Should I Stop Chasing Homeownership and Focus on Building My Retirement?

Summary

Ramsey Everyday Millionaires

Episode: Should I Stop Chasing Homeownership and Focus on Building My Retirement?
Air Date: May 27, 2026
Hosts: Ramsey Network (Rachel Cruze & Dr. John Delony)

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Episode Overview

This episode centers on a listener’s dilemma: Should a late-career, newly single individual focus her limited resources on homeownership, or put everything into investing for retirement? The hosts, Rachel Cruze and Dr. John Delony, take a deep dive into Karen’s financial landscape, run the numbers on her potential future, and offer practical advice anchored in the Ramsey philosophy of debt-free living, disciplined investing, and responsible home buying.

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Key Discussion Points & Insights

1. Karen’s Situation: Background (00:44–01:31)

• Karen (Caller): 58 years old, recently divorced, full-time nurse earning ~$90,000/year
• Completed Ramsey Baby Step 2 (debt free except mortgage), building emergency fund
• Has $230,000 in retirement, renting, wondering if pursuit of homeownership makes sense or if she should maximize investments instead

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2. Retirement Investment Projections (01:31–02:12)

• Dr. John Delony quickly runs Karen’s numbers:

  • Input: Age 58, $230K in retirement, contributing $1,000/month, working until age 70
  • Projection: $1,036,000 by 70
  • Quote (John, 02:09):
    "You would have $1,036,000 when you turn 70. Does that make you breathe a little easier?"

• Karen confirms this is reassuring, but notes future inheritance could alter her plans.

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3. The Homeownership Question (02:26–04:27)

• Rachel Cruze argues it’s important to consider buying, even if it’s modest (e.g., a condo):
  • Rent is a perpetually rising expense; owning creates stability and security.
  • Suggests a simple, affordable property with total price range ~ $200–250K.
  • Action Steps:
    • Keep contributing 15% of income to retirement.
    • Next: Save aggressively for a down payment.
    • Goal: Pay off the home before retirement at 70.
  • Quote (Rachel, 03:55):
    "I want a goal would be to have that paid off, that property, when you go into retirement at 70—which you easily can do."

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4. Inheritance: Don’t Count on It (04:27–05:54)

• John gets frank ("Can we get real dark for like 30 seconds?"):

  • Karen expects ~$350K inheritance, but John cautions on relying on it—medical expenses, long-term care, or other unexpected events can deplete inheritances.
  • Quote (John, 05:45):
    "Create a life for yourself that if this money never comes through, you're all good. And if it does—amazing."

• Karen acknowledges she isn’t counting on inheritance, just wants to be prudent in her planning.

  • John and Rachel commend her practical approach, noting many callers fall for the temptation to “buy ahead” based on expected windfalls.

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5. Ramsey’s Formula for Home Buying (06:03–07:09)

• Rachel outlines the plan:
  • Contribute 15% to retirement after emergency fund is complete.
  • Save for a down payment (20% is great, 5% minimum).
  • Buy only if debt-free, with a fully funded emergency fund, and so mortgage doesn’t exceed 25% of take-home pay (on a 15-year fixed).
  • Look for ways to accelerate the payoff (overtime, side gigs).
  • Quote (Rachel, 07:09):
    "If you can put 20% down… awesome. Or if you want to get into something with 5% if you find a great deal and it makes sense. But our parameters…debt free…fully funded emergency fund…at least a 5% down payment…and your mortgage payment is no more than 25% of your take home pay on a 15-year fixed rate. That’s our Ramsey formula."

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6. Encouragement and Perspective (07:10–End)

• Rachel and John emphasize how strong Karen’s position is for her age and stage.
  • Rachel:
    "You’ve done such a great job, Karen… $230,000 in retirement. And what’s wild is that doubles every seven years… So, you’re doing really great on that end."
  • Past callers have started with far less—her foundation is solid.
• Karen is reassured that she’s on the right track and receives affirmation for her approach to finances and life after divorce.
  • Rachel:
    "You’re starting a new chapter in your life, Karen. Really proud of you."

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Notable Quotes & Memorable Moments

• Dr. John Delony (02:09):
  "You would have $1,036,000 when you turn 70. Does that make you breathe a little easier?"

• Rachel Cruze (03:55):
  "I want a goal would be to have that paid off, that property, when you go into retirement at 70—which you easily can do."

• Dr. John Delony (05:45):
  "Create a life for yourself that if this money never comes through, you're all good. And if it does—amazing."

• Rachel Cruze (07:09):
  "Our parameters with buying a home is that you are debt free, you have that fully funded emergency fund, at least a 5% down payment and then your mortgage payment is no more than 25% of your take home pay on a 15-year fixed rate. So that's kind of our Ramsey formula for it."

• Rachel Cruze (End):
  "You’re starting a new chapter in your life, Karen. Really proud of you."

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Timestamps for Key Segments

• Karen introduces her situation: 00:44–01:31
• Retirement calculations: 01:31–02:12
• Rent vs. buy analysis: 02:26–04:27
• Inheritance reality check: 04:27–05:54
• Ramsey homebuying rules: 06:03–07:09
• Encouragement to Karen: 07:10–End

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Summary Takeaways

• If you’re nearing retirement, focus on a balanced approach: continue investing (at least 15%) but also strongly consider affordable homeownership for long-term stability.
• Don’t make major life decisions based on “expected” inheritance; unexpected expenses can deplete those funds.
• Stick to the Ramsey home-buying formula: no debt, strong emergency fund, solid down payment, and a manageable mortgage.
• Celebrate your financial wins and keep steady—real wealth comes from patience, discipline, and smart, conservative choices.

Transcript

[A]

Foreign.

[B]

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

[A]

to Karen in St. Louis. Hi, Karen. Welcome to the show.

[C]

Hi. I always apologize for my name.

[B]

Oh, goodness gracious.

[A]

That is. I have an Aunt Karen.

[B]

My name is Joe. I have an Aunt Karen. My name's John. After a toilet. You're fine.

[A]

That's a tough name to have these days. Karen, we do not judge. We do not see you as stereotypical Karen.

[B]

At least it's not Rachel.

[A]

We are. We are happy you called in. How can we help?

[C]

So I am a recently divorced, 58 year old nurse working full time. I make about $90,000 a year.

[A]

Okay.

[C]

I have just finished baby step two.

[A]

Yeah, good for you.

[C]

And I'm now working on my fully funded emergency fund.

[A]

Okay.

[C]

I have about $230,000 in my retirement and I'm currently a renter. And my question is, should a mortgage or a house even be in my consideration for the future? Because my income's not going to really change much in the next 10 years, or should I just dump everything I can into my investments for retirement?

[B]

So I just. I'll let Rachel Andle answer the. The house question. I just put your current numbers in the Ramsey investment calculator. Okay. I put your age at 58. And since you're a nurse now, you might say no, But I put. I put 70. Okay. That you would work till 70 and that you currently have 230 grand in investments. And I put that you would contribute a thousand bucks a month if you contributed $1,000.

[C]

Yeah.

[B]

You would have $1,036,000 when you turn 70.

[C]

Okay.

[B]

Does that make you breathe a little easier?

[C]

Totally. Totally. And the caveat in my financial future is my parents, who are in their mid-80s. My inheritance will pay fully for a home.

[A]

Okay.

[B]

Or it would. It would go into your retirement fund.

[C]

My retirement.

[A]

Yeah. Yeah.

[C]

Right. So, yeah, I'm just trying to figure out what the best direction is to even consider a home or just retirement.

[A]

Yes. So I would consider a home because that housing line item in your budget is going to be the most expensive and it will continue to go up. Rent will. And so having a home is going to be. Yeah, it's going to be important. But your home, Karen, it may just be like a condo.

[C]

Right.

[A]

It doesn't. I mean.

[C]

Yeah, I'm fine with that. I'm totally fine with that.

[A]

Okay. How do you. Have you looked at all prices in Your area and what that would be like a one bedroom somewhere.

[C]

They run probably about 200 to 250.

[A]

Okay, perfect. So what I would do is I would fund 15% into retirement regardless and that probably comes out to that thousand bucks a month. Ish. So I would, I would stay consistent with that, Karen. And then I would make my only goal to be to save up. Yeah. For a down payment and get into something and then your next goal would be to pay it off. And then when your inheritance comes, whenever that is, that's just the bonus money on top. Right. To help pay off the house and fund retirement. Or maybe your parents live, I don't know, another 15 years and they're in their late 90s and you've, you know, maybe already taking a big chunk of the house and then you get this inheritance and most of it goes into retirement at that point. But those would be my goals. It'd be 15% into retirement and then I would save for a down payment and get into something. But as cheap, again, as cheap as possible. As inexpensive as possible because we want it paid off. I want a goal would be to have that paid off, that property when you go into retirement at 70, which I. Which you easily can do. People that do the baby steps, millionaires plan, they're paying off their homes in 7ish years on average. So I think you can, with a $90,000 salary, if you live really tightly. I think that there is a. Yeah, there's a good chance you can have this paid off in seven, eight years. And I think that's very doable for you for a $200,000 mortgage.

[B]

Karen, can we talk real, can we get real dark for like 30 seconds?

[C]

Sure.

[B]

How much, how much inheritance? If you had to guess a number, what do you think that number is going to be?

[C]

350.

[B]

Okay, so if it was, you were

[C]

gonna say very open conversations with my parents.

[B]

No. That's awesome. So if you were going to tell me, it actually confirms what I want to just caution you about. Okay. If you were going to say 3.5 million or 35 million. Not worried about it. But if they're saying I'm gonna give you $350,000. Do you have siblings too?

[C]

Well, yeah, but they'll get that amount also.

[B]

Okay, so let's say your parents are projecting to have a million dol away and they're going to give you 350, your brother 350 and your sister 350.

[C]

Right.

[B]

This is. I'm going to get dark for two seconds. And I'm doing this for a reason. Okay. If one of them has a six month stay in ICU because they have congestive heart failure, that goes into something. That goes into something. You can burn through some of that cash in a wild way.

[C]

I agree. And that's why I know it's not a guarantee.

[B]

Okay. So what. Yeah. My caution is create a life for yourself. That if this money never comes through, you're all good.

[C]

Right.

[B]

And if it does. Amazing.

[C]

Right. Right. I. I didn't want to depend on it, but it. A little caveat.

[B]

Yes.

[C]

And I just kind of wanted to throw it out there. But I wanted to make the right decisions for my finances. Not perfect, not dependent on that.

[B]

You are in rare air. Most people, honestly, before I started working on the show would have been. Me too. Would have seen, oh, I can afford a 250, 000 house. Plus I'm gonna get this 350. I'm gonna buy a 600, 000 house.

[C]

No.

[B]

And then it'll just get paid off later. And later might be, hey, your inheritance is a hundred grand because we had to spend it on this and this and retirement care and a. In a facility and whatever. And so. Yes. You are so wise. So wise.

[C]

Okay. So that's good to know because I might. My thinking was going just dump everything into retirement and don't worry about a house. But you've kind of.

[A]

I would have something long term. Yep. That you own and that no one can take from you. It's paid off and there's no rent you're having to chase as it continues to go up year after year. So. Yeah. Owning something is big. And you know, John did some of that math on the investment calculator. But I think that that is a place that you. You've done such a great job, Karen. I mean you have $230,000. And what's wild is that doubles every seven years when you actually look at the math. So that would be 400, you know, and yeah, after I. I did the math, it was after 14 years, it's gonna be like 932,000 if you don't touch it.

[B]

And that's. If you don't put another penny in that.

[A]

Yeah. And that's. If you. Yeah. Don't put another penny in. So there you're. So it's gonna. Yeah, you're doing really great on that end. So I don't want you to feel this urgency of. I mean we still want to contribute because. Great retirement that you can go and live your dreams, but it's not like you don't have anything right now. We get a lot of people that call up and they literally are starting. Yeah. They have Nothing and they're 58 years old. So. So you're. I want to just assure you you're doing a great job on that end. I would still fund it some after you get that three to six months of expenses, but I would be. Yep. I would be looking for something. And if you can put 20% down, Karen, like if you're able to. To take your expenses and figure out a way to rent for a few more years and have a 20% down payment, like that's awesome. Or if you want to get into something. Yep. Or if you want to get into something at five, if you find a great deal and it's a good location and everything you want and it makes sense. But yeah, our parameters with buying a home is that you are debt free. You have that fully funded emergency fund, at least a 5% down payment and then your mortgage payment is no more than 25% of your take home pay on a 15 year fixed rate. So that's kind of our Ramsey formula for it. And I think you're gonna be able to do that with 90,000. And the great thing about nursing too is if there's a season, maybe a year or so that you want to do some extra overtime, like knock that house out. Yes. You're able to really do that, Karen. So I think you said newly single or newly divorced. So you're starting a new chapter in your life, Karen. Really proud of you.