Author: Vishesh Raisinghani

While the headlines have been dominated by a rollercoaster in the stock market, financial guru Dave Ramsey isn’t going doom and gloom.

In fact, the radio host believes every young North American has a shot at becoming a millionaire.

“If you’re under 40 years old and you don’t retire a millionaire, that’s no one’s fault but yours,” the 64-year-old said on X, formerly known as Twitter..

Here’s a closer look at the math behind his exhortation.

Everyone can be a millionaire

Despite the economic challenges facing young Canadians, Ramsey believes that the average 25-year-old needs to save just a fraction of their annual income to retire at 65 with over $1 million.

However, his thesis assumes that this 25-year-old invests in “good growth stock mutual funds.” According to his calculations, diligently investing just $100 a month into such growth funds could create a $1,176,000 nest egg within 40 years.

Ramsey doesn’t mention any specific growth funds, but his calculations imply a roughly 12.85% annual growth rate.

The Vanguard S&P 500 ETF (VOO) has delivered a compounded annual growth rate of 14.00% since 2010, and the Invesco NASDAQ 100 ETF (QQQM) has delivered 17.24% annually since 2015.

In fact, the S&P 500 has delivered an average annual return of 10.13% since 1957, according to Investopedia.

Given the long-term performance of these index funds, Ramsey’s assumption doesn’t seem unreasonable, even when you take into account the recent volatility in the stock market in response to U.S. President Donald Trump’s tariff announcements. There have been many shocks, dips, corrections and outright crashes in the past 100 years, and the market has always eventually bounced back.

Ramsey’s path to $11.6 million

The four variables of the compound growth calculation are time, initial investment, regular investment and growth rate. Of these, the only variable you can somewhat control is regular investment.

Investing $200 or $300 a month could help you create a nest egg significantly bigger than just $1 million. Ramsey recommends setting the bar even higher at 15% of gross annual income.

“The average household income in America today is $79,000 USD. If you invested 15% of that ($11,850 USD a year), you would retire with around $11.6 million USD,” he said on X.

The average household income for Canadians is $70,500. Following Ramsey’s rule, you would need to invest $10,575 a year to maximize your retirement fund.

However, most Canadians are saving significantly less than Ramsey’s target. In the third quarter of 2024, the average household savings rate in Canada was 6.10%, down from 7.30% in the third quarter of 2024.The rising cost of living, stagnant wage growth and debt servicing costs are barriers most families face regardless of age.

If you’re in your 20s or 30s, you should probably set long-term financial goals with a margin of safety. The future is highly unpredictable, and there’s no guarantee that inflation and stock market performance over the next 40 years will match the previous 40 years.

Nevertheless, Ramsey’s post demonstrates that even minor adjustments and minimal monthly savings can make a big difference if you start early. You still have time if you’re under 40, which is your most significant advantage.

This is why he encourages young people to reject the doom and gloom. "You can make excuses, or you can take control of your money,” he says. “But you can’t do both."

Sources

1. X:@daveramsey

2. Investopedia:S&P 500 Average Returns and Historical Performance (Dec 26, 2024)

3. Statistics Canada:Quality of life Indicator

4. Trading Economics:Canada Household Savings Rate

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Concerns about a lack of job-ready skills have dominated workforce debates, but Mike Rowe, CEO of the mikeroweWORKS Foundation, is pointing to another crisis: a diminishing desire to work.

“The skills gap is real, but the will gap is also real,” said the 63-year-old former TV host in a recent interview with Fox Business.

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According to him, 6.8 million “able-bodied men” are not just unemployed but not even seeking employment. “That’s never happened in peacetime,” he argued.

Here’s why he believes America’s famous work ethic is gradually eroding.

Men abandoning the workforce

Data from the Bureau of Labor Statistics (BLS) shows that women’s participation in the workforce has remained relatively stable since the early-1990s. However, men’s participation has steadily declined, dropping from 86.6% in 1948 to 68% in 2024.

According to the Bipartisan Policy Center (BPC), the participation rate for men in their prime working years (ages of 25 to 54) has fallen from 98% in September 1954 to 89% in January 2024.

Notably, 28% of these men said they were not working by choice, validating Rowe’s claim that the desire for employment has diminished. However, the survey also found that 57% of prime-age men cite mental or physical health issues as barriers to working or job-seeking, suggesting that many are not as “able-bodied” as Rowe assumes.

Additionally, 47% of these men cite a lack of training and education, obsolete skills, or a lacklustre work history as major obstacles to employment. Fortunately, Rowe has a solution for this specific group.

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Solving the crisis

Expanding opportunities for skills training could help bring some men back into the labor force.

Through his foundation, Rowe has given away $8.5 million in scholarships since 2008, supporting more than 1,800 men and women enrolled in skilled trades programs across the country.

“My goal with mikeroweWORKS is not to help the maximum number of people,” he told Fox Business. “It is to help a number of people who comport with our view of the world and are willing to go to where the work is. Who are willing to demonstrate something that looks a lot like work ethic here in 2025.”

Similarly, the BPC calls for expanding Pell Grant eligibility so that more people can access financial aid. As of 2024, roughly 34% of undergraduate students receive a Pell Grant, according to the Education Data Initiative.

Expanding workplace support programs could be key to reentering the workforce for men struggling with mental and physical health challenges. More than half of prime-age unemployed men surveyed by BPC said health insurance is a major factor in deciding whether to return to work.

Other critical benefits include paid sick leave, disability accommodations, flexible schedules and medical leave. Additionally, 40% of respondents said mental health benefits are very important, and 28% said they might have stayed at their previous job if they had access to paid medical leave.

While these solutions may be complex and expensive, improving male workforce participation could yield significant economic benefits, including lower inflation and higher growth, according to a 2023 study by the Center for American Progress.

What to read next

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• Do you rely on your monthly Social Security check to get by? Here are 5 simple money moves for American seniors during Trump’s presidency

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Americans are growing increasingly worried that Elon Musk and his team of young engineers may be taking a metaphorical chainsaw to their retirement safety net.

A recent survey conducted by Clever Real Estate between March 5 and 9 found that 85% of U.S. adults are concerned about potential changes to their benefits, while 68% are worried about the future of the Social Security Administration (SSA).

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Gallup also found that fears surrounding the system’s future have recently reached a 15-year high.

Unsurprisingly, seniors who are already retired or approaching retirement are especially concerned. Roughly 73% of baby boomers — those born between 1946 and 1964 — told Clever Real Estate they were worried that the SSA’s ongoing austerity measures could impact their financial future.

Although only 55% of millennials share these concerns, changes to the Social Security system impact all taxpayers. That’s because 94% of American workers contribute to the pot every year, according to Rep. John Larson.

With that in mind, here are three simple money moves that can help shockproof your retirement income.

1. Monitor everything

With so much in flux, it’s easy to miss some major developments from the Trump administration or lawmakers on Capitol Hill.

Unfortunately, staying up to date may become a little more difficult. According to MarketWatch, the SSA is reportedly considering moving its public announcements from its official website to Elon Musk’s social media platform, X.

To stay informed, consider setting up an account on X if you haven’t already. You should also regularly log in to your Social Security account to monitor your earnings record and get benefit estimates. Setting up news alerts on your phone or email is another simple way to stay in the loop.

Frequently monitoring changes to the system can give you the time and flexibility to adjust your long-term financial plan and better protect your retirement income.

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2. Wait for FRA

The age at which you begin collecting Social Security can significantly impact your monthly benefits.

While you’re eligible to start receiving benefits as early as age 62 — provided you’ve paid into the system for at least 10 years — doing so means your benefits will be permanently reduced.

To receive your full benefit amount, you’ll need to wait until you reach your full retirement age (FRA). For anyone born in 1960 or later, the FRA is 67. Claiming benefits before this age result in smaller monthly checks, while delaying benefits beyond it — up to age 70 — can increase the amount you receive.

You can’t control potential changes to the Social Security system, but you can control when you start collecting benefits — making this one of the most powerful levers you have to maximize your retirement income.

3. Plan with an expert

Working with a financial professional can help you stay prepared for any changes to Social Security and build a solid plan around them.

Financial professionals are more likely to stay in the loop on the latest developments and are better equipped to explain how those changes could affect your personal finances.

According to Edelman Financial Engines, 52% of American adults believe they’re missing out on tax savings and benefits due to a lack of knowledge about sophisticated tax strategies. Nearly 45% said they would need professional help to properly plan for retirement.

Some of these strategies may take years, or even decades, to reach their full potential.

Even small tax savings today can lead to a significant boost in retirement income over time, especially if you have years left to let your investments grow. With that in mind, it’s a smart move to connect with an expert as soon as possible.

What to read next

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Jeremy from Seattle, Washington, believes his recent purchase of a recreational four-wheeler was a “dumb decision.”

Speaking with finance guru Dave Ramsey on a recent episode of The Ramsey Show, the young man said his new “toy” is irritating his parents-in-law because they want him to focus on repaying $80,000 he borrowed from them to buy a manufactured home that sits on their property.

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Ramsey quickly pointed out that purchasing the four-wheeler isn’t his biggest mistake: “You have a $80K trailer and you don’t own the dirt? Oh god, wow,” he said. “You guys have made a colossal mess.”

“You’re playing Russian Roulette and there’s three bullets in the gun — not one,” Ramsey said.

He offers three reasons why Jeremy’s deal with his family is a brewing financial disaster.

1. Leaving collateral on “someone else’s dirt”

Jeremy’s housing situation is precarious because he doesn’t have control over the land on which his home sits.

Millions of Americans live in manufactured homes across the country, according to the Pew Charitable Trust, and 35% of those who financed their purchase have a “home only loan.”

That means they owe money on something that almost always depreciates in value compared to a house. And on top of that, they lack control or ownership over the land, which is typically an appreciating asset.

“You do not have control of the situation,” Ramsey explained to Jeremy. He points out that if anything were to happen — like say the in-laws were to cause a car accident and face a lawsuit as a result — the dirt under their trailer could be taken from them.

“They have no control over that and you have no control over that. So you have set yourself up. And I’ve seen this a thousand times in 30 years of doing what I do — not owning the dirt under your trailer is a massive mistake.”

2. Pitfalls of borrowing from friends and family

Jeremy’s situation is exacerbated by the fact that his loan was borrowed from his family.

Nearly 37% of recent homebuyers in the U.S. financed their purchase with some financial assistance from their parents or grandparents, whether that be co-buying, gifting them the deposit or allowing them to live rent free to save up for the purchase, according to Compare the Market.

However, a study published in the Journal of Consumer Psychology found that borrowing money from loved ones complicates the relationship and can lead to feelings of animosity.

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Jeremy is certainly feeling the strain in his relationship with his in-laws, which is why Ramsey recommends getting out of the deal. He wants Jeremy and his wife to sell the manufactured home (even if they’re to take a loss on it), repay their debt and start over renting somewhere else.

“Borrowing 80,000 from your in-laws for anything for any reason is a massive mistake,” says the finance guru.

3. Setting clear boundaries in every deal

Unwinding Jeremy’s messy housing and financial situation could take some time. In the interim, Ramsey recommends having an open conversation with his in-laws to set clear expectations and boundaries.

“You just sit down and say, ‘I thought our deal was I pay you monthly payments and you’re happy but now it’s I pay you monthly payments and I have to check with you before I buy anything and that’s not a deal I’m okay,” he recommended.

Getting on the same page should help stabilize the relationship. While Ramsey doesn’t agree the in-laws were right about their indignation that Jeremy chose to indulge in a $6,000 toy as long as Jeremy was upholding his end of the deal, he does point out he put himself in this precarious position.

Ramsey’s cohost Ken Coleman then piped up to offer Jeremy some “salve” after Ramsey’s scorching advice.

“Walk away from this to realize it could have got a lot worse, and this thing can get nastier if you don’t fix it now. And I could not say that enough. You can dig out of this but I would start digging quickly.”

What to read next

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• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Do you rely on your monthly Social Security check to get by? Here are 5 simple money moves for American seniors during Trump’s presidency

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

If you’ve ever met someone whose lifestyle just doesn’t quite add up, you might be dealing with a high-class illusionist — someone pretending to be wealthy.

Amidst all the social pressure to keep up with your neighbors and achieve that dream lifestyle, many ordinary Americans are simply faking it until they make it.

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However, that’s a recipe for financial disaster according to financial experts Rachel Cruze and George Kamel.

"If you live fake rich, you’ll become real broke," Kamel quipped on a recent episode of The Ramsey Show.

Cruze pointed to the other end of the spectrum where the richest families are adopting a “stealth wealth” lifestyle to cover their true fortune.

“People that are actually really wealthy, you won’t really know it,” she said.

With that in mind, they offer a list of the top six signs that someone is pretending to be upper-class and living a lifestyle they probably can’t afford.

Sign 1: Flashy designer brands

Many consumers are buying fashion they can’t afford. Roughly 51% of Americans surveyed by LendingTree last year said they overspent to impress others, with 29% of them saying they wanted to feel successful.

The most common way to achieve this feeling, for 19% of respondents, was to spend on clothes, shoes and accessories. However, this perception of luxury brands and expensive clothing is an illusion.

If you’re looking to save money and build genuine wealth, maybe it’s time to ditch the flashy logos and invest in your future, especially when a potential recession could be looming.

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Sign 2: Expensive wine on a beer budget

Being a wine snob is something most people would consider a sign of affluence, but research suggests expensive wine isn’t necessarily better than the budget bottles.

A study published in the Journal of Wine Economics found that members of the Princeton Wine Group, which has blind tested over 1,700 different wines since the 1980s, found little correlation between a wine’s taste, quality and price.

So the next time you’re at a restaurant, focus on your own preferences rather than the judgment of others.

Sign 3: Talking about money too much

During Cruze and Kamel’s conversation, Kamel took a dig at “crypto bros” who never miss an opportunity to tell you about how many billions the currency is worth “for the moment.”

“All these people talking loudly about money is usually a red flag to me,” Kamel said.

A 2023 study by Empower found that 62% of Americans actually struggle to discuss money with their friends and family, which also isn’t great.

But, excessively bragging about your finances could be a sign of insecurity that you may need to deal with.

Sign 4: Flaunting wealth on social media

Influencer and hustle culture has been around long enough that a growing number of social media users are suspicious of the glamorous lifestyles they see on their feed.

In 2021, HBO’s documentary “Fake Famous” pulled back the curtain on the industry’s underhanded tricks by turning three “nobodies” into relatively successful online influencers.

So, the next time you see someone posting pictures of a luxury resort or designer purse on Instagram, swap your sense of financial anxiety for a healthy dose of skepticism.

Sign 5: Leasing luxury cars

Leasing cars has become more common in recent years as consumers struggle with rising interest rates and look for more affordable options.

According to Experian, roughly 25% of new vehicles were leased in 2024, up from 21% in 2023 and 19% in 2022.

That means one in every four cars you see on the road are probably rented. Your friends or neighbors with fancy SUVs are likely stretching their budgets to keep those wheels.

"If you’re a dude and you’ve ever posed in front of any vehicle, it’s a hard no for me,” Kamel joked. “Your dad didn’t hug you enough.”

Sign 6: Over-accessorizing

One last sign that you may be faking your riches is if you’re going above and beyond with your appearance.

“Over accessorizing, flashy nails, expensive watches, loud hair/makeup,” are all indicators of an unsustainable need to appear wealthier, according to Cruze.

Genuinely rich people don’t necessarily feel the need to remind everyone about it. Ditching the bling may be the first step to rescuing your bank account.

If any of the above signs sound like someone you know, remember you’re only seeing the tip of the iceberg. What really counts is living within your means and feeling confident that if you were to stumble into a period of financial misfortune, you’d have enough saved to bridge the gap.

What to read next

• Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Do you rely on your monthly Social Security check to get by? Here are 5 simple money moves for American seniors during Trump’s presidency

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.