Is There Any Hope For My 71 Year-Old Mom With No Retirement?

Summary

Podcast Summary: "Is There Any Hope For My 71 Year-Old Mom With No Retirement?"

Episode Details:

• Title: Is There Any Hope For My 71 Year-Old Mom With No Retirement?
• Host: Ramsey Network (Featuring Dave Ramsey and Co-host)
• Release Date: March 28, 2025
• Duration: Approximately 6 minutes

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1. Introduction to the Caller’s Dilemma

The episode opens with a caller reaching out to seek advice regarding her 71-year-old mother who lacks retirement savings. The mother owns a home valued at approximately $175,000 in Evansville, Indiana, and is contemplating selling it to sustain herself for the next 50 years. However, she faces the challenging decision of whether to rent or purchase a smaller home.

Caller’s Initial Concern:

“So I'm wanting to know how I can help my 71 year old mother who has no retirement. She has a home and she's considering selling the home in order to be able to make it about 50 more years.”
[00:06]

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2. Assessing the Current Financial Situation

Dave Ramsey begins by clarifying the mother's financial status, confirming that she has no savings beyond her home. The caller explains that her sole income is Social Security, amounting to approximately $900 per month. This amount is insufficient to cover essential expenses such as property taxes, insurance, utilities, and food.

Key Financial Points:

• Home Value: ~$175,000
• Monthly Social Security Income: $900
• Location: Evansville, Indiana (noted as an inexpensive area compared to larger metropolitan regions)

Dave Ramsey’s Assessment:

“900 bucks doesn't pay for property taxes, insurance on $175,000 house and food and lights and water. Period. Period. It doesn't do it.”
[03:04]

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3. Exploring Housing Options

Dave Ramsey suggests that selling the current home could provide the means to purchase a smaller, more affordable residence, such as a one-bedroom condo priced around $75,000. This move would alleviate the financial strain of maintaining a larger property on a limited income.

Housing Strategy:

• Sell Current Home: Generate funds from the $175,000 home.
• Purchase Smaller Home: Consider a $75,000 one-bedroom condo to reduce expenses.

Ramsey’s Advice:

“She could sell her house and buy a $75,000 one bedroom condo there probably, that's probably real.”
[03:14]

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4. The Necessity of Generating Additional Income

Recognizing that Social Security alone is inadequate, Ramsey emphasizes the critical need for the mother to find a way to generate additional income. He underscores that without increasing her income streams, she will deplete her financial resources rapidly, especially as living costs continue to rise.

Crucial Insight:

“She needs income and I think at a healthy 71 with a smile and great work ethic I think there'd be [employment] options available.”
[05:15]

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5. Potential Employment Opportunities

The co-host contributes by conducting a quick search for job opportunities in Evansville, Indiana, discovering that several large retailers have numerous job openings. He suggests that the mother, given her background as a caregiver and her mature, dependable nature, could secure steady employment in such establishments.

Employment Suggestions:

• Big Box Retail Stores: Numerous available positions suitable for her age and experience.
• Healthcare Facilities: Potential opportunities leveraging her caregiving background.

Co-host’s Recommendation:

“And you searched one of the biggest ones and they have a hundred plus jobs right now available and a 71 year old lady who's healthy, who's mature.”
[05:12]

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6. Addressing Health Insurance Concerns

A significant concern raised is the mother's fear of losing Medicare if she takes up employment. Ramsey advises exploring the specifics of Medicare regulations and consulting with insurance agents to understand and secure her healthcare coverage while potentially earning an income.

Health Insurance Guidance:

“Start talking to insurance agents and finding ways to get care covered.”
[03:53]

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7. Long-Term Financial Planning and Support

Dave Ramsey reiterates the inevitability of needing additional income to sustain the mother's financial situation. He encourages exploring all avenues, including support from family members, to ensure that she does not exhaust her resources prematurely.

Long-Term Strategy:

“Somebody’s going to give her money to work or her kids are going to support her because she can't make it on that.”
[04:37]

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8. Concluding Insights

The episode concludes with a strong emphasis on financial planning and the importance of budgeting. Ramsey underscores that proactive measures, such as increasing income and careful financial management, are essential to avoid prolonged financial struggles in old age.

Final Takeaway:

“And she’s going to have to create some income. And the more income she creates the sooner, the bigger chance we can build to be to build a little bit of a nest egg to make it all the way through this and not have to work until you're 92.”
[06:04]

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Key Quotes:

• Dave Ramsey on Financial Reality:

  “900 bucks doesn't pay for property taxes, insurance on $175,000 house and food and lights and water. Period. Period. It doesn't do it.”
  [03:04]

• Co-host on Employment Opportunities:

  “There are five big box stores in Evansville Indiana, you know them, I don't need to say them... they have a hundred plus jobs right now available.”
  [05:12]

• Ramsey on Income Necessity:

  “She needs income and I think at a healthy 71 with a smile and great work ethic I think there'd be [employment] options available.”
  [05:15]

• Final Advice on Financial Planning:

  “The more income she creates the sooner, the bigger chance we can build to be to build a little bit of a nest egg to make it all the way through this and not have to work until you're 92.”
  [06:04]

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Conclusion

In this episode of The Ramsey Show Highlights, Dave Ramsey and the co-host address a heartfelt and practical concern about aging without adequate retirement funds. By analyzing the caller’s mother's financial predicament, they provide actionable advice on downsizing her living situation, seeking employment to supplement her income, and navigating health insurance complexities. The discussion underscores the importance of proactive financial management and the necessity of adapting to changing financial circumstances to ensure long-term stability and peace of mind.

Transcript

[Dave Ramsey]

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[Caller]

So I'm wanting to know how I can help my 71 year old mother who has no retirement. She has a home and she's considering selling the home in order to be able to make it about 50 more years. But she's kind of in a rock and a hard place and I know if there's a way she can invest a little or find a way to maybe get a little extra money.

[Dave Ramsey]

So she has no money?

[Caller]

None at all.

[Dave Ramsey]

And what's the house worth?

[Caller]

It's probably about 175,000. But then she has to decide whether to rent or to go purchase another smaller home.

[Dave Ramsey]

Where does she live?

[Caller]

She's in Evansville and so Evansville, Kentucky. Indiana.

[Dave Ramsey]

Indiana. I'm sorry? Evansville, Indiana and the border of Kentucky. Yeah. Okay.

[Caller]

Yeah.

[Dave Ramsey]

All right. Good news is it's not very expensive. Live there. You're calling me from Newark or from Indianapolis, and that's a little more.

[Co-host]

She has no income at all.

[Dave Ramsey]

She has Social Security.

[Caller]

Well, she has Social Security, but she's afraid to get a job because then she'll lose her insurance, her Medicare.

[Dave Ramsey]

What is her Social Security? What's her income?

[Caller]

She's only getting 900amonth about right now.

[Dave Ramsey]

Is she able to work?

[Caller]

She is. She's actually. She's pretty stubborn. I love her to death, but she, she's very independent and kind of it's. And a bit stubborn. But I love her and I keep saying, well, maybe if you could do this or that. She's kind of very adamant about not being in a community or being somewhere because she's 71 in April, but she thinks she's 50.

[Dave Ramsey]

Yeah, I know that. I know that feeling.

[Caller]

Yeah.

[Co-host]

What would you, what would you. If you could just snap your fingers and give her a job today, 40 hours a week and everything was just hunky dory. What, what would she do? What would you recommend that she would do just to bring in steady income.

[Caller]

She's been a caregiver her whole life. CNA or an @ home caregiver. She actually left being a CNA to go take care of her mother at the last five years of her life. And that's kind of why she's in this position, because.

[Dave Ramsey]

Where's your dad?

[Caller]

Her dad?

[Dave Ramsey]

Your dad? Your dad.

[Caller]

Oh, my dad. Unfortunately, my dad is not in the picture. He's off doing his own thing somewhere.

[Dave Ramsey]

Divorced a long time.

[Caller]

Yeah, okay. Yeah, divorced a long time ago.

[Dave Ramsey]

Okay. All right, well, so we've the math will break your stubborn streak.

[Caller]

I know, right?

[Dave Ramsey]

900 bucks doesn't pay for property taxes, insurance on $175,000 house and food and lights and water.

[Caller]

Correct.

[Dave Ramsey]

Period. Period. It doesn't do it. Not even in Evansville, Indiana, which is a wonderful community to live in and very inexpensive to live in compared to most places, especially metro areas. So yeah, she could sell her house and buy a $75,000 one bedroom condo there probably, that's probably real. And it would, probably wouldn't be in the ghetto. Right. Probably wouldn't be in the slums. And so it's not going to be great, but it'll be, you know, at least a place to live. And renting is not an option because rent goes up every year and she'll run through her money. It's not going to go up as fast as Social Security. So she's working. That's her only choice. It's her only choice.

[Caller]

Well then how do you navigate the not having insurance then?

[Dave Ramsey]

Well, you're going to have to work on, you're going to have to work on talking to, finding out what Medicare does do in those situations and finding out exactly what the guidelines are. I don't know them off the top of my head. And start talking to insurance agents and finding ways to get care covered. But she, you know, these, she's going to burn through the money from the house because you can't live on 900 bucks.

[Caller]

Right. Well see, she was living off the inheritance or the money that was left to her from her brother when he.

[Dave Ramsey]

Passed, but it's going to be gone.

[Caller]

Oh, it's almost already gone. That's why she's kind of in this position.

[Dave Ramsey]

And then the money from the house will be the next thing that's gone and then we're going to be back in this position because we don't want to admit that 900 bucks won't work. It won't work.

[Caller]

It.

[Dave Ramsey]

And so you don't have a choice. One of you, somewhere there's going to be some money into this picture. Now maybe you start giving her money, I don't know. Or your brother who's a dentist, I don't know, I made that up. But I don't know who's giving her money. But somebody's giving her money. They're going to give her money to work or her kids are going to support her because she can't make it on that.

[Caller]

Right.

[Co-host]

I just did a quick search while you guys were talking. There are five big box stores in Evansville Indiana, you know them, I don't need to say them. And then I searched one of the biggest ones ones and they have a hundred plus jobs right now available and a 71 year old lady who's healthy, who's mature.

[Dave Ramsey]

She is.

[Co-host]

I, I don't know that because I didn't click on it.

[Dave Ramsey]

Probably 20, 25 bucks and that's what.

[Co-host]

The math has got to be. So I did that search because while Dave was talking, if this were my mom and that's what you call Nastas then I would be going mom, let's run the numbers and you get into one of those stores you're probably going to get some healthcare options. If not, it's still a math game and more money coming in. But she needs income and I think at a healthy 71 with a smile and great work ethic I think there'd be careful box stores that would love.

[Dave Ramsey]

To take care of her and a caregiver probably make more than she'd make there and probably with the right care organization.

[Co-host]

Yeah. That was just a quick search.

[Dave Ramsey]

Hospital or whatever you could get some health care.

[Co-host]

I great point. On any health care facilities in the area.

[Dave Ramsey]

Yeah.

[Caller]

Okay.

[Dave Ramsey]

Check on that. But I think mom, she's, I don't know how you help her grasp this but the math is going to be forced upon her.

[Co-host]

Yeah.

[Dave Ramsey]

And she's going to have to create some income. And the more income she creates the sooner, the bigger chance we can build to be to build a little bit of a nest egg to make it all the way through this and not have to work until you're 92. You know, wow. This is why you invest $100 a month from age 25 to age 65 in a decent mutual fund is $1,176,000. And you don't have that trouble if you're 25 and you're listening to me. Listen to her story. Create your free every dollar budget today. The simplest way to budget for your life.