DAVE RAMSEY

Dave says: As the older sibling, you can teach your younger sibling a lot

Apr 2, 2024, 1:00 PM

Learn how to wisely invest and enjoy the inheritance while securing a financially stable future. (P...

Learn how to wisely invest and enjoy the inheritance while securing a financially stable future. (Pexels File Photo)

(Pexels File Photo)

Dear Dave,

My mother died about a year and a half ago, and she left me and my younger sister $75,000 each. My sister is 16, and she plans on enlisting in the military after high school, then using the G.I. Bill to pay for college afterward. She won’t receive the inheritance money until she’s 18. What advice can I give her to ensure she makes good decisions with the money?

Davis


Dear Davis,

I’m truly sorry to hear about your mom. At the same time, I’m so proud of you for stepping up to help your little sister. You know, $75,000 sounds like a lot of money—especially to a teenager. But that kind of cash can disappear in a heartbeat if she’s not careful. And then, all she’d have left where her inheritance is concerned is a lifetime of regret.

If she’ll be smart with this money, and by that, I mean investing wisely and having a little bit of fun, she could end up a rich, little old lady one day. Not only that, but she can honor the memory of your mother and change her family tree forever. Her family will think differently, and be able to live differently, all because she had the maturity to not blow the money.

You said she’ll get $75,000, right? Think about this. She could just have fun with $15,000 or so, and invest the rest in good, growth stock mutual funds. If the stock market continues to average what it has since its start, she’ll be a multi-millionaire—and then some—by retirement. Even if I’m half-wrong on the math, the advice still stands. She’d have millions waiting for her. The point is that investing a big lump sum of money, and leaving it there for her golden years, is a great idea.

Now, I’m going to give you some homework, Davis. I want you to talk to a bunch of rich, old folks. Learn what they did to build wealth and hang onto it. Also, make sure the friends and family you both have around you are quality people—the kind who have your best interests at heart. Remember, the Bible says, “In the multitude of counsel there is safety.”

Your sister is very lucky to have a big brother like you. Walk her through this advice. Be there for her. Look out for her. She needs you right now, and she’ll need you in the years to come.

God bless you both!

—Dave

ENDORSEMENTS

Dave Ramsey

Living with roommates can quickly become difficult if one person doesn't live up to their financial...

Dave Ramsey

Dave says: It isn’t easy addressing late payments with your roommate

Living with roommates can quickly become difficult if one person doesn't live up to their financial promises. Here are best tips from Dave Ramsey.

5 days ago

A small business owner wants his company to have more passionate leaders. (File photo: Tim Douglas/...

Dave Ramsey

Dave Ramsey says: Should a small business owner plug in or promote from within?

A man who owns a small business with around 20 employees tells Dave Ramsey he wants to promote two people to the next level.

8 days ago

what to do when rent increases and parents offer to let you live with them...

Dave Ramsey

Dave Ramsey says: Parents of adults should provide a safety net, not a hammock

Should a woman and her husband who are $80,000 in debt move in with her parents? Here's what Dave Ramsay says.

12 days ago

This week's article discusses what could happen if you accept a loan from a family member. (Pexels ...

Dave Ramsey

Dave says: Should you accept your in-law’s offer to pay off your mortgage?

This week's article delves into the pros and cons of repaying family loans. While it may seem convenient, it's often advisable to avoid owing money to family members.

26 days ago

In this week's article, Dave talks about how to tackle a difficult family situation while not getti...

Dave Ramsey

Dave says: How to navigate tough times with love and understanding

In this week's article, Dave talks about how to tackle a difficult family situation while not getting on anyone's bad side.

1 month ago

(Pexels Photo)...

Dave Ramsey

Dave says: Why cashing out your 401(k) to start a business might not be the best idea

Emphasizing the dangers of risking their retirement savings and potential bankruptcy, Dave Ramsey encourages thoughtful planning and starting small.

1 month ago

Sponsored Articles

...

DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.

...

Collins Comfort Masters

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 

(KTAR News Graphic)...

Boys & Girls Clubs

KTAR launches online holiday auction benefitting Boys & Girls Clubs of the Valley

KTAR is teaming up with The Boys & Girls Clubs of the Valley for a holiday auction benefitting thousands of Valley kids.

Dave says: As the older sibling, you can teach your younger sibling a lot