I'm 53 Years-old and Have Nothing Saved For Retirement

[Music] Xander shops all the top term insurance companies to save you money. Get started at xander.com. >> My wife and I are really concerned really right now about our future retirement. Um so just a little background, don't have anything saved. Um don't have 3 to 6 months expenses. Just started doing the Ramsy steps. I'm on baby step two. Um so we're we're we're talking about selling our home to get the equity out of it. um to basically just pay everything off and just kind of start fresh and be able to put some money back um and then start you know investing 15% like the random step says but um I'm not sure if that's the right answer to do that or not. Um, the other option is, you know, I keep working like a madman, like I've been doing, um, keep the house, but we have a pool, and I don't know if that should be like included like with the mortgage payment, even though they're separate, or that's considered consumer debt with our car note. >> How big is the pool loan? >> Uh, the pool loan is 73,000. >> And what's your household income? >> Uh, about about 8,200 a month after taxes. >> Okay. Okay. What about before? Just give me the gross household income for the >> 128.28. >> Yeah. I would put it uh up there with your mortgage since it's over half of your annual income. We'd kind of treat that like a like a second mortgage at that point. >> Okay. >> And so I would focus on a consumer debt first. How much does all that add up to? >> Um well, we paid off all the credit cards, which is about 16 grand. Um now we have all we have left besides the pool is a card, which is about $27,000. >> What's the car worth? 42. >> Oh, I know what we're doing there, George. Tell him what he's won. You just won $15,000, my friend. That's the difference. If you sold that car and took the proceeds and got something cash, you just freed up a payment and became consumer debtree. >> And let's let's let's stay right there, Chris. How much is that car payment? >> Uh, it's 500 a month. >> All right. So, we just found you 15,000 in cash and we then saved you six grand a year of net income. Hello. See that magic trick right there? >> Yes. >> And we still have a place to rest our head that we can call our own. >> So, what you won is a uh cheaper car. That's what you want. Now, what is the What's the mortgage pay? >> My wife wins. But >> what's that? Say that again. >> Unfortunately, that's what my wife wins. I >> Is she Is she on board with this? >> She is. If that's what we have to do. Yes, >> it is what you have to do. >> Okay. >> Well, here's the thing. Do you want to be eating elbow in retirement but have a nice car or do we want to make a short-term sacrifice so we can retire with dignity? That's the trade-off here. >> Wow. We're not trying to punish you. >> Right to the dog food. >> That was dark. And it's honestly dog food's not cheap. I take that back. I tell you, my dogs eat really good food. It's going to be ramen, I guess. But you know, Chris, the reason I'm saying you guys have to do this is because you're 53 and you don't have any retirement. So, we have got now, now this is where George is like. I love I love when George Oh, I see him doing I wish you could see him right now. He's already got he does the oneand keyboard thing. He's got the Ramsay investment calculator, which you can access at ramiesolutions.com. So, the reason we're going to be super aggressive here is because you guys can catch you you can start to make headway, but we're talking we got to sell the car and it lists today >> and we have got to change. So, let's let's run the numbers, George. >> Yeah. Are you guys in in pretty good health? >> So, that's a good question. So, I had a heart attack back in March. >> Um, and >> I've changed a lot. My health has gotten a lot better for sure. I've gone through tests and all that stuff right now. Um, and and so, so that kind of leads me to, you know, I've been, you know, I work my regular job, which I work 50 plus hours at. I've been door dashing on the side about another 50 hours a week. >> Wow. >> Which is a lot because I'm working every single day from morning to night. >> How long you been doing that door dashing? I've been doing the door dashing now for about 3 months. >> Did you include that in the credit cards? >> Okay, good for you. Did you include that though in the number you gave us on the 128,000 gross? >> No. >> Okay. >> No, I did not because I don't know how long I could sustain that because I'm working every Saturday. Only day I'm taking off is a Sunday. That's it. >> Okay. And what about your wife? >> Uh my wife works as well. She works full-time. Uh her her money is included in that number as well. >> Okay. And what are you guys doing for work? Are is there area for growth here? >> Uh yeah, I'm in sales. I mean, there's potential for commission. Um I just started a new job. >> Amazing commission right now, >> Chris. That is far better than driving Uber. Forget Uber. Number one, >> 50 hours on the phones and emails selling. >> Yeah, I'm no uh doctor. I would like to play one on TV. I want to point that out. >> And he would make a great one. >> I think I would look good in scrubs. But uh the point here is is that your better your your health and the financial ROI for you is way better to go after that commission. But even at the 128, George, let's paint a picture here. If we sell the car and so we we come up with 15 cash. So we got 15, George, to work with. >> Yeah. You take that 15, you buy yourself a used cash car. >> There we go. >> And then you're debtree. Now we can work on the emergency fund. So for the next, let's call it six to eight months, just stack away cash to build up that emergency fund. Then we can begin investing. So let's just paint a picture. You're a year from now, you're 54, right? >> Yes. >> And you're debtree with an emergency fund. And we begin investing 15% of our income. That's about 1,600 bucks a month. Are you tracking? >> Yes. by the age of 70. Now, this is assuming you're going to have to work longer because we got a late start. You would have $750,000 likely in that one account. Now, we're talking, okay, we could, if we have a paid for house and 750 grand in the bank, we have a fighting chance of surviving. Right. >> Now, what that doesn't include, Chris, is those commissions and more income socking it away. >> What's left on the mortgage? What's the balance? >> 370. >> Okay. And how many years left on the mortgage? uh took out a 30-year note when we bought the house. So, I still have 26 years on it. >> What's it worth? >> That's why that's why we're talking about selling the house. >> What can you get for the house? >> Fresh about 600. >> So, that would you'd walk away with roughly what? Um, when I look at the numbers, I think I would I would walk away with about 180, but then paying off the car and the pool, >> um, that leave me with about 100, I think. >> Yeah, that pool is sinking. Then I have to put, no pun intended, pool. Exactly. >> I see what you did there. >> But then with the pool, I mean, I'm sorry. What would I have left would be about 20% on the house, which only leave me with about $11,000. >> Yeah. But >> to towards the 3 to six months expenses. I Yeah, I like it's aggressive. Uh allows you to start with the emergency fund immediately uh and start investing and you guys can downsize. It's just the two of you. >> No, we have two two more kids at home, but you know, they're they're older, so they'll be out at some point. >> That's right. They they they live where we tell them to live. >> George, what do you think about this? I'm actually leaning towards this. I like this move. I'm trying to think what would you go rent somewhere for a while and just keep stacking cash cuz you're not going to be able to afford anything for 180. >> Well, that doesn't pay off. We would have to Well, if we sold it for 600, I think I like we sold it for 600 today, I could pay off the pool and the car and be able to um end up with about after I put 20% down on a house on a 15-year note. Um, I think I would have about $11,000 lefton and then it'd be quicker there then start, you know, saving for retirement as soon as I get that built up. >> Yeah, you're just you're going to be back to having a giant mortgage is my fear with today's rates and today's prices. So, that's the part you have to weigh. I would crunch those numbers heavily. I just selling a house is always the last answer, not my first solution because number one, it doesn't actually change the behavior that got us here. It just feels like a get out of jail free card and it kind of moves you backwards. Instead of building equity and and getting that house paid off, now we're liquidating and starting from scratch again in our 50s. And so I would I wouldn't I would hesitate before just jumping on that. But I love the idea of you guys getting debtree faster, having more to retire with. Uh but you would also have to go we're going to downsize our lifestyle and change. I don't like the idea of you just keeping everything going, well, we're going to keep the car, keep the pool, keep living how we're living, and get the cake, too. And so, you're gonna have to make some deep sacrifice. >> Agreed. And I feel like if we keep the house, then I just don't see an in in sight how we could pay off the houses eventually. >> I just feel like it with the income where it's at, even if I go with another 20, 30,000, I just don't see how I pay off the house. >> Yeah, George, I I'm I'm uh I'm going to tell you, I like the aggressive approach here. I rarely disagree with you, but I like where he's at to reset. Even if they've got to rent at this stage for a couple of years, I think a reset to try to really get focused on retirement investing. I don't know. It's aggressive, but I like it. It's a reset for sure. Best of luck, my friend. >> Xander is the best place to find term life insurance to protect your family. Visit xander.com for quotes