Dave Ramsey explains how woman with £119k debt can plan for retirement

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Dave Ramsey advises elderly woman with no retirement plan

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On The Ramsey Show – Highlights YouTube channel, Susie called in as she was unsure if she was doing the right things preparing for her retirement. She hoped to retire in the next five years, however she was afraid her investments were in the wrong places.

She did not believe she was in a good position at 60 and wanted to figure out how to prepare adequately.

She said: “My investments were heavily weighted in two spots which I know is not the way I’m supposed to be doing it.”

Her investments are held in the equity in her home as well as her workplace stocks.

She is close to paying off her home, but she knows the risks of having investments in just two places.

As the market remains unsteady, she is unsure what to do now.

Susie is a dentist and owns stocks in the business. She enjoys bonuses at the end of each month too.

Her stock is worth $519,000 (around £442,000) and her home is worth $600,000 (around £511,000).

She also has retirement and pension savings of around $257,000 (around £218,000).

Mr Ramsey said: “The only danger zone is if some bizarre thing happens and this one company goes broke.

“That’s you losing one third of your net worth and that’s scary.

“It’s not the end of the world but I don’t want too much in single stock.”

Mr Ramsey suggested that Susie try and diversify her stocks.

Having all her money in one place leaves her vulnerable which is risky as she wants to retire in the next five years.

He said if she can cash out half and still keep her company bonus each month she should because of safety.

Susan owes around $110,000 (around £93,000) on her house, and $43,000 (around £36,000) in student loans.

The money expert said she should focus on paying it off.

Susie wants to semi-retire when she turns 65.

She told the money expert that she eventually want to only work two or three days a week to stay active.

Dave said: “Just make a plan to get out of the stock in the next few years, then you’ll have some equity.

“Get your house paid off and your student loan paid off. That’s sloppy. Other than that, you’ve done a great job.

“All you need is perspective but that’s all.”

Videos from The Ramsey Show are availavle on The Ramsey Show – Highlights Youtube channel.

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