'Ramsey Show' Host Says 'All This Is A Horrible Idea' As Parents Risk $800K Retirement Nest Egg To Bail Out Divorcing Daughter With Under $50K Saved
- - 'Ramsey Show' Host Says 'All This Is A Horrible Idea' As Parents Risk $800K Retirement Nest Egg To Bail Out Divorcing Daughter With Under $50K Saved
Casey B. RennerFebruary 8, 2026 at 12:31 AM
0
A divorce brought an unexpected financial reality into focus for one family.
Calling from Ann Arbor, Michigan, Mike told "The Ramsey Show" that his older sister is going through a divorce and has three children, the oldest about three years from starting college. He said she and her husband had been living comfortably, with their children in private schools, luxury vehicles, and regular vacations.
As the divorce process unfolded, Mike said the numbers showed something different. The couple had under $50,000 in savings, including retirement accounts. At the same time, his sister planned to buy her husband out of both their home and her dental practice, a move that would require $800,000.
She could not qualify for a bank loan because she was already overleveraged, Mike said.
Don't Miss:
The ‘ChatGPT of Marketing' Just Opened a $0.85/Share Round — 10,000+ Investors Are Already In
Americans With a Financial Plan Can 4X Their Wealth — Get Your Personalized Plan from a CFP Pro
A Lifestyle That Left No Margin
Mike said his parents initially agreed to provide $400,000, and then decided to cover the entire amount using their retirement nest egg.
Before his parents finalized their decision, Mike said his sister asked whether he and his husband could lend her $400,000. He said that amount would require selling one of their properties.
She later called back and said she had made other arrangements. Those arrangements turned out to be their parents, Mike said.
"All this is a horrible idea," co-host John Delony said.
Trending: Designed for investors with strong market convictions, REX Shares builds ETFs for income, leverage, and tactical positioning — explore the lineup.
When Family Help Turns Into Family Debt
Mike said it remained unclear whether the $800,000 would be treated as a loan or a gift. He said his parents also wanted conditions attached, including repayment if his sister reconciled with her soon-to-be ex-husband.
"So we're going to let her go almost a million dollars in debt to us. Awesome. Great plan," co-host Rachel Cruze said.
Mike said he shared his concerns with his parents, and added that he is the executor of their will. He wanted his parents, who lived frugally and paid for his and his siblings' college education, to enjoy their retirement rather than use it to sustain a lifestyle that no longer matched the numbers.
"Sometimes the greatest gift is to let it all the way unravel and sit with somebody in the ash," Delony said.
When major financial decisions involve family, debt, and retirement savings, the full picture matters more than solving one problem at a time. Domain Money offers CFP professional-led financial planning for people earning $100,000 or more a year, including free strategy sessions.
Read Next:
Motley Fool's analysts have built a new lineup of passive ETFs — explore which "Foolish" strategy fits your investment goals.
Private-Market Real Estate Without the Crowdfunding Risk—Direct Access to Institutional-Grade Deals Managed by a $12B+ Real Estate Firm
Image: Shutterstock
"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga:
APPLE (AAPL): Free Stock Analysis Report
TESLA (TSLA): Free Stock Analysis Report
This article 'Ramsey Show' Host Says 'All This Is A Horrible Idea' As Parents Risk $800K Retirement Nest Egg To Bail Out Divorcing Daughter With Under $50K Saved originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Source: “AOL Money”
