Summary of "How Do We Maximize the Returns on Our Investments?"
Ramsey Everyday Millionaires
Host/Authors: Ramsey Network (Dave Ramsey, Ken Coleman, Rachel Cruze, George Kamel, Jade Warshaw, Dr. John Delony)
Release Date: July 16, 2025
In the episode titled "How Do We Maximize the Returns on Our Investments?" from the Ramsey Everyday Millionaires podcast, hosts from the Ramsey Network delve into the intricacies of investment strategies, highlighting common pitfalls and offering actionable advice to listeners aiming to enhance their financial portfolios. The discussion primarily revolves around a caller's concerns about underperforming investments and explores broader themes of investment education, portfolio diversification, and the importance of understanding financial products.
Caller’s Investment Concerns
The episode begins with a caller reaching out to the hosts with pressing concerns about their investment returns. The caller, a 67-year-old individual whose husband is 70 and retired, shares their financial situation:
- Net Income: $6,800 per month
- Debt Status: No debt, no mortgage, no car payments
- Investment Accounts:
- TSP Account: Former mailman’s government 401k
- Ameriprise Account: $85,000
The caller expresses dissatisfaction with the performance of their Ameriprise account, stating:
Caller [00:44]: "Over the last two years, we made $10,000. However, we put $8,000 into it. So bottom line, we made $2,000 on $85,000. I'm not a financial person, but, like, that just doesn't sound like a lot to me."
(Timestamp: 00:44)
Rachel Cruze responds by highlighting the low return on investment:
Rachel Cruze [01:29]: "That's terrible. You could have made that sitting in a savings account."
(Timestamp: 01:29)
Analyzing Investment Returns
Rachel Cruze breaks down the caller’s investment performance, pointing out the minimal return rate:
Rachel Cruze [01:31]: "2% return."
(Timestamp: 01:31)
She emphasizes that such a return is underwhelming, especially when compared to potential gains from higher-yielding savings accounts:
Rachel Cruze [01:46]: "Any high yield savings account is upwards of, you know, you're 3 to 4% right now. The days of 5% are long gone as the rates have gone down, but still the idea remains in that a high yield savings account, which is liquid secure compared to an investment account, you want to be making more in your investments for the risk you're taking on."
(Timestamp: 01:46)
Identifying the Root Cause
Rachel delves deeper into the possible reasons behind the poor investment returns, suggesting that the caller may lack clarity on their investment allocations:
Rachel Cruze [02:31]: "Well, it sounds like you don't know what you're invested in. And that's the number one rule of investing, is understand what you're putting your money into. And it sounds like your financial planner did not educate you."
(Timestamp: 02:31)
She hypothesizes that the low returns might be due to an over-concentration in bonds, which typically offer lower yields compared to the stock market:
Rachel Cruze [03:14]: "My guess is that you are heavily in bonds which is why you're seeing a big drag on your returns compared to actually being in the stock market."
(Timestamp: 03:14)
Advice and Recommendations
Rachel Cruze offers a comprehensive action plan for the caller to address their investment woes:
-
Seek a Second Opinion:
Rachel Cruze [03:25]: "I would get a second opinion from a SmartVestor Pro. So I would jump on a Ramsey Solutions dot com, click on Trusted Experts, click the SmartVestor button and have them dig into your investments and actually look at your portfolio."
(Timestamp: 03:25) -
Educate Yourself:
Rachel Cruze [04:30]: "You've got to do your homework and you need to start learning because you've said, well I don't know anything about this. You're going to need to start learning about it if you want to grow it and manage it well."
(Timestamp: 04:30) -
Understand Investment Products and Fees:
Rachel emphasizes the importance of knowing where your money is invested, the types of financial products used, and the fees associated with them. Lack of transparency from financial planners can lead to suboptimal investment choices.
George Kamel reinforces Rachel’s advice, underscoring the necessity of understanding one’s investments to make informed decisions:
George Kamel [04:43]: "It's so important to sit with a pro and be able to understand everything they're saying to you so you can call the shots and they're executing those shots. Very good point there."
(Timestamp: 04:43)
Conclusion and Final Thoughts
The episode wraps up with Dave Ramsey reiterating the availability of professional assistance for listeners facing similar investment challenges:
Dave Ramsey [04:43]: "Thanks for tuning in to Ramsey. Everyday millionaires need help with your investments? Connect with a SmartVestor Pro@ramseysolutions.com SmartVestor or click the link in the show notes. Ramsey Solutions is a paid non-client promoter of participating pros. Learn more@ramseysolutions.com SmartVestor."
(Timestamp: 04:43)
Key Takeaways:
-
Understand Your Investments:
Knowing where your money is invested and the nature of those investments is crucial for maximizing returns. -
Seek Professional Guidance:
If unsure about your investment strategy, consult with qualified professionals who can provide personalized advice. -
Diversify Your Portfolio:
Over-reliance on low-yield investments like bonds can hinder growth; a balanced portfolio often includes a mix of asset classes to optimize returns. -
Continuous Education:
Financial literacy empowers individuals to make informed decisions and take control of their financial futures. -
Evaluate Financial Advisors:
Ensure your financial planner aligns with your investment goals and provides transparent, understandable advice.
This episode serves as a valuable resource for listeners seeking to enhance their investment strategies. By addressing real-life concerns and providing practical solutions, Ramsey Everyday Millionaires equips its audience with the knowledge and tools necessary to achieve financial prosperity.