On the Ramsey Show Youtube channel in 2020, the American finance personality answered a listener’s question about knowing how much is needed to retire. Barbara, 61, wanted to retire soon, however she was worried about if her money would last.
“You don’t know how long you’re going to live,” she said.
Barbara works as a school bus driver but wanted to retire after another year.
She can buy five years worth of employment from where she works and that would increase her monthly benefits from $248 (around £200) to $428 (around £340) a month but it will take 10 years to recover that.
However she wasn’t sure if this amount was enough.
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The finance guru told her that the rate she was given was not good.
He suggested that she should invest the money she has for better returns.
Barbara explained that she has $624,000 (around £496,000) in the bank.
This money was invested various savings accounts and bonds, State Farm life accounts, and State Farm mutual funds.
He continued: “As long as you’re not hitting the goose that lays the eggs, [your money] it will last forever mathematically.
“Meaning if you don’t touch the $624,000 (around £496,000) and you live off what it creates it will create something each year so you will be fine.
“You have done very well.”
Barbara explained that when she was younger her parents taught her not to overspend so she has always been good with managing money and saving it.
No matter her salary, she tried to see if she could live like she was on minimum wage, she said.