We’re Almost In Our 60s And Nothing Saved For Retirement

Summary

Podcast Summary: The Ramsey Show Highlights Episode: We’re Almost In Our 60s And Nothing Saved For Retirement
Release Date: February 6, 2025
Host/Author: Ramsey Network

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Introduction

In this episode of The Ramsey Show Highlights, listeners are presented with a compelling and heartfelt conversation between Lisa, a caller in her late 50s facing significant financial challenges, and Ramsey Network experts Dave Ramsey and Rachel Cruze. The discussion delves deep into Lisa’s struggles with debt, lack of retirement savings, and the unique obstacles posed by her and her husband’s circumstances. This summary captures the essence of their dialogue, offering valuable insights and actionable advice for listeners facing similar situations.

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Caller Introduction: Lisa’s Financial Predicament

Lisa reaches out to the show seeking guidance on her dire financial situation. At the outset ([00:02]), she shares:

“My husband and I are both in our late 50s. We have nothing saved for retirement. What can I do? Well, I should say that for myself, I'm clinically and legally blind, and he works offshore, so he's not home a lot. So I'm just trying to figure out what can we do?”

Lisa’s unique challenges include her blindness and her husband’s offshore work, which limits their ability to save and manage their finances effectively.

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Assessing the Current Financial Situation

Dave Ramsey begins by probing into the specifics of Lisa’s situation ([00:28]):

“Who helps with your caretaking while he's gone?”

Lisa responds that she is solely responsible for caretaking, which adds to her stress and financial strain. As the conversation progresses, it becomes evident that:

• Income: Lisa’s husband earns approximately $101,000 annually ([02:01]).
• Debt: The family struggles with substantial debts, including an $85,000 SBA loan on their home, a $45,000 car loan, $25,000 in credit card debt, and $16,000 in student loans ([02:08]).
• Savings: They have no retirement savings, with Lisa holding only $9,000 in cash, earmarked for urgent home repairs ([03:31]).

Dave and Rachel highlight the gravity of Lisa’s situation, emphasizing the absence of a safety net and the pressing need for a strategic financial overhaul.

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Debt Repayment Strategy

Rachel Cruze offers a structured approach to tackling the overwhelming debt ([03:24]):

“The goal here is to write down all of your debt separately. So if you have two student loans, write them as two different loans, three credit cards, write them as three different. Because the goal here is to write out every piece of debt you have and you're going to pay off the smallest one first and you're going to work through.”

Rachel recommends the debt snowball method, encouraging Lisa and her husband to list all debts from smallest to largest and systematically eliminate them. This method aims to build momentum and provide psychological wins as each debt is paid off.

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Seeking Additional Income

Given their precarious financial state, Rachel emphasizes the importance of increasing income ([05:00]):

“Even you, Lisa, being able to bring in 400, 500 extra a month, I mean, just something. Because the more that you guys sacrifice lifestyle, don't live on anything and you throw as much as you can at that, that's, that's really the only way to get out of this.”

Lisa’s visual impairment limits her employment opportunities, but Rachel advocates exploring creative avenues to generate supplementary income, which could significantly accelerate debt repayment.

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Retirement Planning Amidst Debt

Dave Ramsey candidly addresses the bleak outlook for Lisa and her husband’s retirement prospects ([02:40]):

“If you were my mom, I, I don't want to over sensationalize this, but I have a couple of buddies that worked offshore out in the Gulf. And your husband's time out there is, is short. And you know that. Right? I can't keep doing that late into his 50s. That's hard work. That's a young man's game.”

He underscores the necessity for immediate and radical financial changes to salvage any hope of retirement. Dave advises:

• Debt Elimination: Prioritize paying off high-interest and depreciating assets, such as the $45,000 car loan.
• Asset Liquidation: Consider selling unnecessary or luxury assets to reduce debt burden.
• Lifestyle Adjustments: Adopt a frugal lifestyle to maximize debt payments and minimize expenses.

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Expert Insights and Long-Term Strategy

Rachel provides a comprehensive roadmap for Lisa and her husband to navigate their financial turmoil ([04:00]):

“What I would do is I would sit down with you guys together tonight, and you both really need to be on the same page, like, in a really deep way... you have to be bought into that.”

Key recommendations include:

1. Collaborative Planning: Both spouses must align their financial goals and strategies.
2. Debt Prioritization: Focus on eliminating smaller debts first to build momentum.
3. Expense Reduction: Significantly cut unnecessary spending to free up resources for debt repayment.
4. Savings Allocation: After debt elimination, redirect funds towards building an emergency fund and initiating retirement savings.
5. Long-Term Commitment: Recognize that overcoming debt and securing retirement will require a decade-long commitment to disciplined financial practices.

Dave reinforces the urgency of these steps, urging Lisa and her husband to act swiftly to prevent their financial situation from deteriorating further ([06:32]):

“There’s no reason to have a 45,000 depreciating asset car in a driveway when you can't drive because of your vision.”

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Notable Quotes with Timestamps

• Lisa’s Introduction:
  [00:02] "My husband and I are both in our late 50s. We have nothing saved for retirement. What can I do?"

• Rachel on Debt Strategy:
  [03:25] “The goal here is to write down all of your debt separately... pay off the smallest one first and you're going to work your way through.”

• Dave on Immediate Action:
  [06:32] “There’s no reason to have a 45,000 depreciating asset car in a driveway when you can't drive because of your vision.”

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Conclusion

This episode of The Ramsey Show Highlights serves as a crucial guide for individuals nearing retirement without adequate savings, especially those facing additional challenges such as disabilities and limited spousal income. Through Lisa’s story, Dave Ramsey and Rachel Cruze elucidate the importance of debt elimination, income augmentation, and disciplined financial planning. Their expert advice underscores that while the path to financial recovery is arduous, it is attainable with dedication, strategic planning, and mutual commitment.

Listeners are encouraged to take immediate action by assessing their debts, creating a realistic repayment plan, exploring additional income sources, and aligning financial goals with their spouses. As Rachel aptly states, transforming one’s financial landscape is a decade-long journey that demands persistence and proactive measures.

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Additional Resources

For those seeking personalized assistance, Ramsey Network offers various tools and expert consultations to help navigate similar financial challenges. Lisa’s journey is a testament to the importance of seeking expert advice and remaining steadfast in the pursuit of financial stability and retirement security.

Transcript

[Lisa]

Brought to you by the EveryDollar app. Start budgeting for free today. My husband and I are both in our late 50s. We have nothing saved for retirement. What can I do? Well, I should say that for myself, I'm clinically and legally blind, and he works offshore, so he's not home a lot. So I'm just trying to figure out what can we do?

[Dave]

Who helps with your caretaking while he's gone?

[Lisa]

Nobody. I'm here alone. Oh, good grief. Oh, yeah. I can maneuver pretty well. Thank God.

[Dave]

My goodness. So you'll have no pension? No.

[Rachel]

Are you getting any security disability at all, Lisa?

[Lisa]

No, no. In my life, we've been married almost 37 years. I've only worked maybe four years, if you connect all the days together. So I don't have anything like that.

[Dave]

Does he, though?

[Lisa]

Yes, I'm sure he does. He's been working forever, but yes.

[Dave]

Okay, y'all need to combine your money because y'all are going to be retired together.

[Lisa]

Okay, well, listen, I don't have any money. I don't. Like I said, I haven't worked in years.

[Dave]

I know. I don't think you're hearing what I'm saying.

[Lisa]

Oh, no, I'm talking that. Go ahead.

[Dave]

No, it's okay. Like, you haven't worked, but you've kept that household up while he's gone, right?

[Lisa]

Oh, right, yes, yes.

[Dave]

And so his money has the money that he's earned and the money. And it's Yalls money is what I'm trying to say.

[Lisa]

Right, right. It is. It is.

[Dave]

So we don't.

[Lisa]

We share a bank account and everything.

[Dave]

Perfect. So does he have a retirement with his company or does he have mutual funds or a 401 or Social Security?

[Lisa]

Social Security, I believe he would have that. As far as 401k, the companies with his. This company bought two years ago, so I think they just started the 401k. But he hasn't gotten into it yet. He's been at this company for two years.

[Rachel]

Okay. Lisa, how much does he make a year?

[Lisa]

About 101,000.

[Rachel]

Okay, 100,000. And what kind of debt do you guys have?

[Lisa]

Well, I have a SBA loan on my home car debt. Do you even know the amounts or what?

[Rachel]

Yes, I would love to.

[Lisa]

Yeah. Okay. The house, 85,000.

[Rachel]

Okay.

[Lisa]

The car, 45,000. Credit card debt, we have maybe three cards all together, it's about 25,000. Student loans, 16,000.

[Dave]

And what? You said there's a SBA. That can't be the right one. What loan do you have on your house?

[Lisa]

Yes, it's sba. What happened is we paid off the house back in 2014, but when Harvey hit and my husband's company folded back then, went bankruptcy. We had to live off of whatever money we had. His 401k, and he didn't get another job offshore until a year later.

[Dave]

So how did y'all get an SBA loan? Had he taken it out with his company? Y'all just took that money and use it for your expenses?

[Lisa]

It was for the. It was because of Harvey. The flood, huh? Yeah, we were flooded out my. Our whole city. So.

[Dave]

Yeah, I was in Houston. I remember that.

[Rachel]

Yeah.

[Lisa]

Yeah. Okay. Yeah. We didn't have house insurance at that time because he had lost his job a year before. And so therefore, we took out the.

[Rachel]

85,000 to fix the home and to live off of. Okay.

[Lisa]

Yes. Yes.

[Rachel]

Okay. And nothing saved you? Yeah. Do you have any cash?

[Lisa]

Well, I do have 9,000 cash, but that's. I'm saving to get a roof. I'm gonna need a roof before August.

[Rachel]

A roof on the home?

[Lisa]

Yes.

[Rachel]

Okay. So, yeah, I mean, this is. This is a tough one, Lisa, just because of the reality of these numbers and where to get you guys in order to start looking into retirement. I mean, he probably will not be retiring anytime soon. Is his health. Is his health okay?

[Lisa]

It's okay.

[Rachel]

Okay. Yeah. So I think that you guys just need a game plan. I think you've. And to a degree, I've kind of just been floating and, you know, using debt to. To fix issues also, you know, kind of patch up things in life, and there's not really been a plan. So what I would do is I would sit down with you guys together tonight, and you both really need to be on the same page, like, in a really deep way. John was mentioning that earlier, but, like, what you're going to have to do here in the next seven, eight, nine, ten years is. I mean, it's a decade of saying, hey, we're going to. We're gonna have to do something completely different the way we've been doing money, and you both have to be bought into that. And so what it's going to look like, Lisa, is to be paying off the smallest debt first. So you're going to work on those student loans, those 16,000. You're going to next cut up the credit cards, start paying those off, smallest to largest. And if there's three of those. So the goal here is to write down all of your debt separately. So if you have two student Loans, write them as two different loans, three credit cards, write them as three different. Because the goal here is to write out every piece of debt you have and you're going to pay off the smallest one first and you're going to work your way through. But I mean, this is without, with, without any extra income and just him. Yeah, it's going to, it's going to take you guys probably three to four years to get out of this. And so my challenge to you, Lisa, is we've talked to a lot of people on the show with a lot of different situations and a lot of obstacles in life. And we've talked to people that have been legally blind and that they, that they haven't gotten disability or they haven't been able to apply for government assistance or anything like that. But they, you know, that they've done things creatively to think through. Hey, how in any way can I bring in an extra? So like even you, Lisa, being able to bring in 400, 500 extra a month, I mean, just something. Because the more that you guys sacrifice lifestyle, don't live on anything and you throw as much as you can at that, that's, that's really the only way to get out of this. I wish there was a magic wand just to wave and change the whole situation, but your steps are going to be, Lisa, to get out of debt first and then beyond that, save some cash and then start looking into retirement. That's why I'm saying it's going to probably be a good decade and then I would start lowering my expenses because when you guys get to the point of retirement, I want you to be able to, yes, use Social Security, but also be able to cash flow your lifestyle at that point from the decisions you're making today.

[Lisa]

Okay.

[Dave]

And if you, if you were my mom, I, I don't want to over sensationalize this, but I have a couple of buddies that worked offshore out in the Gulf. And your husband's time out there is, is short. And you know that. Right? I can't keep doing that late into his 50s. That's hard work. That's a young man's game. So y'all are making a six figure income. I would get maniacal about paying this stuff off. There's no reason to have a 45,000depreciating asset car in a driveway when you can't drive because of your vision. And he's gone a month or two or three at a time. Right? That's, that's a used Camry house. You don't need a big old fancy nice car on the driveway. You sell that ASAP and knock that debt off. But you all just gonna have to get radical. And I hope he'll be there with you. I think the words I would start with are, I'm very, very scared about our situation. Would you be willing to make a radical shift with me? Because, I mean, Harvey, it was in 14. It flooded. It was a zoo. That's 10 years. That's 11 years ago. And y'all are still haven't messed with those debts. So let's get on it.

[Lisa]

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