On the Ramsey Show Highlights YouTube channel, the American personal finance personality answered a listener’s questions about her future. Kerry, 66, was worried about her future as she thought it “might be too late”.
She explained she has had money throughout her life due to inheritance and businesses, however she is worried that she did not save enough.
Kerry sold her business a few years prior for $200,000 (around £176,000) and she also sold her house so now rents a property each month.
She still has around $200,000 (around $176,000) altogether in her savings and investments.
Kerry lives on $600 (around £530) to $700 (around £600) a month, because she lives very cheaply. However, she doesn’t think she can continue like this for the rest of her life, as her savings will eventually run out.
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Kerry invested $100,000 (around £88,000) in an alternative bank which guarantees an eight percent return each year.
Additionally, she invested $45,000 (around $40,000) in stocks but that has taken a hit this year due to markets being down – so she has lost money.
Her emergency fund is around $19,000 (around £17,000) and has $17,000 (around £15,000) in her pension.
Kerry receives social security (state pension) but this is around $1,000 a month and covers her rent so she does not include it.
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“It’s the worst possible year to have these investments because the market is down, but most years it is up. It’s an unusually bad economy that we’re in.
“Whatever budget you set, you have to put that into your projections, and if you don’t stick to it you screw it all up. You have to do that or it’s just a pipe dream.”
He explained that in order for her to live off hundreds each month, she needs to be strict with her budgeting.
The personal finance expert suggested Kerry sit down with a smart-vestor pro to stir the portfolio a little to see if it can do a little better over the long haul.
Mr Ramsey believed she couldn’t do much better with her investments due to the US market currently anyway, and so she will need to ride the dip out.
He continued: “There may be a few things you can do with your medical situation like selling stuff online just to add extra cash.
“If you could add $1,000 (around £900) to your monthly budget by working five hours a week doing something online or on the phone, you change the situation dramatically.
“An extra $1,000 (around £900) changes your whole math picture.
“Overall there’s hope because you’re breathing and hope because you’re paying attention.”
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