Dave Says: Giving from Grandfather's Wealth

By Dave Ramsey

CBN.com – These days it pays to be smart about money. That's why it's important to take this wise counsel from financial expert Dave Ramsey.

Giving from Grandfather's Wealth

Dear Dave,

My grandfather died about a month ago, and I recently learned that in his will he distributed his money unevenly between his children and grandchildren. I received significantly more than other members of the family, but I make $140,000 a year. I'd like to give them some of my inheritance to even things out. How would you approach this?

Kate

Dear Kate,

You're obviously unselfish and have a really good heart. But honestly, it was your grandfather's decision and his money to do with as he pleased. It wouldn't be wrong or greedy to simply keep what you have without worrying about it a second longer.

If some of your relatives are having financial troubles and you feel that making a gift of a portion of your inheritance will help, you can do that. With your income, it's probably not going to change your life in a big way. My advice would be to look at your relatives and their situations objectively and see if something like this would really be a blessing. Then, if your heart and your head still tell you it's a good thing, do it.

—Dave

Pension Solvency

Dear Dave,

Considering the condition of the economy, how secure should I feel about the solvency of my pension?

Crystal

Dear Crystal,

In many ways, this would depend on your particular pension. Some pension funds are very well-run, very solvent and are in great shape. Others are poorly managed and not the type of programs in which you'd want to invest any of your money.

The biggest problem with a pension is that it's the property of the organization. If it's a union pension, it's not yours—it's theirs. All they do is pay you out of the fund. So if they go broke, you lose everything you had in there. If it's a business that has the pension, that makes them the owner—not you.

That's the beauty of the 401(k). You're the actual owner. If the company you work for goes broke or the union does a poor job of managing things, it doesn't harm your investment.

Don't misunderstand what I'm saying. There are good pensions and bad pensions, just like there are great managers and lousy managers. Just make sure you check into the solvency of the program before you put your money in there!

—Dave

* Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 5 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.