Why Can’t I Get My Investments To Give Me A 10% Return?

Summary

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Ramsey Everyday Millionaires – April 20, 2026

Episode: "Why Can’t I Get My Investments To Give Me A 10% Return?"
Hosts: Dave Ramsey (A), Ken Coleman (B), Guest (C)
Purpose:
Exploring how ordinary people achieve extraordinary wealth, with a focus on practical investing, expected long-term returns, and decision-making in asset allocation for those entering retirement.

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Main Theme/Overview

This episode tackles one of the most common questions among aspiring millionaires — why does it seem difficult to consistently achieve a 10% return on investments?
Dave Ramsey and the team take a listener call from Jeff, who has built a $5 million nest egg while following the "baby steps" methodology, and address both the math and the mindset behind long-term investing. The discussion pivots between the realities of market averages, approaches to diversification, and emotional readiness for investment choices.

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Key Discussion Points & Insights

1. Jeff's Financial Story and Main Question (00:09–00:56)

• Jeff (Caller): Shares his and his wife's journey: paid off their house, accumulated $5M in savings, debt-free.
• Main Concern: “You guys were saying invest and make 10 to 12%. How the heck do you do that?” (00:46)
• Jeff wonders about the practical reality of getting double-digit returns, referencing advice they’ve heard on-air.

2. S&P 500 and Mutual Fund Investing (00:57–02:35)

• Dave Ramsey: Explains that the S&P 500 “has averaged 11.8%, and that’s the stock market.” (01:00)
• Advocates for broad diversification across mutual funds:
  “I have my investments in growth stock mutual funds across four categories: growth, growth and income, aggressive growth, and international.” (01:15)
• Strategy is to choose funds that have historically outperformed the S&P 500.
• Also invests in real estate, bought with cash, noting “they do way more than 12%.” (01:36)

3. Risk Aversion with Real Estate (01:40–01:49)

• Jeff: Expresses apprehension and lack of experience in real estate.

  • “I’m really afraid of real estate…I couldn’t walk out of a hole in real estate.” (01:40)

• Dave Ramsey: Affirms that real estate isn’t required:

  • “That’s fine. No problem. You don’t have to do it.” (01:45)

4. Recent Stock Market Returns and Long-Term Outlook (01:49–02:41)

• Dave Ramsey: Shares recent S&P 500 results for context:
  • “If you had just had your money in an S and P, in 2025, it would have made 17.9. In 2024, it would have made 25.6. In 2023, it would have made 26.3…Those are above average returns. I don’t think it’s going to keep returning like that.” (01:49–02:19)
• Stresses not expecting recent ultra-high returns to persist, but remains confident about averaging over 10% “over a long period of time.”
• Discourages settling for 3% returns when higher average historical rates are attainable through disciplined investing.

5. Reflections on Jeff’s Achievement and Diversification (02:45–03:15)

• Ken Coleman: Wonders how Jeff built $5M and speculates on the role of 401(k)s and understanding investment returns.
  • “Yeah, I’m just curious how he amassed $5 million…That’s unbelievable.” (02:45–02:58)
• Recommends considering standard diversification even at this stage, but emphasizes emotional comfort.
  • Dave Ramsey: “Mathematically that’s what I would do. Emotionally, it sounds like he might not want to do that. But that’s okay. You don’t have to do it.” (03:07–03:15)

6. Why Historical Averages Matter (03:15–03:30)

• Dave Ramsey: Clarifies that the reason the S&P’s long-term average holds despite variability is the mix of high and lower years:
  • “That’s how you can get to an average of 11.8 since the stock market began, when other years you might make six or seven or eight…that drags the average down. So there you go.” (03:20–03:25)
• All parties agree these strategies “beat high yield savings for sure.” (03:27)

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Notable Quotes & Memorable Moments

• Jeff (Caller):
  “We just finished paying off the house. We really have no debt…How the heck do you do that [get 10–12%]?” (00:44)
• Dave Ramsey:
  “I have my investments in growth stock mutual funds across four categories…one of the ways I pick the fund is I want to pick a fund that has outperformed historically the S and P.” (01:14)
  “Those are above average returns. I don’t think it’s going to keep returning like that.” (02:16)
  “Mathematically that’s what I would do. Emotionally, it sounds like he might not want to do that. But that’s okay. You don’t have to do it.” (03:10)
• Ken Coleman:
  “Yeah, I’m just curious how he amassed $5 million…That’s unbelievable.” (02:45)

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Important Timestamps

• 00:16 – Jeff introduces his situation and question
• 00:57 – S&P 500 average return explained
• 01:15 – Dave’s diversified mutual fund strategy described
• 01:36 – Real estate returns discussed
• 01:49 – Real S&P 500 returns for 2023–2025
• 02:45 – Hosts reflect on Jeff’s wealth-building journey
• 03:07 – Emotional vs mathematical diversification analysis
• 03:20 – Explanation of how averages in the stock market work

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Summary

This episode cuts through the confusion about long-term investment returns, with Ramsey stressing historical averages and diversification as the path to consistent, 10%+ results—even if recent boom years aren’t the new normal. The hosts address both the math and the psychology of investing, showing empathy for callers’ fears and reinforcing prudent, proven approaches to wealth building. Listeners receive not only concrete examples but also the motivational push to reconsider low-yield vehicles when historical data strongly favors disciplined stock market investing.

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Transcript

[A]

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

[B]

at RamseySolutions.com SmartVestor Jeff is in Denver. Hey, Jeff, what's up?

[A]

Hey, Dave. I am so excited to talk with you guys. So my wife and I are now passing into retirement age. We've been following baby steps since I think we first got married. Then only recently came across you guys, and we're going, wow, this is really neat. But so, Dave, we cut to the chase. We've saved about 5 million.

[B]

Way to go.

[A]

We just finished paying off the house. We really have no debt. But we were listening on the radio today and you guys were saying, well, you should Invest and make 10 to 12%. And I'm like, how the heck do you do that?

[B]

Well, the s and P500 has averaged 11.8%, and that's the stock market.

[A]

Okay. So just, I mean, obviously you don't want to put all your eggs in one basket, right? I mean, or do you just want to invest in a s and P500 fund? I don't know, Dave. That's what.

[B]

Well, I have my investments in growth stock mutual funds across four categories. Growth, growth and income, aggressive growth and international. And one of the ways I pick the fund is I want to pick a fund that has outperformed historically the S and P. And then my other investments are in real estate that I pay cash for.

[A]

Okay.

[B]

And they do way more than 12%.

[A]

Okay. Okay. I'm. I'm really afraid of real estate because I don't. I.

[B]

That's fine.

[A]

I couldn't. I couldn't walk out of a hole in real estate.

[B]

That's fine. No problem. You don't have to do it. But, you know, the bottom line is if you had just had your money in an S and P, in 2025, it would have made 17.9. In 2024, it would have made 25.6. In 2023, it would have made 26.3. That's what the S and P returned in those last three years. Those are above average returns. I don't think it's going to keep returning like that. Those are unusually high good years this year. We're flat year to date in the S and P with a little bit of a roller coaster ride due to Iran getting bombed. But overall, I'm very comfortable. I've been investing in mutual funds for 30 plus years, and I'm very comfortable that I can get north of 10% on average over a long period of time. But I don't you know, I'm not sweating it, but I shouldn't be getting 3% when I've got those kinds of rates of return floating around.

[C]

Yeah, I'm just curious how he amassed $5 million. You know, I don't know if he's done company 401ks and doesn't understand the correlation of what you're talking about there, but I mean, that's.

[B]

He's done really well.

[C]

Done very well.

[B]

Yeah, way to go. Congratulations.

[C]

It's unbelievable.

[B]

Yeah.

[C]

And so when you get somebody like that that is amassed, you know, and he wants to diversify now, does he go the just the standard diversification?

[B]

Yeah, I would, but I mean, it's up to him. I mean, mathematically that's what I would do. Emotionally, it sounds like he might not want to do that.

[C]

Right, right.

[B]

But that's okay. You don't have to do it. But you're asking how I did it or how we, why we would say something like that on the air. Well, that's why. 17.9, 25.6 and 26.3. That's the last three years. And so you know that that's kind of how this works. So. But again, that, that's how you can get to an average of 11.8 since the stock market began, when other years you might make six or seven or eight and, you know, and that drags the average down. So there you go. But all of these things beat high yield savings for sure.