We're Worth $40 Million and Still Have Money Problems

Summary

Podcast Summary: The Ramsey Show Highlights

Episode: "We're Worth $40 Million and Still Have Money Problems"
Date: August 18, 2025
Host: [Dave Ramsey] (referred to as A)
Caller/Guest: B (Wife of business owner)

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Episode Overview

In this candid episode, Dave Ramsey takes a call from a woman facing a surprising financial dilemma: despite a net worth of $40 million, her family is experiencing liquidity and cash flow problems. As they weigh poor advice from their financial advisor and consider borrowing against a paid-off vacation property, the discussion explores wealth management pitfalls, partnership limitations, and lifestyle choices—even at the highest income levels.

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Key Discussion Points & Insights

1. The Caller’s Financial Predicament

• Net Worth Breakdown:
  • $40 million total net worth
  • $30 million invested in husband’s business (illiquid, restricted access)
  • $10 million elsewhere (including $4 million in retirement accounts; unclear liquidity)
• Income: Husband earns about $400,000/year (100% commission)
• Liquidity Crisis: Difficulty accessing invested funds leads to a suggestion from their advisor to take a loan out (HELOC) on their fully paid vacation property.

Dave [02:22]:
"There's no possible way that borrowing on your lake house is a good idea when you have $40 million. There's no scenario by which I can get there. I'm really disgusted at how pitiful your financial advisor is. This is just asinine."

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2. Unpacking the Business Investment Bind

• Ownership Structure Issues:
  • Husband is a minority owner but not on the board of directors; can't access money at will.
  • Board controls redemptions of shares, sometimes prohibiting them in favor of “company growth.”
• Caller’s Realization:
  • Only recently took over family finances to discover overspending and the inability to liquidate assets.
  • Previously relied on regular redemptions ($1–1.5 million/year), but that is no longer reliable or permitted.

Dave [05:33]:
"He needs to start taking some action because he has $30 million tied up in something he has absolutely no control over. That is not okay. That is where your problem is. It is not a lake house home equity loan. Good God."

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3. Lifestyle and Overspending Reality Check

• Spending Habits:
  • Expenses include two homes, household staff, homeschooling three kids, a horse farm, private jet use, yacht charters—leading to unsustainable budgets.
  • Previously spent beyond their $400k income, based on the assumption that redemptions would happen annually.

Caller [04:52]:
"Well, we, you know, chartering yachts and flying private. It all happened real fast."
Dave [04:57]:
"Yeah. Okay. Now I'm getting there."

Dave [05:58]:
"Just cut your freaking lifestyle. Just cut your lifestyle. Live within your means."

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4. Structural and Strategic Mistakes

• Dependence on Illiquid Wealth:
  • Majority of net worth controlled by others, with no guaranteed timeline or priority for personal liquidity.
• Faulty Financial Advice:
  • Existing advisor recommends leveraging debt despite substantial assets—an approach strongly criticized by Ramsey.

Dave [06:40]:
"That's not the point...You have no control and people are looking at you going, you have $30 million and you don't count. Yeah, absolutely. I'm getting out of that deal."

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5. Solutions & Ramsey’s Recommendations

• Immediate Actions:
  • Absolutely not to borrowing against the vacation home.
  • Drastically reduce lifestyle and spending to live within the $400k/year income.
  • Demand answers and more control: Urgently clarify business share percentage, press for liquidity, and, if necessary, begin divestment—even with potential taxes.
  • Reassess your entrepreneur partners’ respect for your interests.

Dave [07:01]:
"You may need a new financial advisor, too. This one's an idiot. Borrow on a lake house to solve this spending problem? Yeah, I don't think so."

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Notable Quotes & Memorable Moments

• Dave’s incredulity at “money problems” with $40M net worth:

  [02:22] "There's no possible way that borrowing on your lake house is a good idea when you have $40 million..."

• On the real cost of high living:

  [04:52] Caller: "...chartering yachts and flying private. It all happened real fast." [05:58] Dave: "Just cut your freaking lifestyle. Just cut your lifestyle. Live within your means."

• On the dangers of illiquid, controlled wealth:

  [05:33] "He has $30 million tied up in something he has absolutely no control over. That is not okay."

• On the board’s inflexibility:

  [06:28] Caller: "I had that conversation and it was told to me crystal clear. No questions asked. We will never prioritize share redemptions over the growth of the company." [07:14] Dave: "This story doesn't end well when someone keeps control of your 75% of your net worth and you have a $40 million dollar net worth, you have zero access to it."

• On advisor competence:

  [07:01] "You may need a new financial advisor, too. This one's an idiot. Borrow on a lake house to solve this spending problem? Yeah, I don't think so."

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Timestamps for Important Segments

• [00:24-01:28]: Caller explains net worth/growth and business investment structure.
• [02:22-03:01]: Dave rejects debt suggestion; learns caller has just taken over finances.
• [04:52-05:58]: Discussion about excessive lifestyle and fast spending.
• [06:28-07:14]: Contrast between business' priorities vs. family access to their own wealth.
• [07:01-07:23]: Urging immediate action: new advisor, divestment, and control.

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Conclusion

This episode strikingly illustrates that massive wealth does not immunize families from poor financial management, lack of control over assets, or bad advice. Dave Ramsey asserts the importance of liquidity, logical budgeting, and direct control—regardless of your net worth. The need for financial clarity, modesty in lifestyle, and partnership assertiveness are universal lessons, underscored with both compassion and directness.

Memorable Takeaway:
"Live within your means. Now then, how do we adjust our means?" — Dave Ramsey [06:11]

Transcript

[A]

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[B]

Well, we have a predicament. We have a very high net worth. But right now our financial advisor is suggesting that we take a loan out on our vacation property, which is paid in full. There's no mortgage there to help supplement our income since our money is not liquid.

[A]

What is your net worth? Huh?

[B]

About 40 million. Oh, my word.

[A]

And you don't have enough income coming.

[B]

In off of 40 million, so it's a little tricky. 30 of that is invested in my husband's business, which is close to about a billion dollar business. But we can only touch that when we are allowed to touch it.

[A]

I'm sorry, if it's your business, why are you not allowed to touch it?

[B]

So he's not on the board. So the board makes the decision on who gets money when.

[A]

I thought it was your husband who owns.

[B]

He's one of the owners in the.

[A]

Business who's the majority shareholder.

[B]

There's a handful of people who are own the chunk of it. He's one of those people, but he is not on the board of directors, so he doesn't get to make the decision on when redemptions can be made.

[A]

So.

[B]

Wow. Yeah.

[A]

So the. Well, that's 30 million, but you still got 10 million. You don't have anything in that. That's creating income.

[B]

Okay, so we've got four in retirement. Four million in retirement. He brings in about 400 a year, and he's 100% commission based on what he does.

[A]

So what do you need money for if you make 400 a year?

[B]

So what we were hoping to do and what we had been doing with the redeeming shares each year, then come to find out that we can't redeem every single. My husband's 56, and he's wanting to. After 26 years of service, he's ready to kind of back off and enjoy our vacation home. And I homeschool kids and be a little more present after being very, very invested firsthand in what he does. So he was hoping to help to supplement our lifestyle with using some money from a heloc.

[A]

How much would the HELOC have been? Okay, let's just curious. Let's just stop. Let's just stop.

[B]

Sure.

[A]

There's no possible way that borrowing on your lake house is a good idea when you have $40 million. There's no scenario by which I can get there. And I'm really disgusted at how pitiful your financial advisor is. This is just asinine. You make $400,000 a year. You have $10 million. It's not tied up in this company. And. And you guys can't figure out a way to get to some of that? How old is he?

[B]

56. This year?

[A]

Yeah. Yeah.

[B]

Okay. And I've just recently taken over our finances as of April because I found out a lot of stuff was going on, so.

[A]

What do you mean?

[B]

Well, for instance, I just. We got married 15 years ago. I trusted him completely. He made great money. I worked as well. We had three children together. I've been homeschooling them.

[A]

Yeah. I haven't heard anything wrong yet. What happened that was wrong.

[B]

So he trusted that he would be able to redeem shares every year and didn't realize that he couldn't do that. Then we spent money, assuming that we were going to be redeeming shares in.

[A]

Excess of 400 grand.

[B]

Like a million over. You spent the money before you had it? Yeah. Okay.

[A]

I don't know. How was that covered?

[B]

Well, initially we were getting the redemptions, so it was not. It was like, oh, yeah, well, we get the redemption at the end of the year, so.

[A]

And how much was you redeeming of your $30 million installed?

[B]

About a million. Million and a half a year. We put. We'd get the same.

[A]

And you were spending all of that.

[B]

And now his income. Hang on. Keep. Keep in mind, his income would drop down.

[A]

I know. A million and a half a year. On what?

[B]

Well, we have two homes. We have staff.

[A]

Yeah.

[B]

In those homes, we have children. Very generous with.

[A]

Still not got anywhere near close to a million and a half.

[B]

We got a jet horse farm that. That we pay for.

[A]

You have a horse farm that you pay for.

[B]

That's life, huh? Yeah. Yeah, there are some things. So I've consolidated quite a bit of that. I've. I've.

[A]

None of this adds up to a million and a half dollars.

[B]

Well, we, you know, chartering yachts and flying private. It all happened real fast.

[A]

Yeah. Okay. Now I'm getting there.

[B]

Yeah.

[A]

Okay. All right.

[B]

Yeah. So when I found out all of this, I said, I'm taking over.

[A]

All right, well, there's not a I'm taking over. It's. The two of us need to be both using our brain about the actual money that we have to work with. And what of the 10 million can we access? And what percentage of this company does he own? Do you know?

[B]

Oh, gosh, I couldn't tell you that.

[A]

1%, 12%, 82%. We know it's not 82.

[B]

Well, of a billion shares?

[A]

What percentage of the company?

[B]

What percentage of shares? I don't know.

[A]

Now that'd be a good thing to know because he needs to start taking some action because he has $30 million tied up in something he has absolutely no control over. That is not okay. That is where your problem is. It is not a lake house home equity loan. Good God.

[B]

Right?

[A]

The last thing you people need to do is get it be going into debt to be renting a yacht.

[B]

Right.

[A]

Just cut your freaking lifestyle. Just cut your lifestyle. Live within your means.

[B]

We absolutely have. Absolutely.

[A]

Then you don't need to be having this conversation about borrowing money on your lake house.

[B]

Okay?

[A]

Live within your means. Now then, how do we adjust our means? Well, one is we gotta have a discussion with these partners about my $30 million. And I'm 56 years old and I'm poured my life into this company. And how and when am I reasonably gonna get access to that money?

[B]

So we've had that conversation. I had that conversation and it was told to me crystal clear. No questions asked. We will never prioritize share redemptions over the growth of the company.

[A]

That's not the point.

[B]

We can divest. We have an option to divest. They can do it in four years. The challenge with that is on the $200,000 that we invested in this company, it turned into 30 million. So you kind of go, you don't want to completely divest.

[A]

Yeah, I do. I completely want to divest. Absolutely. Okay, you got. You are going to lose your butt. You have no control and people are looking at you going, you have $30 million and you don't count. Yeah, absolutely. I'm getting out of that deal.

[B]

Yeah.

[A]

Crystal clear. Meaning they were arrogant, dropped their glasses down on the end of their nose and man spoke you, girl. I mean, come on.

[B]

Yep.

[A]

Bull crap. I ain't putting up with that. I'm gonna pay some taxes and get free of these jerk wads. No. No way. Redeem, redeem, redeem away. That's what I'm doing. No chance I'm putting up with that crap. Because this story doesn't end well when someone keeps control of your 75% of your net worth and you have a 40 million dollar net worth, you have zero access to it. Because, darling, you don't understand how business works. We will never put redeeming of share redemption of shares on above the growth of the company. Oh, you've got to be kidding me. So I think we're going to handle that. We're just going to redeem the dad gum shares. I can. I can fix that. Oh, my God. So no Dar. And you may need a new financial advisor, too. This one's an idiot. Borrow on a lake house to solve this spending problem? Yeah, I don't think so. Create your free every dollar budget today. The simplest way to budget for your life.