Is It Bad That I’m Only Invested in CDs?

Summary

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Ramsey Everyday Millionaires – Episode Summary

Episode: "Is It Bad That I’m Only Invested in CDs?"
Date: March 25, 2026
Hosts: Chris Hogan & Dave Ramsey
Caller: Katie from Billings, Montana

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Overview:

This episode centers on a candid call from Katie, a 31-year-old who, along with her husband, has accumulated significant savings but is hesitant to move beyond simple bank products like CDs due to fear and lack of familiarity with investing. Dave Ramsey and Chris Hogan offer guidance, showing how education and the right guidance can transform a conservative saver into a confident investor. The tone is encouraging, practical, and reassuring for listeners who feel intimidated by investing.

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Key Discussion Points & Insights

1. Caller Background and Concerns

• Katie's Situation:
  • 31 years old; husband is 37
  • $500,000 in bank savings (inc. $200,000 in CDs at 3.75%)
  • No debt
  • Katie contributes $500/month into a Roth IRA; husband does not have a retirement account
  • Hesitant to invest further due to unfamiliarity with the subject
• Emotional Driver:
  • Prefers CDs for their perceived safety and regular returns
  • Investing feels “foreign” and intimidating

2. Addressing the Fear of Investing

• Chris Hogan probes:

  • Asks why Katie feels “squeamish”
  • Encourages Katie to talk about the emotional side of her aversion
  • "Why are you guys averse to investing? What happened that made you feel squeamish?" (01:22)

• Dave Ramsey normalizes Katie’s fear:

  • “And what you don't know can be scary.” (01:33)
  • Affirms that uncertainty is common, especially when investing feels unfamiliar

3. The Power of Investing vs. The Cost of Playing It Safe

• Dave Ramsey runs the math:
  • Assumes a hypothetical: $500,000 invested in the market at a 12% average return, left to grow from age 31 to 67
  • Result: $36 million
  • Same $500,000 in CDs at ~2% (generously assumed): $1 million
  • “So you're leaving $35 million on the table, Katie.” (02:51)
  • Highlights the long-term difference between conservative and growth-oriented approaches

4. Actionable Steps for New Investors

• Getting Educated & Seeking Guidance:

  • Encourage meeting with multiple vetted financial advisors (SmartVestor Pros) to find someone Katie feels comfortable with
  • “I would meet, Katie, with two or three SmartVestor Pros in your area… you’re gonna naturally connect more comfortably probably with one or two over another.” (03:27)
  • Ask all questions, no matter how basic—there are no stupid questions in this learning phase

• Learning the Basics:

  • Begin exploring the basics of index funds, mutual funds, and diversification
  • “What does it look like if I invest in an index fund or a mutual fund?... There’s so much you could be doing with this money to make you money.” (04:16)

• Mindset Shift on Risk:

  • While the market has “ups and downs,” broad diversification over the long term yields strong outcomes
  • “It may kind of feel risky, but at the same time, compared to what you would make on the other end… I think it’s worth the risk. That’s not really even there.” (04:27)

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Notable Quotes & Memorable Moments

• On fear and unfamiliarity:

  • Dave Ramsey: “And what you don't know can be scary.” (01:33)

• On the opportunity cost of avoiding investing:

  • Dave Ramsey: “So you’re leaving $35 million on the table, Katie.” (02:51)

• On asking questions and seeking help:

  • Dave Ramsey: “Ask every question that you can think of. Don’t feel like, oh my gosh, I feel stupid asking this. None of that.” (03:51)

• Advice on finding the right financial advisor:

  • Dave Ramsey: “You’re gonna naturally connect more comfortably probably with one or two over another. And that’s really important in this process, because anyone that’s going to help you kind of push the buttons in investing, you want to feel really, really good about.” (03:27-03:51)

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Timestamps for Key Segments

• [00:23] Katie introduces her savings situation and questions about CDs
• [01:27] Hosts explore her aversion and emotional hesitation toward investing
• [01:57] Age revealed; Dave does long-term investing calculation
• [02:51] Dave compares outcomes: CDs vs. market investing—“leaving $35 million on the table”
• [03:17-04:27] Detailed steps for getting informed, finding trusted advisors, and starting the investment journey

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Takeaways for Listeners

• Financial education conquers fear: Lack of knowledge is a hurdle, but accessible help is available.
• The cost of playing it too safe: Being overly conservative with wealth can mean missing out on life-changing growth.
• Start learning, ask for help: Seek multiple trusted advisors, ask every question, and build knowledge—your confidence and returns will grow together.

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Transcript

[Katie]

Foreign.

[Narrator]

This episode is brought to you by SmartVestor. Connect with an investing pro near you at RamseySolutions.com SmartVestor all right, we've got

[Chris Hogan]

Katie, who's in Billings, Montana. Hey, Katie, how are you?

[Katie]

Hi. I'm good. How are you?

[Chris Hogan]

Excellent. How can we help today?

[Katie]

Great. So I am so confused when it comes to the world of investing. My husband and I, we're not in debt, thankfully, and we have been able to save up about $500,000 in the bank. Wow.

[Dave Ramsey]

Well done.

[Katie]

I contribute $500 monthly into a Roth. My husband does not have one. And the investing, I guess you could say that we do, is just in CDs in the bank at 3.75% and we have about 200,000 in that. But.

[Dave Ramsey]

Okay.

[Katie]

Other than that, that's it. Because it feels safer to me, and I. Is that foolish?

[Chris Hogan]

Well, let me make sure I understood this right. I thought you said you had 500,000 in the bank, but then you said 200,000 in CDs. So some of it's just sitting freely and some of it's in the CDs. Or is that in addition to.

[Katie]

It's just in savings accounts. Got it.

[Chris Hogan]

Okay.

[Katie]

Wow.

[Chris Hogan]

Why are you guys averse to investing? What happened that made you feel squeamish?

[Katie]

I guess nothing happened. It just. It's foreign to us. Yeah.

[Dave Ramsey]

And what you don't know can be scary.

[Katie]

And when it. Exactly. And when it comes to retirement, like I said, I do put 500, 500amonth from my paycheck into a Roth account for myself, but you don't see that money until I'm close to 60 years old. And I sure a CD seems a little bit safer because it's a six month, 12 months return. Yeah.

[Dave Ramsey]

Katie, how old are you guys?

[Katie]

I'm 31 and my husband's 37.

[Dave Ramsey]

Okay. So just to do a little calculation for you. Oh, my gosh. Are you ready for this? This is gonna probably make you sad.

[Katie]

I'm ready for it.

[Dave Ramsey]

Okay. So I just put really quickly in if I. If you just dropped $500,000 in the market, right. This and an average. I put 12% rate of return. Some people get mad at that. I'm gonna just do it for fun because it was way more than that

[Katie]

the past couple years.

[Dave Ramsey]

There's some down years, but the past couple years have been fantastic. So I'm gonna put 12% average. It's actually been more than that, but I'm gonna just leave that. And if you did that right now, at 31, by the time you're 67, if you just said, just let this money grow, you would have $36 million.

[Katie]

Wow.

[Dave Ramsey]

So if you kept it in now, if you kept it in the CD, which is averaging 1.7% interest right now, I'm gonna bump it up to 2 because I'm feeling gracious to the CDs you have. You'd have 1 million. You'd have 1 million.

[Katie]

Sure.

[Dave Ramsey]

So. So you're leaving $35 million on the table, Katie. So what we have to realize is we need to understand this intimidating part of money, which is investing. And I get that there's a lot of people use diversification index funds, S&P 500. You know, you're like, what is. What is all Like, Yeah. What does this all mean? So I would. Because you guys have done so well. I mean, it's crazy.

[Chris Hogan]

It's. Yeah.

[Dave Ramsey]

Crazy that you've saved this much. I mean, this is. It's amazing. You guys are incredible. At 31 years old, I would sit down with a SmartVestor Pro in your area.

[Katie]

Okay.

[Dave Ramsey]

When. When we get off the phone, Christian will pick up, and he can kind of direct you on the website, where to go. But you could. But I would meet Katie, meet with two or three SmartVestor Pros in your area. Okay. And I want you to get, number one, a feeling from them, because these are the. And these have all been vetted. So these are great people, but you're gonna naturally connect more comfortable probably with one or two over another.

[Chris Hogan]

Right.

[Dave Ramsey]

And that's really important, this process, because anyone that's going to help you kind of push the buttons and investing, you want to feel really, really good about. And I would ask every question that you can think of. Don't feel like, oh, my gosh, I feel stupid asking this. I should know none of that. And. And actually start to get the basics and learn. What does this mean? What does it look like if I invest in an index fund or a mutual fund?

[Chris Hogan]

Right, Right.

[Dave Ramsey]

What types of funds are out there? I mean, there's so much you could be doing with this money to make you money. That's. It may kind of feel risky, but at the same time, compared to what you would make on the other end.

[Chris Hogan]

Absolutely.

[Dave Ramsey]

I think it's. I think. I think it's worth the risk. That's not really even there. The ups and downs are real, but the overall picture is pretty bright. So that's what I would do.

[Chris Hogan]

Katie.