Episode Overview

Podcast: The Ramsey Show Highlights
Episode: "My Ex Scammed Me Out Of My Retirement Account"
Date: February 19, 2026
Host(s): Dave Ramsey, George Kamel
Guest: Sabrina

This episode centers on Sabrina, a single mom whose ex-husband manipulated her into prematurely withdrawing $85,000 from her retirement account. Now at age 54, with a special needs teen to support and retirement savings wiped out, Sabrina seeks advice on rebuilding her financial future. Dave and George guide her through immediate debt payoff, future investing, and practical steps for long-term security.

Key Discussion Points & Insights

Sabrina’s Situation and Setback

• Sabrina explains her ex convinced her to cash out her retirement for speculative investments. The total withdrawal: $85,000.
• She suffered additional penalties for early withdrawal.
• She's now starting over financially at 54, supporting a special needs child, and trying to make wise moves going forward.
  [00:06] Sabrina: “I had a retirement and a home and got scammed out of my retirement from my ex...I pulled out 85k, which of course I had to pay a penalty. I’m 54 years old currently, and so now I’m basically starting from scratch.”

Current Assets, Debt, and Cash Flow

• After selling her home: Sabrina has $35,000 in a CD (maturing in March), $10,000 in a high-yield savings account, and $1,200 in another savings account.

• Debts: $6,500 credit card debt, $13,000 car loan (car worth $10,000, upside down), and $10,000 in attorney’s fees (partly for a special needs trust and court case).

• The car has high mileage (96,000 miles) and recently needed $8,500 in repairs.

  [01:41] Sabrina: “So $6,500 in credit card. My car, $13,000. It’s worth $10,000...And I’ve already, in the last year, I’ve dumped $8,500 in repairs.”

Immediate Steps: Paying Down Debt

• George and Dave agree: Use available cash to clear debts—wipe out credit card debt now, pay off the car as soon as the CD matures to eliminate the hefty $486/month payment.

  [02:13] Dave Ramsey: “If we could pay that off, that saves you $486 a month immediately, you would feel that, yes or no?”
  [02:46] Dave Ramsey: “Today you can knock out the credit cards with your high yield savings. And then as soon as it matures, I would use 13 grand of it and knock out the car.”

• Attorney’s fees: $5K toward a special needs trust and will (vital for her child's security), and $5K for ongoing litigation with her ex.

  [04:11] Sabrina: “5K for the attorney is for the court case that I had or have currently. And the other 5K was to hire a wills and trust attorney to set a trust and will because I need to protect my son.”

Life Insurance & Special Needs Planning

• Sabrina has a term life policy ($200,000, in place until 2031, costing $360/year). Dave underscores its importance for her child’s future, especially with special needs.

  [03:23] Dave Ramsey: “You’re going to need that money if something were to happen to you...you’re probably going to need a special needs trust.”

Creating a New Financial Chapter

• After paying off all debts, she’ll have roughly $15,000 left in cash. Dave encourages Sabrina to see this as a fresh start.

  [04:56] Dave Ramsey: “So why don’t we call this a new slate and say this is post ex Sabrina. She’s starting a new chapter...We’re gonna go into this thing completely debt free with $15,000 in the bank. You hear me?”

  [05:12] Sabrina: “Okay. Yes.”

• Next: Fully fund an emergency fund (three to six months of expenses, leaning toward six because of the special needs situation).

Retirement and Investment Strategy

• Annual income: About $80K (mix of W2 job and her own business).

• Investing: Begin allocating 15% of her income (around $1,000/month) once out of debt and with an emergency fund in place.

• Time horizon: Realistically, she may work until age 68–70, but consistent investing now can rebuild retirement.

  [06:31] Dave Ramsey: “You will be in baby step four...Maybe you want to add a little bit to it to get to three to six months of expenses. Maybe six months since you’re a single mom with a special needs kid. But 15%, that's 12 grand a year you would be investing...You could have over half a million dollars from 54 to 70 investing that grand into, you know, mutual funds inside of retirement accounts.”

Business Health and Growth

• George probes her business finances—she earns roughly $75K gross but only draws $20–30K personally, indicating the need for better bookkeeping and perhaps improved compensation as the business stabilizes.

  [07:49] George: “So is the business fairly healthy, though? What I’m saying is, is, is it mostly profit for you or is it running really tight?”

  [07:57] Sabrina: “It’s mostly profit for me because I don’t have overhead.”

• Sabrina is a professional home organizer. George and Dave encourage her to get a firm grasp on her business numbers and scale it further.

  [08:08] George: “You’re the professional organizer and you don’t have a grasp on your own numbers. Get yourself a good bookkeeper. I’m not chastising you, but I am saying you have it in you.”

Parting Encouragement

• Dave and George emphasize that while Sabrina’s losses were significant, her diligence and proactive mindset can steer her toward recovery and stable retirement. Growth in her business and disciplined investing are highlighted as key levers for catching up.

Notable Quotes & Memorable Moments

• [00:06] Sabrina: “I pulled out 85k, which of course I had to pay a penalty. I’m 54 years old currently, and so now I’m basically starting from scratch.”
• [02:13] Dave Ramsey: “If we could pay that off, that saves you $486 a month immediately, you would feel that, yes or no?”
• [04:56] Dave Ramsey: “So why don’t we call this a new slate and say this is post ex Sabrina. She’s starting a new chapter...We’re gonna go into this thing completely debt free with $15,000 in the bank.”
• [06:31] Dave Ramsey: “...that’s 12 grand a year you would be investing. So we’re going to do $1000 bucks a month from 54. And likely...you’re going to have to work longer than you wanted to.”
• [08:08] George: “You’re the professional organizer and you don’t have a grasp on your own numbers. Get yourself a good bookkeeper. I’m not chastising you, but I am saying you have it in you.”
• [08:26] Dave Ramsey and George: Encourage scaling up her business and using tools and bookkeeping to harness her full potential.

Discussion Timestamps

• 00:06: Sabrina’s story—how the scam happened
• 01:03: Current assets from house sale
• 01:39: Debt overview and car loan specifics
• 02:13: Recommendation to pay off car and credit cards
• 02:54: Discussion of attorney’s fees and special needs planning
• 03:23: Life insurance and need for a special needs trust
• 04:56: Resetting financial life: “post ex Sabrina”
• 05:13: Plan for debt-free living and emergency fund
• 06:31: Retirement strategy and likely timeline
• 07:15: Potential for rebuilding $500K+ by age 70
• 07:55: Deeper dive into her business’ financial health
• 08:08: Push to improve bookkeeping and grow the business
• 08:26: Closing encouragement and practical recommendations

Final Takeaways

Despite devastating setbacks, Sabrina’s path forward is clear: pay off debts, build a strong emergency fund, resume investing, and leverage her business skills for future growth. With discipline and a renewed sense of purpose, the hosts emphasize she can rebuild and secure her—and her child’s—financial future.