I’m 40, just divorced with $85,000 income and nothing saved. Can I really become a multimillionaire by 65?

A recently divorced caller phoned Ramsey Everyday Millionaires with a familiar mid-life math problem: 21 years of marriage gone, $85,000 in annual income, and almost nothing saved. The host’s response was startlingly upbeat. “The biggest thing you have to overcome is not the mathematical challenge of being okay by age 65, because that’s a laydown. We can definitely are going to be fine. You’re going to be a multimillionaire.”

If you are anywhere near this caller’s situation, the stakes are concrete. Believe the projection blindly and you may under-save because the future looks automatic. Dismiss it and you may give up on retirement entirely because $0 at 40 feels terminal. The actual math sits in between, and it hinges on one assumption most people never stress-test.

The verdict: the projection is realistic, but barely

Ramsey’s number is defensible. Investing 15% of $85,000, roughly $1,000 a month or $15,000 a year, with no raises and no employer match, compounds to about $1.4 million by 65 at a 10% annual return. Push that return to 11% or 12% and the figure climbs toward $1.6, $1.7, or $1.8 million, with $2 million possible if growth runs hot.

The 10% assumption holds up against the historical record. The S&P 500 ETF SPY (NYSEARCA:SPY | SPY Price Prediction) returned 257% over the past ten years, which works out to roughly 13% annualized before inflation. The long-run historical average for U.S. large-cap stocks sits closer to 10%. So the projection is conservative against the last decade and roughly in line with the last century.

Here is the catch the host glossed over. CPI just printed 332.4, with monthly inflation running at 0.6%. Over 25 years, even 2.5% inflation cuts purchasing power by roughly half. A nominal $1.4 million at 65 buys what about $750,000 buys today. Still life-changing for someone starting at zero. Just not Bentley money.

Why 15% is the variable that decides everything

The single number that determines whether this plan works is your savings rate, and it is fighting gravity. The national personal savings rate is 4.0% as of the first quarter of 2026, down from 6.2% two years ago. Ramsey is asking this caller to save almost four times the national rate, every month, for 25 years, while rebuilding a life solo.

Run the math at lower savings rates and the “multimillionaire” label collapses fast. At 10% of income, roughly $708 a month, the same 10% return delivers closer to $940,000 by 65. At 5% of income the result is under $500,000. The compounding engine is real, but it needs fuel. The reason 15% works is that it crosses the threshold where time-in-market does more heavy lifting than the original contributions.

The 401(k) plumbing supports the plan. The 2026 employee contribution limit is $24,500, with an $8,000 catch-up available starting at age 50, so $15,000 a year fits inside a single tax-advantaged account. The average 401(k) balance for ages 40 to 44 is $109,100, meaning a disciplined saver starting at zero today will pass the average peer within roughly seven years.

The emotional math the host actually emphasized

Ramsey’s real point was psychological. “You’re grieving a death, a broken heart, a relationship that died after 21 years, and with that goes a broken heart, it goes anger, it goes loss of confidence in myself,” he told the caller. The obstacle was “the lack of confidence in yourself and quit looking in the rearview mirror.” His framing: “The rest of the past is just gone. It’s past. It’s over. Let’s go forward.”

That matters because behavior, not arithmetic, breaks most retirement plans. A 4% savings rate cannot become 15% while credit card debt and an unstable cash position keep pulling money back out.

What to do this month

1. Write the budget on paper. Every dollar of the $85,000 gets a job before the month starts. The 15% target is $1,063 a month; if that is not visible on the page, it will not happen.
2. Build a starter emergency fund first. One month of expenses in a high-yield savings account, which currently tracks the 3.75% federal funds rate. This stops the next surprise from becoming new debt.
3. Capture any employer match before anything else. A 50% match on the first 6% of pay is an instant 50% return that no stock fund can replicate.
4. Route the $1,000 a month into low-cost growth stock mutual funds or index funds. Ramsey recommends working with a SmartVestor Pro; the cheaper version is a target-date fund inside the 401(k).
5. Re-run the projection every January. Raises, bonuses, and tax refunds should mostly flow to the savings rate, not lifestyle, until the balance crosses six figures.

Starting at 40 with nothing is a 25-year runway that only works if you actually take off.