A 23-year-old kid got $450K, parked it and doesn’t know what to do next. What Dave Ramsey says will get a ‘big lift’

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When 23-year-old Jackson from New York entered The Ramsey Showhe was not asking how he would use his inheritance—he was asking what not to do with it.

A few months earlier, he and his brothers had sold their parents’ house, leaving him about $450,000. He had no debt, had just graduated from college, earned about $75,000 a year and was renting with his brother while he planned to move from Long Island to New York City.

Yet instead of feeling empowered, he felt stuck.

“I’m wondering what to do with it,” Jackson told broadcaster Dave Ramsey and his producer Ken Coleman (1). “I have all that money … I’m just sitting on a CD right now.”

An understandable reaction. Sudden wealth – especially at a young age – can cause paralysis of decision.

Large inheritances at a young age are both rare and dangerous. Without the experience of managing a six-figure sum, many people neglect 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 making reckless purchases, and it was something Ramsey credits for keeping him from doing “something stupid with it.”

He even said Jackson was “wise beyond his years” for not getting that $450,000.

But Ramsey also cautioned that letting money last longer comes at a price. Being cold can be just as dangerous as being fast, especially when inflation and years of missed investment come into play.

Inflation erodes purchasing power, and time — especially from the early 20s — is one of the most powerful factors in long-term wealth acquisition.

Ramsey pointed out that if the estate is invested at long-term market rates, “it will double in seven years.” He compared that to a small CD yield, saying the money “should have made five times” if it had been invested.

This is important because young adults don’t just have money to work for; they have it the time I work for them. According to the latest Federal Reserve data, the median income for Americans under 35 is just $39,000, compared to more than $364,000 for those aged 55 to 64 (2).

So, a $450,000 inheritance at 23 is a big head start, but only if it can grow.

Read More: I’m in my late 50s and have no retirement savings. Is it too late to catch up?

Read More: Non-millionaires can now invest in this $1B private equity fund starting at just $10.

Another temptation that Ramsey immediately shut down was using the inheritance to buy a property in New York City. Even at $450,000, the math doesn’t work. “450 won’t buy anything in town,” he said. “It’s not paid.”

Without the income to comfortably finance the mortgage, Ramsey argued, tying up an inheritance to a home would add stress rather than freedom. The same concept applies to lifestyle development or helping others violently, very soon.

Instead, Ramsey emphasized discipline and simplicity in order to get “a big lift,” and to separate current income from inherited wealth.

He advised: “Stop it, pretend you don’t have it and live with the money you get.”

That approach is consistent with guidance from the Certified Financial Planner Board of Standards (3), which warns that people who find sudden wealth may underestimate how quickly it can disappear without structure, lines of caution and professional guidance.

But while buying a home in Manhattan is off Jackson’s table right now, that doesn’t mean he should steer clear of real estate altogether.

Investing in real estate can be a smart way to make money, providing a stable source of income. And with crowdfunding platforms, smart investors can switch to real estate without sinking all of their money — inherited or otherwise — into high fees and mortgages.

Consider Arrival, a real estate platform that allows you to purchase single-family rental units, receive any benefits and skip property management obligations.

Backed by world-class investors like Jeff Bezos, Arrived’s easy-to-use platform offers SEC-qualified investments like real estate and vacation rentals for as little as $100.

Their flexible investment options allow both accredited and non-accredited investors to easily benefit from this inflationary asset class. You can start by browsing the appraised properties, then simply select a property and choose the number of shares to buy.

And, for a limited time, if you open an account and add $1,000 or more, Arrivals will credit your account with a 1% match.

Multifamily and industrial properties provide another excellent entry point into real estate investing, especially considering the strong outlook for these asset classes through 2026 (4).

If diversification into multifamily and industrial rental properties appeals to you, consider investing with Lightstone DIRECT, a new investment platform from Lightstone Group, one of the largest private real estate companies in the country with more than 25,000 multifamily units in its portfolio.

By eliminating intermediaries – brokers and wholesalers – accredited investors with a minimum investment of $100,000 can gain direct access to institutional-quality multifamily opportunities. This simplified model can help reduce fees while improving visibility and control.

And with Lightstone DIRECT, you invest in multiple deals of the same estate alongside Lightstone – a real partner – as Lightstone puts at least 20% of its capital on all donations. All Lightstone investment opportunities are rigorously reviewed, with multiple stages prior to approval by Lightstone Principals, including founder David Lichtenstein.

The way it works is simple: Just register with your email, and you can schedule a call with an investment expert to explore your investment opportunities. From here, all you have to do is verify your information to start investing.

Founded in 1986, Lightstone has a proven track record of delivering strong risk-adjusted returns across market cycles with a historical IRR of 27.6% and 2.54x historical net equity multiple on investments made since 2004. All told, Lightstone has $12 billion in assets under management — including industrial and commercial real estate.

So, even if multi-family rentals don’t appeal to you, Lightstone can still serve you as an investment vehicle in other specific areas.

Get started today with Lightstone DIRECT and invest alongside experienced professionals with skin in the game.

However, Ramsey’s advice to Jackson was not about picking stocks or timing the market. It was about education and discipline.

First, he urged the 23-year-old to meet with a vetted financial expert to get guidance on how to operate his nest egg.

But since hiring an advisor can be a lifelong commitment, finding a trusted one is important.

This is where Advisor.com can come in. The platform connects you with an expert near you for free.

Advisor.com recommends hard, vetted advisors based on track record, client ratings and regulatory background. Also, their network includes fiduciaries, who are required by law to act in your best interest.

Simply enter a few details about your finances and goals, and Advisor.com’s AI-powered matching tool will connect you with the right professional to suit your needs based on your unique 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 also allows you to schedule a free, no-obligation initial consultation to see if they’re a good fit for you.

While Ramsey recommends working with an advisor to learn about investments, he cautioned against choosing investments based solely on the advice of others — including Ramsey himself.

Instead, the financial guru said to invest something “because you start to understand it.”

After all, behavioral finance research shows that good investor habits – not market returns – are one of the main 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 plan $450,000 as a life-changing investment. But Ramsey and his partner Coleman were adamant about the importance of self-discipline and staying focused on the bottom line.

In other words, windfall is not a guarantee.

“This is a good start for you,” Coleman said, adding that Jackson should “just leave you alone” after investing. Ramsey echoes that advice, insisting that the young man “keep his hands off him.”

IRS rules reinforce that point. Although inherited assets can receive favorable tax treatment, including a step-up cost basis in some cases, the gains are still taxed once the investment is sold, and wrong moves can create avoidable tax liabilities (6).

In other words, inheritance creates opportunity, not immunity from financial mistakes.

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Ramsey 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 construed as advice. Offered without warranty of any kind.