Personal finance expert Dave Ramsey says too many people are placing their hopes in the wrong strategy. Depending on government policies to redistribute wealth has never produced lasting financial success for ordinary Americans, he warned.
That message came during a recent call with Laurie from Oregon on “The Ramsey Show.” At 69, Laurie had already retired after 30 years with a local government job, while her 71-year-old husband still runs his own business. Together, they've built a solid nest egg: about $500,000 in certificates of deposit and high-yield savings, $700,000 in retirement accounts, and a paid-off home worth around $400,000.
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Building Wealth The Old-Fashioned Way
Laurie explained that she grew up with her grandmother, who shared the same money advice Ramsey teaches. "I only had come across you in the last year," she said, "but the amazing thing was I grew up mostly with my grandma who had exactly the same advice as you. So I followed her advice and found that you gave the same exact advice.” Ramsey was quick to add, “God's and grandma’s ways of handling money. It’s called common sense."
Ramsey praised her and her husband's discipline, noting that they started from nothing and raised their son to graduate law school debt-free.
Laurie wanted advice on whether to move her $500,000 in CDs, which currently earn about 5%, into the market. Ramsey was straightforward: "Yes," he said. "If you make 4% or 5% and you could have been making 12% or 15%, that means you’re losing 10%, which on 500,000 is you missed out on 50 grand."
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Enjoying The Payoff
Laurie also asked if she could afford a dream trip to Australia when she turns 70. Ramsey encouraged her not to hold back. "You can't afford not to do it," he said. "The difference in this conversation, investing this money versus high yield, will pay for the trip."
He reminded her that wealth isn't just about saving. "You have done such a good job. I want you to enjoy your money as well as be generous with your money as well as continuing to be wise with your money," he told her. Ramsey and co-host George Kamel emphasized that this is the reward for decades of hard work and smart choices. Kamel called it the "healthy side of YOLO, you only live once," saying that after years of discipline, people like Laurie are now in the deaccumulation phase where they can enjoy their wealth.
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A Broader Lesson For Younger Listeners
Ramsey also used Laurie's story to drive home a bigger point. "This is the payoff. This is how it really works. You can't wait on the government to tax billionaires to make you rich," he said. "That's called socialism. It's never made anyone rich except the people running the place. And so what makes people rich is what she did and what her husband did. And there’s the payoff."
For Ramsey, the lesson is simple: sacrifice early, save diligently, and the reward is financial peace and freedom later in life. As he put it, "Live like no one else and later you can live and give like no one else."
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