@@michellemorford349 - of course not, but so many are.. so the advice is solid "Don’t tell your friends. Definitely don’t tell girls. I wouldn’t even tell anyone"
Well, he seems smart. "Just fine"? I'm actually a tad worried for him. Assuming he lives in your average, middle class family (and not surrounded by nothing but rich people), he's going to be a target. Every 5th cousin, every aunt that once drove him to little league practice, every "friend" with a business opportunity is going to pressure him to "lend them" some of his money. I could easily see him losing a relationship or five over this money. "WHAT DO YOU MEAN YOU DON'T KNOW IF MY BUSINESS IDEA IS GOOD? BRO, THIS IS GUARANTEED TO MAKE MONEY! YOU'VE CHANGED EVER SINCE YOU GOT THAT MONEY!!!"
The only smart decision here is to invest the money outside of his parents.. with a reputable company and let them handle it. 3M into accounts and investments he isnt going to touch for 20-30 years.. 100k into an account for fees and costs. 100k into an account for emergencies. And 300k into an account for school. I dont know how student loans work in america... but he could get students loan. Go to school for however long he wants... and then have 300k making an average of 10% over 4 or 5 years... and then pay off the loan as he graduates without paying interest. Again, not sure if it works like that in America, but if it does... he could potentially get his schooling paid for for free. @@dontbanmebrodontbanme5403
@@Adam-lq5kg if you think his call wasn't IMMEDIATELY transfer to one of their top closers... you are insane lol this is free money for their business. Manage 3.5m for 30+ years. The kid will be fine as long as he listens to them, lives modestly, and tell everyone he put the money where he can't touch it for 30 years.
@dontbanmebrodontbanme5403 that would be just fine because we love it when a dumb kid gets millions at 18 and is broke by 22 or 23 because now they have to be like the rest of us
@TheRealEdStoner for sure! If i was in his shoes, i would probably learn a trade and start a business after i become a professional in that trade and some business courses on how to run/manage it.
I can feel the worry in their voices over this. Putting 3.5 in the hands of an 18 year old is very dangerous if the right people are not around them. There are exceptions but I know I was an idiot at 18. Thought I knew a lot but I didn’t lol. I really hope things go well.
And even if he's wise with money, if he's from a typical middle class family, there's going to be extreme pressure from everyone to give up some of that money. From parents who want their mortgage paid off to 4th cousins with a can't miss business opportunity that just needs $1 million to get things started. I can see him caving to pressure and doing something he doesn't want to do. The best thing he can do is put the money in an index fund matching the S&P 500 and do nothing else until he's sure of what to do. If that takes 10 years, so be it. If it means your 8th aunt disowns you, so be it. If you're 35, these are easy decisions. At 18? Yikes.
If I had this money dumped in my lap at 18, I probably would have blown it by 23, had nothing left to show for it, and probably would have offed myself by 30. Not everyone matures at the same rate, haha.
If Alex is reading this, they elude to this but I’m going to say it straight out. DON’T ADVERTISE YOUR WEALTH!! And the few people that will know, treat that relationship with a degree of caution. My mom and I came into money through a lawsuit when I was young and the second the cheque cleared, a mutual fund salesman (who had sold my parents mutual funds in the past) that I hadn’t seen in years was all of the sudden calling the house every day and taking my mom out to dinner, dates etc. It was really hard to do, but I had to level with my mom and tell her, “he’s not into you, he’s only after your money”.
90% of 17 year olds can’t manage that kind of wealth well, especially when they didn’t create it, but he’s ahead of the pack if he’s calling Dave before it’s even in his hands.
The fact that he called for advice on this tells me he is a smart kid. I believe he can do it. Im rooting for you Alex. Just try and forget the moneys there, keep saving what you can and keep going about life as if it’s not even there. Your 36 year old self will cry thanking you… you got this bro. Congratulations !
He needs to make sure he doesn't tell anyone except the people he trusts most. And he especially needs make sure no girls know how much he has. The wrong girls will find him and throw themselves at him.
No woman needs to know. You want the woman that will sit with you in the back of the bus anyways. There is nothing good coming out of them knowing. Getting some pussy but putting yourself on predators radar is not worth it.
The kid mentioned medical issues, so he may need to reserve some of it for any future health problems. It is really hard to know since he did not give details. I hope things work out well for him.
I inherited a similar amount when my mum past away when I was 18. The best thing I did was live drastically below my means. After spending a bit on a nice meal 🥘 and I got myself the full box set of Pokémon dvds 📀 I’m now 27, my net worth is up several million and I’m very happy with my choices. Something else that helped was I got myself a fulltime job and tried to mostly live off what I make on that. Keeps you grounded. I didn’t have many people come out of the woodwork as when it started to happen I shut it down. This bloke will be perfectly fine if he is smart about it :)
You are smart James you did it right! Key is to live beneath your means and still have a great life! So sorry for your loss but I'm sure your mum is very proud of you!
Disagree. Nothing wrong with buying a new car with 3.5 million in the bank. No reason to HAVE to work or save %15 of wages - this young guy can easily live off the interest without having to touch a dime of the principal . I do believe he SHOULD work but he should do whatever he wants to do because he has the money!
@@daryltgeorge He's in a position where he can turn a hobby into a business and that is what he should do. He needs to do something, but he's in a position to make it something he loves.
The kid called in wanting to know what to do with the money and they gave contradictory advice. “Sit with your parents make a plan.” “Don’t trust your parents” “people are going to be coming out of the woodwork for this money.” “Assemble a team.” As in a group of people who are going to want his money to tell him what to do? Buy a cheap car but pay exorbitant legal retainers and fees who can now bill hours to this 18 year old millionaire? What useful advice did they give him?
For y’all saying don’t tell anyone, he is probably still in high school and an athlete. Guaranteed he’s told at least 2-3 people who then told more and so on so gg
Yes. I contacted two of those "smart vestors" and found that neither had "the heart of a teacher." Both were just after whatever made them the most money. One wasn't even well-mannered. I chose not to go with either one. I wonder how Dave's organization determines that these people have "the heart of a teacher." He can't know all of them personally.
We met with a Ramsey insurance person (whatever they're called) who was a sexist pig. Blech. I'm sure that's not something that shows on a paper application form.
And what does that mean ‘bad experience’ in this case. She didn’t get to invest how she wanted? They took too big rate? She didn’t get as much as she expected? Literary zero credible information..
Couple important general advice in situation like this: 1. Learn to say no, and learn to do that to anyone, including family including crying sad, angry, blackmailing threatening people, in fact especially any of those. 2. Understand that just because you can afford something does not mean you need that something or that it is worth the price. 3. If you are not sure about buying something there is high chance you don't need/want it. At the very least wait a few days or week. If you keep thinking and investigating and wanting the thing still a week later you still might no need it but at least wanting it is more than momentary impulse. 4. Remember that you having something does not mean that you owe anything to anyone or that anyone else is entitled to any part of that something. Where your money goes should be your choice, preferrably one made by your initiative. 5. If anyone gives you any advice where you following that advice would benefit them, you should not blindly consider that advice honest let alone correct. 6. Sometimes and especially in situation like this not doing anything is often better than rushing into anything too quickly or because you feel like you need to. Though the video basically already covered this basic idea. Also you should be more open to following advice of people who tell you to not spend on, give to or do something than people telling you to spend, give or do something. Related to this reread point 5. 7. Always read the contract including small print an preferrably have lawyer who is on your side to read it if any significant money or long contract text is involved.
Do not buy fancy cars. Pay cash for a piece of property, leave the rest in mutual funds for 40 years and take out 4% a year. Congrats, kid! You're set for life!
The kid has a good head on his shoulders in that he is being cautious and seeking advice vs what many people his age might do and blow through the money in just a few years. Very wise of him!
WOW!! Beware of financial advisors. They will be salivating to get their hands on this. Also, keep this circumstance to yourself and be picky about who you tell. People change when it comes to money - often for the worse - and it might create nonstop interpersonal problems with the inability to trust people in your life and their motivations. Good advice on getting a good attorney to help set up legal parameters and guidance. You have assets now so you can be sued as well so maybe come at it from that angle.
@LaserActiveGuy If by skimming you mean providing millions of americans with the best financial advice they can have and with good financial services from partnerships (Not actually called financial advice due to legal reasons but whatever) ? Yep, he is skimming SO HARD!!! Unless you have any evidence you are just spouting nonsense.
This is going to be my opener for my finance unit! A class of 14/15 year olds, looking at part time jobs and starting thinking about university. I want help set them on the right path to wealth in the future, BEFORE they get set in their ways of making bad money habits.
Invest some and live off the rest at 17? That money will be gone in 30 years a a normal rate of pretending he makes 100K a year. No where near enough to just volunteer for life
Don't tell anyone ever, invest 80%+ in S&P 500 index funds, do some travel and reconnaissance to find out where you want to live, buy a modest house there, live on 1-2% of the money annually, and pursue hobbies and entrepreneurship. You won't ever have to have a job.
Take a small amount out for college and invest the rest then forget about it. Never touch the principal amount and at some point in the near future you can live off just the interest/gains.
Having some sort of job or interest gives purpose to your life. It would be boring otherwise. I am getting near retirement age, and plan to have a little business to keep me occupied. It does not have to make big money, just enough to keep me ticking along financially. But it is more about the activity.
Telling a 17 year old he will never need to have a job is the worst imaginable advice! His life will have no meaning without goals and something to work toward. Shameful advice.
@Person-mh6xq you can have something meaningful and something to work towards that isn't a job. Tons of options. Entrepreneurship springs to mind. Mastering a sport, a game, a skill. Becoming super knowledgeable about something, like getting a PhD in mathematics or anything you're interested in. Doesn't matter that it doesn't make money, so options open up a lot. There are lots of things that give life meaning other than a job.
What a blessing... as a young kid I wanted to be professional pilot. (Airlines, corporate aviation, ect. ect.) I didn't realize how expensive flight training was and at 18 I got way into debt and couldn't finish the training. 10 years later I joined the Air Force and now I'm using the G.I. Bill to help pay for flight training. I hope this guy uses the money wisely and invest a lot of it for his future. 3.5 mil can be gone FAST if you don't handle it right.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing below the $100k mark and in the first 2 months, my portfolio was reading $234,800. Crazy right!, I decided to reinvest a huge percentage of my profit and it got more interesting.! For over a year we have been working together making consistent profit just bought my second home at the beginning of summer.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@lennoxmutterick6434 However, if you do not have access to a professional like Suzanne Gladys Xander, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
Honestly, go to a college, pay it cash, forget you even have this money. Split 50/50, put 50 into long term investments 50 into divends to live off of. Get a good job you love and live modestly. Get a prenup no matter how much you think you don’t need it. Don’t tell a soul about the money, live your life pretty dang good.
@@zType2 go to college to learn finance and account . Have your career be to manage this money. If you get a advisor your going to be giving away a salary every yesr
@@dchen2140 Knowledge can be obtained at home in a much more efficient manner. 3.5mil invested makes it so that you are set for life. There is no need to waste time or money on college in that scenario, imo.
The problem with buying a home at a young age is you dont know where you going to settle down, you have to try a few places to see where you want to live, it takes time. Buying a house will tie you to a single location!
But he can always sell it, right? Real Estate is a great investment. I don’t want housing to keep going up at this rate, but it does seem to be. And he can either keep it a long time in his portfolio as a investment, rent it out, or sell and move.
Its almost as if there is thing called selling. I'm not sure how it works. I think when someone buys something the other person sells it. Like is this a FINANCIAL channel anymore or a boomer commiseration hub???
Doesn’t sound like the kid wanted to buy a house, only he thought he should because he has the money. That’s not a good enough reason to do it, too many things to consider. Buying and selling has transactional costs associated. If he does them close enough together due to changing situations then he could be out of pocket substantially more than the equivalent cost of renting over the same term. Also true that renting out the place he buys when ready to move is an option. Which is fine if he is going to gain the best return on investment of his capital, and if he actually wants the responsibility of managing an investment property. Else there are other effective ways to invest that money.
Absolutely get an attorney on this one to ensure the money is properly protected. This is definitely a situation where setting up a living trust is a good idea. Other professionals to include are a CPA, financial planner, financial coach, and personal mentor. All of these people work in tandem in different lanes to help handle it in a holistic way. At 17, this can be either the best or the worst thing ever to happen to him. He's got to decide which it will be, and a good team of counsel on his side will help him make good decisions.
He said there was some medical incident that caused the trust fund (presumably from some law suit). I'd be curious if there are any recurring medical (or other) bills related to that down the road that need to be accounted for... and how that affects the answer.
I feel like these guys dont really listen to what people say and or consider the side that speaking on something sometimes. They just hear money and default to do this and that. They dont listen to the person and really see the situation
@@jendiaz4718 statutes is the word you're looking for. That isn't what they are referring to though. They are referring to recurring bills for ongoing medical services.
Asking a 17 year old if their parents are trust worthy? Isn't an easy question. My Dad was manic bipolar. He wasn't trustworthy with my money. I didn't know that at 17.
I wish I would have bought a house at 18/19. I wish someone would have suggested it and I wish it was known how I could do it. I thought it was something I couldnt afford. Flash forward to 27 I buy a house, but now I am 10 years late on affordable houses. Even if he is going to be smart and not spend the money, why not have an asset right out the gate. Also I personally think learning a trade or two is the best option. Learning a skill is far better than a fancy piece of paper with a degree. I think our world tells us that.
I’d put it all in a trust, bonds and funds, and ensure I can’t touch the principal. The interest alone is 200,000k a year, and it doesn’t matter how many sob stories I hear, the funds are locked up and I’ll still get 200k next year. Family, kids, and grandkids are guaranteed to be safe.
Put it in all diversified index funds with a total portfolio dividend yield of 4%... that's 120+k that will keep increasing every year until you die. NEVER touch the principal or sell shares, only use the distributions. By the time you're 30 the distributions will be over 200k and by the end of your life probably 7 figures in dividends annually. None of this buy a car or house in cash bullshit. You never spend a dime of the initial principle. Use the cash flow for living expenses and reinvest as much of the dividends as possible.
They ask him why he would want to buy a house???! Seriously? If he's got the cash, he might as well use 10% of it and buy a home free and clear! Better then letting it sit in his bank inflating into oblivion.
Dave Ramsey show: "people are going to come out of the woodwork to manage your money don't let them" Also Dave Ramsey: "Let our smartvester pro's manage your money we'll help you"
There's a huge difference between friends and family members taking advantage of his financial situation and him working with an investment professional to help him manage it.
Im 54, honest and have integrity and seen so much shizzle in my life where FAMILY is willing to KILL or disown anyone in the family over money. This will not be easy or good for this young man. To keep the money he will lose relationships - whether those relationships are good or bad, they will be lost.
I think college is a bad move, unless he’s passionate about a career that it’s necessary for. The reason for college is to make more money. $3.5M is $50k per year for 70 years. Invest that money and it goes further. I’d say get a part time job just for fun and live frugally. No stress life.
College isn’t only about moving up in a career… it is also about learning! I have a PhD that I use for my career, and then I still take community college classes periodically just for fun! To learn something new. I’ve taken sewing classes, boxing, Spanish, CrossFit, etc. Whatever I want to learn, I pursue. Lifetime learner and proud of it! This guy has so much money, that he definitely should go to college if that is what he wants to do! He could develop an idea while he is there and become a CEO of a new business!
@@ccampbells83 It's a good point, but you don't need college to learn. The information is out there and most of the time you can get it for free. I'm not sure what field of work you're in, but I don't use anything I was taught in Humanities or Sculpting... but I had to take them to graduate. I've learned more after college because it's necessary for growth and it's stuff I'm actually interested in.
@@tomcarrow hey Tom! I definitely agree with that; there is free information everywhere, especially the internet. But for a lot of us it helps to go to classes and have a laid out curriculum start to finish. This caller just need to figure out what he wants to do in life and whether he needs additional training/education to get it.
I mean a lot of people think learning is a good thing. Learning how to write well and communicate well is invaluable. Biology, chemistry, history, etc? These things are amazing to learn and know in life. I took an art history class, a philosophy class, and French classes while getting my nursing degree and it was wonderful. Lots of things are worth learning if you have the money and the time.
Don't tell ANYONE. Don't show signs. My nephew was in the same situation and he never told anyone and drives a used car. Not even his best friends know. He was 17. He's now 21 and getting ready to graduate college. He's lived with his grandma when not in school even works part time to keep the facade in check. I pray this kid handles this well! What a blessing, except for the reason he earned it. Hopefully nothing life threatening/shortening.
the more i think about it being given that amount of money before youre even out of high school is a ton of responsibility and alot would crack under it... more of a curse then a blessing
I'd have 1 million in some dividend fund, paying myself a nice paycheck, rest simply rolling in ETFs. 2.5 million would still grow into a lot of money and I could enjoy life, doing what I want to to do, without ever having to worry about a paycheck, because I'm paying myself through dividends
Don’t tell anyone!!! Keep this a huge secret and ask your parents and anyone else that knows about the money to please keep it a secret. If family and friends know many of them will try and guilt you into giving them money. Also you will always be the one to pay for every dinner and vacation etc..until you are broke..then they won’t care. Invest the money safely. Even hiring attorneys, accountants…be careful. I needed attorneys, accountants etc after a family inheritance and I will tell you the bills were shockingly huge. I would suggest if you need to go to an attorney for council that you pay as you go…same with accountants. Get the council you need and pay them and move on. Take care of that money and that money will be there growing to take care of you throughout your life. Also work toward a career…work makes us feel good about ourselves and that is a really good thing.
Don't tell ANYBODY!!!!!! Finish your schooling, find some hobbies or interests you enjoy and make a career path out of them. Find a Church or Volunteer Organization you can spend some TIME (not money) with. Stay out of nightclubs or casino's. NEVER touch the principal, only live off the yearly interest after taxes. NEVER TELL ANYBODY!!!!
I know at 17 I wouldn't have the discipline to do what Alex did. I'd be saving money but not like how these guys explained. I'd be buying that tesla for sure. This kid if he does it right, things are set for him. I hope that I can teach my kids to do the same with their money.
They're giving him solid advice. Pretty much act as if that money isn't even there. Go and do life outside of the money. Meaning, saving for a house, saving for college, and planning life just like a normal 18yr old. The only difference is, he has an attorney and an investment advisor in his pocket managing that money, and managing big decisions when it comes to that pile of money.
I wish I could go back in time - to just knock some sense into me -when I was a 25 year old and working already. Hope the kid listens...but harder to stay the course in today's materialistic world we live in, especially being so young with that much money - on top of social media! My 18 year old self would be thinking - ok Day one - new Corvette or Porsche 911!
Money that is received in a court settlement is usually considered income and is therefore taxable. However, personal injury settlements are an exception, so the money you get after a slip and fall or car accident is likely not taxable income.Feb 14, 2022
Wouldn’t you still need to pay tax on getting a 3.5mil settlement? I’m assuming if its in a trust then any cost were already taken out when the settlement was first determined not sure
Investing in the community means that you have some power to create safe enviroment, that you want to live in. Having a lot of money and living in a bad neighbourhood is bad. One coach once said that if you have money to invest: invest it in your favorite restaurant so it does not go out of business... invest it in the places in your community which you want them to keep working so you can keep going there...
Of course it depends on the market. But if you buy a house that’s a bit of a fixer upper and not more then 500k, and do work yourself to improve it. And hopefully then sell it when the market permits you to profit, and just keep hopping buying better homes and fixing them up. This and working plus with that 3million dollar cushion. Seems like a decent plan to me.
Don’t tell your friends. Definitely don’t tell girls. I wouldn’t even tell anyone
Not all women are money sucks dude.
@@michellemorford349 Please. I"m a woman and I never dated a man based on money BUT it's a very bad idea to tell.
Careful from all the women offering to mate huehue
@@michellemorford349 yes, but the majority are. You might be amazing Michelle, but do you trust most other women to do the right thing?
@@michellemorford349 - of course not, but so many are.. so the advice is solid "Don’t tell your friends. Definitely don’t tell girls. I wouldn’t even tell anyone"
The fact that he’s reaching out to Ramsey and wants to do what makes sense. That is awesome!
This kid made the right choice in calling. He should be just fine.
Well, he seems smart. "Just fine"? I'm actually a tad worried for him. Assuming he lives in your average, middle class family (and not surrounded by nothing but rich people), he's going to be a target. Every 5th cousin, every aunt that once drove him to little league practice, every "friend" with a business opportunity is going to pressure him to "lend them" some of his money. I could easily see him losing a relationship or five over this money. "WHAT DO YOU MEAN YOU DON'T KNOW IF MY BUSINESS IDEA IS GOOD? BRO, THIS IS GUARANTEED TO MAKE MONEY! YOU'VE CHANGED EVER SINCE YOU GOT THAT MONEY!!!"
My fear is the call is only seeking the advice. The end result is dependent on him taking and acting on that advice....
The only smart decision here is to invest the money outside of his parents.. with a reputable company and let them handle it. 3M into accounts and investments he isnt going to touch for 20-30 years.. 100k into an account for fees and costs. 100k into an account for emergencies. And 300k into an account for school.
I dont know how student loans work in america... but he could get students loan. Go to school for however long he wants... and then have 300k making an average of 10% over 4 or 5 years... and then pay off the loan as he graduates without paying interest. Again, not sure if it works like that in America, but if it does... he could potentially get his schooling paid for for free. @@dontbanmebrodontbanme5403
@@Adam-lq5kg if you think his call wasn't IMMEDIATELY transfer to one of their top closers... you are insane lol this is free money for their business. Manage 3.5m for 30+ years. The kid will be fine as long as he listens to them, lives modestly, and tell everyone he put the money where he can't touch it for 30 years.
@dontbanmebrodontbanme5403 that would be just fine because we love it when a dumb kid gets millions at 18 and is broke by 22 or 23 because now they have to be like the rest of us
They handled this call so well! College, a car, and time. That's all this kid needs right now
3.5 million he could skip College.
Facts
@@TheRealEdStoner investing in yourself is never a bad idea if the money disappeared his skills n degrees will always be with him
@TheRealEdStoner for sure! If i was in his shoes, i would probably learn a trade and start a business after i become a professional in that trade and some business courses on how to run/manage it.
@@TheRealEdStonerhe could go to college and get the experience then wait for the job he wants
I can feel the worry in their voices over this. Putting 3.5 in the hands of an 18 year old is very dangerous if the right people are not around them. There are exceptions but I know I was an idiot at 18. Thought I knew a lot but I didn’t lol. I really hope things go well.
And even if he's wise with money, if he's from a typical middle class family, there's going to be extreme pressure from everyone to give up some of that money. From parents who want their mortgage paid off to 4th cousins with a can't miss business opportunity that just needs $1 million to get things started. I can see him caving to pressure and doing something he doesn't want to do. The best thing he can do is put the money in an index fund matching the S&P 500 and do nothing else until he's sure of what to do. If that takes 10 years, so be it. If it means your 8th aunt disowns you, so be it. If you're 35, these are easy decisions. At 18? Yikes.
Agree I too was dumb financially that young but thought I knew it all 🤣 😂
@@dontbanmebrodontbanme5403 true words spoken from you. As for me, it would mean being in my 50's.
If I had this money dumped in my lap at 18, I probably would have blown it by 23, had nothing left to show for it, and probably would have offed myself by 30. Not everyone matures at the same rate, haha.
Put it in different Mutual Funds, live of interest. Never touch the 3.5 Mill
If Alex is reading this, they elude to this but I’m going to say it straight out. DON’T ADVERTISE YOUR WEALTH!! And the few people that will know, treat that relationship with a degree of caution. My mom and I came into money through a lawsuit when I was young and the second the cheque cleared, a mutual fund salesman (who had sold my parents mutual funds in the past) that I hadn’t seen in years was all of the sudden calling the house every day and taking my mom out to dinner, dates etc. It was really hard to do, but I had to level with my mom and tell her, “he’s not into you, he’s only after your money”.
What's your mother take on this afterwards?
90% of 17 year olds can’t manage that kind of wealth well, especially when they didn’t create it, but he’s ahead of the pack if he’s calling Dave before it’s even in his hands.
Probably closer to 99.99% lmao
99.99 percent of 17 year olds don't listen to Dave ramsey
First thing. Don't tell or show anybody that you have money.
Yeah and he is calling DR...lol
Too late
Bless his heart for calling in on the Dave Ramsey Show
The fact that he called for advice on this tells me he is a smart kid. I believe he can do it. Im rooting for you Alex. Just try and forget the moneys there, keep saving what you can and keep going about life as if it’s not even there. Your 36 year old self will cry thanking you… you got this bro. Congratulations !
Alex I hope this is a blessing and not a curse. Good luck on your journey!
Alex, PLEASE listen to these folks on the Ramsey team. PLEASE.
He needs to make sure he doesn't tell anyone except the people he trusts most. And he especially needs make sure no girls know how much he has. The wrong girls will find him and throw themselves at him.
He just told the whole world so it's too late now.
Hey no one says he needs to catch what their throwing. Having the money and some extra options in life can never be a bad thing.
He's already told the world through this call.
He could be under an alias in this call even live in a different city. That's what I would do 😂
No woman needs to know. You want the woman that will sit with you in the back of the bus anyways. There is nothing good coming out of them knowing. Getting some pussy but putting yourself on predators radar is not worth it.
“Way ahead of the game” dude he already beat the game!!!!!!
I love that all Ramsey hosts/personalities help callers from a position of love and warmth.
The kid mentioned medical issues, so he may need to reserve some of it for any future health problems. It is really hard to know since he did not give details. I hope things work out well for him.
Excellent point.
Ha! I just left the same comment!!! So true!
Yeah people are going to be jealous but maybe the kid really deserves it.
He literally can live with just gains in the S&P.
I inherited a similar amount when my mum past away when I was 18. The best thing I did was live drastically below my means. After spending a bit on a nice meal 🥘 and I got myself the full box set of Pokémon dvds 📀
I’m now 27, my net worth is up several million and I’m very happy with my choices. Something else that helped was I got myself a fulltime job and tried to mostly live off what I make on that. Keeps you grounded.
I didn’t have many people come out of the woodwork as when it started to happen I shut it down.
This bloke will be perfectly fine if he is smart about it :)
You are smart James you did it right! Key is to live beneath your means and still have a great life! So sorry for your loss but I'm sure your mum is very proud of you!
"... when it started to happen I shut it down". Curious to hear more. Share details, pls.
Can I have a dollar?
@@Khaliando nope. Don’t wanna pay the transfer fee
@@TheJamesHayesShow42 cashapp and Zelle is free 😂
These guys handled this perfectly and gave great advice.
Except buying a truck for commuting.
Disagree. Nothing wrong with buying a new car with 3.5 million in the bank. No reason to HAVE to work or save %15 of wages - this young guy can easily live off the interest without having to touch a dime of the principal . I do believe he SHOULD work but he should do whatever he wants to do because he has the money!
Disagree.
@@daryltgeorge He's in a position where he can turn a hobby into a business and that is what he should do. He needs to do something, but he's in a position to make it something he loves.
The kid called in wanting to know what to do with the money and they gave contradictory advice. “Sit with your parents make a plan.” “Don’t trust your parents” “people are going to be coming out of the woodwork for this money.” “Assemble a team.” As in a group of people who are going to want his money to tell him what to do? Buy a cheap car but pay exorbitant legal retainers and fees who can now bill hours to this 18 year old millionaire? What useful advice did they give him?
For y’all saying don’t tell anyone, he is probably still in high school and an athlete. Guaranteed he’s told at least 2-3 people who then told more and so on so gg
gg 💀💀
Good thing is, if he doesn’t buy a fancy car nobody will believe him😁
I had a elderly senior citizen tell me she had a bad experience with Ramsey's smart vestor, realtor, etc.. Be careful who you work with.
true can't trust anybody especially from the internet
Yes. I contacted two of those "smart vestors" and found that neither had "the heart of a teacher." Both were just after whatever made them the most money. One wasn't even well-mannered. I chose not to go with either one. I wonder how Dave's organization determines that these people have "the heart of a teacher." He can't know all of them personally.
We met with a Ramsey insurance person (whatever they're called) who was a sexist pig. Blech. I'm sure that's not something that shows on a paper application form.
And what does that mean ‘bad experience’ in this case. She didn’t get to invest how she wanted? They took too big rate? She didn’t get as much as she expected? Literary zero credible information..
Couple important general advice in situation like this:
1. Learn to say no, and learn to do that to anyone, including family including crying sad, angry, blackmailing threatening people, in fact especially any of those.
2. Understand that just because you can afford something does not mean you need that something or that it is worth the price.
3. If you are not sure about buying something there is high chance you don't need/want it. At the very least wait a few days or week. If you keep thinking and investigating and wanting the thing still a week later you still might no need it but at least wanting it is more than momentary impulse.
4. Remember that you having something does not mean that you owe anything to anyone or that anyone else is entitled to any part of that something. Where your money goes should be your choice, preferrably one made by your initiative.
5. If anyone gives you any advice where you following that advice would benefit them, you should not blindly consider that advice honest let alone correct.
6. Sometimes and especially in situation like this not doing anything is often better than rushing into anything too quickly or because you feel like you need to. Though the video basically already covered this basic idea. Also you should be more open to following advice of people who tell you to not spend on, give to or do something than people telling you to spend, give or do something. Related to this reread point 5.
7. Always read the contract including small print an preferrably have lawyer who is on your side to read it if any significant money or long contract text is involved.
Do not buy fancy cars. Pay cash for a piece of property, leave the rest in mutual funds for 40 years and take out 4% a year. Congrats, kid! You're set for life!
I would literally be set for the rest of my life
Not just you but your children and their children and their children
@@blessedwifeandmama statistics don't agree...apparently the worse thing you can do to a kid is give them money...
dude ETF dividend account VOO or SCHD DONE lol live off the dividends
@@MajesticLawnGnomepeople dont understand this unfortunatly ...
Instead of schooling, you tell them for 2h a day, do not spend that money! and teach your kids the same😁
The kid has a good head on his shoulders in that he is being cautious and seeking advice vs what many people his age might do and blow through the money in just a few years. Very wise of him!
WOW!! Beware of financial advisors. They will be salivating to get their hands on this. Also, keep this circumstance to yourself and be picky about who you tell. People change when it comes to money - often for the worse - and it might create nonstop interpersonal problems with the inability to trust people in your life and their motivations.
Good advice on getting a good attorney to help set up legal parameters and guidance. You have assets now so you can be sued as well so maybe come at it from that angle.
@LaserActiveGuy If by skimming you mean providing millions of americans with the best financial advice they can have and with good financial services from partnerships (Not actually called financial advice due to legal reasons but whatever) ? Yep, he is skimming SO HARD!!! Unless you have any evidence you are just spouting nonsense.
It makes people a more extreme version of what they already were.
@@kelvinpang438 lol his partnerships are a joke.
0:35 George’s face!! Hahahahahah😧😬😧😬😮🤣😂🤣😂🥲 I died
This is going to be my opener for my finance unit! A class of 14/15 year olds, looking at part time jobs and starting thinking about university. I want help set them on the right path to wealth in the future, BEFORE they get set in their ways of making bad money habits.
If I had 3.5 at 18. I'd invest some and spend the rest of my life mowing lawns for the elderly and volunteering my time wherever I please.
Invest some and live off the rest at 17? That money will be gone in 30 years a a normal rate of pretending he makes 100K a year. No where near enough to just volunteer for life
@@Mkay999 4% withdrawal rate on $3.5m is $140,000. So by most accepted standards, they could take out $100k
@Mkay999 its definitely enough for life
@@Mkay999 depends what “some” means😀
@@Mkay999 You really don't know how investing works, do you?
Don't tell anyone ever, invest 80%+ in S&P 500 index funds, do some travel and reconnaissance to find out where you want to live, buy a modest house there, live on 1-2% of the money annually, and pursue hobbies and entrepreneurship. You won't ever have to have a job.
Take a small amount out for college and invest the rest then forget about it. Never touch the principal amount and at some point in the near future you can live off just the interest/gains.
Having some sort of job or interest gives purpose to your life. It would be boring otherwise. I am getting near retirement age, and plan to have a little business to keep me occupied. It does not have to make big money, just enough to keep me ticking along financially. But it is more about the activity.
Telling a 17 year old he will never need to have a job is the worst imaginable advice! His life will have no meaning without goals and something to work toward. Shameful advice.
@Person-mh6xq you can have something meaningful and something to work towards that isn't a job. Tons of options. Entrepreneurship springs to mind. Mastering a sport, a game, a skill. Becoming super knowledgeable about something, like getting a PhD in mathematics or anything you're interested in. Doesn't matter that it doesn't make money, so options open up a lot. There are lots of things that give life meaning other than a job.
What a blessing... as a young kid I wanted to be professional pilot. (Airlines, corporate aviation, ect. ect.) I didn't realize how expensive flight training was and at 18 I got way into debt and couldn't finish the training. 10 years later I joined the Air Force and now I'm using the G.I. Bill to help pay for flight training. I hope this guy uses the money wisely and invest a lot of it for his future. 3.5 mil can be gone FAST if you don't handle it right.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing below the $100k mark and in the first 2 months, my portfolio was reading $234,800. Crazy right!, I decided to reinvest a huge percentage of my profit and it got more interesting.! For over a year we have been working together making consistent profit just bought my second home at the beginning of summer.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@lennoxmutterick6434 However, if you do not have access to a professional like Suzanne Gladys Xander, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@@Donnafrank-k6e Oh please I’d love that. Thanks!.
@@lennoxmutterick6434 Suzanne Gladys Xander is her name .
Lookup with her name on the webpage.
The look on George's face when the kid said 3.5 million was absolutely priceless.
Honestly, go to a college, pay it cash, forget you even have this money.
Split 50/50, put 50 into long term investments 50 into divends to live off of.
Get a good job you love and live modestly. Get a prenup no matter how much you think you don’t need it. Don’t tell a soul about the money, live your life pretty dang good.
Trust isn’t assets affected by divorce so it doesn’t really matter
You have 3.5mil. Why tf would you waste it on college 🤣🤣 invest it and you're set for life.
@@zType2 go to college to learn finance and account . Have your career be to manage this money. If you get a advisor your going to be giving away a salary every yesr
@@zType2Knowledge is priceless. No amount of money can fix stupid.
@@dchen2140 Knowledge can be obtained at home in a much more efficient manner. 3.5mil invested makes it so that you are set for life. There is no need to waste time or money on college in that scenario, imo.
*The best word Alex can learn how to say is "NO".*
He has 3 new friends all named no, never and fk off
The problem with buying a home at a young age is you dont know where you going to settle down, you have to try a few places to see where you want to live, it takes time. Buying a house will tie you to a single location!
No it doesn't, rent it out or sell it when you ready to move on.
Aldo it depends on what state has the highest property tax upon purchase of the price which can vary
But he can always sell it, right? Real Estate is a great investment. I don’t want housing to keep going up at this rate, but it does seem to be. And he can either keep it a long time in his portfolio as a investment, rent it out, or sell and move.
Its almost as if there is thing called selling. I'm not sure how it works. I think when someone buys something the other person sells it.
Like is this a FINANCIAL channel anymore or a boomer commiseration hub???
Doesn’t sound like the kid wanted to buy a house, only he thought he should because he has the money. That’s not a good enough reason to do it, too many things to consider.
Buying and selling has transactional costs associated. If he does them close enough together due to changing situations then he could be out of pocket substantially more than the equivalent cost of renting over the same term.
Also true that renting out the place he buys when ready to move is an option. Which is fine if he is going to gain the best return on investment of his capital, and if he actually wants the responsibility of managing an investment property. Else there are other effective ways to invest that money.
Absolutely get an attorney on this one to ensure the money is properly protected. This is definitely a situation where setting up a living trust is a good idea. Other professionals to include are a CPA, financial planner, financial coach, and personal mentor. All of these people work in tandem in different lanes to help handle it in a holistic way. At 17, this can be either the best or the worst thing ever to happen to him. He's got to decide which it will be, and a good team of counsel on his side will help him make good decisions.
That was heavy reading the end. It’s true. 18 already has his make or break moment
This was amazing! I hope he takes this advice to heart.
You're young and hustling, this is very inspirational.
He said there was some medical incident that caused the trust fund (presumably from some law suit).
I'd be curious if there are any recurring medical (or other) bills related to that down the road that need to be accounted for... and how that affects the answer.
Agreed. However, if he's playing sports year round, my guess is whatever it was wasn't chronic.
I feel like these guys dont really listen to what people say and or consider the side that speaking on something sometimes. They just hear money and default to do this and that. They dont listen to the person and really see the situation
Agree like what happened to this boy !?!?
There are statues of limitation for medical bills.
@@jendiaz4718 statutes is the word you're looking for. That isn't what they are referring to though. They are referring to recurring bills for ongoing medical services.
Asking a 17 year old if their parents are trust worthy? Isn't an easy question. My Dad was manic bipolar. He wasn't trustworthy with my money. I didn't know that at 17.
Good point. And if so, he's not safe to speak up yet.
Don’t tell ANYBODY
I wish I would have bought a house at 18/19. I wish someone would have suggested it and I wish it was known how I could do it. I thought it was something I couldnt afford. Flash forward to 27 I buy a house, but now I am 10 years late on affordable houses. Even if he is going to be smart and not spend the money, why not have an asset right out the gate. Also I personally think learning a trade or two is the best option. Learning a skill is far better than a fancy piece of paper with a degree. I think our world tells us that.
Amazed there were no questions from the experts about any ongoing medical needs as this was seemingly from a medical settlement.
He also has to keep in mind that if this money is a medical settlement, insurance will never pay for anything related to the medical settlement issue.
This guy could live off the interest profits even taking inflation into account.
I’d put it all in a trust, bonds and funds, and ensure I can’t touch the principal. The interest alone is 200,000k a year, and it doesn’t matter how many sob stories I hear, the funds are locked up and I’ll still get 200k next year. Family, kids, and grandkids are guaranteed to be safe.
Its a blessing and it could also be a poison. Props for this kid making this call.
The fact he called in to ask about what to do is more than most teenagers would ever be with this kind of cash.
I'm rooting for this Alex guy to win in life!
Dave Ramsey would have been masterful on this call.
I'd like to hear an update on this, now that it's a year past.
Put it in a dividend etf like schd and have it paying you a doctors salary by the time you graduate college every year for the rest of your life.
Hey, long lost cousin Alex!! Long time no see!!
Put it in all diversified index funds with a total portfolio dividend yield of 4%... that's 120+k that will keep increasing every year until you die. NEVER touch the principal or sell shares, only use the distributions. By the time you're 30 the distributions will be over 200k and by the end of your life probably 7 figures in dividends annually. None of this buy a car or house in cash bullshit. You never spend a dime of the initial principle. Use the cash flow for living expenses and reinvest as much of the dividends as possible.
Why not invest in snp 500 and get 10%+ per yr
They ask him why he would want to buy a house???! Seriously? If he's got the cash, he might as well use 10% of it and buy a home free and clear! Better then letting it sit in his bank inflating into oblivion.
JUST WORK HARD BRO! Pull YOURSELF UP BY UR BOOTSTRAPS BRO!
JUsT InVeSt BrO. JUSt sAVE 500k IN tWo yEars and BUy CRytpo bro!
Dave Ramsey show: "people are going to come out of the woodwork to manage your money don't let them"
Also Dave Ramsey: "Let our smartvester pro's manage your money we'll help you"
There's a huge difference between friends and family members taking advantage of his financial situation and him working with an investment professional to help him manage it.
DR's not on this episode.
Im 54, honest and have integrity and seen so much shizzle in my life where FAMILY is willing to KILL or disown anyone in the family over money. This will not be easy or good for this young man. To keep the money he will lose relationships - whether those relationships are good or bad, they will be lost.
I think college is a bad move, unless he’s passionate about a career that it’s necessary for. The reason for college is to make more money. $3.5M is $50k per year for 70 years. Invest that money and it goes further. I’d say get a part time job just for fun and live frugally. No stress life.
This🙌🏼
College isn’t only about moving up in a career… it is also about learning! I have a PhD that I use for my career, and then I still take community college classes periodically just for fun! To learn something new. I’ve taken sewing classes, boxing, Spanish, CrossFit, etc.
Whatever I want to learn, I pursue.
Lifetime learner and proud of it!
This guy has so much money, that he definitely should go to college if that is what he wants to do! He could develop an idea while he is there and become a CEO of a new business!
@@ccampbells83 It's a good point, but you don't need college to learn. The information is out there and most of the time you can get it for free. I'm not sure what field of work you're in, but I don't use anything I was taught in Humanities or Sculpting... but I had to take them to graduate. I've learned more after college because it's necessary for growth and it's stuff I'm actually interested in.
@@tomcarrow hey Tom! I definitely agree with that; there is free information everywhere, especially the internet. But for a lot of us it helps to go to classes and have a laid out curriculum start to finish.
This caller just need to figure out what he wants to do in life and whether he needs additional training/education to get it.
I mean a lot of people think learning is a good thing. Learning how to write well and communicate well is invaluable. Biology, chemistry, history, etc? These things are amazing to learn and know in life. I took an art history class, a philosophy class, and French classes while getting my nursing degree and it was wonderful. Lots of things are worth learning if you have the money and the time.
Such a relatable call
Yo them pushing the give train really bothers me. Giving is a personal choice I don’t like when people push their own beliefs on other people
Don't tell ANYONE. Don't show signs. My nephew was in the same situation and he never told anyone and drives a used car. Not even his best friends know. He was 17. He's now 21 and getting ready to graduate college. He's lived with his grandma when not in school even works part time to keep the facade in check. I pray this kid handles this well! What a blessing, except for the reason he earned it. Hopefully nothing life threatening/shortening.
Alex I’ll help you manage your money. I wanna be your BEST friend
I was his best friend first! Alex trust me, I’m here for you
Alex dont listen to him, ill manage ,invest ur money and double it, we can be brothers
Alex it’s me your cousin, I’m hear to help you more than these guys
Alex remember when I let you borrow my pencil in the 2nd grade
😂😂😂😂🤣🤣🤣
I'd love to hear an update on Alex
Don’t buy a house until you get married? Terrible advice. He can buy a house at 19 or whenever he wants. It’s a good investment.
And he should NOT get married if he wants to keep his money
I didn't like that response either. Why wouldn't he buy a house if he can afford it. That's an asset that can generate wealth.
Because he 18 has no idea we’re he going to live. And do
Buying a house before he know what he wants to do and where to do it is a stupid idea.
@aguyandhiscomputer Why is it stupid? He could rent it out, and that's another source of income.
the more i think about it being given that amount of money before youre even out of high school is a ton of responsibility and alot would crack under it... more of a curse then a blessing
Stick it the S&P and even at a 2% withdraw rate, he can take 70k/yr for life. Kid's set.
Half in a high yeild savings account, and half in etf funds. With the interest from the savings account alone, you'll make 74k per year.
You don’t want to brag and show off to your friends..
I'd have 1 million in some dividend fund, paying myself a nice paycheck, rest simply rolling in ETFs. 2.5 million would still grow into a lot of money and I could enjoy life, doing what I want to to do, without ever having to worry about a paycheck, because I'm paying myself through dividends
Besides the smart vesterpro suggestion he should be given the book Boundaries!
Nothing wrong with buying a house in cash and never having to worry about that again. And when time to move, sell it and make more. Real simple.
When you start the game on easy mode 😂
Hell of a spawn
“Are your parents in the room?” Lol
The fact that this kid called speaks volumes about where his head is at.
slow and steady wins the race with the dividends alone hell have enough to live off of that he wont have to worry about no one
For starters, never tell people how much you have in your account. (Family or friends) You wont have beggars in your face. Act like your broke.
Please don’t let anyone know you have this money and do not overspend 🙏
Good luck Alex 👍🏽
I certainly wouldn’t be working except for a when I want something to do when I’m not scuba diving in Australia lol
INVEST THE MONEY !!!!!!!
Don’t tell anyone!!! Keep this a huge secret and ask your parents and anyone else that knows about the money to please keep it a secret. If family and friends know many of them will try and guilt you into giving them money. Also you will always be the one to pay for every dinner and vacation etc..until you are broke..then they won’t care. Invest the money safely. Even hiring attorneys, accountants…be careful. I needed attorneys, accountants etc after a family inheritance and I will tell you the bills were shockingly huge. I would suggest if you need to go to an attorney for council that you pay as you go…same with accountants. Get the council you need and pay them and move on. Take care of that money and that money will be there growing to take care of you throughout your life. Also work toward a career…work makes us feel good about ourselves and that is a really good thing.
Could be a curse at this age.
“People are going to come out of the wood work for your money” oh also here at Ramsey Solutions we would like a slice of that pie.
Great advice from great men!
Don't tell ANYBODY!!!!!! Finish your schooling, find some hobbies or interests you enjoy and make a career path out of them. Find a Church or Volunteer Organization you can spend some TIME (not money) with. Stay out of nightclubs or casino's. NEVER touch the principal, only live off the yearly interest after taxes. NEVER TELL ANYBODY!!!!
I know at 17 I wouldn't have the discipline to do what Alex did. I'd be saving money but not like how these guys explained. I'd be buying that tesla for sure. This kid if he does it right, things are set for him. I hope that I can teach my kids to do the same with their money.
They're giving him solid advice. Pretty much act as if that money isn't even there. Go and do life outside of the money. Meaning, saving for a house, saving for college, and planning life just like a normal 18yr old. The only difference is, he has an attorney and an investment advisor in his pocket managing that money, and managing big decisions when it comes to that pile of money.
I wish I could go back in time - to just knock some sense into me -when I was a 25 year old and working already. Hope the kid listens...but harder to stay the course in today's materialistic world we live in, especially being so young with that much money - on top of social media! My 18 year old self would be thinking - ok Day one - new Corvette or Porsche 911!
Money that is received in a court settlement is usually considered income and is therefore taxable. However, personal injury settlements are an exception, so the money you get after a slip and fall or car accident is likely not taxable income.Feb 14, 2022
Hi Alex, it's me your uber driver. How are you man?
2:18 Nowhere in the US is 4000 miles from Nashville, except Hawaii. Is Deloney from Hawaii? I thought he was from Texas.
Wow that’s awesome for him!!
Do nothing let it sit in a mutual fund. And grow
Wouldn’t you still need to pay tax on getting a 3.5mil settlement? I’m assuming if its in a trust then any cost were already taken out when the settlement was first determined not sure
Not if it is an injury case. No taxes paid on those types of settlements.
Investing in the community means that you have some power to create safe enviroment, that you want to live in. Having a lot of money and living in a bad neighbourhood is bad. One coach once said that if you have money to invest: invest it in your favorite restaurant so it does not go out of business... invest it in the places in your community which you want them to keep working so you can keep going there...
Just remember: Never spend the principal!
What happens to the principal in the end if he has no dependents. You cant take it with you.
Of course it depends on the market. But if you buy a house that’s a bit of a fixer upper and not more then 500k, and do work yourself to improve it. And hopefully then sell it when the market permits you to profit, and just keep hopping buying better homes and fixing them up. This and working plus with that 3million dollar cushion.
Seems like a decent plan to me.
I would love to hear a follow up on this guy.
Their advice is so weird. College is a huge waste of money when he could instantly become big in real estate.