Where to Invest a Million Dollars?
Dave Ramsey
TRADE CRYPTOCURRENCY ON BINANCE.COM
Barry is in Greenville, South Carolina. Hi, Barry. What's up?
Good afternoon, everybody. Over the years, I have tried to save my pennies, and we got to the big one. And now I am about to... Well, I know I am retired. I've been retired 20 years. I'm turning 80.
Oh, no. One penny? Own a very nice house. We're doing fine. But I have no idea how to produce income with this cash. I have nothing in the market. Okay, and you have the big one. You're talking about, you've got a million dollars in cash? Yes. Okay. Wow. Way to go.
So, Barry, how much money did you inherit? Are you a millionaire because of inheritance or because you're hard work? No, no. I — my inheritance is zilch. Hard work and just good common sense. And I got to hold you guys and run blue years ago and kind of followed them and so on and so forth. My kids are all going and gone. They've all done exceedingly well. I don't need to leave a penny to them. And then since my last kid left, we have always paid twenty percent — gross growth — to giving, good, big heroes. But anyhow, so here we are.
Well, basically, all the money we have coming in right now: I sold some apartments, I had, blah, blah, blah. And we have social security, and I do a little gig on the side during a little money that it more than covers our monthly expenses. However, I want to be a hundred percent retired.
Yeah. Good for you. Well done, sir. Impressive. Very well done. And is there a reason you don't have any of it in the market?
Well, you know, I — I was in the market, and I got it went higher, and I got frightened and pulled out. And then when I'll get back in, that kept going higher and higher and higher and higher. Anyhow, big mistake. And now it's up at, you know, 35 pounds. It's ridiculous. Can't believe it's just high. But I got out way too soon. What were you invested in back then? Clip? Yeah.
Oh, well, I kind of called it a fund. By my last name, I was in some real good stuff. Okay. Good. I had some really good... I — I wish I had never sold it. I would have a heck of a lot more. But right now, this is where I am.
Okay. All right. Good. Well, what would I do if I woke up in your shoes is how I answer questions here. Um... I — I think I'm going to get really comfortable with generosity, which you already are. I'm going to get really comfortable with leaving money to kids, even if they don't need it, and or leaving it to ministries or charities that... that... Yeah. Listen, I — I know what to do with it. I have no problem there.
Okay. How do I generate some income so that I'm not living just on social security and I can't do this little gig that I'm doing? What do I do with this money?
I personally would put it in the market. I'd go — I go — I would sit down with a smart investor pro and pick out some mutual funds, and let those mutual funds create an income. And I mean, you're — you're going to create, you know, 70 to 100 thousand a year in income off a million dollars invested in mutual funds. And even if you tear into the principle a little bit systematically in order to have the income coming in to have the lifestyle that you want, you've got — you've got a figure in mind that you need coming in. And you know, I would invest some of this money to do that.
You don't have to invest at all. You can — whatever gives you a comfort level. But um... there's — I'm 61. I'm not getting out of the market. I'm going to ride it all the way in.
Yeah. If you've got nothing that you want to spend that money on right now, I would be putting as much of it as you could into the market. And working with a financial advisor is going to help with that fear that you have of what's going to happen: "Am I putting my money into something conservative enough?" They can walk you through all of your options there to make sure that you're comfortable. They want to make sure you're educated.
Here, I do think you need to maybe sit down with a smart MR pro, or someone that — that you can develop a trust with, not a trust that — do you do everything they say automatically, but a trust that I trust their judgment. And so, when they're telling me something, I can — I can give it serious consideration. And so, if you get freaked out and go, "Oh, the market's too high," and you call your guy or your gal, you sit down with them. Have a meeting with them, a cup of coffee, and go, "Look, I'm — I'm having that thing again. I'm ready to pull it out again." And then they can talk you off the ledge because you have a trust level in their knowledge base. And they teach you something that gives you a reason to get off the ledge, yeah, instead of just jumping off.
Because your problem is you're jumping in and out all the time, and that — you told us that. You told us that was your problem. So, that's what I would do with it. That, or go buy some real estate. You just get out of the apartments, something that creates an income. You do something that goes and creates an income. Sounds like you like real estate, like I do, so that might be an okay thing.
Very well done, sir. Congratulations.