What are 7 common traits of Americans who can never, ever, retire?

[00:00:00] Ralph Estep, Jr.: Let me just tell you, I have got a doozy of a show for you today. Have you ever wondered why some people seem to work their entire lives without ever being able to retire? Well, what if I told you there are 7 common traits that almost guarantee that you'll never be able to hang up those work boots? Well stick around today as we dive into these traits and explore a real-life story that'll make you think twice about those financial decisions.

[00:00:34] Ralph Estep, Jr.: Well, let's take a quick look back at yesterday's show on our spiritual Sunday, we talked about how to manage anxiety by using your faith.

[00:00:41] Ralph Estep, Jr.: And if you missed it, I'm going to highly recommend you go check it out cause we explored some powerful biblical principles and really some practical strategies and help you find peace in the midst of life's storms, and we all go through those. So check those out on our website.

[00:00:58] Ralph Estep, Jr.: Now the truth is I love hearing from you, and today's episode was inspired by a message from one of our listeners. This one comes from Peggy, and this is what Peggy wrote. She said,

[00:01:06] Ralph Estep, Jr.: "Dear Ralph, I'm in my mid-40s, and I'm starting to worry that I'll never be able to retire. I've made some financial mistakes in the past, and now I feel like I'm playing catch up. I've been working since I was 16, but honestly, I don't have that much to show for it. Can you share some insights on what I should avoid and what I can do to get back on track?"

[00:01:28] Ralph Estep, Jr.: Well Peggy, that is a heartfelt question, and I thank you for it because I'm sure that one resonates with many people listening to the show. So today we're going to dive into that topic and I'm going to provide you with some valuable insights, but more importantly, I'm going to give you some actionable steps that you can take. But before I do that, I want to remind you that the whole point of the Ask Ralph show is to answer your questions.

[00:01:49] Ralph Estep, Jr.: So if you've got that burning financial question or that faith related concern just like Peggy, I want you to send it in. Go to justaskralph.com and submit your question. And who knows? You might be featured in an upcoming episode.

[00:02:04] Ralph Estep, Jr.: Peggy, your question reminded me of a great verse from the Bible.

[00:02:07] Ralph Estep, Jr.: We always like to start with some faith, and it comes from 1 Timothy 6:17-19, and it says this. "Command those who are rich in this present world to not be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. Command them to do good, to be rich in good deeds, and to be generous and willing to share. In this way, they will lay up treasure for themselves as a firm foundation for the coming age, so they may take hold of life that is truly life." You know, what a great way to start our message today. And this verse reminds us of the importance of having that proper perspective especially when it comes to wealth and financial planning. But more importantly than that, it encourages us to be generous.

[00:02:57] Ralph Estep, Jr.: It encourages us to focus on building that lasting legacy rather than just accumulating wealth for its own sake. I've said it on the show many times. It's not about just what's in that bank account. So as we explore some of these common traits of those who struggle to retire, let's keep this wisdom in mind.

[00:03:13] Ralph Estep, Jr.: That's the foundational wisdom because I know it's going to serve as a guiding light for our entire discussion today.

[00:03:22] Ralph Estep, Jr.: So let's get right to the main content today. I want to share a story about a client, and I'll call him Dave. Now, Dave's story is a powerful illustration how certain decisions and listen, we all make these decisions

[00:03:33] Ralph Estep, Jr.: after going through life. These decisions, these habits can lead to a financial situation where retirement will seem impossible. Now, in this case, I met Dave. He was in his late 50s, and Dave came to me, he scheduled a consultation, and he was in a state of panic. Dave had just realized that his retirement was around the corner, he's in, like I said, he's in his late 50s, wasn't too far off, and he did a heartfelt search, and he realized he virtually had nothing saved. We sat down as we do, as I do with clients and reviewed his financial situation.

[00:04:06] Ralph Estep, Jr.: And I could see the worry on Dave's face. It was etched on his face. You could tell the weight of the world was on his shoulders. And the thing that I didn't know at the time, but I would end up using Dave's story as part of this cautionary tale and listen, I've shared, and I'm not using his real name, but I'm going to use, I'm going to use the word, Dave. I've shared his story with many people throughout many years. So let me dive in a little deeper. So Dave had been a hard worker. He'd always had a steady job. He worked his way up to middle management. He worked for 30 years in the same industry earning a decent salary. So you think on paper, he should be in a great position to retire comfortably and have the pension and all that kind of stuff.

[00:04:45] Ralph Estep, Jr.: But we started digging a little deeper. We got into his finances. This is what I do with people. I sit down with somebody, or I do a zoom meeting. We get in, we dig in deep, and we find out what's going on. And when I did this with Dave, it became very clear, very quickly that he had fallen into several common traps that truly had derailed his financial future. The first thing. And this one was critical for him.

[00:05:08] Ralph Estep, Jr.: He had never developed a habit of savings. Just like many of us, he was living paycheck to paycheck. He'd always tell himself that he'd start saving out next month. Or I'll do that next week, or I'll do that next year. But the sad truth is that day never came. And Dave found himself spending money on unnecessary luxury. He had to have the latest gadgets. I'm guilty of that. He liked those expensive vacations.

[00:05:34] Ralph Estep, Jr.: I'm guilty of that too. And Dave drove a car that was to be honest with you, way beyond his means. And guess what? I've done those same things. But let me continue. So the second thing we noticed was Dave had accumulated a mountain of debt. And I want to say a mountain. He had a mountain of debt. Like a 1500-foot mountain. This included credit cards and personal loans. Even a second mortgage on his house that he had tapped into to get some, you know, extra credit.

[00:06:05] Ralph Estep, Jr.: He really had taken every available source of credit. And the sad part of that decision was the interest payments alone were eating up a significant amount of his money. So let's move on with the story. Now third thing, David never taken the time to educate himself about personal finance. He wasn't listening to this show.

[00:06:25] Ralph Estep, Jr.: He wasn't reading books. He didn't understand the power of compound interest or the importance of diversifying his investments. The truth is Dave had never invested a dime outside his, his company's 401(k) plan. And even with that, when I looked at the numbers, he was woefully underfunded. He wasn't putting enough aside each time. The fourth thing Dave did. It sounds like Dave's a poster child for bad decisions and he kind of was. But he had ignored the importance of insurance. Dave had no life insurance. Now he did have life insurance with his job, but when he quit his job, he wouldn't have any. Dave also bought the cheapest health insurance plan that he was offered at work. And he didn't even consider disability insurance.

[00:07:07] Ralph Estep, Jr.: They had some sort of short-term and long-term disability through work, but it wasn't great. And when we talked, I said, listen, Dave, I said one major health event is going to wipe you out. Cause he didn't have that much in savings. Now, he had money in his 401(k), but he really couldn't tap that for those health events. And here's a fifth thing Dave had done. And listen, I'm guilty of this. Dave had made emotional decisions with his money.

[00:07:31] Ralph Estep, Jr.: Hey. A lot of us do this. One of the things that I found interesting with Dave was he was really trying to what they call time the stock market. And he was playing games with his 401(k) funds with when there was a market downturn, he would pull it all into something that was safer in his situation.

[00:07:50] Ralph Estep, Jr.: But what he never did was he didn't go and take advantage of those recoveries. Now I'm not a financial advisor from the standpoint of investments, but this is not a smart thing to do. He is trying to play a market that he didn't understand. The other thing that Dave did, and I've been guilty of this as well. He lent money to friends and family.

[00:08:08] Ralph Estep, Jr.: He didn't have any documentation. And the truth is, most of the time, he never got that money back. He just wasn't going to see it. The sixth thing. Guilty as charged again. Dave had neglected his health. That 30 years of working, that 30 years of stress, he had a poor diet. He didn't exercise. That lifestyle, that neglect of his health had taken its toll. And now all of a sudden, Dave tells me, he says, Ralph, I might be facing potential early retirement because of these health issues. But Ralph, I can't even think about retiring because I don't have the financial means to support myself. And lastly. This one was enormous for him. Dave had never aligned his financial decisions with his values and long-term goals.

[00:08:54] Ralph Estep, Jr.: He didn't have any long-term goals and his values he never really thought about. Truth is Dave had drifted through life financially, kind of like a pinball bouncing back and forth. He reacted to circumstances. But he wasn't proactively planning for the future. And as I sat across from Dave watching, I realized that he might never be able to retire.

[00:09:17] Ralph Estep, Jr.: I was at a loss for words, and I really didn't know what to say to Dave. And unfortunately, what I have learned since that meeting with Dave is this is all too common. It's a thing I hear from many people I meet. But I also knew at that very moment that I could use his story; I could use Dave to serve as a powerful wake up call for others.

[00:09:37] Ralph Estep, Jr.: And that's what I hope to convey today. So you might ask yourself, Ralph, what can we learn from Dave's story? Like Peggy said, how can I avoid that situation? Or how can we avoid finding ourselves in a similar situation? So I put together a list of actionable steps. And if you do these things, you're going to be in a much better position to actually retire. The number one thing. Start saving now.

[00:10:02] Ralph Estep, Jr.: I don't care how small it is. Remember, it's not about the amount. It's about building that habit. So even if you set aside $50 a month, do it. The book of Proverbs 13:11 tells us, "Wealth gained hastily will dwindle, but whoever gathers little by little will increase it." So even the Bible is telling us that little by little, that $50 or a $100 a month.

[00:10:25] Ralph Estep, Jr.: Hey, maybe it's only 10 bucks a week. Start saving now. I don't care how small it is. The second thing. Live below your means and avoid unnecessary debt. Now that sounds great, but it's the truth. Use your credit cards responsibly, avoid taking on debt on such things as depreciating assets. These are critical decision points that you'll have throughout your life. The book of Proverbs again 22:7, warns us, "The rich rule over the poor, and the borrower is the slave of the lender."

[00:10:57] Ralph Estep, Jr.: Listen, if you hear this show and you listen to us, if you're one of my loyal listeners, you hear this, I guess I probably say it 10 times a week. But it's the truth. If you live below your means and avoid unnecessary debt, you will put yourself in a better standing for retirement. Number three. Educate yourself about personal finance. You're not going to just have this aha moment.

[00:11:22] Ralph Estep, Jr.: You've got to read books, attend seminars. Consider working with somebody like me to sit down with you and go over these things. It's not common knowledge. This is knowledge that you're really going to have to work on trying to discern. We go back to the book of Proverbs 15:22, and it reminds us, "Without counsel plans fail." Dave was failing. But if we read on it says, "but with many advisors they succeed." So surround yourself with people who can help you.

[00:11:52] Ralph Estep, Jr.: There are people like myself. There are people out there that do podcasts and YouTube. There are financial planners you can sit down and work with. Number four. Dave is guilty of this one as well. And that is protect yourself and your loved ones with appropriate insurance coverage. And listen, it's not just about financial prudence. It's all about being a good steward of the resources God has entrusted to you. You've got to make sure you have appropriate insurance. Now I'm not an insurance broker. I've done some shows on insurance, but I'm going to encourage you to study that, make sure you're covered with the things that you need so you don't find yourself in Dave's position. Number five. We talked about this with Dave as well. Make rational, not emotional financial decisions.

[00:12:39] Ralph Estep, Jr.: Don't do like Dave. Don't try to play that time the market game. And here's the thing, like we talked about what lending money to friends and family. Mixing money and relationships is a clear path to disaster. Just look at what the book of Ecclesiastes 5:10, cautions us. "He who loves money will not be satisfied with money, nor he who loves wealth with his income; this is also vanity." That is, think about that for a second. He who loves money will not be satisfied with money. Nor is he who loves wealth with his income, that is also vanity. That's very important. You got to take that into consideration. Number six. I can't stress this one enough. And that is take care of your health. Remember the Bible says your body is the temple of the holy spirit. And that means you need to exercise regularly, eat a balanced diet.

[00:13:31] Ralph Estep, Jr.: Look at me, I'm a big guy. But I used to be a lot bigger than this. There was a time in my life when I weighed 420 pounds. I remember going to the doctor. The doctor took my blood pressure. My blood pressure was 200/100. He said, Ralph, you're going to pop. And it was then I had two young kids at the time.

[00:13:49] Ralph Estep, Jr.: I said, Ralph, you got to do something about this. I remember not being able to get up and walk across the room without being out of breath. And I'm happy to say that I am almost 130 pounds lighter than I was at that point. Now, has it been easy? No. Is it a struggle? Yes, but you know what, if you take the time and do that regular exercise, pay attention to your diet.

[00:14:10] Ralph Estep, Jr.: And one thing I need to work on more is trying to manage that stress. Because guess what? If you don't do those things, even if you get to the point of being over retire, you're going to be so physically broken. You're not going to be able to enjoy it. And the last thing I'm going to tell you. And Dave didn't do this either.

[00:14:28] Ralph Estep, Jr.: And that's align your financial decisions with your values and long-term goals. If you don't do that, your game plan is going to be broken because you don't have a plan. And if you don't have a plan, you're going to fail. The book of Matthew 6:21 teaches us this. "For where your treasure is, there your heart will be also." So think about this. If you don't have a plan, if you don't have a long-term goal about where you're going, those financial decisions are going to be broken. Make sure your spending and savings reflect what's truly important to you. And that's different for everybody. I'm not going to sit here and tell you what you should do or not do. Those are your decisions. Now, I know Peggy, you might be thinking, Ralph, this all sounds great, but I'm already in my 40s.

[00:15:11] Ralph Estep, Jr.: Is it too late for me? And I'm going to say this as loud as I can say it. Absolutely not. No, it's not too late. It's never too late to start making positive changes in your financial life. So, as I promised at the beginning, Peggy, here are some additional steps you can take. Peggy, the first thing I'm going to tell you to do is maximize your retirement contributions. Now, I know you said you're not 50, but once you get to 50, make sure you're maximizing that contribution.

[00:15:37] Ralph Estep, Jr.: Take advantage of those catch-up contributions in your 401(k), or maybe you don't have one, but definitely be doing something with your IRA. The second thing, Peggy, you're not going to like what I'm going to say here, but you might have to consider working a few years longer. You said you didn't, you didn't do a good job.

[00:15:52] Ralph Estep, Jr.: You made some bad decisions, but maybe you have to delay your retirement two or three years because that can make a significant difference in your retirement savings. I've got many clients that have done a phase in retirement. Did a show about that a few weeks ago. Is it right to return, I'll put that in the show notes. Number three. Another thing that I've preach about on the show all the time, you got to look for ways to increase your income. Maybe you could ask for a raise. Maybe you need to go to your boss and say, look, here's what I bring to the table. Or maybe you need to make a decision to go to a higher paying job.

[00:16:23] Ralph Estep, Jr.: Maybe one that has better benefits. Maybe those are higher pay, better vacation, maybe a better 401(k) match. Maybe it has better insurance, and you can use those things to help you get better health. Or maybe you start a side business. You have your regular job, but then you start this side business to really focus on putting that money into retirement.

[00:16:42] Ralph Estep, Jr.: Again, have that plan, have that focus, have that belief structure. Another thing I'm going to tell you. Number four, maybe you got to downsize your lifestyle. You'll look hard at where areas where you can cut back to free up money for more savings. Maybe you need to have a season lean. Times when you make those decision, I'm not going to do a vacation for the next three or four years, or if I do what I'm going to do is staycation at home. Maybe you need to find that more economical car.

[00:17:11] Ralph Estep, Jr.: Maybe you need to, to trim down the things that you have in your budget. Again, it all comes down to that intentional spending plan. And number five and I can't stress this one enough. Seek professional help, just like Dave did. Somebody like myself, a financial advisor can help you create a personalized plan to get your retirement savings on track. Because if you don't have a plan, you're going to fail.

[00:17:33] Ralph Estep, Jr.: I can guarantee you that. If you don't have a plan right now for what your retirement's going to look like, even if it's 30 years from now, you're going to fail. You're not going to get there. And remember this. And Peggy, you kind of alluded to this and I want to warn you. It's a caution. It's not about comparing yourself to others.

[00:17:51] Ralph Estep, Jr.: You might hear people say, oh, I've got a million-dollar set aside. I've got, you know, half a million-dollar set aside. Because all you're going to do by doing that, you're going to feel guilty about those past mistakes and you're your own person.

[00:18:03] Ralph Estep, Jr.: But what I want you to do now, it's all about taking control of your financial future.

[00:18:07] Ralph Estep, Jr.: And it started today. As Philippians 3:13-14 encourages us, "Brothers, I do not consider that I have made it on my own. But one thing I do: forgetting what lies behind and straining forward to what lies ahead, I press on towards the goal for the prize of the upward call of God in Christ Jesus." Think about that. You cannot live in the past. Maybe you made mistakes. Listen, I've made mistakes. I'm 52 years old and I am nowhere near where I could have been in my retirement planning. But that doesn't give me an excuse to not start today. That doesn't give you an excuse not to start today.

[00:18:45] Ralph Estep, Jr.: Start today, even if it's small. So let's do a quick recap of what we covered. We covered the 7 common traits of people who fail or who struggle to retire. And that's number one thing, failure to save consistently. Number two, accumulated unnecessary debt. Number three, they had a lack of financial education.

[00:19:02] Ralph Estep, Jr.: Number four, they neglected proper insurance coverage. Fifth thing, and we've all been guilty of this. If we're going to be honest, we made emotional financial decisions. Number six. Guilty as charged as well. Neglecting physical health and number seven, misalignment of financial decisions with values and goals.

[00:19:20] Ralph Estep, Jr.: So many people don't have those. When I sit down with people, I say to them, what does your retirement look like? What does it mean to you? What are your goals? What are your aspirations? Now at the same time, we talked about some practical steps to avoid these pitfalls and get your retirement savings back on track. I don't care what age you are.

[00:19:37] Ralph Estep, Jr.: I don't care what your current financial situation. Now tomorrow, we're going to talk about a crucial topic. And that is what do I do when I lose my wallet to protect myself from identity theft? In today's digital age, this is information everyone needs to know. So make sure you tune in. Well now, we got to the end. You might be feeling overwhelming, Ralph, man, everything you said to me, man, guilty as charged.

[00:20:00] Ralph Estep, Jr.: If you're like me, guilty as charged. So I'm going to extend an invitation to you. Let me help you. Let me help you get on the right track. This is what I love to do. You can schedule an appointment with me just by going to askralph.com. You click on the banner that reads book a call with Ralph. It's really that simple.

[00:20:18] Ralph Estep, Jr.: I'm going to work with you. I'm going to help you. Maybe you're living paycheck to paycheck, and you feel like you're taking three steps forward and Ralph, I'm taking four steps back. I am never going to get anywhere. I can help you. I can help you achieve financial freedom. I can help you break those bonds of that financial bondage. I work with you to improve your personal finances.

[00:20:40] Ralph Estep, Jr.: Maybe you need help with your business finances. Maybe you're looking for ways to grow your business or you're a small business owner. I can help you achieve all of these things. I can help you get to all those financial goals. And I do that by creating a personalized plan just for you. It's not some cookie cutter approach.

[00:20:57] Ralph Estep, Jr.: So go there now, pay $150 consultation fee. You might say, Ralph, that's a lot of money. And it is. I don't work for free, but here's the thing I'm going to guarantee you. I will refund your money a hundred percent if we're unable to create a personalized plan that exceeds your expectations. It's that simple. I know that if we work together, you will get results. Because remember this, my passion is to help you achieve financial success.

[00:21:21] Ralph Estep, Jr.: I want you to live out your dreams. And at the same time, I want you to grow in faith and I know working together, we can master your finances from a Christian perspective. So as I always say, stay financially savvy and God bless you.