Oct 3, 2025
If you own a home and need money, a home equity line of credit (HELOC) allows you to borrow against your home’s equity, typically at a lower interest rate than other loan types. It can be a useful tool for disciplined borrowers who are faced with a large expense. The downside, however, is the potential loss of your home, which is put up for collateral.
But is there a case where a HELOC should be off the table? According to Dave Ramsey the answer is “yes” — when you have a net worth of $40 million.
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Ashley from Columbus, Ohio, called into The Ramsey Show and told the namesake host she and her well-to-do husband were contemplating a HELOC on their vacation home to supplement their income on the advice of their financial advisor.
“There’s no possible way that borrowing on your lake house is a good idea when you have $40 million,” Ramsey said in a clip posted Aug 18. “I’m really disgusted at how pitiful your financial advisor is. This is just asinine.”
As it turns out, the couple’s money problems go far deeper than a quirky financial advisor.
Why a couple worth $40 million is looking to borrow money
Ashley explained that part of the problem is approximately $30 million of the couple’s money is tied up in a business her husband co-owns. However, her husband isn’t on the board of directors and has no control over redemptions of shares. The board has been restrictive about redemptions, Ashley said, and the couple can’t freely access the money.
But that still leaves $10 million, Ramsey pointed out, so what’s the deal? Ashley revealed $4 million had been tucked away for retirement, but between what’s left and her husband’s estimated $400,000 annual income, it’s not enough to support their lifestyle.
What type of lifestyle were they living? Apparently, the kind that includes maintaining two homes, house staff, a horse farm, chartered yachts and private jets. Ashley also alluded to alimony payments being made to an ex-wife. She admitted the couple would spent upwards of $1.5 million in a year.
Ramsey said the answer to their problems, rather than borrowing money, was for the couple to learn to live within their (substantial) means.
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“The last thing you people need to do is be going into debt by renting a yacht,” he insisted. “Cut your freaking lifestyle.”
Ramsey also suggested divesting the husband’s shares in his company to unlock the vast majority of the couple’s net worth, saying he’d rather be in control of his money than be subject to the whims of the board.
“I’m going to pay some taxes and get free of these jerkwads,” Ramsey said.
As for the financial advisor who suggested a HELOC, the host recommended the couple hire a new one.
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“This one’s an idiot,” Ramsey said.
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Don't let your financial advisor lead you astray
It's important to live within your means no matter your income. In Ashley's case, that could mean keeping both homes but traveling more frugally and keeping other costs down. But one might also hope to count on sound advice from their financial advisor.
Tapping into a home’s equity is ideally an option when facing a large expense — not maintaining an extravagant lifestyle.
Working with a financial advisor could help you meet near- and long-term goals — if you choose the right person. But it’s important to work with an advisor who’s trustworthy and know what red flags to look out for.
First, you should have a clear understanding of how your financial advisor makes money. If you don’t understand their fee structure, it’s not a good setup. Next, you should be wary of any financial advisor who is not a fiduciary. Finally, you should always make sure your financial advisor is licensed.
And of course, go with your gut. If you don't like the advice your financial advisor is giving you, or something isn't sitting right, consider parting ways.
Ashley did acknowledge the couple’s spending was out of control and has taken a more hands-on approach to their finances. What the couple really needs isn’t a HELOC but a lifestyle adjustment and a way to stay on a budget.
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Maurie Backman has been writing professionally for well over a decade. Since becoming a full-time writer, she's produced thousands of articles on topics ranging from Social Security to investing to real estate.
