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When 23-year-old Jackson called from New York The Ramsay Showhe wasn’t asking how to spend his inheritance – he was asking what? no To do with it.
A few months ago, he and his siblings sold their parents’ house, leaving about $450,000. He had no debt, had just graduated college, was making about $75,000 a year and was renting with his brother while planning his next move from Long Island to New York City.
Yet instead of feeling empowered, he felt left behind.
“I’m just wondering what to do with it,” Jackson told host Dave Ramsey and costar Ken Coleman (1). “I have all this money … just sitting on a CD right now.”
This is an understandable reaction. Sudden wealth – especially at a young age – can cause decision paralysis.
A large inheritance at a young age is both rare and dangerous. Without experience managing a six-figure sum, many people either spend carelessly or worry about making the “wrong” move, resulting in no move at all.
Parking the money in a certificate of deposit allowed Jackson to avoid forced purchases, and was something Ramsey praised as preventing him from doing “something stupid.”
He even said that Jackson was “wise beyond his years” for not taking the $450,000.
But Ramsey also warned that leaving money too long comes with a price. Freezing can be just as damaging as hastening, especially when inflation and investment years are at play.
Inflation erodes purchasing power, and time — especially starting in your early 20s — is one of the most powerful drivers of long-term wealth.
Ramsey pointed out that if the inheritance was invested at long-term market rates, “it would double in seven years.” He contrasted the CD’s low yield, saying the money “should have increased fivefold” if invested instead.
This is important because young people just don’t have the money to work for them. they have the time Working for them. According to the latest Federal Reserve data, the median net worth of Americans under 35 is just $39,000, compared to more than $364,000 for those 55 to 64 years old (2).
So, a $450,000 inheritance at 23 is a big head start, but only if it grows.
Read more: I’m almost 50 and have no retirement savings. Is it too late to catch up?
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A greedy Ramsay quickly shut down using the inheritance to buy property in New York City. Even with $450,000, the math doesn’t work. “450 won’t buy anything in the city,” he said. “Not paid.”
Without the income to comfortably support a mortgage, Ramsey argued, tying an inheritance to a home would add stress rather than freedom. The same logic applies very quickly to raising a lifestyle or helping others.
Instead, Ramsey emphasized discipline and austerity in order to get “more upside” and separate current income from inherited wealth.
“Leave it alone. Pretend you don’t have it and just live off your income,” he advised.
This approach is consistent with the guidelines of the Certified Financial Planner Board (3), which warns that people who acquire sudden wealth can quickly lose it without structure, guardians and professional guidance.
But while buying a home in Manhattan is now off the table for Jackson, that doesn’t mean he has to steer clear of real estate entirely.
Investing in real estate can be a smart money move, providing a steady source of passive income. And with crowdfunding platforms, savvy investors can diversify into real estate without sinking all of their capital—inherited or otherwise—in extremely low down payments and mortgages.
Consider Arriving, a real estate platform that allows you to invest in single-family rental properties, earn any dividends and skip the responsibilities of property management.
Backed by global investors like Jeff Bezos, the easy-to-access platform offers SEC-qualified investments like rental homes and vacation rentals for less than $100.
Their flexible investment options allow both accredited and non-accredited investors to easily benefit from this inflation-hedging asset class. You can start by searching for appraised properties, then simply select a property and choose the number of shares to buy.
And, for a limited time, when you open an account and add $1,000 or more, Arrival will credit your account with a 1% match.
Multifamily and industrial rentals offer another great entry point into real estate investing, especially given the strong outlook for these asset classes in 2026 (4).
If diversification into multifamily and industrial leasing appeals to you, you may want to consider investing with Lightstone DIRECT, the new investment platform from Lightstone Group, one of the largest private real estate companies in the country with over 25,000 multifamily units in its portfolio.
Since they cut out the middlemen – brokers and money laundering intermediaries – accredited investors with a minimum investment of $100,000 can get direct access to basic quality multi-family opportunities. This streamlined model can help reduce fees while increasing transparency and control.
And with Lightstone DIRECT, you invest in single-asset multi-family deals alongside Lightstone – a true partner – as Lightstone puts at least 20% of its capital into each offering. All Lightstone investment opportunities undergo a rigorous, multi-step review before being approved by Lightstone principals, including founder David Lichtenstein.
How it works is simple: just sign up with your email, and you can call a capital formation specialist to evaluate investment opportunities. From here, all you have to do is verify your details to start investing.
Founded in 1986, Lightstone has a proven track record of strong risk-adjusted returns over market cycles with a historical net IRR of 27.6% and historical net equity of 2.54x since 2004. All told, Lightstone has $12 billion in assets involved in industrial management.
As such, even if multifamily rentals don’t appeal to you, Lightstone can serve you well as an investment vehicle for other real estate verticals.
Get started with Lightstone DIRECT today and invest in gaming with experienced skin experts.
However, Ramsey’s main recommendation for Jackson was not about stock picking or market timing. It was about education and attitude.
First, he asked the 23-year-old to meet with an accredited financial professional for guidance on how to work his nest egg.
But since hiring a consultant can be a lifelong commitment, finding one you can trust is crucial.
That’s where Advisor.com comes in. The platform connects you with a specialist near you for free.
Advisor.com does the heavy lifting for you, evaluating advisors based on track record, client ratio and regulatory background. Additionally, their network includes trustees, who are legally required to act in your best interests.
Just enter a few details about your finances and goals, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert who fits your needs based on your specific financial goals and preferences.
Finding the right advisor isn’t always easy – there’s no one-size-fits-all solution. That’s why Advisor.com allows you to set up free initial consultations with no obligation to hire someone to see if they’re right for you.
Although Ramsey recommended working with an advisor to learn about investing, he cautioned against choosing an investment based solely on the advice of others — including Ramsey himself.
Instead, the financial guru said, invest in something “because you’re starting to understand it.”
However, behavioral finance research shows that good investing habits—not market returns—are the biggest drivers of long-term results (5). Having a plan, understanding risk and avoiding emotional decisions are often more important than chasing high returns.
It would be easy to frame $450,000 as a life-changing sum of money. But Ramsey and Kost Coleman were adamant about the importance of staying disciplined and focusing on the bottom line.
In other words, wind is not guaranteed.
“It’s a big head start for you,” Coleman said, adding that Jackson should “just leave it alone” after the investment. Ramsey echoed that advice, insisting that the young man keep his “hands off it.”
IRS rules reinforce this point. While inherited assets can receive favorable tax treatment, including a stepped-up cost basis in some cases, the gains are still taxable when the investment is sold, and mistakes can create avoidable tax bills (6).
In other words, inheritance creates opportunity, not immunity from financial mistakes.
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Ramsey’s Show Highlights (1); Federal Reserve (2); CFP Standards Board (3); JP Morgan (4); CFA Institute (5); IRS (6)
This article provides information only and should not be used as advice. It is provided without warranty of any kind.
