Planning for retirement can feel overwhelming, especially for people who didn’t grow up watching their parents build investment portfolios.
That’s what happened to Neil, a 52-year-old caller from Birmingham, Alabama, who recently spoke with financial experts. Dave Ramsey and Jade Warshaw on the “Ramsey Show.” Neil and his wife are investing 15% for retirement and paying off their house. But even though they are doing the right thing, they are struggling.
They grew up in houses with pensions but without a nest egg. Now in their 50s, they are juggling and worrying about retiring poor.
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Neil admitted that they were nervous about working with a financial advisor. They have never done it. They weren’t sure how it worked. Would they have to, as he said, “overturn everything?” Can someone control their money?
Ramsey expressed that fear.
“What you don’t want from a counselor is arrogance,” he said. “Dropping their glasses down their noses and being shy or telling you what to do. These are all warning signs you run away from.”
He said that a good counselor should act like a teacher, not someone who humiliates you or talks you down. If you say you don’t understand something, the counselor’s job is to explain it in another way.
He then gave an analogy that made the whole idea less scary.
“Sometimes I go into a nice restaurant and ask the waiter, you know, what’s the best thing here?” Ramsey said. “And I don’t accept what they suggest. I don’t accept my decisions. I listen to them and then make my decision.”
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In other words, you are still ordering food. The waiter only serves entrees.
Ramsey emphasized that hiring a consultant does not mean giving up control. “They don’t have permission to trade,” he said. “They are not authorized to do anything unless you tell them to do it.”
He compared it to finding a lawyer. “You work for me. You tell me the situation and then I decide based on the information you teach me about this matter. The counselor works for you, not the other way around.”
Neil also shared frustration that his 401(k) wasn’t keeping up with the S&P returns he was hearing about. Ramsey said an advisor can review fund options and suggest options that may perform better, but again, the final decision rests with the client.
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