Episode Overview

Podcast: Ramsey Everyday Millionaires
Episode Title: I Have $3.5 Million Saved, but I’m Still Scared to Retire
Date: December 26, 2025
Hosts: Dave Ramsey, Rachel Cruze (others present but not all vocal)

In this episode, the hosts speak with Steve, a 62-year-old attorney from Raleigh who has $3.5 million in retirement savings but is hesitant to retire due to fears about health insurance, the lack of incoming income, and the challenge of transitioning into the next phase of life. The conversation delves into overcoming psychological barriers to retirement, financial sustainability, and the importance of planning purposeful activities for post-work life.

Key Discussion Points & Insights

Steve’s Situation & Concerns

• Steve’s Profile:
  • 62 years old, attorney, not married, house fully paid off, no debt.
  • $3.5 million saved across 401(k)s and IRAs, no pension.
  • Current income: $175,000/year.
• Main Concerns:
  • Fear about no more income coming in after retirement.
  • Health insurance worries.
  • Anxiety about drawing down savings and market volatility.
  • Struggling emotionally with idea of retirement: “What I really want is somebody to tell me that I can stop.” (00:39, Steve)

Financial Reality Check

• Investment Math:
  • Dave explains how $3.5 million invested in good growth stock mutual funds, averaging 10% annually, could theoretically generate $350,000/year in returns without touching principal. (01:27)
  • In less robust years, can comfortably draw less (e.g., $200,000/year), letting the rest grow to offset downturns:

    “The down years very seldom are below 5%. Find a time that the stock market made under 5%. The number of times in the last 30 years—hardly ever.” (02:01, Dave)

• Financial Security Affirmed:
  • Hosts stress that Steve’s situation is exceptionally secure, even compared to most retirees:

    “It’s impossible, unless you lose your mind and join Congress, for you to go through this money before you die.” (02:30, Dave)

  • No debt, house paid off—major points of stability.

Psychological and Lifestyle Factors

• Navigating Emotions Around Retirement:
  • Dave notes that for many, the shift from earning to drawing down savings can be “emotionally weird.”
  • Suggests focusing on what’s next for meaning, not just finances:

    “I would develop something I’m going to do. I don’t care what it is...You have a unique skill and license that you could probably do some things that would be an unbelievable blessing... but give you something to lay your hand to the plow. So, you know, you’re still planting some corn in this earth.” (03:26, Dave)

• Purpose after Retirement:
  • Steve: “What I feel like I should be doing is spending time with people that I love... the whole, you know, pushing paper around is not a good use of my time.” (02:48, Steve)
  • Dave emphasizes having a plan beyond watching Netflix and encourages Steve to contribute, perhaps pro bono legal work for ministries or nonprofits.

Practical Retirement Advice

• Withdrawing Money:
  • Strategy: Withdraw a sustainable amount (e.g., $200k/year) and let the rest continue to grow.
  • Steve is advised to sit down with a financial advisor to solidify withdrawal and investment strategies.
• Embracing Life Transitions:
  • Rachel Cruze highlights the importance of taking note of life events that prompt reevaluation and encourages listening to those moments for guidance:

    “Whatever happens, you know, we didn’t ask, but he said, recent events have made me realize, wow... Use those. Those are gifts, whatever that is. Whether it was a tragedy or a gift or a blessing, whatever that thing was that caused this kind of change of heart... There’s something in that for you.” (05:28, Rachel)

Notable Quotes & Memorable Moments

• Dave Ramsey:

  “It’s impossible, unless you lose your mind and join Congress, for you to go through this money before you die.” (02:30)

• Steve (caller):

  “What I really want is somebody to tell me that I can stop.” (00:39)

• Dave Ramsey:

  “Netflix doesn’t cut it.” (04:43)

• Rachel Cruze:

  “Use those. Those are gifts, whatever that is... There’s something in that for you.” (05:28)

Important Segment Timestamps

• 00:16: Steve introduces his concerns about retiring, lack of incoming income.
• 01:07: Steve confirms $3.5 million in retirement accounts.
• 01:27–02:14: Dave explains investment returns and withdrawing in down years.
• 02:30: Dave’s “it’s impossible” quote, assuring Steve he won’t outlive his money.
• 02:48: Steve shares emotional and relational motivation for retirement.
• 03:26–03:49: Dave counsels on purposeful post-retirement plans.
• 04:43–04:54: Dave: “Netflix doesn’t cut it. That’s going to be key for me is having a plan.”
• 05:28: Rachel emphasizes the value of life pivots as gifts/motivations.

Episode Summary & Takeaways

• If your finances are solid, retirement is a mathematical no-brainer – but the emotional and existential aspects still need planning.
• Leaving the workforce should be paired with planning purposeful activities to avoid feeling lost.
• Listening to major life events and internal promptings can clarify post-retirement purpose and goals.
• With discipline, responsible withdrawal strategies, and attention to both financial and emotional well-being, retirement can be a season of flourishing, not just financial security.

Steve receives reassurance and actionable advice: not only can he afford to retire, but he’s also encouraged to shape his next chapter with intention and connection.