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Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
Mar 24, 2026
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42% of Americans aren’t saving for the future, according to a 2023 Dave Ramsey Solutions study. This suggests that millions of retirees rely on Social Security for the majority of their retirement income.
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Maximize your tax-advantaged accounts and invest in inflation-hedging assets like real estate. For example, you can access the Fundrise Flagship Fund for as little as $10.
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Save more by finding ways to cut your monthly bills. For instance, this 2-minute check could lower your car insurance rate to as low as $29/month.
42% of Americans aren’t saving for the future, according to a 2023 retirement study conducted by Dave Ramsey Solutions based on a 2016 survey.
"Even among savers, few are setting aside enough to afford a truly secure retirement,” the Ramsey team notes.
Many people assume Social Security will carry them through retirement. In reality, these benefits typically replace just 40% of pre-retirement income.
But nearly 60% of retirees say Social Security is a “major source” of their retirement income, according to Gallup.
This suggests that millions of Americans risk falling short of a comfortable retirement.
Whether you’re close to retirement or just planning ahead, here are the steps you can take to start stitching together a safety net that can protect your golden years.
Max out tax-advantaged accounts
The first step is one everyone can agree on: take your employer’s 401(k) match. It’s essentially free money — and if you aren't taking it, you’re effectively taking a pay cut.
Once you’re contributing enough to capture that match, there are a few critical questions: Should you open a Roth IRA for its tax-free growth or a traditional IRA to lower your current taxable income?
If you’re over 50, the IRS allows you to make additional contributions to your retirement accounts, but knowing which account to fill first is where many people may stumble.
When you have 30 years to go, you may be able to afford a few mistakes. But when you only have ten or 15, every move counts.
By hiring a fiduciary advisor, you’re gaining a strategist who looks at your financial buckets — from real estate and investment accounts to your cash reserve and 401(k) — as a whole.
A fiduciary is a professional legally bound to put your interests first. They help you stop managing a collection of accounts and start planning for your retirement strategically.
Platforms like Advisor.com take the guesswork out of finding this expertise.
Just indicate what you need help with — like tax optimization, retirement planning, or budgeting — answer a few quick questions through their online form and the platform will match you with a vetted financial advisor in 5 minutes.
You can set up a free, no-obligation-to-hire call to see how they can help you create an actionable plan and whether their approach and pricing model make sense for you.
Plus, it's not just about figuring out what accounts to open and how to maximize each one. A financial advisor can help with which assets make sense to invest in, depending on your financial situation.
Placing high-growth assets in tax-free accounts while using safe-haven hedges can help protect your nest egg from inflation.
Gold, for instance, has served as a store of value for thousands of years. It isn’t tied to any single country, currency, or economy, and it can’t be printed like fiat money. Investors often flock to it during periods of economic stress or geopolitical uncertainty — pushing prices higher.
Gold prices have surged by more than 80% year to date, hitting multiple record highs in 2025, with projections suggesting it could soon exceed $6,000.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
This chart shows the price of gold over the past five years. If you want to see whether opening a precious metals IRA is the right investment to diversify your portfolio, download a free info guide.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
If you’d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver.
To learn more about how Priority Gold can help you reduce inflation’s impact on your nest egg, download their free 2026 gold investor bundle.
New tax laws making your IRA feel like a puzzle? Match with a TurboTax expert and get audit support for the life of your return. File by March 21 for only $150 all-in.
Invest like the ultra-wealthy
Most 401(k)s restrict you to stocks and bonds. The wealthy, however, often diversify into alternative assets to protect their portfolios from sharp stock market corrections.
The good news is you don’t need millions to follow their lead.
For instance, the Fundrise Flagship Fund¹ is a $1 billion private real estate fund that lets you invest in an expertly crafted strategy without needing hundreds of thousands of dollars. You don’t need to be an accredited investor, and you can get started with as little as $10.
With 4,700+ single-family homes and 2,500+ residential units owned by the Fundrise Flagship Fund, you get exposure to institutional-style scale and diversification.
Industrial
215 Interchange
Las Vegas, NV
Build-for-rent
Pine Ridge
Fountain Inn, SC
Build-for-rent
Omnia
Richmond Hill, GA
These are a few examples of properties powering the Fundrise Flagship Fund. For a full list of the Fundrise Flagship Fund's portfolio properties see the Flagship Fund website.
After you place your first investment, the Fundrise Flagship Fund will work to find and add new assets to your portfolio over time and send you transparent updates along the way.
It only takes a few minutes to sign up now and become a real estate investor today.
If diversifying into multifamily rentals appeals to you, you could consider investing with Lightstone DIRECT, a new investing platform from the Lightstone Group, one of the largest private real estate companies in the country with over 25,000 multifamily units in its portfolio.
Featured
Residential
Columbus, OH
Featured
Industrial
Tobyhanna, PA
Featured
Residential
Beverly Hills, MI
These are a few examples of past properties or acquisitions from Lightstone. Explore more investment opportunities when you register with Lightstone DIRECT.
Since they eliminate intermediaries, accredited investors with a minimum investment of $100,000 can gain direct access to institutional-quality multifamily opportunities.
How it works is simple: Just sign up with your email, and you can schedule a call with a capital formation expert to assess your investment opportunities. From here, all you have to do is verify your details to begin investing.
Lightstone invests at least 20% of its own capital in every deal — roughly four times the industry average. With its skin in the game, the firm ensures its interests are directly aligned with those of its investors.
Related: 4 ways to invest in real estate in 2026
Make your cash work as hard as you do
Many big banks pay interest as low as 0.01%, which means any cash in a traditional savings account is actually shrinking in value thanks to inflation. For those in their 40s or 50s with a healthy emergency fund, this can be a silent wealth killer.
Moving your money to a high-yield account like Wealthfront puts your cash to work.
A Wealthfront Cash Account currently offers a base variable APY of 3.30%, and new clients can get an extra 0.75% during their first three months on up to $150,000 for a total variable APY of 4.05%².
That’s ten times the national deposit savings rate, according to the FDIC’s January report³.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times.
Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
With a Certificate of Deposit (CD), you lock in a rate upfront, so your earnings stay fixed for a set term, even if market rates slip.
For those seeking predictable, reliable growth, a platform like CD Valet can help you find higher-yield options that work for you, whether you’re saving for something soon or building a cushion for the long haul.
CD Valet tracks over 40,000 verified rates from FDIC-insured banks and NCUA-insured credit unions nationwide. Unlike other websites, they show every publicly available rate, ensuring you have a comprehensive view of the market.
To help you save smarter, CD Valet provides free, specialized tools.
- Earnings calculator: See exactly how much interest you’ll accrue by the end of your term. Adjust different rates and terms to see how much you can earn with a 12-month vs. a 24-month CD.
- CD rates map by state: See real-time offers of the best CD rates across the country. Many institutions allow you to open an online account, so you can take advantage of a great CD rate without being located in that state.
Plus, their CD rates are updated continuously so you can shop, compare and open CDs with ease.
Put your investing on autopilot
For many Americans, your 50s are still peak earning years. So if you feel behind on saving for retirement, you still have a real opportunity to accelerate your investments.
One of the most effective ways to do that is by automating your contributions so they line up with each paycheck.
When your investing happens first, before bills or impulse spending, you’re consistently building your nest egg without having to think about it.
Automation also removes the temptation to time the market, a mistake that has cost retirees thousands in lost gains.
Platforms like Acorns make this incredibly straightforward.
The investing app rounds up your daily purchases to the nearest dollar and invests the spare change.
Acorns matches you with one of five automated portfolios designed to align with your financial goals.
Beyond its round-up feature, you can set up recurring contributions in just three minutes and keep your nest egg growing on autopilot.
Plus, as a Moneywise reader, you get $20 when you set up a recurring deposit.
Tackle high-interest debt ASAP
Entering retirement with high-interest debt is a recipe for stress. If you’re carrying credit card balances, consider consolidating while your income is at its peak.
If you’re a homeowner, the equity you’ve built in your home may offer a way to pay off high-interest debt more efficiently. A home equity line of credit (HELOC) allows you to borrow against that equity as needed, often at a lower interest rate than credit cards or other types of loans.
AmeriSave offers a flexible HELOC that lets homeowners borrow against their equity as needed during the draw period, making it useful for debt consolidation.
It’s well-suited for homeowners who want a mostly online, low-friction experience from a well-known mortgage lender. Used thoughtfully, this could help you stay ahead rather than feel squeezed.
If you owe a substantial amount and have no real estate asset you can tap into, you may also want to see if you qualify for a debt relief program to help clear a significant portion of your debt.
With Freedom Debt Relief, you can speak with a certified debt relief consultant for free, who can show you how much you can save by partnering with them.
They can also help negotiate settlements with your creditors until all enrolled debt is resolved.
Stop overpaying for life insurance
Dave Ramsey has often criticized whole life insurance, calling it one of the “worst financial products on the market.” The premiums, he argues, can quietly drain money that might be better put toward retirement savings.
Instead, he recommends a simple 20-year term life policy: coverage that protects your family during your highest-earning (and highest-responsibility) years, typically at a fraction of the cost.
If you’re currently tied to an expensive whole life policy, it may be worth a second look. Today, online insurers like Ethos offer fast, competitive quotes for term coverage tailored to your specific needs.
The application can take as little as 10 minutes. Most applicants won’t need blood work or an in-person exam — just answer a few basic health and lifestyle questions.
Using real-time data, Ethos can often deliver an instant quote and, in many cases, same-day approval. You may be able to get up to $2 million in coverage, starting at just $2 per day.
By swapping an expensive policy for a leaner term plan, you may be able to funnel those monthly savings back into your 401(k) or IRA, where they can work harder for your long-term goals.
Maximize savings on fixed costs
Every dollar spent on an overpriced insurance premium is a dollar not compounding in your investment accounts.
Car insurance costs, for example, have surged by 38% between 2020 and 2024, according to the Bureau of Labor Statistics.
This significant increase suggests that many people are overpaying for car insurance simply because they don't compare rates regularly.
OfficialCarInsurance.com makes it easy to compare quotes from leading insurers in your area, potentially saving you hundreds of dollars annually on premiums.
The process is 100% free and won’t affect your credit score. In just a few clicks, you could pay as little as $29 a month.
Optimize your biggest liability
If you’re a homeowner, your mortgage is likely your largest monthly expense. If you plan to stay in your ‘forever home’ through retirement, even a small interest rate reduction can free up tens of thousands of dollars over time.
Refinancing your mortgage to a lower rate could help you redirect savings into your retirement accounts.
Alternatively, you could consider refinancing to a shorter term and pay down your mortgage more aggressively. Being mortgage-free 10 years ahead of retirement could set you up comfortably and reduce your reliance on Social Security.
Mortgage Research Center, licensed in all 50 states, can help you explore your refinancing options and find the solution that best fits your financial goals.
Their team of experienced professionals will guide you through the process, helping you understand the potential savings and timeline to become mortgage-free.
- 1 The Base Annual Percentage Yield (APY) is 3.30%, as of 01/30/26, and is subject to change. If you are eligible for the overall boosted rate of 4.05% offered in connection with this promo, your boosted rate is also subject to change if the base rate decreases during the three-month promotional period. The Cash Account is offered by Wealthfront Brokerage LLC, Member FINRA/SIPC. Wealthfront is not a bank. The Base APY is representative, subject to change, and requires no minimum. Wealthfront Brokerage sweeps cash balances to Program Banks, where it earns the variable base APY and is eligible for FDIC insurance. Instant withdrawals may be limited by your receiving firm and other factors. Investment advisory services provided by Wealthfront Advisers LLC, an SEC-registered investment adviser. Securities investments: not bank deposits, bank-guaranteed or FDIC-insured, and may lose value.
- 2 Based on the national average interest rate for savings accounts as posted on FDIC.gov, as of January 22, 2026.
- 3 Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship Fund before investing. This and other information can be found in the Fund’s prospectus. Read them carefully before investing. This marketing was vetted by the Moneywise team and sponsored by the Fundrise Flagship Fund.
Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
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