I'm 59 Years Old With Nothing Saved For Retirement!

Mary is with us in Florida, welcome to the Dave Ramsey show. Mary, it's Dave, thank you for taking my call. Sure, what's up? I recently sold my house and paid off almost all of my debt, but I'm 59 and no. I have money for

retirement

so I was wondering what your advice would be instead of taking all the money I have and putting it into a house. I was thinking maybe I should reinforce an investment account, but I know his steps say that's the case. borrow money to invest well, how much debt do you currently have that you have not paid well?

I have a lease with 30 months left and it's 400 a month, but I didn't think it would be wise to hand it over. That's still over, okay, and do you have any other debt? No. I am cashing in on my daughter's college right now and there is no other debt. Okay, and how much money do you have in her account today from the sale of her house after she paid? some of the debts well I have a total of 290 I put ten thousand in my emergency fund and I have like five thousand in an account because I haven't done my eighteen taxes yet and let's prepare to do them that's right, but I was going to take a step.

I'm self-employed and if I was going to take a step that I wanted, I've been waiting to find out what to do before and how much you make, what your household income is, it's about $70,000 in Here, what kind of business do you have? I do individual small business accounting, very good, yeah, okay, so it's pretty low impact, so you can do more and for longer. That's good news, yeah okay, so what price range was the house in? you sold it, it sold for five hundred and eighteen thousand, you got it right and what city you live in Florida.

I'm just north of Palm Beach, Florida, okay, uh, like in the Jupiter market like that, just about you, okay. I don't know where you are, well I'd like to stay in the $300,000 range for a house, so I was thinking about investing $200 in the house and taking a small mortgage for ten

years

and this is where we need to get. our proportions here are the three or four numbers that are the big numbers in your equation, okay, by age 70 something, okay, 15

years

, 75, okay, in 15 years we have to have savings in a house paid, mm-hmm, we currently have 290 thousand to do that and we have $70,000 a year to do that mm-hmm okay and then you're working at 75 okay mm-hmm if you know or 272 or whatever if we say 12 years, I don't know But you have 70,000 dollars a year and two hundred and ninety thousand to achieve it because if you don't have a house paid for when you finish working you are going to have a major problem because it destabilizes your entire situation. a mortgage when you're retired you don't want to retire with a note with a mortgage so we have to clean the house second and then every dollar we pay on this house obviously means we don't have it in a nest egg and borrowing doesn't fix that because we have it, if you borrow on your house and you say okay, I'm going to put 200 down and at the end of my I have a $100,000 mortgage, then you know you still have to pay the hundred thousand and that's still not a hundred thousand They go into my

retirement

savings, so what would I do if I woke up in your shoes?

Well, this is what I would do if I woke up in your shoes. I don't know what you'll do, but this is it. What I would do: I would buy a $200,000 house for cash, which in your area isn't a great house, okay, it's a decent house, it's certainly not a shack, but it's pretty far from where you lived. I understand that when I'm saying this, I'm going somewhere with this, don't leave me until we finish talking. Well, I'd start there and pay off my car today. Find out what the advance purchase is. Probably around 12,000 dollars, probably 11. 10 11 thousand dollars something like that and figure out what the purchase is and just pay that stupid thing and own the car, or sell it and get one that you pay cash for.

I don't care, spending ten or twelve thousand dollars on that. thousand dollars whatever it takes let's get out of this car lease no more payments now we have zero payments now in my little world scenario that I just made up okay and we have $50,000 or so to start investing start our investment process in a good mutual funds, then load up a SEP, load up a Roth IRA and do everything you can to increase the number of accounts you keep books for and let's increase your income and break it for a few years now if we can get you to half a million dollars in savings for your retirement in a few years and you want to move into the house and pay cash for the promotion, that will be fine, that means we are out of the danger zone, but you will retire with no money. or close to zero money and a nice house paid off is not a plan so I'm going to add on your house to start the other things and then you'll know in five years when you see this is working and you want to move.

Go up to the house again, go up to about four hundred and pay cash. You know, I think you can do that later in this plan, but I want you to make sure we get the wolf away from the door first. mm-hmm, so I would live in that $200,000 house for three to five years while I have my savings roaring and when it's roaring and it's growing, it's on fire, so I'm talking about saving by paying cash and moving up the house a little bit. a little and we know we will be fine. I think you'll be fine if you do all this and live on a tight budget, but you haven't done it to date, you haven't

saved

a dime in 59 years. the planet, so you have to prove to yourself, not to me, but to yourself, that you can do this and you need to downsize this house without any payments to make that happen and you need to be within the budget of every dollar, so Wait, I'm going to do two things.

I want you to go to Financial Peace University and I'll show you how to be a millionaire in 14 years and you can do it by making $70,000 a year, especially in your situation because you get two. One hundred and nine thousand dollars in the bank, you're off to a good start on this, okay, so hold on, I'll have Madison sign you up and that will connect you to every dollar more, when you become a member, include the class, every dollar more. all the other classes, the legacy journey, everything is there, so wait and we will give it to you as a gift.

The other thing we'll send you is Chris Hogan's book. Retiring inspired his and you's first number one bestseller, that's what we. What we're trying to do here, we're trying to take you to 59 years old and give you a break, is that you're retiring inspired and that's what I would do if I woke up in your shoes, no, I don't know if. You will or you won't, but that's a really good mathematical system that I just gave you and it will work. I promise you it will work if you apply it.