Man Inherits $50 Million And Turns To Dave Ramsey For Advice – He Says: 'Wealthy People Who Give Are The Ones Who Have Fun With Money'

Imagine waking up one morning and discovering you've inherited $50 million. Sounds like a dream, right? Well, for Ken from Sacramento, this dream turned into reality.

He called into the Dave Ramsey Show for some advice because when you're handed that kind of money, it's easy to feel overwhelmed. And let's be honest – a windfall like that comes with a lot more responsibility than deciding whether to splurge on the latest iPhone.

Don't Miss:

• Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.
• I’m 62 Years Old And Have $1.2 Million Saved. Is This Enough to Retire Stress-Free?

Ken kicked things off by telling Ramsey he'd inherited $50 million and asked, "What should I do with it?" Ramsey, clearly stunned, shot back, "Who in the world left you $50 million?" Ken explained it was his parents, especially his dad, who was "into everything" – from real estate to running a car dealership and even selling private jets.

Before this windfall, Ken was comfortable but not accustomed to handling this massive wealth.

That's where Ramsey stepped in, offering his signature blend of no-nonsense advice. "The thing I teach people to do with all of their income – even an unbelievable amount like this – is to balance it," Ramsey explained. He broke it down into simple ratios: live on some, enjoy some, give some and invest the rest. How much goes where? That's up to Ken, but Ramsey stressed the importance of balancing things so Ken could enjoy his newfound fortune without squandering it.

The key here is balance. With $50 million, the options are almost endless. Ramsey clarified that the first step should be giving some of it away. "Wealthy people who give are the ones who have fun with money," he said. Plus, giving isn't just about doing good for others; it also helps keep things in perspective.

Trending: Studies show 50% of consumers think Financial Advisors cost much more than they do — to debunk this, this company provides matching for free and a complimentary first call with the matched advisor.

But don't worry – there's still plenty of room to have fun. "Doesn't take much for it to be a lot of fun," Ramsey quipped. And when you're sitting on $50 million, you can afford more than just a Netflix subscription and DoorDash on Friday nights.

Invest Smart, But Don't Rush

Ken's inheritance wasn't a couple of bucks – this was $50 million in cold, hard cash. That kind of money can make even seasoned investors hesitate. Ramsey's advice? Take a breath. "Avoid rushed financial decisions," he warned. The temptation to splurge is real, but giving yourself time to adjust is important.

Let's say Ken decides to invest a chunk of that inheritance, like $10 million. How much could he make off that? Well, here's a quick rundown:

• Savings Accounts: Ken could play it safe with a traditional savings account. Sure, he'd earn $50,000 to $100,000 a year, but let's be real – that's chump change when you're sitting on millions.

• Dividend Stocks: With a bit more risk, Ken could pull in $200,000 to $500,000 annually. Plus, he'd have the chance for capital appreciation, meaning his $10 million could grow even more.

• Real Estate: This is where Ken's late father made his fortune, which could also pay off for him. Real estate investments typically return 3% to 10%, so Ken could see up to $1 million yearly from this.

The point? Ken has options. But with great wealth comes great responsibility.

See Also: A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.

A Plan for Every Dollar

Ramsey stressed the importance of having a plan. "How much do I want to systematically give, invest and enjoy?" he asked. By creating clear ratios for giving, investing and spending, Ken can enjoy his windfall without the risk of blowing it all on yachts and sports cars.

Ken's situation may seem like a one-in-a-million, but Ramsey’s principles are ones anyone can follow. Whether it's $50 million or just a little bonus from work, finding the right balance between enjoying today and planning for tomorrow is always key. After all, a little fun – and a lot of smart investing – never hurt anyone.

Read Next:

• Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average?
• How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.