65-Year-Old With $110K Saved Asks If He Can Retire in 7 Years — Dave Ramsey Says 'You Have No Money' and Tells Him to Stop 401(k) Contributions

Retirement. It's one of those things everyone knows they should be planning for. But it's also one of those things that's easy to push off—until suddenly you're staring down 70 and wondering where the time and the money went.

That's exactly where one caller found himself in when he phoned into "The Ramsey Show" and laid it all out. In a video posted to Facebook, 65-year-old Rick wanted to know if he could retire comfortably at 72. But the math wasn't exactly on his side.

"I'm 65 years old, and I'm wondering if I'll be okay to retire in seven years," Rick said, kicking off a conversation that quickly turned into a financial intervention.

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He told Dave Ramsey he had $110,000 in his 401(k) and just $5,000 in his emergency fund. On the debt side, things were heavier: he still owed $136,000 on his house, $30,000 on his truck, and—surprise—$22,000 on solar panels he thought he bought "outright." Ramsey corrected that last part, noting it was actually a solar loan. And to make things tighter, Rick was still paying $10,000 a year in alimony, though that would be ending soon.

His income? A solid $100,000 a year.

"You don't have any money," Ramsey told him. "You're $500,000 or $600,000 behind—I would get more radical."

That radical plan started with one major priority: wiping out the $52,000 in consumer debt—fast.

"What I would do if I were in your shoes is I would get those two debts paid off immediately," Ramsey said. "It's an emergency."

Ramsey told him to stop contributing to his 401(k) temporarily and focus completely on paying off the truck and solar loan within 12 months. And yes, that meant extreme budgeting. "Beans and rice, rice and beans," Ramsey said. "You have no life until you get that done."

He even suggested Rick ditch the truck altogether if necessary. "That is job one, or sell the stupid truck—one of the two." Rick pushed back, saying it was his only vehicle and selling it wasn't an option. But Ramsey wasn't having it. He told him, "You don't need a $30,000 truck." That's when Rick clarified, "Actually, it's a $60,000 truck—I only owe $30,000." Ramsey didn't flinch. He said if that's the case, Rick could sell it and get a $30,000 truck—or even a $10,000 one instead.

Once debt-free, Ramsey laid out the next phase: keep living frugally, get the house paid off in three years, and then start investing again. He recommended contributing 15% of income into retirement accounts and "loading up good mutual funds."

By 72, if Rick followed the plan, Ramsey estimated he'd have $400,000 to $500,000 saved—and a paid-off home. Not exactly yacht money, but a far cry from where he was headed if he did nothing.

Moral of the story? Procrastination is expensive. But with seven years, a six-figure income, and some serious belt-tightening, retirement isn't off the table. Just don't wait until 65 to start thinking about it, unless you want to live on "beans and rice" as Ramsey would suggest. 

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