Dave Ramsey Tells 57-Year-Old With $950,000 to Skip Annuity as Wife Eyes Immediate Retirement
Updated
Updated · 24/7 Wall St. · Jun 12
Dave Ramsey Tells 57-Year-Old With $950,000 to Skip Annuity as Wife Eyes Immediate Retirement
2 articles · Updated · 24/7 Wall St. · Jun 12
Summary
A 57-year-old Boston caller with $950,000 in 401(k)s and IRAs, a paid-off $550,000 home and a $175,000 salary was told by Dave Ramsey he is "not in trouble" and should avoid an annuity pitch.
Ramsey said the key test is spending, not headline assets: if the household can live on Donald’s salary while his 64-year-old wife retires now, the portfolio can stay untouched and keep compounding.
At current rates, a $1 million portfolio could generate about $45,300 a year from 10-year Treasuries yielding roughly 4.5%, while Ramsey argued long-run 10% stock returns could double the nest egg in about seven years.
Inflation still complicates the picture—Core PCE rose from 126.121 in June 2025 to 129.63 in April 2026—so living off real returns matters more than drawing down principal.
The broader takeaway for near-retirees is to measure actual annual spending, compare it with realistic portfolio income and get a second opinion from a fee-based fiduciary before buying an annuity.