fully emergency fund or fully funded emergency fund.

[A]

Okay.

[B]

Because I pulled that out to pay the house off about $12,000. So.

[C]

Nice.

[B]

Anyway, a little over 12,000. But my fully funded emergency fund is. My goal is 50,000 there, and I've got about 25 into it right now, so I got to put 25 more into it. I'm completely out. So couple things here. My questions are at this point, which I've already got an traditional IRA that has about 214, 215,000 in it, and I've got two mutual funds, probably about 36,000 in that. I want to be able to go in to put more money into mutual funds. I think from, you know, the total money was something about a high cap, low cap, mid cap, and a foreign cap or a foreign mutual fund.

[A]

Yep.

[B]

And I want to learn more about that. And then also put some, I guess, part of that 50,000 into a high yield interest savings account.

[A]

Yeah.

[B]

Is that. Are these the smart moves that I need to make? And also I want to look at maybe doing a Roth IRA to kind of balance out the taxable versus the non taxable.

[A]

Yeah. I would be focused on those retirement accounts right now, you know, taking advantage of those tax advantage accounts first. And so that would be the strategy here. And did you have a 401k through your employer?

[B]

No, no. It's something I've done for the past 15 years.

[A]

You're self employed?

[B]

No, I'm not. I work for a company, but we don't have a 401k program.

[A]

Okay. No retirement program.

[B]

I have done that all on my own over the past 15 years.

[C]

Good for you.

[A]

Okay, so your options would be then maxing out that IRA every. What is your income?

[B]

Yep, my income is about 100 grand.

[A]

Fantastic. Okay, so maxing out the IRA is a great start. That'll get you pretty far. And I would keep that emergency fund in a high yield savings account and you can open one up with our friends at Fairwinds Credit Union online on your phone within minutes and keep that parked there. You know, I think the rates are currently over 3% and so you're at least keeping up or beating inflation with that money instead of it sitting at 0% and you're local bank savings account. So that's a piece of homework. Fairwinds Credit Union, you can go to fairwinds.org Ramsey and they've got a bundle there with an online checking and the high yield savings and no fee on that. And they're, they've been an awesome partner because they have the same goal in mind. They want people to be like Scott, financially free with a paid off house. Okay, so you've got that. So once you've funded the emergency fund, park in the high yield, maxing out the ira, the next move would be a non retirement account if you've run out of retirement options. And so like you said those mutual funds and a taxable brokerage account would be the move and we do say to diversify across four different types. So a mutual fund just is a giant basket of stocks and we're going to even go further by going into a growth and income fund which that would be kind of your, your high cap. Then you've got the growth fund which is more the mid aggressive growth which is the lower and then the international fund to balance it out. Because what we've seen, which especially 2000 to 2010 that period the US market took a dive and the international market kind of balanced it out. And so that's what you want to kind of de risk your portfolio.

[C]

That's kind of the foreign account, right. That you were asking about. Scott? Yeah.

[A]

Do you work with a financial advisor or have you ever?

[B]

I do, I do. I've been working for, with this guy for about 15 years. That's what kind of got me started on things of doing this. That's why I've been a matter of fact I was in Sam's the other day and he was walking through Sam's and we got to talking. I told him where I was at and everything. He's like cool, let's work, let's talk. You know. So awesome.

[A]

Yeah, you're in a different place. Baby. Step 7 it's living give like no one else. Build wealth and so you can max out all the Accounts. You can, you could, you know, pay cash for real estate if you wanted to do that. The world is your oyster at this point, especially making 100 grand with no.

[C]

How much is your house worth, Scott?

[B]

It's about 325,000.

[C]

Okay. Amazing. Well done.

[A]

Yeah.

[C]

That's so great.

[A]

What is your plan for retirement to sort of replace your income and cut your expenses?

[B]

Work. Just work. I'm gonna work until the good Lord says, hey, look, you can't work no more, or, or somebody. And I'll just say, this pisses me off. And I say no.

[A]

There we go. So far that hasn't happened. That's good. But yeah, that's, that's the Dave Ramsey strategy is why would I stop working? I like what I do, which is great. And so maxing out those retirement accounts, if you work another 10 years, I mean, that nest egg will just continue to grow with compound growth. And so we are rooting for you to have an awesome retirement.

[B]

Yeah, that's one thing I know too, is, I mean, I'm. I'm 65 now. 67. I can double dip, so I can go in and, you know, get my regular paycheck and then also get, you know, drop Social Security. And that's just more money that I can stack.

[A]

Yeah. And the longer you delay it, the more you'll get in that Social Security. So if you don't need it, just, you know, kick it down the road and take it at 70 to get the max amount. And so you've got a lot of options here. And you have catch up contributions, which is great because of your age. You can actually put more into those retirement accounts than the average person. Young bucks like me love it. I needed a win today. I love talking to Scott. That was awesome.