How Do I Invest My Inheritance to Replace My Income?

Summary

Podcast Summary – Ramsey Everyday Millionaires

Episode: How Do I Invest My Inheritance to Replace My Income?

Date: November 24, 2025
Host: Ramsey Network Team (main speakers: A and C; caller: Lynn)

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Episode Overview

This episode centers on Lynn, a 75-year-old listener from Eugene, Oregon, who calls in seeking guidance on how to invest a recent $105,000 inheritance. Having never invested before and feeling uneasy about the perceived risks, Lynn wants to know whether this money could help her replace income and avoid returning to the workforce. The hosts, drawing on the Ramsey approach, walk her through practical financial realities, options for income, and emotional considerations of investing later in life.

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Key Discussion Points & Insights

Lynn’s Background and Financial Situation

• Lynn recently lost her mother, whom she cared for full-time for seven years.
• She inherited $105,000 from her mother’s investments, previously generating $1,200/month.
• Lynn receives $1,055/month from Social Security, has $16,000 in emergency savings, and her monthly expenses total $2,417 (including a low rent of $1,045/month).
• She describes herself as frugal, a long-time tither, and someone who has “always worked” and “never depended on others.”
  • Notable Quote: “To me, it’s always looked like gambling, but I recognize that the income...was coming from her investment. And so that was certainly a good indicator to me that it does work and your money doesn’t get gambled away.” – Lynn [01:34]

The Dilemma: Can $100K Replace Lynn’s Income?

• Calculation of the Need:
  Lynn needs ~$1,500/month to break even after Social Security, or about $18,000/year.
• Longevity Consideration:
  The hosts encourage planning for Lynn to live to 93-95, following her mother's example.
• Tough Math:
  • A: “Can we squeeze 1,500 bucks a month out of a hundred thousand? Not for a long time...The math on that is tough.” [03:12]
  • Even aggressive investing won’t make the principal last two decades at her expense level.
  • Even if invested at 10% returns, the income from $100,000 ($10,000/year) falls short of her needs.
  • A: “You could probably live off that for six years and then it’s gone.” [05:29]

Recommendations: Income Overdraw vs. Investment for Growth

• Preserve Emergency Fund: Hosts emphasize not touching the $16,000 savings.

• Work is Likely Needed:

  • A: “I do think it would be wise to find work that you can do as long as your body allows you to do it and make as much as you can.” [03:48]
  • C: “What would you do, Lynn, in a perfect world, what sounds life-giving to you?” [04:05]

• Lynn expresses a love of writing and has previously published a book, sparking a discussion on supplementing income by working in pursuit of her passion.

• Flexibility and Hope:

  • C: “The ideal world for me, for you, would be to do something that you love, that you’re good at, that you’re passionate about, and you can make some money. And the good thing is, Lynn, you don’t have to be making a ton.” [04:45]

• Possibility of Family Support:

  • The hosts gently suggest considering small contributions from her ten grown children if needed.

Investment Caution & Education for Older Adults

• Lynn’s fear of investing equates it to gambling, but hosts reassure her with real outcomes from her mother’s portfolio.
• C: Highlights that investment anxiety is common, especially with older callers.
  • C: “People are nervous and it’s usually the older people we talk to, the more cautious they get. Which makes sense because you’re like, okay, I have money. I don’t want to lose this money.” [07:48]
• A: “Focus on the facts when it comes to money is so important...Look at what really has happened when you put money in the market.” [08:06]
• The episode encourages learning about mutual funds, index funds, and avoiding investments you don’t understand.

Realism About Social Security

• A: “Social Security is not going to be enough. It was never meant to be enough. It was meant to cover a portion of your salary ... do not rely on Social Security as your income in retirement.” [08:27]
• Building an investment nest egg is necessary, regardless of age.

Professional Financial Advice

• Hosts encourage Lynn (and listeners) to connect with a trusted financial advisor, such as a “Smartvestor Pro,” to run real-life projections and strategize further.

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Memorable Quotes & Moments

• Lynn shares her faith and resilience:
  “I’m a weirdo, I suppose, as far as I’ve counted on God for things. And there have been miraculous provisions...” [00:46]
• On writing as a lifeline:
  “Writing is my love, and I still have another 25 years. I’d love to write more about how he [God] has done so many awesome things...” – Lynn [04:11]
• Hosts’ encouragement:
  • “It doesn’t have to be something miserable.” – Host A [06:47]
  • “You may feel like, oh, I don’t need that much. But remember, if you’re making extra, that’s money being put away so that you don’t have to work hopefully for the rest of your life.” – Host C [06:50]
• Family kindness:
  “...one [child] has already given me their gas card after my mom died and said, please use this. We want you to let us pay for your gas from now on.” – Lynn [06:05]

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Important Timestamps

• Lynn’s introduction and background: [00:17 - 01:55]
• Breakdown of financials and needs: [02:31 - 03:12]
• Discussion of inheritance investment limitations: [03:31 - 03:47]
• Conversation on work, passions, and future plans: [04:05 - 05:40]
• Possibility of family help and humility in receiving: [06:05 - 06:33]
• Advice for older adults cautious about investing: [07:48 - 08:06]
• Lessons on Social Security and investment: [08:21 - 08:27]

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Summary Takeaways

• Replacing income from a moderate inheritance is challenging, especially with longevity in mind and modest investment returns.
• For Lynn (and listeners): Supplementing with enjoyable, flexible work is wise; investments can help in the long term, but aren’t a magic fix.
• Reduce fear of investing through education and by focusing on historical performance over anxiety of possible losses.
• Social Security alone isn’t sufficient—build additional retirement resources.
• Seek objective, professional advice to make the most of limited resources.

Ramsey’s core message shines through: Invest wisely, protect yourself with knowledge, and pursue extra income—preferably through something you love—to ensure retirement security.

Transcript

[A]

This episode is brought to you by Smartvestor. Connect with an investing pro near you at ramseysolutions.com Smartvestor Lynn is in Eugene, Oregon. Up next, what's going on? Lynn?

[B]

Hi. I'm 75. I quit my job to take care of my mother, who had dementia the last seven years.

[C]

Oh, wow.

[B]

And, yeah, it was. I'm glad that I did it, but I find that. And I did get an inheritance when I was caring for her. She had money invested, and it was bringing in 1,200amonth. And then we had her Social Security, and then my Social Security of 1,055. And so now that she's passed, I have inherited half of what was invested, which is 1,000. Sorry, 105,000. I've never invested before. I'm very frugal. I. I began tithing when I read the Bible and became a believer 47 years ago. And I'm a weirdo, I suppose, as far as I've counted on God for things. And there have been miraculous provisions like an inheritance that paid off my house a year before my husband left me and my seven kids. So I kind of. I've. And I've always worked. I've never depended on others. And I mean, there have been gifts of love occasionally through the years. But my point is this. It's hard for me to ask for, like, wisdom. I mean, I'm asking for wisdom. I need it because I've never invested. To me, it's always looked like gambling, but I recognize that the. The income actually that was important as I was caring for mom, was coming from her investment. And so that was certainly a good indicator to me that it does work and your money doesn't get gambled away. It was because that's what it's always felt like when I look at it.

[C]

It feels risky to you? Yeah.

[B]

Yeah, very. And being I am 75 and I didn't, I became rather sedentary caring for my mother. And so I'm not in the best shape right now. I don't really want to go back into the workforce again, if it's possible. I understand. May have to happen. So my question is, do you have any recommendation as to what you would think would be best for my present situation as far as to bring in some income from my inheritance? Or should I just. I mean, I figured out I need past my income. I laid out all my expenses and.

[A]

Yeah. What are your monthly expenses?

[B]

My monthly expenses are 2,417amonth, including tithe. I'm very blessed to pay a very low rent of 1,045amonth. And then I have storage, so. And just regular paying for my wi fi, paying for my car insurance.

[A]

Okay, so $2,500 a month covers you comfortably.

[B]

It does.

[A]

And you have 1,055 coming from Social Security?

[B]

Yes.

[A]

And no other money, no other assets other than 100 grand from this inheritance, Right.

[B]

Well, I actually, I have. I saved myself 16,000. Anyway.

[A]

Is that your savings, essentially, your emergency fund?

[B]

Yeah.

[A]

16,000. Okay, so we won't touch that. We're not going to count that on the income side. We need to protect that. So you're really asking. I make 12 grand a year. I need to make. You know, you need an extra 1500 bucks. And so can we squeeze 1500 bucks a month out of a hundred thousand? Not. Not for a long time. I mean, how old was your mother?

[B]

She was 93.

[A]

So let's assume you go to 93 at the very least. Right? That's. Yeah, we need.

[C]

We'll give you 95. We'll go 20. 20 years.

[A]

Rachel's very generous. So 95. We need to make 100 grand work for 20 years.

[B]

That's right.

[A]

The math on that is tough.

[B]

Yeah, it is.

[A]

Even invested aggressively, I don't know that you could make that last without running out of money. So I do think it would be wise to find work that you can do as long as your body allows you to do it and make as much as you can.

[B]

Right? Yeah, I think I'm gearing up for that for sure.

[C]

Is there. What would you do, Lynn, in a perfect world, what sounds life giving to you?

[B]

Well, I wrote one book. It was of my first 50 years of life, raising 10 children, becoming a believer through reading the Bible when I was 28. All the supernatural things God did, my husband leaving us after 27 years of marriage, and it was well received by the people who read it, but not gotten much reading. But writing is my love, and I still have another 25 years. I'd love to write more about how he has done so many awesome. God has done so many awesome things through being in youth with a mission with my five youngest. And.

[C]

Yeah, I just wonder with that gift of writing, and you may have to be a little flexible on topic or whatnot, but, you know, the ideal world for me, for you, would be to do something that you love, that you're good at, that you're passionate about, and you can make some money. And the good thing is, Lynn, you know, you don't have to Be making a ton. Right. I'm like, you know, even if you're making, golly, two grand a month, you'll be fine. But to George's point earlier, the more you make, even if it's above what you need, could be put away with that hundred grand. So that when in 10 years or in five years, you are able then to slow back and live off those investments. Right.

[A]

So right now, the goal is to not touch that hundred grand. That feels like your worst case scenario. Because truthfully, you could probably live off that for six years and then it's gone.

[B]

That's what I figured already.

[A]

Even if it's invested, yeah, you could make a little more, but it's 100,000. It's not a million. So even invested, if you're making 10% instead of 4%, it's 4 grand versus 10 grand. It's still not enough to cover our bills forever. And so you're going to need to get support elsewhere from working, maybe even from the kids. You have 10 kids. Are they. You have a relationship with them? Would they be willing to. Yeah, like, group everyone, put in 100 bucks and let's help mom.

[B]

That, I don't know. I don't know. They're all. Most of them are homeowners. Some have rentals, but they have to ask rent higher than I can pay. They had hoped maybe to be able to help that way, but I've never asked them for actually one. One has already given me their gas card after my mom died and said, please use this. We want you to let us pay for your gas from now on.

[A]

That's sweet.

[C]

Very kind. Very, very kind.

[A]

Wow.

[B]

Yeah.

[C]

Yeah. So I think, Lynn, Yeah, I do think work is in your future. And again, finding something that you can do, ideally, again, towards, you know, the fact that you're 75, I'm like, I would love for you to be at a job that you.

[A]

Something you enjoy. It doesn't have to be something miserable.

[C]

But we do need to be making some income. And the more income you can find, even though you. You're so humble and so grateful, I can hear it in your voice. You may feel like, oh, I don't need that much. But just remember, if you're making extra, that's money being put away so that you don't have to work hopefully for the rest of your life. Right. That you can be living off some of these investments, too. So I think that's the goal.

[A]

But it might be worth getting a third opinion from a financial advisor. Lynn. So if you Want to jump onto ramseysolutions.com and click on Smartvestor Pro. They can just crunch the numbers for you and go, hey, if you did this, here's how much money you could make with this investment if you put it over here. Here's potentially how much you could make in the market if you put it over here. And at least they can run that to show you you got the best shot if you do xyz, to let this money last as long as possible. But they're probably gonna also go, Income is gonna be a big factor here. If we can get to work for a little bit to at least cushion that. Yes, but that's tough.

[C]

And I think it's a, you know, it's a good point that she made that a lot of people. We've taken a few calls, I feel like today about this, of the caution around investing. So whether it's. People are nervous and it's usually the older people we talk to, the more cautious they get. Which makes sense because you're like, okay, I have money. I don't want to lose this money.

[A]

It feels overwhelming.

[C]

Yes. So just remembering you guys to focus on the facts when it comes to money is so important, especially that side of looking at what really has happened when you put money in the market. And that's what you have to bank on.

[B]

Right.

[C]

You have to focus on the facts, not this idea of what could happen one day. Could Jesus come back? That was.

[A]

Oh, yeah, I took that call. Yeah, that was a wild one. And a good reminder that Social Security is not going to be enough. It was never meant to be enough. It was meant to cover a portion of your salary. But in this situation, as we can see, a thousand bucks, it's a nice start, but it's not going to cover all the bills. And so do not rely on Social Security as your income in retirement. You've got to stack up your own nest egg, and that's through investments in the stock market, through mutual funds and index funds. And if anybody listening wants a guide on how to do it the Ramsey way, in a wise way, without falling on your face, you can go to ramseysolutions.com guide. We've got a free investing guide that walks you through all of this. And it's a great resource, regardless of your age, to learn, because we tell you, don't invest in anything you don't understand. But it's still your job to learn it and understand it. 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.