He Has $3.5 Million In Savings but Is Afraid To Retire

Summary

Podcast Summary: The Ramsey Show Highlights

Episode: He Has $3.5 Million In Savings but Is Afraid To Retire
Date: December 23, 2025
Host: Dave Ramsey & Rachel Cruze
Caller: Steve

---

Episode Overview

This episode explores the anxiety and hesitation that can arise even when someone is financially ready to retire. Steve, a 62-year-old attorney with $3.5 million saved and no debt, calls in seeking reassurance about retiring—worried about not having income and uncertain about the next chapter of his life. Dave Ramsey and Rachel Cruze break down Steve's financial situation, discuss strategies for retirement income, and delve into the emotional and purpose-driven aspects of retiring well.

---

Key Discussion Points & Insights

1. Caller Introduction & Main Concern

• Steve is 62, thinking of retiring but feels uneasy about relying only on his savings and not having an active income.
  • Main worries: Health insurance, “no money coming in”, and what to do in a downturn.

[00:06-00:38]
Steve shares, “I having a hard time getting comfortable with that. And what I really want is somebody to tell me that I can stop.”

---

2. Steve’s Financial Situation

• No pension, but $3.5 million in 401(k)s and IRAs; earns $175,000/year.
• No debt and house is paid off.

[00:53-01:10]
Steve confirms: “3.5 million.”
Dave: “Way to go, man.”

---

3. Calculating Sustainable Income from Investments

• Dave breaks down how Steve’s nest egg, invested in growth stock mutual funds, could potentially generate $350,000/year at a 10% average return—without touching principal.
• In bad years, it's rare for the market to yield under 5%. Suggests withdrawing less in those years.

[01:14-02:13]
Dave: “So you understand that 3.5 invested in good growth stock mutual funds, if it averaged 10% would be 350k... Income that it produces without touching the nest egg. Which is twice what you make now.”

---

4. Managing Retirement Withdrawals

• Take a conservative approach: withdraw $200k/year, let the rest grow to buffer against down years.
• The money is unlikely to run out “unless you lose your mind and join Congress.”
• The funds will likely grow, leaving an even bigger estate.

[02:15-02:29]
Dave: “Maybe don't take the whole 350 off. Maybe take 200 off and let it grow by 150 to cover the down years.”

[02:30-02:37]
Dave: “It's impossible unless you lose your mind and join Congress for you to go through this money before you die.”

---

5. Emotional & Life Planning Aspects

• Steve isn’t married, has a brother and sister, wants to travel, and is looking to spend more time with loved ones after recent life events.
• Dave and Rachel emphasize creating purpose in retirement—not just quitting work.

[02:51-03:17]
Steve: “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.”

• Dave encourages Steve to find meaningful activities, suggesting he could use his legal expertise to help others or serve nonprofits, rather than “just watching Netflix.”

[04:29-04:46]
Dave: “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... but give you something to lay your hand to the plow... Netflix doesn't cut it.”

• Rachel urges Steve to listen to recent life changes and let them guide next steps.

[05:31-05:51]
Rachel: “Those are gifts, whatever that is. Whether it was a tragedy or a gift or a blessing... Listen to that. I mean, there's something in that for you.”

---

Notable Quotes & Memorable Moments

• Dave Ramsey (01:14):
  “American dream is not dead, gentlemen. Ladies and gentlemen, meet Steve.”
• Rachel Cruze (01:12):
  “I'm proud of you, Steve.”
• Dave Ramsey (02:30):
  “It's impossible, unless you lose your mind and join Congress, for you to go through this money before you die.”
• Steve (03:07):
  "What I should be doing or what I feel like I should be doing is spending time with people that I love."
• Dave Ramsey (04:46):
  "Netflix doesn’t cut it."
• Rachel Cruze (05:31):
  “Use those... Those are gifts, whatever that is... Listen to that. I mean, there’s something in that for you.”

---

Timestamps for Important Segments

• [00:06] Steve explains retirement anxieties.
• [00:53] Steve’s net worth revealed.
• [01:14] Dave explains investment income potential.
• [02:15] Strategy for down market years.
• [02:30] Assurance he'll never outlive his money.
• [02:51] Steve shares emotional reasons for rethinking retirement.
• [04:29] Importance of purposeful retirement activities.
• [05:31] Rachel’s thoughts on finding meaning after a life event.

---

Summary & Takeaways

• Steve is exceedingly well positioned to retire, financially speaking.
• Dave and Rachel both strongly affirm his ability to retire comfortably, but stress the importance of planning for emotional fulfillment and purpose post-retirement.
• Listeners are reminded that even strong finances can't answer the “What will I do every day?” question—something Dave has also observed in friends of similar age.
• The episode closes with encouragement for Steve (and listeners) to listen to life’s turning points and intentionally plan next steps—not only for finances, but for meaning and connection in retirement.

Transcript

[Dave Ramsey]

Brought to you by the EveryDollar app. Start budgeting for free today.

[Steve]

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 having a hard time getting comfortable with that. And what I really want is somebody to tell me that I can stop.

[Dave Ramsey]

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

[Steve]

That's right.

[Dave Ramsey]

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

[Steve]

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

[Dave Ramsey]

No pension?

[Steve]

No pension.

[Rachel Cruze]

How much is in all those accounts?

[Steve]

3.5 million.

[Dave Ramsey]

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?

[Steve]

175.

[Dave Ramsey]

Okay. Way to go, man.

[Rachel Cruze]

I'm proud of you, Steve.

[Dave Ramsey]

I assume you started with nothing and became a multimillionaire.

[Steve]

Yep.

[Dave Ramsey]

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.

[Steve]

Yeah.

[Dave Ramsey]

Income that it produces without touching the nest egg.

[Steve]

Right.

[Dave Ramsey]

Which is twice what you make now.

[Steve]

Right. I guess that, you know, they're still there. 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?

[Dave Ramsey]

Use some of it.

[Steve]

Yeah.

[Dave Ramsey]

Okay. So 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.

[Steve]

Right. Okay, right.

[Dave Ramsey]

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.

[Steve]

Right.

[Rachel Cruze]

See?

[Dave Ramsey]

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

[Rachel Cruze]

Is your house paid off and everything? Steve, Any debt?

[Steve]

No, no debt.

[Rachel Cruze]

Okay.

[Steve]

House paid.

[Dave Ramsey]

Okay. How long you been married?

[Steve]

You know, I'm not married.

[Dave Ramsey]

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

[Steve]

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.

[Dave Ramsey]

Yep. And.

[Steve]

And people that love me.

[Dave Ramsey]

Yep.

[Steve]

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

[Dave Ramsey]

What do you do for a living?

[Steve]

I'm an attorney.

[Dave Ramsey]

Okay. All right, cool.

[Rachel Cruze]

Do you have family, Steve around?

[Steve]

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

[Rachel Cruze]

Okay, that's great.

[Dave Ramsey]

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, this would run in perpetuation. And I don't know who you're going to leave the 3.5, 3.5, 3.5,. 3.0, 4 million. Oh, four and a half million. Because it's going to keep growing. Okay. Because you're not going to use it all. So who are you going to leave all that to? So I 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.

[Steve]

Right.

[Dave Ramsey]

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

[Steve]

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

[Dave Ramsey]

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.

[Steve]

Okay.

[Dave Ramsey]

It's 2x of a no brainer.

[Steve]

Right. Okay, that's good.

[Dave Ramsey]

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.

[Rachel Cruze]

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.

[Dave Ramsey]

Yeah, it's. Yeah, yeah, yeah. It's exact. 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. God, appointments that come across your path, you need to listen to them. You're right, Rachel. Create your free every dollar budget today. The simplest way to budget for your life.