From 24/7 Wall St. · Chris Lange · · 1m 20s
38 With Nothing Saved for Retirement?
38-year-old caller has $62,000 debt and zero retirement savings but Ramsey Show says starting now still works.
In brief
38-year-old caller has $62,000 debt and zero retirement savings but Ramsey Show says starting now still works. A 38-year-old with $62,000 debt and no retirement savings can still build $1.5 million by saving $1,000 monthly for 25 years at 11% return. Originally reported by 24/7 Wall St..
Caller's Financial Situation
A 38-year-old caller has $62,000 in debt including a $38,700 car and zero retirement savings.
Ramsey Show's Math
The host says saving $1,000 monthly for 25 years from 40th birthday to 65th at 11% return builds $1.5 million.
Realistic Return Assumption
At 7% return, the same $300,000 contributions would build $810,000 instead of the $1.5 million headline figure.
Two-Year Debt Payoff Plan
The show's plan requires paying off consumer debt within two years before starting retirement savings.
2026 401(k) Limits
Workers under 50 can contribute up to $24,500 annually to a 401(k) and $7,500 to an IRA.
Five Moves to Start
Plan at 7%, treat 11% as upside, set debt payoff deadline, count employer match, and raise contributions with raises.
Realistic Retirement Goal
At 38, the show is right you have time but the safest plan assumes market returns are less than 11% and makes up the difference with savings.
The one thing
A 38-year-old with $62,000 debt and no retirement savings can still build $1.5 million by saving $1,000 monthly for 25 years at 11% return.
