'I'm Watching My Retirement Savings Erode Away!' – 61-Year-Old Panics Over His Investments But Dave Ramsey Tells Him 'Shut Up And Invest'

It's easy to feel like the sky is falling when you're watching your retirement savings fluctuate. But emotions and money rarely mix well. That's the situation Jesse, a 61-year-old looking to retire soon, found himself in when he wrote to personal finance expert Dave Ramsey. 

His letter, published on Ramsey Solutions in May 2023, was filled with panic: "I'm watching my retirement savings completely eroding away day after day. The only place I'm not losing money is $180,000 I have sitting in the bank earning almost zero interest. What should I do?"

Don't Miss:

• I’m 62 Years Old And Have $1.2 Million Saved. Is This Enough to Retire Stress-Free?
• Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.

Dave's response? Let's just say it didn't come with much hand-holding. "Come on, man. ‘Completely eroding away day after day?' That's a little dramatic," Dave shot back. He didn't stop there. Ramsey pulled no punches as he called out the "drama queen" living in Jesse's head: "One of the things you have to understand is we all have a drama queen living in our brain that exaggerates things – especially when it comes to investing. So, take a deep breath and calm down. Everything's going to be okay."

That might sound harsh, but Dave's advice came with a dose of tough love and facts. He explained that our brains tend to amplify negative financial experiences. "Studies have shown it takes $3 of gain to emotionally offset $1 of loss," he said. "Your investments may be down a little. If you've got $1 million in there, it may be worth $900,000 right now. Next year, it's liable to bounce up to $1.1 million."

See Also: With 100+ historic trademarks including some of the high grossing characters in history, like Cinderella, Snow White and Peter Pan, this company is transforming the $2 trillion entertainment market with patented AR, VR, and AI tech. — For a short window, investors are able to claim $2/share ($980 min).

In classic Ramsey fashion, he also addressed a common misconception: the fear of losing everything in the stock market. "Have you ever heard people say they lost all their money in the stock market? Well, that's mathematically impossible," he said, unless you put all your money into a single stock that went completely bust. The real culprit, he explained, is panicking and pulling money out at the worst possible time.

So, what's the takeaway here? Jesse, like many nearing retirement, is letting emotions drive decisions. That's understandable, but it's also risky. Markets have always been volatile and yes, there will be down years – but as Dave pointed out, every down year in the last two decades has been followed by two years of record gains. The key is to ride the wave and trust in long-term growth rather than reacting impulsively.

Trending: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.26/share!

Of course, Dave's "shut up and invest" attitude might not be for everyone. Some might argue that for someone like Jesse, who's close to retirement, it's not unreasonable to want more stability. Diversifying into lower-risk investments or adjusting asset allocations might bring peace of mind, even if it means potentially lower returns.

For readers in Jesse's shoes, this is where a financial advisor can be a game-changer. A professional can help evaluate your portfolio, guide you through the emotional rollercoaster and craft a retirement strategy tailored to your specific needs. Sometimes, just having someone to remind you to breathe (and not hit the panic button) is worth its weight in gold.

Read Next:

• Many are using retirement income calculators to check if they’re on pace — here’s a breakdown on what’s behind this formula.
• ‘Which Bucket Do I Draw From First?’ Suze Orman Explains To 67-Year-Old The Best Order For Tapping Into Her Retirement Accounts