I Have Nothing Saved For Retirement And I'm 60

Summary

Podcast Summary: "I Have Nothing Saved For Retirement And I'm 60"

The Ramsey Show Highlights, hosted by the Ramsey Network, delivers concise and practical advice on personal finance and life management. In the April 5, 2025 episode titled "I Have Nothing Saved For Retirement And I'm 60", host Dave Ramsey, along with experts George Kamel and Ken Coleman, provide urgent and actionable guidance to Amy, a 60-year-old caller with no retirement savings.

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1. Introduction to Amy's Financial Situation

Amy reaches out to the show on the brink of her 61st birthday, expressing concern over her lack of retirement savings despite her disciplined financial behavior over the years.

• Amy's Initial Concern
  • Timestamp [00:12]: "I have been good with my money all along, but I have failed to have a retirement fund."

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2. Detailed Assessment of Amy's Finances

George Kamel steps in to dissect Amy's financial landscape, uncovering both her assets and liabilities.

• Assets

  • Cash Reserves: Amy has approximately $200,000 in cash, spread across various bank accounts with some earning interest.
    • Timestamp [01:12]: "About 200,000."
  • Home Ownership: She owns her home outright, valued at around $280,000.
    • Timestamp [02:26]: "I'm thinking around 280."

• Liabilities

  • Debt: A $9,000 0% interest loan taken for home updates, which George considers as actual debt.
    • Timestamp [00:44]: "The only debt I have is about $9,000..."

• Income and Expenses

  • Income: Amy earns approximately $57,000 annually from childcare, with fluctuations based on seasonal demand.
    • Timestamp [01:38]: "Around like 57,000."
  • Expenses: Her monthly expenses are low, about $1,675, allowing for potential savings.
    • Timestamp [02:36]: "My monthly expenses are about 1675."

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3. Strategic Financial Advice

George and Dave provide a roadmap for Amy to secure her retirement within six years.

• Investment Recommendations

  • Stock Market Investment: George advises investing the $200,000 cash into growth stock mutual funds or index funds, projecting an average return of 10-12% over the next several years.
    • Timestamp [03:30]: "Put that money invested working for you... 10 to 12% return."
  • Monthly Investments: Investing $1,000 monthly from her income could potentially grow her retirement fund significantly by age 67.
    • Timestamp [04:00]: "I could probably do 1,000."

• Maximizing Income

  • Increasing Childcare Services: Dave challenges Amy to capitalize on her high-demand childcare services during summer by maintaining consistent income year-round, potentially adding an additional $20,000 annually.
    • Timestamp [06:35]: "Additional $20,000 a year over the next six years."

• Budgeting and Financial Planning

  • Professional Guidance: George emphasizes the importance of consulting a financial advisor to tailor investment strategies to Amy's specific needs.
    • Timestamp [04:45]: "Sit down with a financial advisor and actually crunch these numbers."
  • Overcoming Financial Fear: Addressing Amy's fear and lack of understanding about investing, George encourages her to take immediate action despite feeling behind.
    • Timestamp [04:55]: "It's not too late to have some dignity in retirement. But it starts today."

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4. Encouragement and Final Recommendations

Dave Ramsey and George bolster Amy's confidence, stressing that with disciplined effort and strategic planning, achieving a stable retirement is attainable.

• Motivational Insights

  • Planting the Retirement Tree Now: George uses the metaphor of planting a tree late but still planting it today to inspire Amy to take action.
    • Timestamp [04:55]: "The best next time is today."
  • Belief in Possibility: Dave and George affirm their belief in Amy's ability to overcome her financial challenges.
    • Timestamp [07:58]: "We really believe, Amy, you can do this."

• Action Steps

  • Utilizing Ramsey Solutions: George directs Amy to ramseysolutions.com to connect with a SmartVestor Pro for personalized investment assistance.
    • Timestamp [07:33]: "Jump on a ramseysolutions.com get in touch with a SmartVestor Pro."
  • Creating a Budget: Dave encourages Amy to use the EveryDollar app to start budgeting effectively.
    • Timestamp [07:58]: "Create your free every dollar budget today."

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5. Key Takeaways

• Maximize Existing Assets: Leveraging her substantial cash reserves through strategic investments can significantly bolster Amy's retirement fund.
• Increase and Stabilize Income: By optimizing her childcare services year-round, Amy can generate additional income to accelerate her savings.
• Professional Guidance is Crucial: Consulting with financial advisors ensures that Amy's investments align with her retirement goals and risk tolerance.
• Start Immediately: Even at 60, proactive financial planning and investment can pave the way for a dignified retirement.

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Notable Quotes

• George Kamel on Starting Now:

  "The best next time is today. It's not too late to have some dignity in retirement. But it starts today." — [04:55]

• Dave Ramsey on Belief and Action:

  "We really believe, Amy, you can do this. I think this is extra income and I do think this is tightening under the expenses as well." — [07:58]

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This episode serves as a critical reminder that it's never too late to take control of one's financial future. Through disciplined budgeting, strategic investing, and maximizing income opportunities, even those approaching retirement without substantial savings can work towards a secure and dignified retirement.

Transcript

[Dave Ramsey]

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

[Amy]

I am turning 61 in two weeks.

[Dave Ramsey]

All right, that sounds exciting.

[Amy]

Early birthday and I have been good with my money all along, but I have failed to have a retirement fund. And I'm wondering at this point what I can do or so that I can retire maybe at 67.

[Dave Ramsey]

All right. Oh, okay. So we're working with six years to retire and you have zero. George is going to walk you through this, but just a couple of quick questions. You have zero or you have very little? Are you. What's the real real here?

[Amy]

I have no re. I have no retirement fund, but I do have, I have cash and I have no real debt. The only debt I have is about $9,000 that I, I took out a 0% interest loan and did some updates on my house.

[George]

Okay. Sure sounds like real debt to me.

[Amy]

Well, yeah, that. But other than that, I have no debt.

[Dave Ramsey]

What kind of cash do you have?

[Amy]

About 200,000.

[Dave Ramsey]

And what's that sitting in.

[Amy]

A couple bank accounts.

[George]

Okay. Just in checking accounts or normal savings accounts making. Are they making 0%?

[Amy]

No, they're making a little bit. There's a couple of them in savings and then some of it's just cash.

[George]

Okay. So we can get that money invested working for you at least. What is your income?

[Amy]

I do childcare about. It varies every year, but around like 57, 57,000.

[George]

Okay. And do you have any pension or anything like that? Any other retirement income we should be aware of?

[Amy]

No.

[George]

Okay.

[Amy]

I have a life insurance, a small life insurance policy. That's. That's all I have.

[George]

Okay. And are you living alone?

[Amy]

Yes.

[George]

All right.

[Amy]

Now my, my 19 year old is away at college, but I mean he'll be here when he's not at college.

[George]

Okay. And are you a homeowner?

[Amy]

I own my home. Yes.

[George]

It's paid for.

[Amy]

No mortgage paid for. Yep. No more. Good.

[George]

What's that worth?

[Amy]

I'm thinking around 280.

[George]

Okay. And what are your monthly expenses? Have you added this up to. See, here's my monthly budget. Here's what I need to live.

[Amy]

My monthly expenses are about 1675.

[George]

Okay, great. So here's some good news. You don't need a lot to survive now. I don't know what your retirement plans are. I don't know if you had big dreams. We might need to change that picture based on the reality of where we're at.

[Amy]

Right.

[George]

But based on my math, you're going to need, you know, and this is not including health care, if there's any other needs you have, but you're talking about 20 grand a year is what you're going to be spending. Okay, so here's the good news. If you put the majority of your savings into the stock market, into a good growth stock mutual fund or an index fund, you would see on average over, you know, the next 20, 30 years in your retirement, that 10 to 12% return, which means you put 200 in on average. Again, not every year you're going to see 20 grand, another 20 grand. And so that gives me some hope that you're not going to be out on the street. But we're also not going to be eating out and going on vacations. This is going to be a bare bones retirement. Okay, now if you could invest a big portion of your income now that you have a paid for house, how much could you invest every month from your income? Could you do, let's say $2,000 every month? Yes.

[Amy]

Probably not. I could probably do 1,000.

[George]

Well, you told me your expenses are about 1600. You're taking home probably close to 4,000, right?

[Amy]

Yeah, it just depends on the time of the year. During the summer I make a lot more because I have way more children.

[George]

And then, well, Ken can help you fill in the gaps of income. But if you have stable income, you could invest $2,000 every single month from age 61 to 67, you would likely have around $200,000 sitting in that investment account. Okay, so that is one option. On top of the savings you have putting that into the market. I also would recommend you sit down with a financial advisor and actually crunch these numbers and they'll walk you through to make sure you're understanding where you're putting this money. I don't want you to do it because George said or Ken said. I want you to do it because Amy understands.

[Amy]

And that's kind of why I haven't done. I just don't understand any of it. And I've always been afraid of it and I've watched too much American greed, so.

[George]

Well, here's I go. I keep thinking of this line for you. The best time to plant the tree was 20 years ago. The best next time is today. And so I know you're 60 and you feel behind. There's probably some guilt that you could have done more, you should have done more, you should have been investing. But I'm telling you, it's not too late to have some dignity in retirement. But it starts today. We can't have the excuse any longer of, well, I just don't know what I'm doing. Ignorance was bliss until this call.

[Amy]

Okay, Yep, I get it.

[George]

Now let's talk about that, that seasonal income gap. What are you doing in the winter time? What changes that you don't have enough work?

[Amy]

I have work. I do childcare. And so during the summer I get a full house. I have all the kids from school, school age children. So I have 12 kids all summer long. And then during the winter kids go off to school and I tend to have less. And this year I chose to have a few less because I took my, my first grandbaby. I'm watching her and with a baby it's just a lot more work. And so I've, I've had less children during the years.

[George]

But are you getting paid to watch the baby or is this just grandma stuff?

[Amy]

Partially.

[Dave Ramsey]

Okay, so what would be. So let's say just for sake of numbers, okay, let's say that there wasn't a drop off between the summer and the rest of the year. How much more additional money would you make over and above the 57,000? What do you think that that number would be if you just had the same amount of kids all year round?

[Amy]

Probably a good another 20, 30, I don't know.

[George]

Yeah.

[Dave Ramsey]

So here's, that's the thing I want you to think about. George has done a great job laying out, okay, what you need to do. And here's the deal. That 200,000 is something to build on, plus your existing money if you're putting in a thousand dollars a month. But I want to challenge you to just believe what you just said. Let's say, let's round down, let's say you did something to go, okay, I'm going to be more aggressive and talking about it. There are parents everywhere around you who would much rather have their child with you. It's probably even more affordable than what they're looking at in the marketplace. There is no shortage of children who need to be watched. So with a little bit of aggression, more intentionality, letting people know, let's say you were able to make an additional $20,000 a year over the next six years. Okay, that's a lot of money. George, coming back to your calculator, she can now put to maybe three grand a month away and all of a.

[George]

Sudden changes your retirement changes it. And you might need to work until 70. You get to retire when the numbers say you do, not when you just decide. And so Jump on a ramseysolutions.com get in touch with a SmartVestor Pro. They can walk you through the investing portion. And, and this is going to take work. And you got to remember inflation's going to be, that's going to be kicking your retirement in the pants. So you got to get on top of this thing and start investing instead of just saving.

[Dave Ramsey]

But George and I are both, we really believe, Amy, you can do this. I think this is extra income and I do think this is tightening under the expenses as well. And you can get there. Create your free every dollar budget today. The simplest way to budget for your life.