Dave Ramsey Tells Americans ‘If You Retire It’s Your Fault’ Explains How To Retire With $1 Million

Dave Ramsey tells Americans:

Dave Ramsey Tells Americans ‘If You Retire It’s Your Fault’ Explains How To Retire With $1 Million

Financial guru Dave Ramsey doesn’t mince words on The Ramsey Show, asserting, “It’s your fault in this country if you retire without problems.” According to Ramsey, anyone who has worked their whole life should have something to show for it.

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Ramsey has built his financial philosophy on a few basic principles that he believes can help most people become millionaires or at least have $1 million for retirement. These are his seven baby steps to financial peace.

Let’s review what they are:

  1. Save $1,000 for a starter emergency fund.

  2. Pay off all debt (except the house) using a debt snowball.

  3. Save 3-6 months of expenses in a fully funded emergency fund.

  4. Invest 15% of your household income in retirement accounts.

  5. Save for your children’s college fund.

  6. Pay off your home early.

  7. Build wealth and give.

Ramsey Solutions emphasizes Step Four as crucial to saving $1 million for retirement. While his advice is particularly relevant to people aged 25-45, the basic concept also applies to seniors, with adjustments for higher contributions.

On The Ramsey Show, Dave says, “$100 invested every month from age 25 to 65, averaging 12% with a good growth stock, mutual fund or Roth IRA is $1,176,000.” So if you can start early, by all means do.

Ramsey’s message is clear and direct: “If you’re listening to this show and you’re under 40 and you don’t retire with $1 million, it’s nobody’s fault but yours.”

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So if you start later than age 25, how does Ramsey suggest you save $1 million for retirement? Here the fourth step is highlighted: leaving at least 15% of your household income until retirement (only after you’re debt-free and have an emergency fund).

Ramsey Solutions recommends starting with your 401(k). You can invest the full match amount with a guaranteed 100% return with employer matches. According to National Millionaire Studyeight of the millionaires invested in their companies’ 401(k).

From there, it’s crucial to stay out of debt and maintain a healthy emergency fund saved while you work to build your retirement. Any debt you accumulate will drain any extra money you can put towards a stable financial future.

An example from Ramsey Solutions highlights how people under 40 can save $1 million for retirement. If someone earns $80,000 a year, they would need to invest $1,000 a month to reach that 15%. Putting that into “good growth stock mutual funds” could add more than $1.5 million to a retirement nest egg by age 65. Holding onto the pension for another five years could result in $2.8 million.

Whether you start saving for retirement at age 25 or 55, there are ways to build your nest egg and have a comfortable retirement. It may take a few years of worry to get back on track, but with the right financial advisor on your team, you can create a game plan for a more comfortable financial future.

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This article Dave Ramsey Tells Americans, “If You Retire, It’s Your Own Fault,” Explains How To Retire With $1M originally appeared on Benzinga.com

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