Aug 11, 2026
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Add us on GoogleImagine being 65 years old and finding out your spouse lost your household’s entire retirement fund. Now you’re dealing with broken trust in your marriage and serious doubts about your future. What do you do next?
That’s the situation Karen found herself in. She called in to The Ramsey Show and explained that her husband had moved their retirement savings into a trading account, started day trading and lost US$500,000 (~C$700,000) by going “all-in” on one large bet.
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Karen was left trying to figure out her next move, and she wanted Dave Ramsey’s take on how to rebuild. He advised her on crucial next steps to take — but he also gave her something else: a challenge to change the story she was telling herself about what’s still possible at 65.
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How to move forward from a major financial loss
Since Karen had been left with very little money after her husband’s recklessness, she asked Ramsey what she could do to build some measure of financial security in her later years.
“I have no debt. I have a $300,000 house. I had to get a job. I have a little bit of alimony, a little bit of Social Security. I have about $70,000 from money that my mom left me, and I’m just wondering how to move forward,” Karen said. “Do I sell the house?”
For a Canadian reader, Karen’s mix of income sources has a rough equivalent: alimony maps to spousal support, and Social Security maps to a combination of the Canada Pension Plan (CPP) and Old Age Security (OAS). As of mid-2026, the maximum CPP retirement pension at age 65 is $1,507.65 a month, though most retirees collect closer to $877.01 because few contribute at the maximum for the full 40-plus years required. OAS adds up to roughly $752 a month for those aged 65 to 74. Combined, CPP and OAS at the maximum still fall short of replacing a full paycheque for most Canadians, which is the same gap Karen is trying to close on her own.
Ramsey answered Karen’s question quickly. From a pure math standpoint, he said, the logical move would be to sell the US$300,000 (C$420,000) home, buy a US$150,000 (C$210,000) condo and invest the difference. He also suggested she save US$20,000 (C$28,000) of her inheritance as an emergency fund and invest the remaining US$50,000 (C$70,000).
He pointed out that this approach could leave her with roughly US$250,000 (C$350,000) or more invested by her mid-70s, even without adding another dollar, putting her in a stronger position to protect her future.
One detail worth flagging for a Canadian reader: downsizing this way is more tax-friendly north of the border than it can be in the U.S. Canada’s principal residence exemption means the sale of a primary home is generally exempt from capital gains tax altogether, with no dollar cap on the exemption — so a homeowner in Karen’s position wouldn’t need to worry about the sale itself creating a tax bill. Instead, she would have to be mindful of closing costs, land transfer tax and real estate commissions eating into the proceeds.
However, Ramsey’s advice didn’t end there.
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A shift in mindset could make the biggest difference
Ramsey also picked up on something else Karen had said during her call.
“Because I’m 65, I don’t want to start a career again,” Karen told him. “I’m a receptionist. I’m bringing in about $1,600 a month.”
For context, a full-time receptionist role in Canada pays an average of roughly C$44,800 a year, or about C$3,700 a month — a useful benchmark for a Canadian reader trying to picture how far Karen’s income might stretch, or fall short, in their own city.
It was this piece of information Ramsey seized on.
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“I’m going to reset your narrative in your head, of ‘I’m 65, I don’t have time for another career’ — yeah, you do,” Ramsey said. “You’ve got plenty of time. In the world we live in today, things spin up so fast and make so much money so quickly, I would not take somebody as bright as I’m talking to and make them only a receptionist because ‘I’m 65 … and I make nothing.’ Instead, I’d try to figure out how to go make some money.”
Ramsey added that he thinks Karen has “got chops.”
“I think there’s something you can do,” he said.
Karen may be reluctant to take a leap of faith and look for a new career, in part because of the aftermath of what her husband did.
“The important thing to recognize is that the loss of money is secondary to the breach of trust and security within the relationship,” said Dr. Lea Haber, Ph.D., a clinical sexologist, relationship expert and founder of Dr. LoveLea, a relationship coaching practice.
But while it can feel scary to pursue a new career after such a large loss, this kind of mindset shift can make a real difference.
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If Karen can move past the betrayal, let go of the emotions and adjust her expectations of what she thought life would look like — while taking Ramsey’s advice to pursue new income opportunities — she could do more than simply stretch what’s left of her savings. The extra income could open the door to rebuilding real financial security.
Why the type of account matters for Canadian savers
Karen’s story doesn’t specify what kind of account her husband used to day trade, but for a Canadian household, that detail matters more than it would in the U.S. — because the tax treatment of a big trading loss, or gain, depends heavily on which registered account it happens in.
A TFSA is meant to shelter ordinary investment growth, not a business. If the Canada Revenue Agency (CRA) decides someone is trading frequently and aggressively enough inside a TFSA to be “carrying on a business,” it can tax all of the profits in that account as business income, stripping away the tax-free status entirely. Canadian courts have upheld exactly this kind of assessment against aggressive TFSA day traders.
An RRSP is treated differently: Canadian tax case law has held that trading inside an RRSP does not amount to carrying on a business, so an RRSP day trader generally won’t face that particular CRA risk. That doesn’t make aggressive trading inside an RRSP a good idea — a large loss still shrinks retirement savings and, unlike a loss in a non-registered account, can’t be claimed against other income to reduce a tax bill.
The bigger lesson carries over directly from Karen’s story: concentrating a household’s entire retirement savings into one aggressive account and going “all-in” is risky no matter which side of the border it happens on — and in Canada, it can also carry a tax consequence most people don’t see coming until the CRA comes calling.
What Canadians can take from this
Karen’s situation is extreme, but the underlying risks apply to any household. A few practical takeaways:
- Keep retirement savings diversified across accounts and asset types rather than concentrated in one trading account or one large bet
- Talk with a spouse before either partner makes a major, unilateral change to how shared retirement savings are invested
- Understand which account — TFSA, RRSP or a non-registered account — is being used for active trading, since the tax consequences of a large gain or loss differ significantly between them
- Get an independent opinion from a fee-only Certified Financial Planner (CFP) before deciding whether to sell a home, tap an inheritance or make another major move after a financial shock
- Don’t rule out a new career or income stream because of age — CPP and OAS alone rarely replace a full paycheque, so extra income in your 60s can matter more than it seems
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Christy Bieber a freelance contributor to Moneywise, who has been writing professionally since 2008. She writes about everything related to money management and has been published by NY Post, Fox Business, USA Today, Forbes Advisor, Credible, Credit Karma, and more.
