In a recent episode of The Ramsey Show, financial expert Dave Ramsey tackled a retirement dispute that Jason from Hartford, Connecticut, brought up.
Jason, 54, wanted to retire at 55, but his wife, 51, felt they were not financially prepared. With around $2.5 million saved, Jason believed they had enough to live comfortably, especially with a potential side gig, but sought Ramsey’s advice to resolve their disagreement.
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“Retirement’s not a feeling,” Ramsey stated, emphasizing the importance of evaluating facts and data over emotions. He asked Jason for specifics about their finances to assess the situation.
Jason disclosed their monthly expenses were about $8,000, equating to $100,000 annually. Ramsey noted that with $2.5 million invested in good mutual funds, earning a 10% return would generate $250,000 a year.
“Mathematically, the answer is you’re just fine,” Ramsey assured Jason. He highlighted that his wife’s $160,000 annual salary would cover their expenses even without Jason’s income. Ramsey further advised Jason to consider possibly starting a small business instead of a traditional retirement, suggesting it would keep him engaged and provide additional income.
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Ramsey also addressed the emotional aspect of the disagreement, pointing out, “I think there’s a lot more going on here than this.” He suggested that despite the solid numbers, Jason’s wife might have deeper concerns about financial security. “She’s not wanting to believe it for some reason, and that’s your core issue,” he explained.
To conclude, Ramsey encouraged Jason to have a deeper conversation with his wife about her concerns, suggesting that understanding and addressing her emotional apprehensions would be crucial for their retirement planning.
The average couple at age 54 has saved between $290,000 and $370,000 for retirement. Experts recommend that by this age, couples should aim to have about six to seven times their annual salary saved. According to a Northwestern Mutual study, many believe they need around $1.46 million to retire comfortably despite these recommendations.
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According to the Federal Reserve’s latest Survey of Consumer Finance, only 10% of people retire with a $1 million nest egg. The median retirement savings account balance for families, including all age brackets, is only $87,000. Based on these numbers, Jason and his wife would be in the top 5% of savers.
This discrepancy between actual savings and perceived needs often contributes to the anxiety surrounding retirement decisions, as Jason’s situation demonstrates.
By focusing on factual financial assessments and open communication, couples can better navigate the complexities of retirement planning and ensure they are financially and emotionally prepared for the future. Consulting a financial advisor can help you set realistic goals, plan for the future, and determine what you’ll need to live the life you want.
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This article 54-Year-Old With $2.5 Million Nest Egg Says His Wife Doesn’t Feel It’s Enough To Retire – Dave Ramsey Quips, ‘Retirement’s Not A Feeling’ originally appeared on Benzinga.com
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