Do I Have Too Much of My Net Worth in Cash?

Summary

Podcast Summary: "Do I Have Too Much of My Net Worth in Cash?"

Ramsey Everyday Millionaires — April 27, 2026
Hosts: Dave Ramsey, Ramsey Network Co-host
Caller: Patrick from New York City

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Episode Overview

This episode centers on a listener, Patrick, who has amassed a significant net worth but wonders if he is too conservative with his allocation to cash and CDs. The conversation not only evaluates his financial decisions but also serves as a case study for listeners on the concepts of opportunity cost, investment discipline, and the wealth-building habits of everyday millionaires. The tone is supportive, practical, and sometimes humorous, with an emphasis on non-judgmental advice.

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Key Discussion Points & Insights

1. Patrick’s Financial Profile (01:07 - 01:50)

• Net Worth: $9.5 million
• Assets Include:
  • $580,000 in a bank savings account
  • $3.9 million in CDs (certificates of deposit)
  • $3 million in 401(k)s from former employment
  • $1.4 million in paid-off properties generating $8,500/mo gross rental income
  • 3 vehicles, all paid off within the last year
  • $30,000 emergency fund in cash

“By the grace of God and a lot of years following Dave Ramsey from a bunch of different shipyards throughout the U.S., the discipline paid off.”
— Patrick (00:40)

2. Conservatism vs. Growth in Asset Allocation (01:59 - 03:13)

• Patrick’s Question: Should he move his $580,000 in cash (and possibly some CDs) into better-returning investments since he doesn't currently need the liquidity?
• Dave Ramsey’s Advice: Patrick's extremely conservative approach has served him well for capital preservation, but is now leaving significant income on the table.

“If you got $4 million and it earns you 3%, what is that? $120,000 a year? And if it doesn’t earn you 3%, but it earns you 10%, that’d be like $360,000 a year. So that money sitting in CDs cost you a quarter million dollars last year.”
— Dave Ramsey (03:13)

• Dave clarifies that while Patrick isn’t “doing anything wrong,” he’s missing out on much higher average market returns by being overly conservative.

3. The Case for Investing in Mutual Funds (03:26 - 05:29)

• Dave suggests moving the cash/CD position (or a portion) into simple, diversified mutual funds for higher long-term returns.
• Real-life example of fluctuations: Despite market dips (down 2% year-to-date at the time), longer-term growth outpaces CDs or cash (26% gain previous year; long-term averages closer to 10%).
• Transparency about risks: Markets can be volatile (some years negative), but over time, wealth compounds significantly faster than in low-yield accounts.

“If you leave it exactly the way it is, you’re not doing anything wrong. But could you turn the knob a couple of clicks and make another two or three hundred thousand dollars a year on this money? Probably…”
— Dave Ramsey (05:22)

4. The Principle of Opportunity Cost (05:44 - 07:48)

• Dave coins “the FOMO of finance is opportunity cost”—money in one place can’t grow elsewhere. He uses simple math to highlight what’s lost when capital sits idle.
• Example with car purchase: How $100,000 in a car, in twenty years, becomes a depreciating asset versus $100,000 invested becoming a profit center.

“When you take a block of money and you put it in one thing, by definition it cannot be in the other thing… That’s what opportunity cost means.”
— Dave Ramsey (06:07)

• Entertaining anecdote about a caller who literally buried half a million dollars in a coffee can, demonstrating the perils of excessive conservatism and the literal decay of money over time.

“Cash in a steel coffee can… it’s gonna rust, and then bugs are gonna get in there. The cash is going to actually get destroyed. So when your relatives dig it up, it’s going to be like this little green powder… That’s what you traded your half million for.”
— Dave Ramsey (07:55)

5. Celebrating Patrick and Disciplined Wealth-Building (05:36 - 05:44)

• Hosts acknowledge Patrick’s incredible financial discipline and wealth accumulation, emphasizing he is an example of the “baby steps millionaire.”

“This is the baby steps millionaire right here... Unbelievable. Just incredible, right at 10 million.”
— Co-host (05:37)

• No criticism—only a suggestion to adjust for greater opportunity, not a correction of past mistakes.

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Notable Quotes & Memorable Moments

• “You did a 99 or 98% great job, and all we’re doing is just clicking it on that 2% saw. So nobody’s criticizing you, Patrick. You got it, man.”
  — Dave Ramsey (05:44)
• “The FOMO of finance is opportunity cost.”
  — Dave Ramsey (07:39)
• “I actually know a few people that their relatives will be out there with the old metal detector looking... when the old man kicks it because we know he’s crazy and he buried the money back there.”
  — Dave Ramsey (08:01)

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Timestamps for Key Segments

• Patrick’s Net Worth Breakdown: 01:07 – 01:50
• Should I Invest My Cash? 01:59 – 03:25
• Simple Investment Proposals: 03:26 – 05:29
• Celebrating Patrick’s Success: 05:36 – 05:44
• Opportunity Cost Deep Dive: 05:44 – 07:48
• Entertaining Coffee Can Story: 07:49 – 08:05

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Closing Insights

• Main Theme: Even disciplined savers can miss out on greater returns by keeping too much in low-yield positions. The episode underscores the importance of considering opportunity cost and balancing security with sensible growth investments.
• Practical Advice: Consider reallocating excessive cash/CDs to well-chosen, diversified mutual funds; consult a SmartVestor Pro for tailored advice.
• Tone: Respectful, celebratory, direct—aimed at guiding rather than correcting.

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For listeners: Patrick’s story is proof that simple discipline leads to substantial wealth. With a deeper understanding of opportunity cost, even everyday millionaires can tune up their strategies and continue prospering.

Transcript

[Dave Ramsey]

Foreign.

[Caller (Patrick)]

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

[Dave Ramsey]

at RamseySolutions.com SmartVestor Patrick's in New York City. Hey Patrick, what's up?

[Caller (Patrick)]

Good afternoon, gentlemen. Thank you for taking my call.

[Dave Ramsey]

Sure.

[Caller (Patrick)]

I'm 66 years old, in relatively good health, still working. I own my own business. I have a net worth of $9.5 million. And I want to make sure it's in the right place and by the grace of God and a lot of years following Dave Ramsey from a bunch of different shipyards throughout the U.S. the discipline paid off.

[Dave Ramsey]

Man, you're amazing. $10 million net worth, dude. I'm proud of you.

[Caller (Patrick)]

Yes, sir. Just to be. Just to be clear, I've never lived high on the hog on first generation Irish Catholic out of the Bronx. So I'm not impressed by. I heard you say Ferrari before and that sort of thing. I live very simple and I'm very content.

[Dave Ramsey]

Good for you. Good for you. How can we help you, sir? You're amazing.

[Caller (Patrick)]

Right now I have approximately $580,000 in cash in the bank. I have another 3.9 million in CDs with various maturity dates, 401ks from my corporate life in my earlier days working for people. I have approximately $3 million. I have approximately $1.4 million in properties. There's no mortgages and they generate about $8,500 a month gross before any taxes and that sort of thing. I own three vehicles that are less than a year old. They're all paid for. And my Dave Ramsey Emergency cash one in the proverbial cookie has about $30,000 in CA.

[Dave Ramsey]

Well, plus 580 and checking. Yeah.

[Caller (Patrick)]

Yes, sir.

[Dave Ramsey]

And 3.9 in CDs. Okay. Wow. Way to go, man. So how can I help again?

[Caller (Patrick)]

I'm. And I'm still working. Should. Should I move that cash at roughly $580,000 in cash. Should I bring that into. I don't really need it. I'm not trying to sound highfalutin. Should I move that into cd? Should I put that in some other investment? I have two adult children that are self sufficient and obviously, please God, when my time comes, all of that will be done. I do have a will, but I do not have a revocable living trust will.

[Dave Ramsey]

Trust you don't. You don't need one. The. Okay. I do not have that much of a percentage of my net worth in cash. In CDs and cash. Instead of doing that, you don't need that. 3.9. You're not even using the income off of that 3.9 or that 580 for that matter. And those could easily be put into something very simple, very low keys into some mutual funds and make you about three times more money. Okay, and so if you got $4 million and it earns you 3%, what is that? $120,000 a year? Did I do that right?

[Caller (Patrick)]

Yes, sir.

[Dave Ramsey]

Okay. And if it doesn't earn you 3%, but it earns you 10%, that'd be like $360,000 a year. So that money sitting in CDs cost you a quarter million dollars last year.

[Caller (Patrick)]

Good Lord.

[Dave Ramsey]

It should have been. It should have been invested well. And so it's something to think about. And here's the thing. If you got it in good mutual funds on the stock market goes, doesn't earn what it always earns. Like last year, it was like, ridiculous. It was crazy. I mean, we made like 26% on our money last year, but that's not real this year. We're down 5% year to date. Okay. But we have a little war going on and a couple of other things. And so. But the overall market. Let me look, right? I just pulled it up a minute ago. It's. No, it's down 2% year to date. So you would have lost a little bit since January 1st after having made ridiculous money last year. But the average is you're going to make way more than you would on a cd. And that's why I don't park that kind of money in cash unless I'm using it for something like retained earnings. Here at the company, we've got substantial cash position with that. But in terms of my personal investment portfolio, very small percentage is actually sitting in cash. If I'm parking money like I've got some money right now as an example, parked in an s and P500 fund. So just a mutual fund. And I'm going to be buying some real estate with it later. But instead of leaving it in a CD and waiting to buy real estate, I'm leaving it in there, earning three times more on average than I would have made on a CD. While I'm waiting now, right now, that money's lost 2% since first of the year, but I'm really not worried about it. It's 2%. Doesn't matter one way or the other because I'm probably not going to touch it next few months. And by then, you know, I'm sure the market will be back up. So anyway, all that to say, you've done an incredible job. I'm so proud of you. If you leave it exactly the way it is, you're not doing anything wrong. But could you turn the knob a couple of clicks and make another two or three hundred thousand dollars a year on this money? Probably by sitting down with a smartvestor pro and learning about some places to park that instead of CDs and instead of in and cash, cash equivalents.

[Co-host (possibly Chris Hogan or another Ramsey Solutions team member)]

Patrick's going to lose a little sleep tonight off of that revelation that you gave him. But he's done so well. I mean, this is, by the way,

[Dave Ramsey]

hasn't done anything wrong.

[Co-host (possibly Chris Hogan or another Ramsey Solutions team member)]

This is the baby steps millionaire right here. Living on less than 10.

[Dave Ramsey]

Millionaire.

[Co-host (possibly Chris Hogan or another Ramsey Solutions team member)]

I know. Unbelievable. Just incredible, right at 10 million.

[Dave Ramsey]

Way to go, man. I'm just so proud of it. But this is like you did a 99 or 98% great job, and all we're doing is just clicking it on that 2% saw. So nobody's criticizing you, Patrick. You got it, man. If you leave it exactly the way it is, you are a stud. Yeah. I'm so proud of you. Very, very well done. So, folks, here's the thing you want to think about, and this is the concept we're teaching right here. It's called opportunity cost on your money. When you take a block of money and you put it in one thing, by definition it cannot be in the other thing. It loses the opportunity to be in the other thing. And so if you take $100,000 and you buy a car, you not only bought a car, but you lost the opportunity to invest that $100,000. That's what opportunity cost means. So let's say you had that hundred thousand dollars invested last year, you would have made $25,000 on it last year. And instead, you bought a car for 100,000 that is now worth 40,000. And so you traded 100 for 40 instead of 100 for 114. That's the opportunity cost. Now it's okay to buy a car, and they all go down in value. Okay, I've got cars, and they all go to mine. All go down in value. There's no exception to that. But anytime you're looking at something going, I not only am, you were talking a while ago about making a purchase decision when you're buying the Ferrari of bikes. What else could I have done with that money? What's the other option? What opportunity did I miss out on? And so if you got a million dollars invested or sitting in a coffee can in your backyard in cash, and it didn't make a dime. Or it could have been in a growth stock mutual fund last year and would have made 250,000. You lost the opportunity to. By doing the coffee can. To do the 250,000. Yeah. It's great.

[Co-host (possibly Chris Hogan or another Ramsey Solutions team member)]

Illustration.

[Dave Ramsey]

And I actually did have a guy call in one time that had been buried in a coffee can.

[Co-host (possibly Chris Hogan or another Ramsey Solutions team member)]

How much was it?

[Dave Ramsey]

It was not that much. It was like a half a million. But I'm like, dude, do you not understand that Cash, Cash in a. In a steel coffee can, the old metal coffee cans, it's gonna rust, and then bugs are gonna get in there. The cash is going to actually get destroyed. So when your relatives dig it up, it's going to be like this little green powder. That's all that's going to be left. And that's what you traded your half million for because you're a paranoid freak. And so. Oh, my God. Literally buried it in the backyard. No kidding. I mean, whoo. I actually know a few. I know a few people that their relatives will be out there with the old metal detector looking, looking through the backyard when the old man kicks it because we know he's crazy and he buried the money back there. But you missed the opportunity. That's what you need to think about. And it's always a good thing to say, gosh, if I buy $100,000 Mercedes, and 20 years later, what would that $100,000 be worth? And 20 years later, what's that Mercedes worth? And that's the opportunity you miss by going one direct. You miss the opportunity to drive the Mercedes. By the way, if you put it all in investments and have no life. Yeah. So you ought to get a good car, too. That's okay. But just think about. Try not to think about the idea of the purchase or the investment as a. Only this. It's. If I do this, what am I else could I not do? What opportunity am I missing? And so I guess, you know, in modern lingo, we might call it fomo. Yeah, it's exactly right. The FOMO of finance is opportunity cost. And that's what we're talking about with him. If he had that 3.9 million invested instead of sitting in CDs, he missed the opportunity to make another quarter million dollars.