What Should We Do with an Inherited $700,000 401(k)? 

Most people don’t leave their families a pack of peanuts, good on him for leaving a legacy.

Best advice. When I lost my husband I was in a fog. I didn’t inherit money, but was blessed with a family that helped me figure out how to get out of the house I couldn’t afford and into a condo that was paid off. Sometimes you just need to get to a place where you can get through the day to day and grieve, before you can start making the best financial decisions.

“how are u doing” “sure man”

In 2011 we went on Chapter 13, me and my wife make around 100,000. a year, she lost her job in 2008 and after that debt started to pile up. She was unemployed for two years. We went to one of your seminars in Portland, OR. and that changed our lives. Now we do not owe a penny to anybody and we are happy, debt free and retired, because we follow your advice. We want to thank you for that. Thank you.

You’re never looking for a broker, period. Brokers know how to buy and sell. They don’t make money by holding.

I am so impressed with deceased husband, taking care of his bride, and ensuring her continued lifestyle. I'm also impressed with this young man to call in and ask how he can help his mother. Dave's advice was outstanding! Guarantee the safety of the money, where she doesn't lose any, double her monthly income, and enjoy her remaining years, however she likes. Someone commented on this as a legacy, and I agree 100% with that. What a legacy!

So i am much younger, 43 years old, but this is exactly how i and my wife picked our financial planner. I picked a guy that if i call him with questions, he will always make as much time as i need to be comfortable with the answer. I have been through a few of them over the years that promised to make my money, this is the first one that has explained how he was going to make my money and answered every question i had, no matter how stupid they seemed.

Giving a frugal person more money will not change their lifestyle one iota. They will just put the money in the bank.

Certainly can be difficult thinking logically when you're in grieving mode. If they take the time and manage it right they will be set for a long while.

I’m a financial planner in Canada and I love the advice he gives about how you should pick an advisor. You should always feel like you are learning and on-board with your advisor. Never just blindly trust someone that seems confident but doesn’t take the time to bring you on board. I never let me clients make a financial decision they don’t feel 100% comfortable with even if it takes 2-3 meetings.

Great response to a dark situation.

What a smart son calling into Dave Ramsey to make sure he does this right. Good on you, man, good on you.

Wow this is hard. Thanks for helping Dave!

1. Don't go too fast. Take things slow to learn, and there comes #2 2. Invest only in what you understand (same as Warren Buffett said), and understanding takes time. 3. Find someone to Teach you not Sell you. Someone with a teacher's heart. You will know it if you go out of their office and have learnt sth new.

Sorry for your loss Mike 😔

I bet the Mom will never touch any of the money, she will leave the money in the 401K and leave it for her son.

It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.

Reminds me of my neighbor. Her son passed and he had a 401k of about 500,000. Ex husband passed and left his to her which was about 400,000. She has her own retirement, and owns every thing. She only had used it when her kids or grandkids has asked for money. She said after she gave out about 200,000 she finally decided to just not touch it anymore because she doesnt need it

I don't agree with everything Dave recommends for investment, but I do dig his approach and his humanity. Rock on Dave!

Also make sure she doesn't fall for one of those love scams.

One almost never wants to recieve money in such a way... this year many have had to pay a heavy toll

This was awesome 👏🏽

Great advice.

Dave you never disappoint.

Good advice

Totally agree with what Dave Ramsey says. So many financial advisors pitch they can beat the market and they're smarter than everyone else. It's so much more empowering if they teach the person how to save and invest.

"Don't invest in anything you don't understand...." Probably the best advice ever....

Why does she need to buy more stuff she has a paid for car, paid for house and no debt. She's getting $2,000 a month some well actually a lot of people would love to be in her situation..

That’s a great suggestion use it for mom for a good life take your time

Wow. That’s a good start

This was a great video, I loved Dave’s recommendations and overall how he handled this call.

Wow! I'm blown away by all this.

Moms got to pay taxes on the 401k fund, lets not forget that either.

I think the great fallacy given to us by the financial industry is that as we age we spend more. Unless you have some debilitating health crisis, nothing could be further from the truth. I've watched countless seniors spend less! Much less. My mother lived on $2000/mth in a paid-off house. The only thing she needed was her RMD's to pay... her taxes. Taxes ended up being her biggest expense for decades! Big shocker.

Dave is right, don't get in a hurry. Read and learn as much as you can about taxes and investing. As you can see in the comments, there are a lot of opinions on how you should manage money. Make sure you know enough for y'all to make up your own minds.

Split it between MSFT, AMZN, AAPL, TSLA, GOOGL, WMT, NVDA. You just might have a few million in 5 years or so. Sell some here or there when you need

Yolo it on NIO calls 🚀🚀😂💯

Money doesn’t change people. It just allows a person to show who they really are. Be smart, spend a few weeks or months reading and researching. Then lay out a plan that meets your goals.

Putting money in a market account is wrong if its in one, as only 250k is insured not all 729k of it. Not clear advice, semi poor advice.. Should be in 3 different accounts, during this waiting period.

anyone else hate when Dave pushes his "smartvester pros" onto grieving people? my guy acts likes he recruits every good broker in the country

My wifey destroyed the 1st Ramsey ELW she talked to. It's not a good sign when she new more than those people. 3rd company was ok.

Get referrals from people who succeeded in your situation. I did and haven't regretted it.

Go to Vegas put it all on red..😅😅

Merry Christmas Dave and Team!From the Netherlands,Rich*

Just put it in the S&P 500?

my friends mom was left well off but shes 103 now and low on money. and has a reverse mortgage on her home. she's outlived 2 of her 3 kids, but doing ok. She had a very good cartologist. i love her dearly buy realize she's winding down , but she took me to lunch a while back

Nice

Buy one, two bedroom home in Denver.

That’s pretty nice

$2,000 a month with house and car paid etc, More than enough money to live on.

I didn't have the same emotional response as the hosts had on the show. The wife was the beneficiary of her husbands 401K. They likely were counting on the proceeds of the 401K together. RMD's will come up and will have to take a distributions either to the end of her life or till the end of the funds. This is not found money. In Dave's words, she's a millionaire. I guess she was before her husband passed away. The conversation never went to monthly need. I do agree with the recommendation at the end of this.

I would throw the money into dividends stocks. With 720k that will generate you at least 20k-30k annually from dividends. If his mom is making 2k a month she is making around 30k a year. With dividend it will double her and income. Savings account have very little APY.

Man some of these people have it so good, I’m actually jealous

Dave Ramsey, what happens tax wise when you park that money into a savings account?

Definitely doesn't need to withdraw more money if she doesn't want to. Son said $2000 is more than enough.

Be careful, first off. Lot of wolves out there 😂

$250k in an FDIC insured high yield and the rest in SPY.

Well I would take half and put it in a savings builder while I look for a good financial planner....and I would take the other half and invest in a tuba degree

"That sounds younger every day!"

When he was considering her income, he seemed to not count the pension she receives from her husband; the son didn't mention an amount. that would reduce her needs even further.

$700k is a wonderful blessing. A smart investor will double it in 7 years. A bad investor though.....

Dave has a heart of a teacher.

We'll actually bank CDs that are FDIC are safer than money market. Money market is not FDIC in many cases

SS and a pension, she's doing great. If she is almost 70 too then the RMDs will start in a couple of years.

Most people don't put beneficiary on accounts. Stupid like they will live forever and state fights families and each other in probate court all for it.. only lawyers make money.

Whatever you do do not do mutual funds! ETF VOO and VT is all you need

Set up a trust in the mother's name. Why would he put the money in a savings account?

Referral pyramid scheme

He is a good son.

How do I make an inherent im 23 with 38k my name and ik is not alot but what if I die tomorrow lol I want someone in my family to have it or pay my funeral with it

fyi anyone other than the spouse, only has 10 years to withdrawl the whole inherited 401k

Draw down as slow as legal

I'm surprised his dad didn't draft a plan to direct them how to manage the money.

If you don’t have any, buy a few acres of land to farm and start growing your own food. Prepare yourself to be somewhat self sustaining in case what we went through with the pandemic happens again.

I get a sense that he doesn't really want his mom to spend any of this money....

Dave is judgemental. There are many people who are thrilled and joyous just to get up enjoy a cup of coffee, take a walk, enjoy their pets and garden, etc. No, not everyone wants to "live it up" to really feel blessed, joyous, happy, contented, etc.

Buy silver juniors and uranium miners for explosive returns.

Pay taxes Pay debts Boost retirement investments. Spend some.

Nice video!! Very engaging from beginning to end. Nevertheless, businesses and investment are the easiest way to make money irrespective of which party makes it to the oval office.

It’s her money, not his. Why is he saying “we”?

Hey Dave, Stop telling people to start "FEELING"! That is not smart! I can make you "FEEL", Happy, Sad, "SCARED", I pretty much can make you "FEEL" anything that I want to. You should be telling people to "CHECK" their "FEELINGS" and make sure that they are not getting something that makes them feel good or safe but yet they have been taught the wrong way? It is possible that someone can teach someone the wrong thing and they could believe it so much that even if they are being hurt by it they will not see it until it is way too late. They need to be asking questions like, * Why am I feeling the way I am feeling? * Does what I am learning really add up? * Do I get different answers when I talk to people whether it is someone who I have been referred to or someone who has no connection to the original person or the person that the original person referred me to? * Is a person trying to get you to jump into the boat or make you feel like if you don't take the deal you will lose out even if you want it really bad? * Even when the answer is NO and someone is willing to tell you that answer evenknow you don't want to hear it but they will make a real difference in you getting swi9ndled?

Millionaire used to mean something in the 1800s and early 1900s. Nowadays, a single modest house can cost a million dollars. It’s not how much currency one has but the kind of life one can afford.

Ooo came too early

Pick one of the pros from my website. 😂

*700k? You can do a lot with that if you know what you're doing* *But if it goes to ZERO then* ... 🤷🏿‍♂️🤷🏿‍♂️

Lambo, rarri, Benz, beamer, Cobra, Stang 🥳

She could move up from $2k a month to $3k per month easy

If they already have enough unearned income to cover the household yearly, give away the remaining unearned income to poor people, who commit to doing the same thing. Matthew 19:21

My dad has got nothing to offer to his kids. He worked $10/hr his whole life and never learned a trade. It's very sad what he s done with his life. Now, he s retired but he still needs to work. I changed this around for myself. I dropped out of college because I didn't want to end up like him. With God's help, I will retire next year at just 36 with enough cash flows for me and my family.

That goes too when hiring a lawyer.

Roll it over Roth it pay the taxes fidelity low cost ETFs five years than live off it.

Hey Dave, my daughter chased a ball into the street and was hit by a car Dave: Let me get you the number for a smartvestor pro.

Wouldn't you roll it over into a Traditional IRA as the first step to avoid the tax in the mean time, then grieve, then anything else?

Mutual funds, lol.

An IRS and tax nightmare ahead with this .

Why are americans so spoiled 🤣 TWO GRAND A MONTH 😂 I would kill for that.

Lol these calls seem to be the majority on this show..""hey Dave, I only have 10million $$ and I can't pay my car what should I do?? "

😁✌🖖👌👍 😎

Maybe she enjoys her life Dave, who are you to judge how she enjoys her life and spending? Maybe she has a good quality of life that doesn't need "doubling" lol.

Remember way back when when Dave said the corona wasn't a big deal?