{"id":240158,"date":"2025-10-21T04:09:10","date_gmt":"2025-10-21T04:09:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/240158\/"},"modified":"2025-10-21T04:09:10","modified_gmt":"2025-10-21T04:09:10","slug":"dave-ramsey-urges-americans-to-pause-401k-contributions-should-you","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/240158\/","title":{"rendered":"Dave Ramsey Urges Americans To Pause 401(k) Contributions \u2014 Should You?"},"content":{"rendered":"\n

Radio personality and best-selling author, Dave Ramsey, often doles out popular, albeit controversial, advice in the personal finance<\/a> space. One of his most controversial takes shared on his website<\/a>? Since many Americans carry debt, Ramsey insists Americans pause 401(k) contributions for eighteen months (or, in some far more complex cases, longer) while aggressively paying off that debt.<\/p>\n<\/p>\n

Check Out: Dave Ramsey Warns: This Common Habit Can Ruin Your Retirement<\/a><\/p>\n

Read This: Auto Experts Say Stop Buying These 4 Hybrid Cars Immediately<\/a><\/p>\n

Per TheStreet<\/a>, Ramsey emphasized stability before growth, stating his strategy offers a strategic way to speed up debt repayment by freeing up cash and encouraging individuals to tackle debt with greater urgency. Once the debt is completely cleared, individuals can resume investing.<\/p>\n

His method appeals to those who value financial control and simplicity in a landscape that often feels overwhelming. Yet, not everyone agrees. Find out below if you should listen to Ramsey when it comes to your retirement savings<\/a>.<\/p>\n

Robert Johnson, chairman and CEO and Economic Index Associates<\/a>, vehemently disagreed with Ramsey \u2014 especially if his advice is taken as a blanket prescription.<\/p>\n

\u201cManaging one\u2019s financial affairs<\/a> involves balancing competing objectives,\u201d Johnson said. \u201cSimply focusing on one objective and not others is not an appropriate way to manage finances.\u201d<\/p>\n

According to Johnson, choosing to pause 401(k) contributions<\/a> means opting out of an employer match, which means turning down free money. And that money compounds over time. He insisted it is one of the worst financial mistakes anyone can make.<\/p>\n

For You: Dave Ramsey: The Biggest 401(k) Mistake People Make<\/a><\/p>\n

Melanie Musson, insurance and finance expert at Clearsurance.com<\/a>, feels differently. Agreeing with Ramsey, she claimed temporarily pausing 401(k) contributions to eliminate high-interest debt in particular could be a good thing \u2014 but she offered a caveat.<\/p>\n

\u201cThe problem is that people are people and sometimes, they pause retirement contributions to put the money toward debt repayment, but then they spend the money instead of putting every cent toward debt repayment,\u201d she said. \u201cThe advice is only good if people are all in.\u201d<\/p>\n

Leslie Tayne, Esq., finance and debt expert and founder of Tayne Law Group<\/a>, took a more nuanced view of Ramsey\u2019s advice. While she stated pausing 401(k) contributions if a consumer is in over their head with debt can be helpful, she doesn\u2019t necessarily support foregoing an employer match.<\/p>\n

\u201cIf there\u2019s a middle ground, such as contributing as much as you can to get the full employer match, while still prioritizing paying down debt, that would be ideal,\u201d Tayne said. She also recommended looking into debt settlement options over stopping retirement contributions<\/a> completely. Tayne offered that sometimes lenders are open to negotiating with consumers in order to reduce the total sum owed.<\/p>\n","protected":false},"excerpt":{"rendered":"Radio personality and best-selling author, Dave Ramsey, often doles out popular, albeit controversial, advice in the personal finance…\n","protected":false},"author":2,"featured_media":143739,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,155,29747,147,530,132523],"class_list":{"0":"post-240158","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-dave-ramsey","10":"tag-debt-repayment","11":"tag-personal-finance","12":"tag-personalfinance","13":"tag-robert-johnson"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/240158","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=240158"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/240158\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/143739"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=240158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=240158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=240158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}