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.