Why Dave Ramsey Suggests Investing 15% of Your Income For Retirement

Why Dave Ramsey Suggests Investing 15% of Your Income For Retirement
Listen to how ordinary people built extraordinary wealth—and how you can too. You’ll learn how millionaires live on less than they make, avoid debt, invest, are disciplined and responsible! Featuring hosts from the Ramsey Network: Dave Ramsey, Ken Coleman, George Kamel, Rachel Cruze, and John Delony.

[FeelMyTruth]

I am an active duty service member and I have been investing for a few years. I have reached a point where I could benefit from financial advice to improve my $160k portfolio which seems to be stagnant and maximize return on my investment.

[JefferyDube]

I'm thinking of putting some cash in stocks, I was at Salt Shack and I overheard some friends saying it's ripe enough, but Is this a good time to buy stocks? I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?

[marshallhosel]

I wish young people would be taught the power of compounding returns in school. It would change their life.

[neqhbsi]

investing requires good experience and knowledge to carry out a good and successful trade, I have lost a lot trying to trade all by myself May I ask which investments are

[SammyIglesias]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274, 800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[vanguardvaluist]

1) Clearly identify your values. 2) Enjoy your life while living below your means and avoiding debt. 3) Invest the difference in an all market index (VTSAX or VTI). The earlier and more you invest while staying the course by NEVER selling before your drawdown phase gets you out early for good behavior. This is a recording.

[Frosty]

Thanks for the great advice! God bless Dave and George!!!

[BrandonMinguez]

15% is a healthy amount. If you're comfortable with having your mortgage (at a historically low interest rate) then throwing more money towards investments might be a good way to go.

[richarddugan-starr]

I’m 7 years into saving for retirement. Mostly was saving around 10% and just ramped up to about 20% last year and am sitting at 77k. With 32 years left to save I feel like I’m on a good track. It is doable folks.

[MoneyTalkwithMP]

Great advice. Appreciate the knowledge drop! 🙏

[iBryanDBrown]

Just paid off my mortgage…going up to 20%-25%

[boredoreos]

I put 30% in investments/retirement. Mostly because I don't know what I want to spend it on. Also, not going to pay off my house until maybe retirement with my mortgage rate being 1.7%.

[edwardrhoads]

Lets say your salary is 1. In retirement after inflation and medical bills you will need about 4. In order to generate an income of 4 you will need to have assets of about 100.

If you calculate how much you need to invest every year starting at age 25 or 30 to get to 100 you need about 0.15.

While Dave usually bases things on psychology this one is just math.

[c.t.u.o]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.

[chessmaster]

One thing Dave not mention here is it is okay to go 6 percent if you make 25k a year and also maxing out your health savings account your exceeding the 15 percent when those two are put together that is 12.6 percent for HSA and 6 percent = 18.6 percent contribution. Even at 30k if somehow made more that is 10 percent + 6 = 16 percent putting over the 15 percent.

[aarodful]

I think 15% is a good rule of thumb but really I wish people didnt take rules of thumb as hard numbers. I look at what number of $ I need to retire at the age i want to retire and I let that dictate the percentage I save. I do think capping it at 15% for most people while you have a mortgage is a good but you still have to think about it in terms of how that let's you achieve your end goal. Not simply to assume you save 15% so you are good. Plan it all out.

[RyanABC]

I paid off my mortgage 2 years ago (age 33). I’m saving 15% towards retirement and enjoying the rest. No point in being debt free if you’re never going to enjoy the money you have.

[gonnahavemesomefun]

I invest 60% of my basic wage, comes to around 40% of my full income. I do this because the tax benefits far outway using the money to pay off my mortgage 2 years quicker (3 years instead of 5). I think Dave's point is doing that is a risk. But to my eyes not having as much in retirement is also a risk. If I didn't do it this way I'd lose out on around $100k. I am still paying off my house 10 years early though.

[James-yivk]

I have a mortgage at 2.25% that takes up 14% of my net income. It stupid for me to pay my house off early with those rates. I will have hundreds of thousands of more dollars by maxing out investments now than later.

[Rashaadthegr]

Once your debt free 100% and then you put the maximum percentage you feel amazing. My company lets us do 30% 401K and of course thats what I am doing.