The Financial Peace University class I’m teaching right now has many students over 55. Last night was the retirement and college planning lesson.
Dave Ramsey approaches this lesson by talking about what would happen if a 30 year couple invested 15% of their income at 12% from age 30 to age 70. 12% isn’t realistic, and many people aren’t 30, and many people don’t want to work until 70. He uses this scenario because it allows him to flash big dollar amounts in front of people to try to get them excited about investing 15% of their income.
But for a 60 year old recently divorced house wife, this isn’t inspiring. Especially if they already have health problems. All you can tell people in that situation is to cut expenses as much as possible, earn whatever they can, and save whatever they can – because the alternative is only going to be worse.