I Have $3.5 Million Saved, but I’m Still Scared to Retire

Summary

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.

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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)

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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)

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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.

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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.

Transcript

[A]

This episode is brought to you by Smartvestor. Connect with an investing pro near [e-mail] Smartvestor Steve is in Raleigh. Hi, Steve. How are you?

[B]

Oh, I'm doing fine. It's great to be with you guys.

[A]

You too. How can we help?

[B]

So I'm 62 years old and I've been trying to think about retirement. The things that are holding me back are. Well, health insurance is one thing, and also the fact that no money will be coming in, but all money will be going out. And I'm having a hard time getting comfortable with that. And what I really want is somebody to tell me that I can stop.

[A]

What do you mean no money will be coming in? You mean you won't be earning an income?

[B]

That's right.

[A]

Okay. And so do you have a pension? Do you have a 401k nest egg?

[B]

Yeah, yeah. I've got 401ks and IRAs and all that stuff.

[A]

Okay. No pension?

[B]

No pension.

[C]

How much is in all those accounts?

[B]

3.5 million.

[A]

Okay. All right. Well, if no money's coming in, it's just because you're not taking any of it is all. Okay. Because let's just be. What do you make a year?

[B]

175.

[A]

Okay. Way to go, man. I'm proud of you.

[C]

Well done, Steve.

[A]

I assume you started with nothing and became a multimillionaire.

[B]

Yep.

[A]

I'm very proud of you. That's amazing. American dream is not dead. Gentlemen. Ladies and gentlemen, meet Steve. So now. So you understand that 3.5 invested in good growth stock mutual funds, if it averaged 10% would be 350k.

[B]

Yeah.

[A]

Income that it produces without touching the nest egg.

[B]

Right.

[A]

Which is twice what you make now.

[B]

Right. I guess, you know, they're still. There's still, you know, there's some years it's going to be up, some years it's going to be down. What do I do in the down years?

[A]

Use some of it.

[B]

Yeah.

[A]

Okay. So the down years very seldom are below 5%. Find a time that the mute that the stock market made under 5%. The number of times in the last 30 years. Hardly ever.

[B]

Right. Okay, right.

[A]

Like maybe two. And so you use a little bit of the 3.5 maybe, but maybe don't take the whole 350 off. Maybe take 200 off and let it grow by 150 to cover the down years.

[B]

Right.

[C]

See, do you guys.

[A]

It's impossible unless you lose your mind and join Congress. For you to go through this money before you die.

[C]

Is your house Paid off and everything. Steve, Any debt?

[B]

No, no debt. House paid.

[A]

Okay. How long you been married?

[B]

You know, I'm not married.

[A]

What is it you want to do with the rest of your life?

[B]

I've still got to figure that out. I would like to travel some, you know, life events. Recent, somewhat recent life events have made me realize that what I should be doing or what I feel like I should be doing is spending time with people that I love.

[A]

Yep.

[B]

And people that love me.

[A]

Yep.

[B]

And the whole, you know, pushing paper around is not a good use of my time.

[A]

Yeah. Anymore. What do you do for a living?

[B]

I'm an attorney.

[A]

Okay. All right, cool.

[C]

Do you have family? Steve around?

[B]

Yeah, yeah, I've got a brother and sister.

[C]

Okay, that's great.

[A]

Okay. Well, I'll tell you two things. One is, yes, you're in excellent financial condition. You've done a wonderful job and you're able to retire. And if you pulled off 200 and left, let it grow by 150 a year, the this would run in perpetuation. And I don't know who you're going to leave the 3.5, 3.5, 3.5,. 3.04 million. Oh, four and a half million. Because it's going to keep growing because you're not going to use it all. So who are you going to leave all that to so easily? This is a no brainer equation. You're easily able to quit. Then I will also tell you because I'm your age, I'm 65, I'm a little older. And that you have friends and I have friends who retirement wasn't good to them emotionally. They didn't know what to do with themselves. So I would develop something I'm going to do. I don't care what it is. And it doesn't have to be 80 hours a week. It doesn't have to be pushing paper. You do have a unique skill and license that you could probably do some things that would be unbelievable blessing to some ministries and to some nonprofits from an attorney's perspective and not strain you even a little bit, but give you something to lay your hand to the plow. So, you know, you're still planting some corn in this earth.

[B]

Right.

[A]

And you just need something to do. Netflix doesn't cut it.

[B]

Yeah, that's true. You're right. Yeah. That's going to be key for me is having a plan.

[A]

Yeah. So I think I would develop that before I pull the trigger on this. But the question you called here for is mathematically this is a no brainer.

[B]

Okay.

[A]

It's 2x of a no brainer.

[B]

Right. Okay, that's good.

[A]

Yeah. You're in great shape. Sit down with your financial coach or your financial advisor and talk about how you can draw 200k off of this and make sure it's invested in something that's averaging what the market's averaging, and you'll be just fine. And well done, Steve. Yeah, man. That's amazing. It's amazing.

[C]

It is interesting. Whatever happens, you know, we didn't ask, but he said, recent events have made me realize, wow. And it's. 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 to a degree. Listen to that. I mean, there's something. Something in that for you.

[A]

Yeah. Yeah. It's exactly. It's very smart to do that. And you ought to be doing that at all ages as you go along. But also when there's some. When you have these certain appointments. Yep. God. Appointments that come across your path, you need to listen to them. You're right, Rachel.