Ramsey Everyday Millionaires I’m Nervous About Having $1.8 Million in One Stock
6 snips
Sep 26, 2025 A caller shares his impressive $5.4 million net worth but wrestles with having $1.8 million in a single stock. The discussion highlights the risks of concentration and the importance of diversification. Recommended strategies include selling gradually to manage tax implications and reallocating investments systematically. Personal experiences with big-name stocks like Enron add an emotional layer to the financial advice. The conversation ultimately emphasizes the discipline and long-term thinking required for successful investing.
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Personal Financial Snapshot
- Steve is 78, retired, divorced, debt-free, and has a $5.4M net worth across IRAs and brokerage accounts.
- He holds $1.8M in one taxable stock that represents 34% of his net worth and has a $58K tax basis.
Concentration Risk Equals Portfolio Leverage
- One third of your net worth in one stock makes your overall finances move with that company's fortunes.
- That concentration is like standing on one leg: a single company can dramatically swing your net worth.
Trade Taxes For Diversification
- Diversify by selling concentrated holdings even if it triggers taxes; you're trading taxes for safety.
- Accept tax pain to reduce concentration risk rather than staying exposed to a single company's volatility.