On the Ramsey Show – Highlights Youtube channel, the American personal finance personality advised a caller on how he can retire a millionaire. Dom wanted advice on how much money he needed to retire.

As everyone is different and leads different lifestyles, the financial expert pointed out that there is no “ideal amount” for a group of people and their goals.

There are tools available to people that can give a rough idea, but it can never be 100% accurate.

Ramsey suggests people use the ‘R:IQ’ to determine their ‘bullet count’ and how much to invest each month to meet their goals.

If Dom maximizes his tax-free investment vehicles and follows Dave Ramsey’s “Baby Steps,” he should have “more than enough” when he retires.

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He continued: “If you do what we teach and save 15% of your household income between the ages of 30 and 70, you would have around $8m (around £6m) in a good mutual fund.

“If I’m half wrong, you still have double what you project.”

As long as people can live off the growth of their pensions and investments, they will be fine.

Mr Ramsey continued: “Let’s say you had invested $3m (around £2.2m) and you were getting around 10% annual growth.

“That’s about $300,000 (about £228,000) a year, not touching the $3m.

“If the annual growth is 8%, that’s about $240,000 (about £183,000).

“As long as you can live from the growth of your investments, that will suffice.

“The trick is to have a nest egg big enough that you can live off the money it brings in without touching the initial investment you’ve invested for years.”

The financial expert explained that in reality, if people don’t have debt, they don’t need that much money anyway.

This gives people more control over what they save and what they hope to get out of their investment each month in retirement.