Do I Need To Diversify My Investments?
10:06 Share

This episode sponsored by smart vester connect with an investing pro for free at rainy solutions dot com slash vest. You are listening to ramsey everyday million's, where we talk investing retirement, building wealth and our raise st. generosity.

John is up next in our land. Ford, john, how can we help today?

Yes, my question is basically to determine if I just have two months cash sit in, in, in, in my core account. I own my home, I want my vehicles, and I basically have ninety two percent of my invest of my money, sitting cash or treasury. Bon.

how much is .

about four billion? One hundred thousand k.

well, just.

Little caught, you have four point one million dollars basically in cash. If I heard that right, that's where where they're sitting .

in cash accounts, correct a cash account with and then I well and part of that that is a million dollars in in twenty year treasury bombs that have bought over the past year at an average of like four point eight two okay.

so about three million is in a cash account. Yeah ah yeah.

So john, how old .

are you? Six, one, 6， one OK. Um what caused you not to invest on any level, whether that's real state or the the market um the stock market like what caused you're .

not to invest? I'm being in real stata. I do have uh few retirement accounts that you know that are in some stocks like google and amazon and I store um the retirement total of two hundred seventy three thousand and between a rough tradition set okay .

so no four or one k nothing like that.

Um well I own some real states that will be paid off. Yeah have not done .

a great job no for of the total amount of money you have available. And and so your opening question was, do I have too much money in cash accounts? And the answer is, yes, you do. We'd like to see you invest that with our strategy.

yeah. I mean.

I think i'm still .

a Young guy for sure and I and just being able to look to say, hey, you know with the the average growth, you know ten, eleven and twelve percent um what that could gets you you know john, your money making money is basically what IT is because right now when you say that you that all liquid, is that sitting and just like a high yellow savings or is that a traditional savings count? Where do you at three million?

It's like a it's like a fidel to have these money markets and they the one I mean face .

fast and yeah and then the bond.

the treasury bonds, which has gone way up because those yields have gone down. Yes, you know it's at four points, eight, two. I say good rather than taking any risk. I'm just sit on the site making five percent right now.

but that's .

going .

to change if you done the math on on compound interest. If you've got in the game, you're scared. No, what is your this is all fear and is nothing to be ashamed of.

But i've never talked anybody that told me the story. You just told me that's that's its standing. It's truly amazing.

You're certainly not hurting. You're sixty one. You got a lot of money in the bank and you're safe, man, you're safe. But you know, you call IT us. Are you starting to feel as though I should probably be investing a good chunk of this? Or where can we help you because you're just afraid the death of the stock market and mutual funds in the whole nine, yours is just fear is .

driving this actually works. A lot of the shows and the mutual funds seem appealing. Well, well.

we've got a strategy for that.

Yeah, I mean, for sure. yes. So I I think john, are you, mary? yeah. yeah. okay.

So I mean, if I were you tonight, I think you and your wife go by a nice bottle one because you can afford IT and sit down, open IT up and you guys start dreaming, dreaming about, hey, where do we want to be? We're sixty. Let's just say the lords.

And good to us. And we live toward night. We've got thirty years. What do we want to do with this money? And there's a really interesting book, john called die was zero.

I want you to buy IT I don't agree with one hundred percent of its a very interesting and I think IT leads more in a john's case right? If there is a lot of wealth, um what the role money plays in our life and what you want to do with IT because this book argues, which I think in your case would work not forever when listening but in john specific case, you know that that to enjoy your money and it's not just spending at all but if you have kids, john and you want to be able to help them, you know, do you wait till you know you're gone at ninety and your kids are sixty and they know, or are their stuff you can do now you with to help that legacy happen in real time? The the generosity portion, you know charity and and what you give to is that is there more you could be doing kind of in these buckets with the money you have today? Well, knowing, yes, you need to live off of this for thirty years.

But I of i'm saying of that to say you're in a great position, just a dream and we say dream and hd like put pictures to words as doctor joan alone he says, but you and your wives tonight sit down and just say, hi, what do we win the next thirty years look like because the truth is john, you get off the call and do nothing and you're going be fine to kids point I mean you're gna be fine but but I think also to say, hey, what if we grew a percentage of this um and look for the next six years and we put IT in some mutual funds maybe you know growth and income, aggressive growth. You know picking out some good mutual funds of good track records and putting a portion of IT in just seeing and then you look up in five years, we evaluate like we like that so you can step into this. I think there are some personalities that are like put all the PS in the middle, the table we're going in all in and we're going to make you ten, twelve percent starting today.

And you could do that. I mean, if I were in your position, I think more towards that. But I think it's okay for you guys to kind of steer step your way into IT. But but I would really advise you to sit down with one of our smart vester prose with the smart vester pro um because sitting down with the investment professional in general is going to be really helpful because also, john, what's playing in the back of my mind, which we don't have time to unpack er right now on this call.

But is the the tax implications of some of us the estate tax, you know all that I want to I want to make sure that you are doing things specifically in a really wise way that's gonna be the best for you guys in your situation. Um so if you Christian can can give you that link when we get off the phone and interview a couple level, if if you have an investment professional you love and you trust, you talk IT down and talk to them. But I think getting someone in your corner that does this day in day out is going to be really helpful because I do think I think you can do a lot with this.

And I think your money you can make money. And again, not just for the sake of like we're just going to build a bunch of more wealth, but to be able to continue to live a great in rich life. Yeah to yourself in your .

family and others yeah and john, I grew, Rachel, I think going to sit down with your wife first and laying out what you want to do with that money where you'd like to see to go have that on paper ready to talk about when you go sit down with some of these smart western pros and as you interview several of them talk about and see what their plan is um and and you get to pick the one you like.

I really like that, but I also want to just hit something for you, john, in our larger audience right now. I just got an email this morning that was forwarded us. And I was I was from as a local smart vest pro that we know and in short, was telling us about a friend of his who passed in his early fifties of lon cancer tragically.

But the point of email was is that they had invested uh, a decent size chunk of money for their son, uh, in a five twenty nine in two thousand and twelve. So here we are just twelve years later. And IT was enormous sum of money now.

And what he said to us is they ve got twelve percent return over that time period. So over the last twelve years, that five twenty nine got twelve percent return. I just wanted to highlight what Rachel said.

And john, these are not numbers that we're pulling out of our year to be shocked jokes. And that's a real life story. And I just want to underline that to say, imagine the five percent turning in the ten to twelve percent.

That's not a fairy tale. And to Rachel point, what you can do with that over the five percent that that's legacy stuff, john, and it's really doable. So you're smart guy, your incredibly discipline .

and i'll say a rims at heart to being in the market. But also really say, john, you mention that you have a couple of property if and I mean that I mean dave, very honest on this show, that's where where a lot of his money is is so there's there's different um proven ways to grow your money, whether investing traditionally just in the stock market or paid for real estates. There's some great avenues out there to make your money work for you. And I think that that's a great goal.

So thanks for the call, john. appreciate. Wow, four million dollars in a savings account. What's your problem? Is pretty impressive.

Thanks for tuning into ramsey everyday millionaires. To learn more about investing, visit ramsey solutions dot com slash investing, or click the link in the shown knows ramsey solutions is a paid non client promoter participating pros learn more range y solutions, not calm slash smart vester.