Dave Ramsey suggests how the man can manage in retirement | Personal finance | Finance
In a video posted on The Ramsey Show – Highlights YouTube channel in 2019, he suggested how a caller could secure a comfortable retirement. James, 65, planned to work for another year and retire at 66. He has nearly £500,000 in his private pensions and his company matches his contributions.
He still had around £77,000 on his mortgage and around £7,000 in credit card debt.
He wants to leave his place of residence and be closer to his family once he retires.
James said: “I’m terrified right now because I’m sitting in a position where I’ll be 66 in a year.
“My plan is to retire when I reach full retirement age and not be restricted if I choose to work again and penalized by taxes.”
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The money guru explained that the longer James can keep working, the more time he will allow his investments to grow, only adding to his nest egg.
Extra years of work “can make all the difference”.
He suggested that James use this year to do some “cleaning up”.
Mr Ramsey said: “Let’s get rid of those credit cards and cut them. Get debit cards. And live on cash in the future.
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“It will get you in great shape.”
Mr Ramsey explained his ‘formula, really rough and dirty’. It is the closest path to wealth, he said.
Speaking in 2019, Mr Ramsey continued: “The [US] the stock market has averaged – if you’re invested in good mutual funds that average the average of the stock market – between 11% and 12% every year. “If you withdraw 7 or 8% of your nest egg, you are safe.
“So if you can live on eight percent of your nest egg, you’re good and I think by the time you retire you’ll have made more money.”