I’m 66 With No Retirement

Summary

Podcast Summary: The Ramsey Show Highlights – "I’m 66 With No Retirement"

Episode Details:

• Title: I’m 66 With No Retirement
• Host/Author: Ramsey Network
• Release Date: February 13, 2025

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Introduction

In the episode titled "I’m 66 With No Retirement," The Ramsey Show Highlights delves into the pressing concerns of retirees facing financial instability. Hosted by the Ramsey Network, the show features a candid conversation between the hosts, Dave Ramsey and Jade Warshaw, and a caller named Julia. Julia seeks guidance on navigating retirement without adequate savings, grappling with high living costs in California, and contemplating a significant life change by moving out of state.

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Caller Introduction and Financial Challenges

Julia begins the conversation by outlining her precarious financial situation:

Julia [00:17]: “I’m 66, my husband, 67, and he's an automotive service director, so we do okay. But as you know, California is so expensive... we still owe 300,000 on [our] home.”

Julia and her husband own a home in California, a state notorious for its high cost of living. Despite owning a home that has appreciated in value, they are burdened by a substantial mortgage of $300,000. Julia is not currently employed, while her husband continues to work as an automotive service director, relying on Social Security as their primary income source.

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Considering Moving Out of State

Facing the financial strain, Julia contemplates relocating to a more affordable state like Texas:

Julia [01:14]: “I thought maybe it would be a good idea to move out of state and, you know, get somewhere less. And I could work, you know, as a teacher, maybe.”

Jade Warshaw immediately supports this idea, emphasizing the benefits of reducing living expenses:

Jade [01:41]: “I like the idea of you guys moving out of an expensive area like California because the truth is that that's a cost of living. You may not be able to maintain, but maybe living somewhere less expensive.”

However, moving to Texas presents its own challenges, such as the absence of state income tax:

Dave [01:57]: “The problem about living in Texas is you're gonna have to figure out how to spend that extra money because there's no state income tax.”

Despite these concerns, the hosts encourage Julia to explore this option further, highlighting Texas as a viable alternative depending on the region.

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Budgeting and Financial Planning

A critical aspect of Julia’s situation is the lack of a structured budget. Fragmented financial planning exacerbates their insecurity about retirement:

Julia [03:25]: “No.”

Jade [03:25]: “Okay, that's what we need. So before we get off the call, we're going to set you up with... an EveryDollar budget.”

Jade introduces the EveryDollar budgeting tool, a key resource for Julia to gain clarity on her finances. By inputting their income and expenses, Julia can better understand their financial standing and make informed decisions.

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Addressing Fears and Communication

Julia and her husband are hindered by fear and poor communication regarding their financial future:

Dave [06:34]: “You gotta be address that fear with him.”

Dave Ramsey emphasizes the importance of confronting these fears head-on and fostering open communication between partners. He advises Julia to express her anxieties clearly to her husband:

Dave [05:15]: “I need to know what our money situation is because I'm scared to death. Will you help me be less scared?”

This approach encourages Julia to seek transparency and collaboration in developing a concrete financial plan.

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Psychological Barriers to Retirement Planning

The episode underscores the psychological barriers that retirees often face, such as fear of the unknown and reluctance to change:

Dave [04:59]: “Your generation is stuck assuming these people are telling us the truth. It's all coming down.”

Dave acknowledges the generational shifts and the resulting skepticism that can complicate financial planning. He reassures Julia that her fears are valid but urges her to rely on factual information rather than assumptions.

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Actionable Steps and Conclusion

To conclude the episode, Dave and Jade outline actionable steps for Julia to take control of her retirement planning:

1. Develop a Budget: Utilize the EveryDollar app to create a comprehensive budget, detailing all income and expenses.
2. Explore Relocation: Investigate more affordable living options outside California, such as Texas, while considering the implications of state tax differences.
3. Enhance Communication: Foster open dialogue with her husband about their financial fears and collaboratively develop a sustainable plan.
4. Seek Professional Guidance: Engage with resources like Financial Peace University to gain deeper insights into managing finances effectively.

Dave reinforces the importance of commitment to these steps:

Dave [07:09]: “It's just too expensive. So we're going to send you every dollar... and we're going to send you financial Peace University, the whole digital class. It’s nine lessons in you and husband. Commit to watching them together and then you can sit down and talk about your plan together.”

By following these steps, Julia and her husband can work towards alleviating their financial stress and securing a more stable retirement.

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Notable Quotes with Timestamps

• Julia [00:17]: “I’m 66, my husband, 67...we still owe 300,000 on it.”
• Jade [01:41]: “I like the idea of you guys moving out of an expensive area like California...”
• Dave [01:57]: “The problem about living in Texas is you're gonna have to figure out how to spend that extra money...”
• Dave [05:13]: “It still feels like a million years.”
• Dave [05:43]: “You need to see the plan.”
• Dave [07:09]: “It's just too expensive. So we're going to send you every dollar...”

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Final Thoughts

"I’m 66 With No Retirement" poignantly captures the real-life struggles of retirees facing financial uncertainty. Through compassionate dialogue and practical advice, The Ramsey Show Highlights empowers listeners like Julia to take decisive steps towards securing their financial future. By emphasizing budgeting, open communication, and informed decision-making, the episode serves as a vital resource for anyone grappling with similar retirement challenges.

Transcript

[Julia]

Brought to you by the EveryDollar app. Start budgeting for free today. Hi. Good afternoon, guys. Hey. I really. It's such a pleasure to be able to speak with someone and get some advice.

[Dave]

You got it. Well, it's an honor to talk to you today. Thanks for calling. What's up?

[Julia]

Oh, thank you. I'm calling to get some advice on retirement. Please. I'm 66, my husband, 67, and he's an automotive service director, so we do okay. But as you know, California is so expensive. We bought a home and it appreciated in value, luckily, so we have a little bit of equity, but we still owe 300,000 on it. And we didn't buy it at the high price. You know, the thing is, we're still paying it off. He's working. I teach school. I'm not working right now, but I thought maybe it would be a good idea to move out of state and, you know, get somewhere less. And I could work, you know, as a teacher, maybe. I'm older, so it's hard to get a position. I already had an offer in Texas. I'm certified there for fourth grade. I turned it down because we were here, and I don't know. He just refuses to think about retirement. We have no savings. He's thinking he's going to get Social Security, keep working, put that money into the house payment. I said, well, what are you going to love us? You know, I thought maybe we could start a little business. Like, I'm not talking a dealership. I told you because he said, oh, yeah, you have money for that. But I. Sure.

[Jade]

I like the idea of you guys.

[Julia]

A coffee shop or a daycare.

[Dave]

Sure.

[Jade]

I like the idea of you guys moving out of an expensive area like California because the truth is that that's a cost of living. You may not be able to maintain, but maybe living somewhere less expensive. You mentioned Texas. That could, you know, depending on the part of Texas, that could be good.

[Dave]

The problem about living in Texas is you're gonna have to figure out how to spend that extra money because there's no state income tax. Hey, I don't know how you're gonna spend on it, Julia.

[Julia]

This is a very high property.

[Dave]

Yeah, they do. I know. I know. There's the other side of the teeter totter, but I just like taking my digs where I can get.

[Julia]

I don't know. The thing is, he's. You know, he's also afraid that he won't be able to get a home at our age.

[Dave]

I know.

[Julia]

Get a job.

[Jade]

Well, let's look at the. Let's look at the facts. Like, let's look at the money because right now it's like a bunch of question marks around our head. So you mentioned that he kind of has his plan of living off Social Security. Do you guys have any Clue like you're 67 or he's 67, so you're eligible. But if you begin taking it now, obviously you're taking it at as at a cut as opposed to waiting. So when you wait and take that, that later distribution, do you know how much it'll be?

[Julia]

No, he's thinking about 35, little less.

[Jade]

Okay, so let's say it's 35. You know, you can check in and find out what you think, what that number is going to be on the irs. But then let's look at your budget. And so it's really about taking these numbers out of the air and getting solid facts of what it will be. Can it work? If it doesn't work, how much do we need to be earning? Does that make sense? And I think that's going to give you a lot of peace when you can find the facts around.

[Julia]

It won't work. You know, you're right. It won't work. I told them. What are you going to work on if you put on.

[Jade]

But do you. Do you know that or are you guessing that? Julia, do you know or are you guessing? Do you have a budget?

[Julia]

No.

[Jade]

Okay, that's what we need. So before we get off the call, we're going to set you up with. Christian's going to pick up and get you an every dollar budget. And it's really just going to be you plugging in that income and then plugging in what you guys spend money on. You've got this mortgage. How much do you pay a month for the mortgage?

[Julia]

3,000.

[Jade]

What? Okay, you're right. It's not going to work.

[Dave]

So Julia, here is a common thing. I want you to know this. You're not crazy. Your husband's not crazy. Y'all are facing a very common dilemma that millions and millions of 60 plus year olds are facing, especially married couples is a. There's an ecosystem that has descended upon you the last 25 years telling you that everything in your life is coming down, everything's going to end. And you grew up in the, in the era of Walter Cronkite and Tom Brokall, folks that, that people trusted. And now those. That same ecosystem is telling you you're not gonna have enough money, you're gonna die. You gotta Move it all into silver and go. The whole world has shifted on your generation. My generation just assumes everybody's lying to me, even the people telling the truth. Your generation is stuck assuming these people are telling us the truth. It's all coming down. So, number one, I want you to know your fear is. Is. Is. Is okay. It's normal. But also, as Jade said, here's what you desperately need with your husband. You all need actual facts. Remember this, you have made up a story in your head that you're too old to be a teacher. That is false. My mom is in her 70s and she's still a college professor.

[Jade]

My dad's a teacher.

[Julia]

Wow.

[Dave]

He's seven.

[Julia]

Really?

[Dave]

Okay, yes. It's just a story because when you were a kid, 60 years old felt like a million years. And now you're there, you're still fun, exciting. Your students love you. They could definitely use your wisdom.

[Julia]

It still feels like a million years.

[Dave]

I know, I know. But listen, y'all, you and your husband, this idea of, like, I don't know, I think Social Security, that's not enough. So instead of talking about, what are you going to do? We have to move. I want you to sit down and use this line with your husband. I need to know what our money situation is because I'm scared to death. Will you help me be less scared? And very few husbands will look at their wives when they say that and go, nah, I don't care. If you say, I need to know.

[Julia]

She'S got an all plan, though, that's.

[Dave]

Then he needs to show you the plan. And if you use the words, I'm scared because I don't know the plan. I need to see the plane.

[Julia]

That's a good way to phrase it.

[Dave]

Okay, because. Because you're scared.

[Julia]

Parents were. Were, you know, factory workers in General Motors. I mean, we grew up in Detroit, Michigan, of course. So, you know, everything was. I don't know, I want to say easy, for lack of a better.

[Dave]

Well, hold on. You grew up in Detroit just like I grew up in Houston. And you grew up in Detroit when it was all golden and great and it all went away overnight. And I grew up in Houston where Enron was the greatest thing in the world until one morning Enron didn't exist. And so you have both of those things going on that it's just gonna all work out. And then you also have that. That, like, understanding in your nervous system. There's a day when everything. The factory shut down.

[Julia]

Okay?

[Dave]

You gotta be address that fear with him. And then, yeah, it's a math problem. You wanna move to Texas, you want to move to North Carolina, you move wherever you're gonna move. Jade was right. You can't afford a $3,000 mortgage.

[Julia]

I applied to Houston. I applied to Houston. I got a call.

[Dave]

The world is desperate for great teachers, especially licensed teachers. So you're not going to have a problem getting a job. What you might have a problem doing is convincing your Californian husband to move somewhere else. That's a whole different story.

[Jade]

And just remember, wherever you move, whatever housing situation you choose, you don't want that payment. If you to be any more than 25% of your take home pay.

[Dave]

That's right.

[Jade]

That's what's scaring the pants off you right now.

[Dave]

It's just too expensive. So we're going to send you every dollar. We're going to send you the budgeting tool and we're going to send you financial Peace University, the whole digital class. It's nine lessons in you and husband. Commit to watching them together and then you can sit down and talk about your plan together.

[Julia]

Create your free every dollar budget today. The simplest way to budget for your life.