6 Retirement Investing Tips From Dave Ramsey
Written by
Laura Beck
Edited by
Levi Leidy
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Let’s cut through the noise and get straight to what Dave Ramsey really thinks about retirement investing. While your co-worker might be chasing the latest crypto trend or your uncle swears by his penny stock picks, Ramsey keeps it refreshingly simple.
The Magic Number: 15%
Here’s the deal: Ramsey says to invest 15% of your paycheck for retirement. Not 5%. Not 10%. Fifteen percent. Why? It’s enough to build serious wealth without making you eat ramen noodles for dinner. Get this — a couple making $75,000 a year could end up with $1.4 million after 25 years at this rate. And that’s if they never get a single raise!
Where Your Money Should Go First
Ramsey’s not fancy about this. His recipe is pretty straightforward:
- Grab your company’s 401(k) match first (hey, it’s free money)
- Then max out a Roth IRA
- Still have money left? Back to your 401(k)
He’s especially bullish on Roth accounts because who doesn’t want tax-free money in retirement?
What To Actually Invest In
Forget trying to pick the next Tesla. Ramsey wants you to split your money between four types of mutual funds:
- Growth and income funds (the steady Eddie of your portfolio)
- Growth funds (for when you want to be a little risky)
- Aggressive growth funds (the real risk-takers)
- International funds (because there’s a whole world out there)
Big Mistakes That’ll Wreck Your Retirement
Want to disappoint Ramsey? Try these:
- Panicking and selling when the market dips
- Thinking Social Security will take care of you
- Playing the “I’ll start investing later” game
- Juggling debt while trying to invest
- Making investment decisions based on fear of missing out
Taking It to the Next Level
Already investing 15% of your income? Ramsey says you can kick it up a notch by:
- Maxing out your 401(k) ($23,500 limit for 2025, more if you’re over 50)
- Opening a regular investment account on the side
- Using an HSA for medical expenses (it’s like a secret extra retirement account)
- Getting rid of your mortgage before retirement
The Final Word
Ramsey’s approach isn’t all about the bells and whistles, but it works. Keep it simple, stay consistent and don’t do anything crazy with your money. After all, slow and steady wins the retirement race.
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