""If you save $1,250 a month, which is $15,000 a year, and you never get a raise from 41 to 67, you'll have $2.2 million," Ramsey predicted. "That would be on average stock market returns.""
"The $2.2 million figure is the conservative floor assuming zero income growth. Hopefully, the caller's income and retirement contributions would rise over time."
"Ramsey's specific recommendation was to spread retirement contributions across four types of growth stock mutual funds: growth, growth and income, aggressive growth, and international, preferably inside Roth IRAs."
"For someone with this caller's income trajectory, the Roth structure matters: contributions grow tax-free, and withdrawals in retirement carry no federal income tax burden."
A 41-year-old caller with no debt and $800 monthly expenses lives off-grid and runs a small online business. Despite having saved $0 for retirement, financial expert Dave Ramsey calculated that saving $1,250 monthly could lead to $2.2 million by retirement at age 67, assuming average stock market returns. Ramsey recommended diversifying retirement contributions across four types of growth stock mutual funds within Roth IRAs to maximize tax benefits and growth potential. The caller's situation is favorable due to low expenses and the potential for income growth.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]