Windfall From Home Sale Sparks Investing Advice

Caller seeks guidance on how to handle $300,000 from home sale

Apr. 17, 2026 at 2:05pm

Got story updates? Submit your updates here. ›

An extreme close-up of a stack of worn U.S. dollar bills, the edges reflecting light in a way that conveys a sense of solidity and security, representing the weight and substance of a substantial financial windfall.A visual metaphor for the weight and substance of a substantial financial windfall, inviting the viewer to consider the responsibility and opportunity that comes with managing a significant sum of money.Los Angeles Today

Sally, a caller from Los Angeles, recently received a $300,000 windfall from the sale of her home. She has already invested $50,000 in the Vanguard S&P 500 ETF (VOO), but is unsure how to handle the remaining balance. Hosts of The Ramsey Show provided her with actionable guidance on investing the funds for the long-term.

Why it matters

This story highlights the common dilemma faced by first-time wealth builders on how to prudently invest a lump sum of money. It provides valuable insights on the importance of time in the market, the cost of sitting on cash, and the power of automated investing to remove emotion from the process.

The details

Hosts Rachel Cruze and George Kamel advised Sally to invest the remaining $250,000 if she has a 4-5 year investment horizon. They emphasized that 'time in the market beats timing the market' and cautioned against trying to time market entry points. Kamel suggested automating monthly contributions of $3,000 to the investment account, which could grow to around $700,000 in 5-7 years through compounding. The experts also recommended keeping 3-6 months of living expenses in a high-yield savings account before deploying the remaining funds.

  • Sally called into The Ramsey Show recently to discuss her $300,000 windfall.
  • The S&P 500 has returned roughly 230% over the past decade.

The players

Sally

A caller from Los Angeles who received a $300,000 windfall from the sale of her home.

Rachel Cruze

A host of The Ramsey Show who provided investing advice to Sally.

George Kamel

A host of The Ramsey Show who provided investing advice to Sally.

Got photos? Submit your photos here. ›

What they’re saying

“We always say [in] investing you want to give it around a 4-year kind of benchmark. So if you're going to use [the funds] in less than 4 to 5 years, I would not invest it. But if you think you're going to keep it in somewhere for 4 to 5 years, then yes, investing still for me would be the answer.”

— Rachel Cruze, Host, The Ramsey Show

“Time in the market beats timing the market. And right now, Sally, it's stressful because you're trying to time the market.”

— George Kamel, Host, The Ramsey Show

“You can invest the rest in there and let it ride and keep adding to it every single month. Make it a goal. Hey, we're going to add $3,000 a month to this. That's $36,000 a year growing for us with compound growth. And you can do some projections and see that 5, 6, 7 years from now, it's probably gonna be closer to $700,000.”

— George Kamel, Host, The Ramsey Show

What’s next

Sally should set up automatic monthly contributions of $3,000 into a low-cost index fund like the S&P 500 ETF. This will help remove emotion from the investing process and allow the funds to compound over time.

The takeaway

This story highlights the importance of a long-term, disciplined approach to investing a lump sum of money. By avoiding the temptation to time the market and instead automating regular contributions, first-time wealth builders like Sally can maximize the growth potential of their funds and achieve their financial goals.