On a video posted to The Ramsey Show – Highlights YouTube channel in 2019, he suggested how a caller could ensure themselves a comfortable retirement. James, 65, planned to work for another year and retire by 66. He has almost £500,000 across his private pensions, and his company match his contributions.
He still had around £77,000 on his mortgage, and had around £7,000 in credit card debt.
He aims to move from where he lives, and move closer to his family once he retires.
James said: “I’m terrified right now because I’m sitting in a position where I will turn 66 in one year.
“My plan is to retire when I reach my full retirement age and not be limited if I chose to work again and penalised by taxes.”
The money guru explained that the longer James can keep working, the longer time he will give his investments to grow, only adding to his nest egg.
Extra years in work “can make all the difference”.
He suggested that James use this year to do some “clean up”.
Mr Ramsey said: “Let’s knock these credit cards out and cut them up. Get you do debit cards. And live on a cash basis going forward.
“That will put you in great shape.”
Mr Ramsey explained his “formula, real rough and dirty”. This is the closest path to wealth, he said.
Speaking in 2019, Mr Ramsey continued: “The [US] stock market has averaged – if you’re invested in good mutual funds that are averaging what the stock market has averaged – between 11 and 12 percent each year.“If you pull off seven or eight percent from your nest egg, you’re safe.
“So if you can live off of eight percent of your nest egg, you’re good and I think by the time you retire you will have made more money.”