Dave's 3 Rules For Investing

Summary

Ramsey Everyday Millionaires: Episode Summary – “Dave's 3 Rules For Investing”

Release Date: March 21, 2025
Host: Ramsey Network (Featuring Dave Ramsey, George Camel, and Guest Zach)

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Introduction

In this compelling episode of Ramsey Everyday Millionaires, the focus centers on actionable investment strategies tailored for individuals embarking on their wealth-building journey. Hosted by George Camel from the Ramsey Network, the episode features a heartfelt conversation with Zach, a 30-year-old who recently inherited a substantial estate following his father's passing. Alongside insights from financial guru Dave Ramsey, the episode delves into practical advice, emphasizing understanding, patience, and the importance of knowledgeable guidance in managing newfound wealth.

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Guest Introduction: Zach's Story and Financial Situation

The episode opens with George Camel welcoming Zach from Detroit, who shares a poignant personal story. Zach, engaged and anticipating marriage in June, inherited over $3.4 million from his late father, who succumbed to brain cancer at 77. Alongside the cash, Zach also inherited a couple of properties.

Notable Quote:
Zach (00:22): "Looking for some advice? My father passed away in June, and I inherited pretty large. Thank you. Large amount of money. And I just... I really, you know, I kind of want to do what's right by him, but, I mean, it's life-changing, and I'd like to kind of get some advice, hopefully from you, on how to proceed a little bit. I'm a little lost with it."

Zach mentions that his investments include mutual funds, with a significant portion allocated to index funds managed through Fidelity. Despite his efforts, Zach feels the need for further guidance to effectively manage and grow his inheritance responsibly.

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George Camel’s Three Rules for Investing

George Camel responds to Zach’s concerns by outlining three foundational rules for investing, aimed at ensuring Zach navigates his newfound wealth wisely.

1. Understand Before You Invest

George emphasizes the paramount importance of comprehending any investment vehicle before committing funds. He warns against following advice blindly, regardless of the source.

Notable Quote:
George Camel (03:03): "Number one rule, never put money in something you don't understand. I don't care if George Camel said to do it. I don't care if Dave Ramsey said to do it. I don't care if a guy in a fifteen hundred dollar suit said to do it... Don't put money and stuff until you understand."

This rule underscores the necessity of personal understanding over external recommendations, promoting informed and confident investment decisions.

2. Go Slow and Avoid Rushing Decisions

Patience is highlighted as a critical virtue in investing. George advises against making hasty moves to prove investment acumen, advocating for a measured, deliberate approach until a deeper understanding is achieved.

Notable Quote:
George Camel (03:38): "Take your time till you understand. So go slow is number two, right?"

George suggests that by adopting a slow-paced investment strategy, Zach can mitigate risks and build a more secure financial foundation.

3. Surround Yourself with Knowledgeable Mentors

The final rule focuses on the importance of having a support system comprised of trustworthy financial professionals who embody the role of educators rather than decision-makers.

Notable Quote:
George Camel (04:34): "Put people in your life in the financial world that have the heart of a teacher that can help you understand and go slow."

George recommends that Zach attend an upcoming virtual event on investment essentials and connect with a SmartVestor Pro—a mutual fund broker advisor endorsed by Ramsey Solutions. He stresses the role of these professionals as mentors who guide rather than manage.

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Practical Steps and Resources

George provides actionable steps for Zach to implement the three rules:

1. Attend Educational Events:
   George invites Zach to an Investing Essentials virtual event on March 3rd and 4th, designed to deepen his investment knowledge.
   Notable Quote:
   George Camel (04:35): "George and I are going to be doing an investment, a virtual event. Investing essentials. Tickets are $199. I'm going to give you a ticket. I want you to watch it."

2. Engage with a SmartVestor Pro:
   Zach is encouraged to find and interview local mutual fund brokers through Ramsey Solutions’ SmartVestor platform to find a mentor with whom he feels comfortable.

3. Build a Financial Support Team:
   Beyond investment advisors, George advises incorporating a tax advisor, real estate expert, and estate planning attorney into Zach’s financial network, all of whom should share the educator mindset.

Notable Quote:
George Camel (05:49): "Their job is to teach you. Their job is not to do it for you. Do not turn this money over to someone else. God made it your responsibility, not someone else's."

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Dave Ramsey’s Insights and Encouragement

Dave Ramsey interjects with reinforcement of George’s advice, highlighting the long-term benefits of adhering to these investment principles:

• Responsibility and Legacy: Dave underscores the importance of responsibly managing the inheritance as a way to honor Zach’s father’s legacy.
  Notable Quote:
  Dave Ramsey (07:03): "People who live and breathe this stuff every day. And that'll help you create some confidence that you're doing the right things to have people looking over your shoulder and helping you understand it."

• Avoiding Debt and Lifestyle Creep: Emphasizing that following these rules will help Zach avoid debt and resist the temptation of lifestyle inflation, thereby securing financial stability.

• Building Confidence and Security: Dave praises Zach for his proactive approach, assuring him that his responsible actions will lead to a secure and prosperous future.
  Notable Quote:
  Dave Ramsey (07:03): "That's an amazing legacy your dad left."

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Conclusion: Empowerment Through Knowledge and Responsibility

The episode concludes with George and Dave expressing their confidence in Zach’s ability to manage his inheritance wisely. They reiterate the importance of understanding investments, moving at a comfortable pace, and surrounding oneself with knowledgeable mentors. This structured approach is portrayed as a pathway to not only preserving but also growing the inherited wealth, ensuring it serves as a foundation for Zach’s future and his upcoming marriage.

Final Notable Quotes:
George Camel (08:14): "You're a good man, Zach. You're going to do a great job. Your dad's already proud of you. I'm proud of you."
Dave Ramsey (09:13): "Thanks for tuning in to Ramsey Everyday millionaires..."

Additionally, listeners are encouraged to connect with SmartVestor Pros through Ramsey Solutions for personalized investment guidance, reinforcing the episode’s core message of informed and educated financial management.

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Key Takeaways

1. Understand Your Investments: Never invest in something you don’t fully comprehend.
2. Adopt a Patient Approach: Take your time to learn and avoid rushing into investments.
3. Build a Knowledgeable Support Team: Surround yourself with financial mentors who educate and guide you.

By following these principles, individuals can navigate their financial journeys with confidence, ensuring that their investments are both informed and aligned with their long-term financial goals.

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For Further Assistance:
Need help with your investments? Connect with a SmartVestor Pro at ramseysolutions.com or click the link in the show notes. Ramsey Solutions is a paid non-client promoter of participating pros. Learn more at ramseysolutions.com/SmartVestor.

Transcript

[Dave Ramsey]

This episode is brought to you by SmartVestor. Connect with an investing pro near you.

[George Camel]

At RamseySolutions.com SmartVestor Zach is on the line in Detroit. Hi, Zach. Welcome to the Ramsey Show.

[Zach]

Hi. Thanks for having me.

[George Camel]

Sure. What's up?

[Zach]

Looking for some advice? My father passed away in June, and I inherited pretty large. Thank you. Large amount of money. And I just. I really, you know, I kind of want to do what's right by him, but, I mean, it's life changing, and I'd like to kind of get some advice, hopefully from you, on how to proceed a little bit. I'm a little lost with it.

[George Camel]

I got you. How old was he?

[Zach]

He was 77.

[George Camel]

What happened to him?

[Zach]

Brain cancer.

[George Camel]

Oh, I'm sorry. Were y'all close?

[Zach]

Very.

[George Camel]

I'm so sorry. How old are you?

[Zach]

30.

[George Camel]

Cool. What do you make a year?

[Zach]

About 140 this year.

[George Camel]

Good for you. Are you married?

[Zach]

Engaged.

[George Camel]

Okay. Good. Fun. When are you getting married?

[Zach]

June.

[George Camel]

Okay. All right. One year later. Wow.

[Zach]

Yeah.

[George Camel]

Yeah. So how much. How much money was left to you, Sir?

[Zach]

Invested about 3.4. A little over 200 cash and a couple properties.

[George Camel]

What's the 3.4? Invested in.

[Zach]

It? Mostly funds.

[George Camel]

Mutual funds?

[Zach]

Yes.

[George Camel]

Okay. All right. Are you putting Money in your 401k now?

[Zach]

Yes.

[George Camel]

Are you putting in mutual funds?

[Zach]

Some. Yes.

[George Camel]

How'd you pick the mutual fund?

[Zach]

Well, originally, I. Do you mean. You mean for my contribution to my own. So I. I kind of manage it a little bit myself, and right now it's kind of split between index funds. It's just with a fidelity. You know, I just put it in mostly an index fund last year, and. Which did pretty well.

[George Camel]

But. So my point of asking that is that you have already begun, before your dad's passing, to analyze and select investments. So doing that is not rocket science. You figured that out. It's a couple of three numbers you can look at and you can start to understand. And you made some decisions based on some things you read and you went index route for. And you looked at track records, and you. You know, you've already had your. It's not your absolute first time doing this. Agreed.

[Zach]

Agreed.

[George Camel]

Okay. So. But we do have 3.6 million reasons to get better at it.

[Zach]

Yeah.

[George Camel]

Yeah. So here's a couple of rules, and if you'll follow these rules, you'll be okay. Number one rule, never put money in something you don't understand. I don't care if George Camel said to do it. I don't care if Dave Ramsey said to do it. I don't care if a guy in a fifteen hundred dollar suit said to do it. I don't care if a genius on TikTok said to do it. Actually, I care. Don't do that. But whatever he said, don't do that. But you see what I'm saying? I mean, don't put money and stuff until you understand. Now if you got that one, say yes.

[Zach]

Yes.

[George Camel]

Okay. That gives you great confidence then to go slow. That's number two. You don't have to make any big moves to prove that you know something that you don't know yet. Take your time till you understand. So go slow is number two, right?

[Zach]

All right.

[George Camel]

Unless you understand it, don't do it. Number two, go slow. Number three, put people in your life in the financial world that have the heart of a teacher that can help you understand and go slow. But we're not hiring someone to do our job. Your job is to understand and manage the money that your father blessed you with. So go slow. Understand it. Get people to help you understand more. Because you have a, a level one understanding of mutual funds. And really you probably need to get that up to about a level 5 or a level 6 out of 10.

[Zach]

Okay.

[George Camel]

Okay. It's probably not that big a deal, not that big a jump, but you, you do need a little. Do a little bit of learning. George and I are going to be doing an investment, a virtual event. Investing essentials. Tickets are $199. I'm going to give you a ticket. I want you to watch it. It's on March 3rd and 4th. Okay.

[Zach]

Okay.

[George Camel]

We're going to go into a bunch of details so we can be one of your teachers. But then you take that information and it'll help you make decisions about this portfolio. Then I want you to go to ramseysolutions.com once you click on SmartVestor and find a SmartVestor Pro, a mutual fund broker advisor in your area that we endorse that has the heart of a teacher. And I want you to interview a couple of them and pick out one you like that you feel good about. Your fiance feels good about. Take her with you. They have to pass the smell test. Okay. And they have to. You have to walk out of there feeling like this person's not greedy. This person's not looking at me like a dollar bill. This person is looking at me like a young person who's a little scared, who needs to be taught. And they're. You're hiring a financial mentor. You follow me?

[Zach]

Yes.

[George Camel]

Their Job is to teach you. Their job is not to do it for you. Do not turn this money over to someone else. God made it your responsibility, not someone else's.

[Zach]

Okay?

[George Camel]

You can have. You can invest through someone, but they do what you say to do after they taught you, and you understand and you go slow and you felt good about it. Okay? That's true of your tax advisor, that you need to get in your corner. That's true of a real estate person. If you've got some properties that you need to get in your corner, they have to have the heart of a teacher. Oh, and by the way, you're getting married. You need an estate plan because you're a multimillionaire. So you need an attorney in your corner that does estate planning with the heart of a teacher. So you understand, you learn from these people. I have attorney, a tax attorney. I have an estate planning attorney. I have smartvestor pros. I am a real estate expert. I've been doing real estate my whole life, so I don't have one of those. But, you know, I've got people in my life, and I'm freaking Dave Ramsey that teach me. Okay. And George and Whitney do, too. Right, George?

[Dave Ramsey]

Absolutely.

[George Camel]

Yeah.

[Dave Ramsey]

People who live and breathe this stuff every day. And that'll help you create some confidence that you're doing the right things to have people looking over your shoulder and helping you understand it. And so I love this plan. And really what this does is leapfrog you through the baby steps because you never have to touch a cent of debt for the rest of your life. What a blessing. And so I love that you're. You're taking this seriously, going, hey, I don't want to screw this up. This is a weight to carry. But it's a blessing as well. It's going to help kickstart your marriage. That might mean buying a reasonable home in cash one day. That. It doesn't mean you're going to have lifestyle creep and go, bunch of. Buy a bunch of nice toys, but it does allow you to have a very different life. That's an amazing legacy your dad left.

[George Camel]

Yeah, it's very, very cool. And you honor his legacy by being responsible.

[Zach]

Exactly. That's why I'm making this call in the podcast.

[George Camel]

I was going to say that's why you're a good guy. I knew that when you made this call, you've already honored his legacy. You already honored his memory. He's proud of you right now. Just because you're saying, I don't know what to do somebody help me. That's the spirit. You approach this, but you don't go, somebody take this because I can't handle it. It's a hot potato. I'm going to pitch it to somebody else. That's what a lot of the pro athletes do. And then they retire broke after making 10 million a year, right?

[Zach]

Yeah.

[George Camel]

Because somebody screwed them over or some, you know. And let me tell you this, let me tell you from my experience, who screws you more than con artists is enthusiastic ignoramuses that have got some great idea for your money. Your brother in law who wants to open a pizza place, that's an enthusiastic ignoramus run. Okay? There's an enthusiastic ignoramus on every corner. And they'll screw you a lot more. There's a lot more of them than there are con artists. So that's why, if you understand it, you're not going to get screwed. If you take your time, you feel peace and wisdom, not erratic slashing and flashing about. Instead, you got good people in your corner and the multitude of counsel. There's safety, the Bible says. And that's what I did. I just built you a board of directors if you listen to me. So. You're a good man, Zach. You're going to do a great job. Your dad's already proud of you. I'm proud of you.

[Dave Ramsey]

Thanks for tuning in to Ramsey Everyday millionaires, need help with your investments? Connect with a smartvestor [e-mail] smartvestor or click the link in the show notes. Ramsey Solutions is a paid non client promoter of participating pros. Learn [e-mail] SmartVestor.