Podcast Summary: The Ramsey Show Highlights
Episode: Is It Too Late To Start Investing At 65?
Release Date: February 5, 2025
Host/Authors: Ramsey Network (Featuring Dave Ramsey, Ken Coleman, George Kamel)

Introduction

In this episode of The Ramsey Show Highlights, the hosts delve into the financial dilemmas faced by Judy, a 65-year-old woman with no savings, contemplating whether to begin investing in mutual funds or focus on building a savings account. The discussion centers around her financial stability, reliance on a boyfriend for support, and strategies for securing her financial future.

Judy's Financial Situation

Judy initiates the conversation by expressing her concern over having zero savings at the age of 65. She questions whether she should start investing instead of solely building a savings account, highlighting her limited income and dependency on her boyfriend.

• Judy (00:06): "I am 65 years old. I have zero savings right now. And I wonder if I should start, instead of building up a savings account, build up an investment account like mutual funds, as you and Ramsey speak about all the time."

George emphasizes the importance of not relying solely on savings:

• George (00:24): "Yeah, we say, you know, you can't save your way to wealth."

Ken Coleman's pragmatic approach underscores the necessity of planning for long-term stability:

• Ken (00:43): "You can't use that line of thinking. You gotta plan for the best, know for the worst because this is for your long-term play."

Judy reveals her current financial sources:

• Judy (00:58): "I work part-time. Yeah, I work. I make about sixteen hundred dollars a month."

She further clarifies her living situation and financial dependency:

• Judy (01:06): "I live with my boyfriend. He covers most of the expenses. Most of my income is disposable."

Relationship and Dependency Concerns

The conversation shifts to Judy's relationship with her boyfriend, who significantly contributes to her finances. Ken questions the sustainability and stability of this arrangement, especially considering Judy's previous attempts to end the relationship.

• Ken (01:17): "Well, what happens if you guys have a breakup? He's been your sugar daddy."

Judy shares the history of their relationship and recent challenges:

• Judy (01:31): "We had a big difference. Well, the last time his drinking was out of control, but he has stopped drinking and so we're back together the last two months."

George acknowledges the positive change:

• George (02:03): "He's been two months sober. That's good."

Ken expresses concern over Judy's financial reliance:

• Ken (02:09): "I'm really passionate now about making sure that you stop relying on him."

The lack of formal commitment exacerbates Judy's financial vulnerability:

• Judy (02:31): "He doesn't want to marry me. That's the Problem."

George highlights the precariousness of Judy's financial situation without legal protections:

• George (02:38): "But I'm saying it puts you in a precarious situation financially because you don't have any legal or financial protections."

Housing and Assets

Judy discusses her home ownership, which was significantly affected by a natural disaster:

• Judy (03:07): "I do own a home that I am... the home just got flooded. So that put me back... it wiped out any savings I had."

She explains the financial dynamics of her property:

• Judy (03:16): "So we're gonna rent out the house."

The value and ownership structure of the home are scrutinized:

• George (03:22): "We bought it at 50 and it's probably anywhere between 200 and 300,000 now is what it's worth."

Judy clarifies the ownership and financial input:

• Judy (03:45): "We bought it together and we paid cash for it at $50,000 during the hosting."

Ken and George question the legal implications and ownership rights:

• Ken (04:12): "Wow, this is delightful... 65-year-old's been dating for 18 years."

Judy underscores the lack of legal marriage preventing enforceable financial agreements:

• Judy (04:27): "I can't force him to marry me."

Advice from Hosts

The Ramsey team offers Judy practical advice to secure her financial independence:

1. Establish an Emergency Fund:

   • George (05:25): "You need to save money. You can't save and invest until you make more."
   • George (05:28): "There's a foundational savings you need before you ever put a dime into investments. And that's an emergency fund. So you need three to six months of expenses."

2. Increase Income:

   • Ken (07:00): "If Judy doesn't make some changes, Judy's gonna have to find another sugar daddy."
   • George (07:11): "Get your own savings in place, then you can begin investing."

3. Begin Investing Once Financial Stability is Achieved:

   • George (07:26): "I would say 10,000 minimum. And then you can begin investing."
   • George (07:40): "The right way to invest, what to invest in. You don't need to be risky."

4. Educational Resources:

   • Ken (08:02): "Join us March 4th and 5th. Judy, you can watch with your boyfriend."
   • George (08:12): "Join us March 4th and 5th... Best impression I've heard today."

The hosts emphasize the importance of financial independence and caution against relying on a partner for financial security.

Conclusion

The episode underscores critical financial principles for individuals approaching retirement age without substantial savings. Judy's predicament serves as a cautionary tale about the risks of financial dependency and the necessity of proactive financial planning. The Ramsey team provides actionable steps—building an emergency fund, increasing income, and educating oneself on investment strategies—to empower individuals like Judy to secure their financial future independently.

Notable Quotes:

• George (00:24): "You can't save your way to wealth."
• Ken (00:43): "You gotta plan for the best, know for the worst because this is for your long-term play."
• Ken (02:09): "I'm really passionate now about making sure that you stop relying on him."
• George (05:28): "There's a foundational savings you need before you ever put a dime into investments."
• George (07:26): "I would say 10,000 minimum. And then you can begin investing."

These quotes encapsulate the episode's emphasis on financial independence, prudent saving, and strategic investing.