Ramsey Everyday Millionaires What’s the Point of Investing If I Don’t Plan to Use It?
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Mar 6, 2026 A caller asks why people invest if they do not plan to use the money. The conversation covers why many wealthy people accumulate assets and pass them on. Listeners hear a comparison of tax treatment for Roth accounts versus taxable gains. The hosts argue taxes should not be a reason to avoid investing and explain how investments fight inflation.
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Millionaires Often Leave Investments To Heirs
- Dave Ramsey describes Tom Stanley's Millionaire Next Door research showing millionaires save and invest in growth stocks and often don't need to spend their accumulated wealth.
- Ramsey shares his personal example that his Roth IRA likely won't be used and will pass to his children, illustrating the common millionaire outcome.
Use Roth Accounts To Avoid Tax On Growth
- Use Roth IRAs to avoid taxes on investment growth because contributions are made with after-tax dollars and withdrawals are tax-free.
- Ramsey notes his own Roth holdings can be withdrawn tax-free but he prefers to let them keep compounding.
Expect Capital Gains Tax But It's Not Crippling
- If investments outside retirement accounts are sold, expect capital gains tax, which is generally 15% for most taxpayers under the high-income threshold.
- Ramsey gives the example of owing $1,500 on a $10,000 gain at a 15% capital gains rate.
