Dave Ramsey assures the woman, 47, that she will be ‘just fine’ in retirement as he explains his savings strategy.

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Dave Ramsey assures a woman, 47, that she will be “just fine” in retirement as he explains his savings strategy.

DAVE RAMSEY opined that Angie, 47, “will be fine” in retirement despite her meager pension savings.

Angie was unsure what to do because they weren’t financially ready to retire, according to a video posted on The Ramsey Show – Highlights YouTube channel this year.

Angie and her husband have no debts other than their mortgage, but they don’t have much in the way of retirement savings because they started working late in life.

She explained that she was making minimum wage and had no savings five years ago, but that by following Dave’s Baby Steps, she was able to get a start.

Angie, on the other hand, was having trouble bridging the gap between how much she had saved and how much she needed for retirement after using retirement calculators.

She was concerned because she didn’t see a way for her and her husband to retire in the next 20 years.

Angie explained that her house payments would be paid off next year, and that for the previous year she had been putting 15% of her income into retirement.

Her emergency fund is £14,710 ((dollar)20,000, and her workplace pensions are £67,662 ((dollar)92,000).

She intended to “maximise” her pension contributions once her house was paid off, but she remained perplexed.

“You always say it doubles,” she said, “but is that really going to happen? It’s hard to picture.”

“I’ve looked at all of these retirement calculators, and it says we’ll need £1.5 million ((dollar)2.1 million) to retire, which seems like a huge amount.”

“You’ll be fine,” the financial advisor assured her.

With a yearly income of £147,067 ((dollar)200,000), she needs to save at least £22,000 ((dollar)30,000 for retirement.

She’ll want to maximize all of her pension contributions once her house is paid off.

“You’re going to be fine if you save for 15 to 17 years,” he said.

“The thing about retirement calculators is that they have a set of assumptions, and some of them include an inflation rate.”

“Since it began, the stock market has averaged 11%, so that’s something you should do.”

“In terms of rates of return, you’re fine; all you have to do now is put the money in.”

Dave then went on to talk about the effects of inflation.

He explained that the basic CPI is at 4% because he is based in America.

So, what if?

“News from the Brinkwire.”

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