Dave Ramsey's Sage Advice To 36-Year-Old Who Inherited Millions — 'Do Not Put Money In Something You Don't Understand'

During an episode of the popular personal finance talk show ‘The Dave Ramsey Show,' hosted by the finance guru, Dave Ramsey, caller Jonathan asked for advice about what to do with the millions he had inherited. 

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For many, inheriting millions can be like a dream come true, but for Jonathan, this inheritance came with a tragic story. Jonathan started the call by explaining the tragic circumstances that led him to inherit millions from his mother. He told Ramsey that his mother was recently murdered by her new husband, which shocked Ramsey as he listened to Jonathan tell his story. Jonathan said, "I have never made more than about $85,000 in a year and then was left with a couple million dollars." He admitted, "I hope I have been doing the right steps with what I've done with it. I just wanted to get mostly some reassurance that I've been doing the right things." He also asked Ramsey what he recommends that Jonathan do moving forward. 

Before delving into the advice, Ramsey's co-host and team member, Dr. John Delony, who has a Ph.D. in counseling and is an emotional health expert, asked how Jonathan has been handling the loss of his mother. Jonathan admitted that the first year after his loss was extremely difficult, and he felt like he was going backward, but it was because of his kids that he got himself together. Ramsey also inquired about the husband and whether he was in jail for the murder, but Jonathan revealed that his mother's husband had passed away shortly after. 

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Ramsey expressed his condolences to Jonathan and said, "Managing $2 million that you don't know how to manage is freaky enough, and then you put this layer on (referring to the murder). It just gets super freaky, right?" In addition to the $2 million from his mother, the husband also left Jonathan another $1 million, putting his total, including properties, at $3.5 million. Jonathan revealed that he hasn't worked since his mother passed away for emotional reasons. Delony told Jonathan that getting a job is an important part of his recovery. He needs to get "a purpose. A thing to do. A thing to go to. A thing that you are a part of that the world's going to be better because you were a part of it." 

In response, Jonathan revealed that he planned to open a tiki boat tour business and had already bought a boat for $220,000. Ramsey told him that it's physically and spiritually good that he has a plan and also advised him to invest his money wisely. Ramsey revealed he has two rules for his investments. The first is, "Do not put money in something you don't understand," and added, "That's a nightmare way to lose money." He advised avoiding investing in something just because a friend does it or you read somewhere that it's a good idea. Always invest in something that you know or love. 

Ramsey admitted that it may mean having to go to school for a bit and learning from an investment advisor. He also told Jonathan that he invests in real estate in cash. Jonathan said he has invested around $1.8 million in real estate and plans on renting one of the properties once construction is completed. Additionally, Ramsey advised Jonathan to consider sitting with a SmartVestor Pro to learn about investing in mutual funds. According to Ramsey, this can be used by anyone looking to grow their money. By working hard to provide your income, investing your money wisely and not touching it to let it grow by an average of 10% each year, you'll be in a very comfortable position for your retirement.           

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