I Won $3M And Don't Know What To Do With It

Summary

Podcast Summary: The Ramsey Show Highlights – "I Won $3M And Don't Know What To Do With It"

Episode Information:

• Title: I Won $3M And Don't Know What To Do With It
• Host: Ramsey Network
• Release Date: March 24, 2025

Overview: In this episode of The Ramsey Show Highlights, a listener shares his recent lottery win of $3 million but expresses uncertainty about managing the newfound wealth. Host Ramsey Network provides insightful financial guidance, emphasizing the importance of educated investment decisions, understanding financial advice, and building a reliable support system with knowledgeable advisors.

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1. Listener's Lottery Win and Concerns

The episode opens with a listener, referred to as B, revealing his lottery win:

[00:14] B: "I won 3 million."

However, he clarifies the actual amount received after taxes and lump-sum deductions:

[00:16] B: "I won 3 million. Unfortunately, I of course, didn't get anywhere near that. I got 997,000. After taxes."

B expresses his frustration and uncertainty about the next steps:

[00:40] B: "Thank you. I was, too. I just don't know what to do now. I've been meeting with a lot of different advisors, but then I'm also reading about a possible market crash and I don't know what to do."

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2. Host's Initial Response and Market Insights

The host responds with a blend of empathy and market perspective:

[00:53] A: "I hope there's a market crash right before you put this money in... I'm steadily investing. Real estate and stock market both."

He emphasizes a positive outlook on market investments, subtly advising against panic-driven decisions.

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3. Navigating Financial Advisors and Personal Education

B admits feeling overwhelmed by financial jargon and the complexity of investment discussions:

[02:05] B: "I can't say that. I don't really understand at all."

The host shares a personal anecdote about his interaction with Gen Z employees to highlight the importance of understanding financial strategies:

[02:09] A: "They spent about 30 minutes teaching me with a good spirit... I'm always perpetually curious around here."

Ramsey Network underscores the necessity for listeners to seek advisors who prioritize education over complex jargon:

[03:00] A: "Your job is not to hire someone else to do this for you. Your job is to hire someone to teach you to do it for yourself."

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4. Emphasizing Education and Confidence in Investments

The host reassures B about investment fears and the importance of informed decision-making:

[03:34] A: "You're not going to lose it. You're going to go slow, and you're not going to put it in anything you don't understand."

He introduces the concept of opportunity cost, illustrating the potential gains from educated investments versus the losses from fear-based decisions:

[05:02] A: "If you put a million dollars in and it makes 20%, that's 200,000. If instead you put it into a savings account because you're scared and you don't learn and you make 1%, you lost $200,000."

B acknowledges the value in this perspective:

[05:15] B: "That's a much better way of looking at it."

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5. Actionable Steps and Final Advice

Ramsey Network provides a clear action plan for B and listeners in similar situations:

1. Seek Educated Advisors:

   [04:09] A: "Get comfortable. And don't invest in the stock market or in real estate... Find the ones in your area."

2. Evaluate Advisors:

   [04:50] A: "Interview 2 or 3. Talk to tax people, real estate people, insurance people until they have the heart of a teacher."

3. Trust and Confidence:

   [05:37] A: "Learn, learn, learn, learn, learn. And don't invest in the stock market or in real estate..."

4. Dismiss Poor Advisors:

   [05:15] A: "Tell them to shut up. They're fired."

The host concludes by reiterating the importance of financial education and selecting advisors who instill confidence and understanding:

[05:37] A: "Learn, learn, learn, learn, learn. Get comfortable. And don't invest in the stock market or in real estate... If they make you feel insecure with their snotty approach... fire them."

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Key Takeaways:

• Educate Yourself: Understanding the fundamentals of investing is crucial before making significant financial decisions.

• Choose the Right Advisors: Select financial advisors who prioritize teaching and building your confidence rather than overwhelming you with jargon.

• Avoid Panic Decisions: Do not let fears of market fluctuations drive your investment strategies. Stay informed and make calculated decisions.

• Understand Opportunity Cost: Recognize the potential gains from informed investments versus the losses incurred from fear-based inaction.

• Build a Support System: Surround yourself with knowledgeable and supportive professionals who have your best interests at heart.

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Notable Quotes:

• [05:02] A: "If you put a million dollars in and it makes 20%, that's 200,000. If instead you put it into a savings account because you're scared and you make 1%, you lost $200,000."

• [03:31] A: "Your job is not to hire someone else to do this for you. Your job is to hire someone to teach you to do it for yourself."

• [05:37] A: "Learn, learn, learn, learn, learn. Get comfortable. And don't invest in the stock market or in real estate..."

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Conclusion: This episode of The Ramsey Show Highlights provides valuable insights for individuals who find themselves with unexpected financial windfalls. By emphasizing the importance of education, selecting the right advisors, and understanding investment opportunities, Ramsey Network equips listeners with the knowledge to make informed and confident financial decisions.

Transcript

[A]

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[B]

I recently won a nice chunk of money in the lottery.

[A]

Wow. How much did you win?

[B]

I won 3 million.

[A]

Wow.

[B]

Yeah. Unfortunately, I of course, didn't get anywhere near that. I got 997,000. After taxes.

[A]

After taxes and lump sum. The 3 million is the total payout if you take it over 83 bazillion years and not counting taxes. Yeah. So you took it all. Lump sum. She got a million bucks. Way to go. Yeah, that's fine. I'm happy for you.

[B]

Thank you. I was, too. I just don't know what to do now. I've been meeting with a lot of different advisors, but then I'm also reading about a possible market crash and I don't know what to do.

[A]

Okay. I hope there's a market crash right before you put this money in.

[B]

Yeah.

[A]

Cause it's gonna go straight up after that. So I don't think there's gonna be a market crash. In other words, let me tell you how much of my money I pulled out of the market in fear of a market crash. Precisely zero.

[B]

Okay.

[A]

Matter of fact, I'm steadily investing. Real estate and stock market both.

[B]

Okay.

[A]

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[B]

I'm not intimidated. Well, I can't say that. I don't really understand at all.

[A]

There you go.

[B]

That's where I'm very lost at what to do.

[A]

So I've got a bunch of. I've got a bunch of Gen Z's in their 20s that work here. We've got a whole bunch of digital products at Ramsey. I know nothing about it. They work for me, but they're smarter than me. And I have no idea what they're talking about. You know what I'm talking about. So I go into a room full of them the other day. And I'm like, hey, they're talking and they're using letters and all this stuff, like they're in the military. I have no idea what they're talking about. I'm like, hey, guys, just humor the old guy who writes your check. Tell me what the flip is going on in this room. Explain like I'm five. Explain it till I understand it. Because you work here and work for me. My name's on the building. I'm not being mean about this. I'm just really curious what it is we do in this room. So they spent about 30 minutes teaching me with a good spirit. And I had a good spirit of receptively listening and learning because I really did want to know what they were doing. I'm always perpetually curious around here. And that's what you're going to do. These people work for you, these investing advisors, Meaning you can fire them at a drop of a hat if they're not good at explaining or if they make you feel insecure with their snotty approach. So you're looking for the heart of a teacher with anyone giving you advice, because your job is not to hire someone else to do this for you. Your job is to hire someone to teach you to do it for yourself.

[B]

Okay?

[A]

That way you won't lose the money.

[B]

That's my fear.

[A]

You're not going to lose it. You're going to go slow, and you're not going to put it in anything you don't understand.

[B]

Okay?

[A]

And you remember, everything that's written on the Internet is true. Abraham Lincoln said that.

[B]

Yeah, that's what my friends say. If it's not on Facebook, it's not true.

[A]

Yeah. It doesn't happen. Right. So stay off the Internet for financial advice. All right? Sit down and talk to old seasoned people who will teach you. And when you come away from the meeting, you feel two things. Smarter and peaceful. If you don't have that sense in your spirit, if you don't feel more confident, smarter and peaceful, you got the wrong people in your corner. That's what you're looking for. If you do that, you won't lose the money, right, George?

[B]

Yeah. You think it's better to invest it or just keep, like, divide 250,000 a pound banks until I feel better. So I just put.

[A]

I put $3 million into the stock market last week.

[B]

Okay.

[A]

25% is what. Stock market went up last year. What's 25% of 3 million?

[B]

Right.

[A]

What do you make, Angela? What do you make from your job. 10% is 300,000, by the way.

[B]

I'm actually retired. I bring 62,000 in. I have a couple of defined benefit pension plans.

[A]

Good.

[B]

And my husband makes about 110 a year.

[A]

Okay, so if you put a million dollars in and it makes 20%, that's 200,000. If instead you put it into a savings account because you're scared and you don't learn and you make 1%, you lost $200,000.

[B]

That's a much better way of looking at it.

[A]

That's opportunity cost. It's called opportunity cost. You missed an opportunity by not learning. So learn, learn, learn, learn, learn. Get comfortable. And don't invest in the stock market or in real estate. If you're wanting to do a play. You want to think, I'm not going to touch this for five years once I put it in there.

[B]

Okay?

[A]

If you do that and then you just turn off the news, you'll be okay. But learn, learn, learn, learn, learn. You and your husband sit down with these advisors and if you want some more to have the heart of a teacher, go to ramseysolutions.com and click on SmartVestor Pros, SmartVestor Pros and find the ones in your area. Interview 2 or 3. Talk to tax people, real estate people, insurance people until they have the heart of a teacher. If they're snotting you, they drop their glasses down on the end of their nose and they have all the answers. And you're just the stupid little people who got lucky. You have a million dollars, they don't. So tell them to shut up. They're fired. If anyone depends on your income. You need affordable term life, never cash value insurance. Visit Zander.com today for quotes.