Personal finance persona Dave Ramsey has written a number of books and spent numerous hours behind the microphone on his radio present giving recommendation.
He talks with folks about getting out of debt, shopping for houses, buying vehicles and investing for the longer term.
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On many events, Ramsey has the chance to speak with somebody who has amassed a great deal of cash already and is searching for his views on the neatest methods to deal with that wealth.
One such event occurred just lately, when a lady figuring out herself as Naomi defined her monetary state of affairs and what it was she was attempting to determine.
“Dear Dave,” she wrote, in accordance with KTAR News. “I’m a widow, and I retired recently. My husband took care of most of our finances. We never had any debt, but after my husband died and I started learning a little bit more about how money works, I’m concerned too much of it may be invested in CDs.”
She then provided a short overview of her accounts.
“The total nest egg is a little over $1.5 million, with $300,000 of that in CDs. There’s also a $317,000 annuity, a 403(b) and around $900,000 in IRA mutual funds,” Naomi wrote. “I want to learn even more about financial matters, so how do you think I should handle things going forward?”
Ramsey answered, first with a fast clarification of his ideas about CDs after which with an evaluation of Naomi’s state of affairs.
“Well, the CDs (Certificates of Deposit) give you stability, if nothing else. They’re generally considered a safe, low-risk investment, but they don’t really give you the best bang for your bucks,” he wrote. “If you’ve had good luck with a variable annuity, that’s fine, too. It sounds like you’ve also been very fortunate with your mutual fund investing. So, with all this money in different areas, you’re definitely diversified.”
Finding the Right Financial Advisor
The creator and radio host defined, in his view, crucial factor she ought to give attention to whereas persevering with to be taught: discovering a monetary advisor with one key attribute.
“In my mind, it’s just a matter now of wrapping your arms around it all and developing a deeper understanding of things going forward,” Ramsey mentioned.
“I’d urge you to find an investment professional in your area with the heart of a teacher,” he continued. “I’m talking about someone who wants to help people, and is interested in more than just making money off fees or commissions.”
Ramsey informed Naomi he appreciated her curiosity.
“It sounds like you understand the value of learning about this stuff, and I’m really impressed by that. It’s a smart and necessary thing,” he wrote. “From here on out, every time you see an investment person — whoever it may be — your goal should be to leave the room smarter, and with more financial understanding, than you had before.”
He then shared a private thought.
“Naomi, I’m truly sorry about your husband,” Ramsey wrote. “But you two did an amazing job with your finances over the years. You’re worth well over $1.5 million, and you have no debt. So, you’re basically set for life.”
“Be wise, and be careful, Naomi. God bless you.”
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Source: www.thestreet.com”