A 22-year-old Gen Z named Nick called into Dave Ramsey’s show asking the financial guru’s advice. The caller explained he was living at home with an annual income of $15,000. He also shared that he had managed to save $3,000 and had $43,000 invested — the majority in individual stocks. He asked Ramsey what kind of retirement account he should open.
Instead of going over retirement account options, Ramsey advised Nick to put a pause on retirement contributions — at least temporarily. Instead, Ramsey said that he should prioritize saving money to move out and get his career going. Then once he accomplished those goals, Ramsey said he could start investing 15% of his income toward retirement. Ramsey recommended a Roth IRA with growth stock mutual funds.
