Financial guru Dave Ramsey recently got a call from a 30-year-old who thinks he can retire with a $6 million portfolio. While a large portfolio gives him a better chance of retiring early, Ramsey steered him away from that decision.
"You can't quit on that," he said to the 30-year-old.
Ramsey then outlined why the 30-year-old shouldn't retire yet and what he can do instead.
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$6 Million Is Not Enough
Ramsey believes that a $6 million portfolio is not enough for a 30-year-old to retire. While the 4% withdrawal rule suggests that a 30-year-old can live on a sufficient $240,000 per year, Ramsey isn't convinced.
"You're not sailing in the sunset with $6 million," he said. "You didn't get $60 million. You have $6 million."
The conversation would be different if the caller were in his 60s or 70s. However, the caller is still young and may start a family. There are many expenses that will come up, and that makes it risky to retire so early, even with a $6 million nest egg.
It's a tremendous starting point, but Ramsey believes it would be premature for the caller to retire.
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Don't Walk Away From Work
Ramsey is okay with the caller wanting to start a new business or pursue a different path, but retiring as a whole doesn't bode well with Ramsey.
"You should go be somebody," he said.
The thought of retiring at 30 may sound glamorous, but for many people, work is their purpose. Ramsey dove into that point and asked the caller to think about what type of man, father, and husband he wants to become.
"What do I want to do to take the $6 million, give people employment, provide a good product, service, or app to revolutionize people's lives?" Ramsey asked, so the caller could ponder some ideas.
Ramsey could have stepped away from the finance world a long time ago, but he still wants to have a positive impact. That's why he continues to stick around, and it's also the message he wanted to share with the caller.
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Embark On The Next Adventure
Retiring at 30 gives the caller a lot of time to do nothing and waste some of his potential in the process, especially given his strong start. Ramsey mentioned that while imploring the caller to embark on a new journey.
"Don't run from something," he said. "Run to something."
Some people can't wait to get out of their jobs, while others want to work for as long as they live. It comes down to how much people enjoy their jobs. If the 30-year-old embarks on a business that he enjoys, he can end up with a flexible schedule while doing work that brings him a sense of fulfillment.
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