you're listening to Ramsey every day millionaires where we talk retirement building wealth and outrageous generosity

Scottsworth is Scott is in Phoenix, high scot welcome to the Ramsey show

Merry Christmas everyone Merry Christmas how can we help?

So I don't do the baby steps I just been listening to you and I'm debt free I just have a mortgage and my question is that I just came into some money which is about 30 thousand dollars and I want to invest it in the retirement because I'm hitting 53 and I really don't have any retirements.

I have been paying into my 401k every time I get to raise that work I've been up in my 401 so for four years I'm at right now at $400 a month going into my 401 but I'd like to take that 30 thousand and put it into something that would grow quickly and you know that I would feel confident about.

I don't want to spend it I don't want to you know just go out and blow it I'm really starting to you know hit that age I'm like I really do need to think about retirement you married.

Yes I am married my wife has her retirement through her work so she's been working on that and we're seeing you know she's been at the job for about 15 years so she's got her retirement established.

I jump online at Ramsey Solutions dot com and find a smart investor grow in your area open a Roth for this year and a Roth for next year and do one for your wife as well so that's 14 that's 28 thousand bucks.

Okay and put it all in good growth stock mutual funds across four types growth growth and income aggressive growth and international.

Now can I add to that you know the following the following after 24 after 23 you can in 24 because I just funded 23 and 24 just then.

Okay because I want to be able to because I have extra money left over since I'm not in debt anymore I'd like and I'm I want you to throw that towards your mortgage.

Okay yeah I want to get 15% of your household income going into retirement throw everything else towards your mortgage I'm assuming you have an emergency fund and you already said you were debt free but the mortgage right.

Yes I got $40,000 in in my emergency fund because I sold the house and I just purchased this new house about six months ago so we were able to sell my old house for $150,000.

I put some of it into the new house and then I just paid all our debt off.

I've got everything and then I have it that I got 40,000 left in the emergency fund for anything.

Good so that's work and then you know and then I've been doing 500 extra months on the new house.

Yeah so here's the thing the baby steps tell us to put 15% of your household income into retirement we just loaded up a couple of Roths you've already got your 401 and your wife 401 going so I'm going to guess and say you're probably getting up to that 15% or beyond.

Beyond that anything I can find in my mortgage I want to get this house paid off because the two key things that we find that cause people to be millionaires and it's not long from now for you you're going to be there pretty quick is a loaded up retirement account.

Or retirement accounts and a paid for mortgage that's right I want to make sure though that you don't spend all of that money I want to make sure that you keep some of it for three to six months of expenses.

That's the one thing I don't want him to it sounded like once he paid off the debt he had that that 30 or 40 K left and that was kind of his nest egg so I want to make sure that he keeps some of that for three to six months of expenses as well.

Yeah absolutely if I was confused I thought you had 40 grand plus the 30 grand if you don't then that's a different thing.

You need an emergency fund of three to six months of expenses that's baby step three four is you're going to put 15% of your income into retirement between Roth IRAs 401K for you 401K for your wife added all up 50.15 times your annual income you need to be there no more everything else goes towards that mortgage is get that mortgage cleared because that paid for house and you know half million to a million dollars in your mutual funds in your 401Ks and Roth IRAs is where you're going to go.

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