Faced with a history of family members dying young, Sarah\u2019s husband wants to spend $500,000 to retire early. She called The Ramsey Show to find out if fear is a good enough reason.<\/p>\n
Sarah and her husband, 53, are in a strong financial position. Their house is paid off, they\u2019ve saved millions for retirement and on paper, they\u2019re set.<\/p>\n
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But his family history looms large. With his mother dying at 59 and both of his brothers dying at 55, he\u2019s starting to wonder if he should clock out of work early, just in case. That\u2019s why he\u2019s seriously considering spending the money to buy five years of his pension and retire early<\/a>.<\/p>\n The Ramsey Show<\/a> hosts pushed back on the idea of making a major financial decision based on fear.<\/p>\n \u201cNone of us is promised tomorrow,\u201d said Ken Coleman.<\/p>\n At the heart of the matter is Sarah\u2019s husband\u2019s fear of dying young. While she called to ask if they should buy the pension, the Ramsey hosts cautioned against making an emotional decision.<\/p>\n \u201cI would not sacrifice the future here on the altar of the immediate,\u201d said Coleman. \u201cWe have to live in the moment, yes, but also not sacrifice our future based on some emotion that\u2019s not rooted in facts.\u201d<\/p>\n Jade Warshaw echoed his sentiment.<\/p>\n \u201cI don\u2019t like that idea,\u201d she said. \u201cSomething about that doesn\u2019t feel right.\u201d<\/p>\n As the hosts dug deeper, it became clear the couple doesn\u2019t need the extra money from the pension to retire early. They own their home outright and have millions saved for retirement. If they spent $500,000, they\u2019d receive about $6,000 per month in retirement income. But given their other assets, they likely don\u2019t need it to live comfortably.<\/p>\n \u201cYou don\u2019t need the money, so I certainly wouldn\u2019t buy it,\u201d Warshaw said. \u201cNow it\u2019s up to you guys to decide: what is this $6,000 a month worth to us?\u201d<\/p>\n If it\u2019s not worth working for seven more years, he could retire now, without buying the pension.<\/p>\n Beyond the numbers, Warshaw encouraged the couple to consider using some of their money to assess and improve his health. Lifestyle changes and preventive care could help improve both his quality of life and longevity.<\/p>\n Story Continues <\/p>\n Read more: You don\u2019t have to be a millionaire to gain access to this $1B private real estate fund<\/a>. In fact, you can get started with as little as $10 \u2014 here\u2019s how<\/strong><\/p>\n Retiring early can be appealing for many reasons. Maybe, like Sarah\u2019s husband, you\u2019re worried about your health. Maybe you feel burned out or want more time to travel.<\/p>\n Whatever the reason, it\u2019s important to consider the financial side. If you\u2019ve spent your working years saving, paid off your house and built a solid nest egg<\/a>, early retirement might be an option.<\/p>\n But if you\u2019re still in debt or have minimal savings, this might be the time to buckle down on your financial goals instead.<\/p>\n In Sarah\u2019s case, her family\u2019s strong net worth and paid-off house make early retirement a real possibility. If they had called in with debt or little savings, the advice would\u2019ve been different.<\/p>\n