Dave Ramsey On Saving For Retirement
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- เผยแพร่เมื่อ 18 ก.ย. 2024
- Dave Ramsey gives advice on saving for retirement. ***
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Dave is awesome! I'm 28 ,have $40k in retirement and will have my $250k house paid off by 30 yrs old!!! I'm loving life right now. Debt free and flying high! Thanks Dave!
Mike Stevens I'm on track like you! I'm 26 with 35k in my 401k and will have a paid for house soon as well!
Dave take a look at a good IUL-Living Benefits!! as another retirement supplement. Contact me for more info..
Well done, keep on going for it.
The most important point is to save for your retirement. Roth vs. traditional is all about pay me (government) now, or pay me later. Save save save save!. I never knew that there is huge investment benefits if you have an IRA account so I did further research into the topic and discovered how many American have been getting huge investment rewards through their IRA accounts. My life after retirement is now guaranteed! You can talk to Lance via { Binaryreap3r@ gmail com } for more details
Im blessed to be 24 yrs old and have no debt, and always wanted to have enough money to do what I want financially by the ago of 40. Thanks to ramsey im well beyond crushing that goal before 40. God bless you great sir
Dave Ramsey is truly a genius. He is my own personal hoxha, financial guru and money shaman. Thanks so much for this post.
See this video made me realize that i must start saving for my retirement now at 21 instead of putting it off. I always thought i had to save %30 of my pay check, but now i know %15 will be okay.
Ashley Marie Peralez when you start as young as you are, you will be amazed how a small amount can turn into a huge amount. I didn't start until I was 31 and I still became a millionaire.
stephen geraci That's because you make more than the average citizen. The story will be different for others.
More than 70% live paycheck to paycheck. It'll be impossible for them to save.
I don't buy this. I'm not some high earner and back when I was making $17.5K a year I was saving for retirement. When I was making $30K a year I found a way to max out my 401K because that is what was most important to me. If you like, I can guide you to a ton of You Tube videos of people who became millionaires making just a little more then minimum wage. Paul Navone never made more then $11 per hour and still managed to save more than a million in his 401K. You can always make it work if you really want it.
stephen geraci Sure, if you have any links I'll take a look at those videos.
stephen geraci could you direct me to the videos as well? I am very interested and eager to learn!!
15 vs 30 year mortgage
i agree with most economist, the 30 year fixed is a much more sound choice because if you use the 15 year monthly payment schedule on your 30 year note it will be paid off in 15 years if something comes up you don't loose your house because your payment is locked in at a 15 year note.
200k at 4% for 30 = 955+tax and insurance
200k at 4% for 15 = 1479+tax and insurance
pay the 524 extra on your 30 every month 10 years down the road something happens you save 524 a month on your bills and hopefully bounce back then start paying again as soon as you can.
+SHALL NOT BE INFRINGED agree with you.
I agree with Dave, saving for retirement is very important. I wouldn't want to burden or worry my kids about having to help mom and dad out. I also agree with doing the envelope method.
I just finished step 3 and am on step 4 and 6, I'm 24 living with my parents at the moment and just finished building my 3-6 months savings and just opened a Roth IRA with Vanguard yesterday, only 1k bucks but it's a start. Now I'm saving EVERY penny so I can either pay cash for a house or have half to 3/4s of the loan amount in a down payment. I only make around 20k a year so it will be tough but I would be happy to get 15-20k of a 40k loan if I can, we'll see.
I am retired from the state 😢 and have to work because its not enough. So I work and save and trust my health will remain in good condition. I hope you people listens to this advice. Wish I had it years ago.Nevertheless, I'm on step 2 and work well with the envelope system.🌹
That's what I am going to do as well, had to pay for my own college and it feels great to pay it off yourself.
How about don't buy flash cars on finance , then you will retire with dignity
The legend himself!
Thanks for the advice, I have some research to do then :)
63 and considering "early" retirement? I am going at 60.
$5000.00 a month take home pay? Wouldn't that be nice. I would have no problems with money if I made that. How many people in Oklahoma City make 75000.00 a year? It's easy to pay off debts with that cash.
You say that because you aren't in that situation. Someone making less than you would probably say the same about your financial situation. People tend to upgrade their lifestyles when their income increases, which leads to no real increase in savings, and no real gain in net worth.
The most important point is to save for your retirement. Roth vs. traditional is all about pay me (government) now, or pay me later. Save save save save!. I never knew that there is huge investment benefits if you have an IRA account so I did further research into the topic and discovered how many American have been getting huge investment rewards through their IRA accounts. My life after retirement is now guaranteed! You can talk to Lance via { Binaryreap3r@ gmail com } for details
i agree with Dave Ramsey on many aspects in this video, however, regarding credit card spending, i DO NOT agree with him. If you can be a responsible credit card spender, you earn reward points or cash back when you use credit card for spending. For example, at walmart, i pay the bills using the walmart credit card, i earn points on every purchase. I use those points to purchase free products from walmart. if i paid cash, i get the same products for the same prince and i loose on the points and free products, similarly there are other advantages of using credit cards. But, other than that, I am a big fan of what Dave Ramsey has to offer.
I can see both sides of the coin here. But I know that Dave does have a specific response to your points, take it or leave it (different stroke for different folks) But here is what he has said:
Statistics show that people spend less when they use cash. Science shows that it registers a type of pain in the brain. If you get rewards for spending more, you might spend more then you would have.
Other statistics show that things like air miles and other rewards are almost never redeemed.
Not spending more than you would, redeeming your rewards, paying before interest kicks in (being responsible like you said) are all TOTALLY POSSIBLE, but it takes a lot of extra effort and tons of self control not to overspend or pay late.
Not all those sound like they apply to you but that's what I've heard him say.
I have never seen anything good come from having a credit card. I think it's better to not have them at all. I recommend to all my friends that they don't get a credit card and you will also never see me with a credit card.
J Winx I use my credit card for everything, pay it off every month and use the cash back for put towards vacation.
It's really hard to save a lot for retirement when you're just making enough to get by. Granted any family with average income doen't have much of an excuse not to save, most aren't saving now and weren't saving in the past when they were more able to.
Today companies are far more efficient at making money. In my chosen industry, rail transportation, railroads are getting higher than ever retuns on labor expenses. Longer trains with smaller crews operating them is just one way they save money.
My friend read about the Dave Ramsey spending plan or learn about it. Believe me it will change your life and the way you use money despite the rise in cost of living expenses. Trust me it helped me out a lot. "Financial Peace- University"..look it up for a seminar near you.
72retire has helped me a lot.
I saved nothing for my retirement; Santa Claus will pay for it.
Idiot
I'm 68 years old and I get SSI. and Medicaid.
Put it in a roth, its a really good tax shelter. If you max that out, go back to funding your 401k until you totally max that out. If you can do that, look at a taxable investment account, you have to be careful with individual stocks. If you can, real estate is also good. I hope this helps you.
what is 7702 plan?
Very impressive! Looks like you have a good shot at paying cash for a house then. Good luck with starting your business, working for your self by your mid twenties will be very nice indeed :)
The price of everything keeps going up and wages don't everyone will have to work longer to earn more to pay for everything.
Re that 25% of monthly take home for mortgage: is that just the mortgage and interest? Or is it the mortgage, interest, property taxes and homeowners insurance?
I dunno about the 15 vs 30 year mortgage. I have deep, deep respect for Mr. Ramsey....but keeping your debt to an absolute minimum is key....you can always pre pay the note. but keep that monthly outlay to the minimum, once you have eliminated your other debt.
David Hutchinson
Good point. I agree and the 30yr allows more to be put into an emergency fund if that priority still requires further funding.
Dave does not tell you how much money you need to retire at 62 or 65 if you live 20 or more years. This is something that these Econ gurus do not want you to think about. If have lived a middle class life style and want to maintain that life style after retirement you better have at least a million dollar guaranteed income to cover a retirement period of 20 years. I have been retired for ten years and have used about $500,000 . I have a define benefit pension that will cover me until I die. This the only plan I would recommend for peace of mind while working and being retired.
My mortgage is under $500/mo, 3.5% 30yr, I know friends under $300. Social Security pays $4000/mo
I'm going to create money by freeing up $500/mo? (Thats $1500/mo for 5 years , 5 years of $1000 a month less, )
My kids like a gardener, housekeeper, and my wife and I like a part-time nanny.
My wife + 4 Kids and I live well on $4000 SS + $4000 public Pension
We are in the minus 5% tax Bracket, With the additional child tax credit, the Government , gives us money.
sure, if you plan on staying in debt, you'll never retire. Getting out of debt should be the top priority, then you save for retirement.
correct you and me will never retire
Wrong about paying off mortgage early. Much better idea to invest extra money & earn a higher rate than you save by paying on a mortgage early.
It isn't about money when you pay it off early (hence why he recommends it as the last step). It is about FINANCIAL PEACE. If your house is paid for and you fall on hard times things are a lot less distressing. When you are retired it is one less expense (plus your retirement will not be making 12% when retired). It's not wrong, it's a tactic. If you are contributing 15% to retirement, there is no reason to not try and pay off your mortgage.
If you see the interest you pay on your mortgage in the long term, paying it off saves you more money then any investment I've ever seen. My mortgage is $860 a month, I have been renting a few of my rooms out to friends and paying $2000.00 a month. The added principle has saved me 10's of thousands of dollars in interest on the back end of my loan. Show me an investment that appreciates like real estate and saves me interest like that and I'll maybe take a swing.
+BryceJohnson88 True. If you look at how a mortgage is amortized, the majority of your payment goes to interest until the last few years. I'm 55, paid mine off 13 years ago.
It would depend on the individual. I'm single with no kids.
In Tulsa I paid my home off in 12 years and still saved and invested very well..
Just have to do the math.
If you have to work until 70 on dave's financial plan, then it's a failure. Dave claims he became a millionaire at 26, he didn't do that with "baby steps".
This comment hasn't aged well
On the management side of things they have cut positions and shifted more work onto everyone else. Nursing staff is now responsilbe for all clerical duties witch elliminates a secutary... Cuts like these have lead to record profits on a consistant basis even though the industry isn't moving as much cargo as it did before the crisis. Good jobs are eliminated to facilitate continued record profits and stock price gains. This has been happening country wide and I don't see it ending anytime soon.
Dave, what are your cd's interest rates? What about future rates. You can not predict future rates as you claim!
How on earth is "63" early retirement?
There is also something good to be said about going into debt. It builds credit and having good credit is something that can bring a lot of wealth to you. Debt is good.
I'm 32. 33 in January. I finally got a decent job and am nearly out of debt. Company contributes 50% up to 6% of pay into 401k. What do I do with the remaining 9%? Roth IRA or stocks?
Remaining 9%? You mean how to invest it within your IRA? If so, something that mimics the s&p 500. The four books I recommend are women & money-suze orman; total money makeover- Dave Ramsey; little book of common Sense investing- John Bogle; get rich carefully- Jim cramer. The second two will give you a good grip on your retirement accounts and self managing those accounts.
max out roth investing in no load mutual funds, with a low expense ratio
#SpecialtySongs.com -- the best retirement song
I've seen some well written comments strongly backing Dave. But why are almost all these comments over 6 months old? The math doesn't add up.
When talking about saving 15%, is that 15% of gross or net?
Gross I believe.
What is retirement with dignity?
Life is too short, enjoy your money how you desire
Dawit Belay
Read "The Ant and the Grasshopper". Don't be the Grasshopper.
Enjoy your money, splurge it right now, then regret later with no retirement savings. You're dumb my friend.
@@johnsantiago4810 Only fool like this guy living with motto like " YOLO ". He will probably rely on SS when he gets to 80 years old and complain about how life isn't fair.
I have a question............
How sound is it to start purchasing as many shares of "monthly dividend" funds as is possible for retirement knowing that there will be new money coming into your pocket every month of the year for the rest of your life?
As we all know, a lot of people lost a lot of money in the market when the crash of 2008 occurred, but some of the "monthly dividend" funds kept paying a dividend all the way through the crash up to today (February 2015).
For example, let's just say that someone who is 45 who has never started saving any money for retirement starts to put away $100 a week for the rest of their life.
Is it just as wise to put all of that money in the monthly dividend market (and re-invest the dividends) so that by the time they're 65 they might be getting more than $3,000 a month in monthly dividends or is it better to put it all into something that might not be able to be touched (without penalties) until they reach the age of 65 (or older).
Even if they never get more than $3.00 a month in dividends for a few months to a few years, you'd have to figure that eventually they'd be getting more per month than they could be saving in a stock or 401(k) that doesn't return any money at all until a specific age.
Does this sound wise or foolish?
Putting all of their retirement savings into a monthly dividend fund that will pay a return every month of the year for the rest of their life (knowing that every month the amount of return that they receive will be higher than the previous month) or putting all of their retirement savings into something that might lose 70-90 of it's value in a year if there is another crash while they're still alive?
+Buford Pusser: Just buying dividend funds is not good diversification. Also, collecting dividends and selling shares for monthly income is pretty much the same thing (according to a well known economist, I can't remember his name). If you are worried about your income dipping during a market crash, you might also want to consider diversifying into REITs (if you are a lazy landlord), rental property and a big emergency fund that you can use during a market crash.
Do F.i.r.e. go against Ramsey save and invest 30% to 70% and retire in 10 to 18 years
Yep, I am 2/3's through his total money makeover book and that's exactly what he says, emergency fund in a savings account and investments in Mutual funds ect. I don't know where this guy came up with putting your money in a bank for growth.
Sounds like you need a career change. I used to think like you...until i started refusing to be a victim of my own mind. If you have such a grim outlook and expect nothing will change, guess what? Nothing will, even though it could have. Some people are just too afraid of trying. You are victimizing yourself. For you, I have no pity.
I guess we were better off being apes...enjoyed tree houses for free and didn't have those plastic cards to get us into more trouble in the first place...I came from a poor family in India (my father was a simple school teacher and my mother was looking after us with no real income)...I now earn more than $150K (not bragging....but I feel I am lower middle class) but I am willing to leave this life to get back to my childhood when I was enjoying my life with one good meal a day...that was priceless...
Most of our money goes to taxes. If you want to know the truth, marry rich better than 40 years of hell life working.
American Distress!
Paying off mortgage fast is stupid idea. For normal folks livin pay check by pay check, mortgage free outright owning home can be very attractive idea however if u know how to invest in stock for long term, u know paying off extra is lost opportunity investing in stock. My incomes high enough to double my mortg pymnt 'n i can shorten it to a decade intead of 2 decades. so am i gonna double it? Hell no, investing 2 decades in stock return can double 1 decade's return. U r seating on all paid off home but its liqudity is terrible. It doesnt return or generate any income at all. Ur investment or finance is not diversified enough. What if ur home value goes down? U r seating duck cuz home is the only thing u got. this is key point: having a little debt and a lot of savings is FAR better than no debt and no savings. Any stupid ETF can beat 2.85% mortg i pay on long term. Besides, ur $1500 mortg wont be same $1500 in long term due to inflation. It'd be like $800 after 20 yrs. I aint gonna lose 2 decades of opportunity just to feel free and all 'n fool myself i am debt free. Plus having a lil debt givin' me an edge to go on - if u can understand it. Its weak psychology and must be avoided at all cost to think that u r "off the hook" cuz u will never. Keep the game on
Building wealth for retirement for others is OK, such as family, but not building wealth for yourself, says the Bible.
Matthew 6:19
[19]Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal:
Matthew 6:20-21
[20]But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal:
[21]For where your treasure is, there will your heart be also.
I guess you will live off your family to pay your bills when you get older. Seems like a very lazy person. You have to take Care of you. GOD said to be responsible for the jobs and money he does give you. You will be held accountable for that.
What retirement? No one will have one in the future because the price for everything keeps rising. Everyone will need a job even at seventy.
Dave, You got bailed out too...
Most peoples parents and grandparents are financial losers whose only advice to their kids is to get a job pr go to college, Its time people stop having kids until they are financially independent and can pass on both wealth and sound financial advice to their children. This cycle of financial failure has got to stop.
Same here. Parents only advice was to go to college. They never went to college. They never offered any funds or saved any funds for me. I had to pay. For Everything myself and they will probably expect to be looking after them in their old age. They made my life a nightmare. Why have kids if you're not gonna help them out with bettering their lives.
Dave seems to be dreaming in La-La-Land...15 years fixed rate mortgage @ no more than a fourth of your take-home pay...where do you live...in an igloo in Greenland or a ghetto in NY? I think the latter still costs more than a fourth of your take-home income...Median income is about $55,000 and not $200,000...think before you say and it becomes public...ridiculous...
I told my kids to get a job if they want to go to college. Being an adult means working for what you want and paying your own bills.
Savers are Losers!
It's pointless, if it takes you all your life to get rich... Is it really worth it?
Yea but why not have a game plan to get rich young and retire young & rich as well....Not have to work till your wig is grey till you have money, because then you have no energy for that money.
I guess I'd rather be a loser then!
Investors are winners. Start early and invest intelligently and you can have both
But yeah saving cash is for losers
this guy always say save money but why to save when the govrn keep printing money,meaning lowering the value of our money he simple don't know the new rules of money
How selfish of you. You shouldn't have had kids. The kids just won't go to college and I hope that's just OK with you.