Ramsey Everyday Millionaires Should I Use My Bonus to Buy Into the Business I Work For?
4 snips
Dec 1, 2025 Melissa, a home health agency employee, poses a crucial question about whether to use her sizeable year-end bonus to buy equity in her company. As they dive into the discussion, Dave highlights the dangers of becoming a minority shareholder, such as lack of control and governance risks. He suggests instead that Melissa focus on paying down her substantial mortgage, offering a more secure path to financial stability. This conversation is both insightful and thought-provoking for anyone navigating workplace investments.
AI Snips
Chapters
Transcript
Episode notes
Caller Explains Bonus And Asks About Equity
- Melissa describes a bonus structure paying 5% on gross profit above quota with quarterly caps and an annual lump sum.
- She asks whether to invest that lump sum into company equity or apply it to her mortgage.
Don't Buy Minority Equity In Your Employer
- Avoid investing in a small business where you would be a minority shareholder.
- You have no control and can lose everything without any say in decisions.
Minority Stake Means No Governance Power
- Minority ownership in small companies effectively gives you no governance influence.
- That lack of control makes such investments riskier than single-stock bets.