The Ramsey Show

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Building Wealth Means Choosing What Matters Most

Explore episode Jun 29, 2026
Business
43, No Retirement, Divorced — Sarah Is Not Too Late

Building Wealth Means Choosing What Matters Most · Jun 29, 2026 Business

Sarah is 43, just became a library assistant after being a stay-at-home mom for 19 years, and has zero retirement savings after her ex-husband kept all the retirement accounts in the divorce. She has $86,000 in combined income right now — but the alimony dwindles in 5 to 9 years. George and Jade crunch the numbers: 15% of $86K is $1,075/month, and investing that from now until 65 puts her over $1 million.

4m 43s

Where this was said

Ask Ramsey Segment — Why Does Ramsey Only Recommend Investing 15%?

At 55:37 · chapter starts 52:50

Addressing a top listener question, George and Jade defend the 15% gross income retirement target. The FIRE crowd invests 30–40% — often to the point of burnout. Ramsey's 15% is calibrated to allow simultaneous progress on the other Baby Steps: paying for kids' college, paying off the mortgage, giving generously, and actually living life. The 15% is of gross household income (pre-tax), the employer match does not count toward it, and the order of operations is: 401(k) up to the employer match, then max a Roth IRA, then return to the traditional 401(k) for the remainder.

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