‘I’m lost’ at 72 with no retirement – a finance pro showed me the ‘exact path’

A DESPERATE caller to The Dave Ramsey Show has revealed he has no money to retire, despite being 72 years old.

The financial guru gave the truck driver an “exact path” to follow, but there was a big compromise.

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“I’m lost,” said Fred from Paducah, Kentucky, as he called into the Dave Ramsey Show three years ago.

He explained his financial situation – $6,000 in a 401k with no company match, $270,000 owed on the house, and his wife had already retired.

To make things worse, Fred had $11,000 in debt via a HELOC at 4% interest.

On the plus side, Fred was making $95,000 as a truck driver, but could not see a way to build a retirement fund and pay off his debts.

‘DON’T KNOW WHAT TO DO’

“I don’t know what to do next, Dave,” he said.

Fortunately, Dave was able to help Fred by explaining his “Baby Steps” method to becoming debt-free and building wealth.

“I can give you an exact path to follow,” the host replied.

“Just like dialing in the GPS in the truck, you’ve got to follow it if you want to get there. Exactly.”

The first step was to throw any money in savings over $1,000 toward paying down debt.

But the next step would be much more of a lifestyle compromise.

“We’re gonna get you on a rice and beans, beans and rice budget,” he explained.

“You’re not eating out and you’re not seeing the inside of a restaurant unless you’re working there.”

‘AGGRESSIVELY’

Dave also told Fred no more vacations.

After the debt was paid off, he recommended saving “$10,000 to $15,000” in one year as an emergency fund.

“Then, you’re gonna start pouring into your 401k, really, really, aggressively,” he said.

However, Ramsey told Fred that he would have to keep working until he was in his early eighties because he had so little saved for retirement over the previous decades.

‘YOU SUCK’

Fred is not the only caller that Dave has shown some tough love.

During another show, he told Donny from Fayetteville, North Carolina that communication problems in his marriage had caused a $50,000 debt to spiral.

The 53-year-old had been left with no retirement fund while his wife had racked up credit card and tax debts when he was working on the road.

“At the core of this whole thing is that you suck at communication in your marriage beyond belief,” said Dave.

“You are going to continue to have financial problems as long as you are not communicating and aligned on where we are going.”

Dave told another caller they would “struggle” to retire, but the 15% rule showed a way out.

And for another couple, Ramsey said an old car would be their key to retirement.