Dave Ramsey, the bestselling personal finance author and radio host, has offered compelling comments about saving for retirement, 401(k)s, and building wealth in a rocky stock market. Despite economic uncertainties, workers in the U.S. generally appreciate the value of options like 401(k) plans and IRAs. These tools remain an essential part of their financial strategy, even during turbulent times.
Participating in a workplace-sponsored 401(k) plan continues to be a dependable way to build retirement savings, especially when employers provide matching contributions. This system, with its automatic payroll deductions, ensures regular contributions with minimal effort, making it both practical and effective. For 2025, the maximum contribution limit for 401(k) plans has increased to $23,500, compared to $23,000 in 2024.
Workers aged 60 to 63 can take advantage of higher catch-up contribution limits of $11,250. People aged 50 to 59 have a limit of $7,500. IRAs offer diverse investment opportunities that may not be accessible through 401(k) plans.
However, IRAs require a greater level of involvement, as account holders must set up the account and arrange automatic contributions independently. In 2025, the IRA contribution limit remains $7,000, with an additional $1,000 catch-up contribution available for people aged 50 and above. Asked about market volatility, Ramsey offered advice to people who are struggling with fear and uncertainty.
Long-term perspective on 401(k) strategies
Investing in the consumer realm for your 401(k) and for long-term wealth building means having a long-term time horizon,” Ramsey said. “The stock market in a given week is a toddler throwing a temper fit.”
“The stock market over a decade is like a wise old woman.
And so she’s wonderful long term,” Ramsey added. “But you don’t want to mess with her short term, so just zoom back. Chill, look at the long term.
Nobody gets hurt on a roller coaster except those that jump off in the middle of the ride.”
Ramsey also commented on people calling the current condition of the stock market a generational buying opportunity. “I don’t know if it’s a generational buying opportunity, but it’s definitely a buying opportunity,” Ramsey said. “Any time the blue light is on and the sale sign starts flashing, I get excited.
When you have a long-term view and see a dip in the market, it’s a buying opportunity.”
Previously, Ramsey has suggested that Roth IRAs are his favorite way to invest, citing flexibility and the fact that one can withdraw money after five years up to one’s contributions with no penalties. Once a person reaches 59-and-a-half years of age, they can make any tax-free and penalty-free withdrawals. Overall, Dave Ramsey’s advice emphasizes the importance of maintaining a long-term perspective and taking advantage of opportunities in the market to build retirement savings.
Despite the inherent volatility of the stock market, consistent investing and prudent financial planning remain key components to achieving financial security in retirement.
Image Credits: Photo by Jakub Żerdzicki on Unsplash
