36-Year-Old Inherits $3.5 Million And Asks Dave Ramsey The Best Way To Invest It: 'I Buy Real Estate And I Buy Mutual Funds. That's All'

When Jonathan, a 36-year-old, inherited $3.5 million after his mother was tragically killed by her new husband, he faced a dilemma most people can barely fathom. While the money brought financial freedom, it also carried the heavy burden of grief and the uncertainty of managing such a large sum. In March 2024, Jonathan called into Dave Ramsey's show looking for advice – and what followed was a conversation that resonated with millions.

"I've never made more than $85,000 in a year," Jonathan admitted. "Now I've got a couple million dollars and I hope I've been doing the right thing. I just need some reassurance." 

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Before getting to the money, Ramsey's co-host, Dr. John Delony, gently asked Jonathan how he'd been coping with his mother's loss. Jonathan shared that the first year was a struggle, but his children motivated him to pull himself together.

Ramsey's first piece of advice? Find purpose. "You've got to get back to work," he told Jonathan. He and Delony agreed it wasn't about needing the money but a reason to get up every morning. "You need a purpose," Ramsey added, "a thing to go to that makes the world better because you're part of it."

Once the conversation turned to investing, Ramsey's advice was straightforward yet firm. "I buy two things: real estate and mutual funds. That's all. But don't put money into something you don't understand. Don't do it because I do it or you read about it in an article. That's a nightmare way to lose money."

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Jonathan had already started investing in real estate, putting $1.8 million into properties, including a rental that wasn't yet finished but was expected to be worth $1.2 million once completed. In addition to that property, he mentioned having another rental and the home he currently lives in – three properties in total.

In addition to his real estate investments, Jonathan decided to invest $200,000 in starting a boat tour business. The boat, set to be delivered in April, was not just an investment but also a hands-on venture. Jonathan planned to run the business himself, learning the ropes of operating and maintaining the boat while building a service that could generate steady income. Ramsey applauded the effort, emphasizing how important it was for Jonathan to invest wisely, find purpose and engage with work that kept him moving forward.

Ramsey painted a compelling picture of what smart investing could do for Jonathan's future. "If you make 10% on $3 million and let it sit, it'll grow. That $3 million could be worth $6 million in seven years. Seven more years, $12 million. By the time you're 57, it could be $24 million," he said, explaining the power of compounding when you don't touch the money. But first, he had to start making an income. 

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While Ramsey's advice was solid, it's worth noting that other financial experts might suggest a more diversified approach. Limiting investments to real estate and mutual funds might leave gaps in a portfolio. For example, some professionals recommend exploring exchange-traded funds (ETFs), bonds or alternative assets like commodities to hedge against market volatility. Real estate investments, while lucrative, often come with significant capital requirements and market risks that shouldn't be overlooked.

Still, Ramsey's philosophy is clear: simplicity and understanding are key. He emphasized that his advice was personal, not universal. 

The takeaway for anyone inheriting a large sum – or simply planning for retirement – is this: don't rush. Take time to understand your options, work with professionals and make thoughtful decisions. Whether managing $3.5 million or a modest 401(k), financial literacy is your best tool for securing the future.

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