Feb 28, 2024
A tragic event led to an unexpected windfall for Jonathan, a 36-year-old former restaurant worker living in Fort Myers, Fla.
On a recent episode of “The Ramsey Show,” he described how his mother was killed by her new husband in a murder-suicide a few years ago. He then learned that they had both left him hefty inheritances.
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“I never made more than about $85,000 a year and then was left with a couple million dollars,” he told host Dave Ramsey. Like many Americans, this accidental millionaire is now worried about making the right financial choices.
Unprepared for inheritances
Roughly 15% of American adults expect to receive an inheritance in the next decade, according to a 2023 survey by New York Life. Just 42% of those expecting wealth to be passed down to them feel very comfortable financially handling it. The rest may struggle with anxiety and self-doubt.
In Jonathan’s case, these feelings were probably exacerbated by the shocking loss of his mother and the circumstances of her death.
“The first year [I] wasn't too well,” he said. “[I] kind of went backwards probably a little bit, and I tried to get myself together and be better for my kids, and I think I've been doing pretty well the last two years.”
Since his mother's passing, the father of two has stopped working and lived off his inheritance. His mother left him $2.5 million while her new husband left him $1.1 million. Today, his assets are collectively worth $3.5 million.
To avoid depleting this wealth further, Ramsey shared a simple plan.
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Wealth management
Jonathan doesn’t need to work, but Ramsey believes he should. “... at 36, doing nothing is not a plan. Emotionally [or] spiritually,” he said. "You're going to have to get a job, you're going to have to get a purpose."
Going back to the service industry might not be necessary, but Jonathan said he’s already invested in a new business venture. He recently purchased a boat for $220,000 and plans to launch a tour business soon. Meanwhile, he's bought properties to rent out for additional income.
Ramsey recommended mutual funds to grow his wealth. He said that if Jonathan can achieve a 10% average annual return for the next 21 years on a $3 million initial investment in mutual funds and real estate, he can accumulate $24 million by the time he is 57 years old.
Regardless, Ramsey thinks Jonathan has the potential to become a very wealthy man in about two decades if he follows this relatively low-risk plan.
The personal finance expert, who says he only invests in real estate and mutual funds, warned Jonathan against investing in anything he doesn't understand. “The trick here is to put money in stuff that's steady and is predictable,” he said. “Not super conservative but we're not taking any big risks here. We're not trying to reinvent the crypto world or some bullc--p like that.”
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
