Dave Ramsey Says He Owns Only 1% Of His Company, Ramsey Solutions. 'The Company Itself Has Been Operated For God'

Dave Ramsey said helium lone owns 1% of Ramsey Solutions, the idiosyncratic concern institution helium co-founded with his woman Sharon successful 1992. “Ninety-nine percent of our banal has already moved to the kids 10 years ago,” helium told a caller connected his “EntreLeadership” podcast. “It’s successful the Children’s Trust now. I ain 1% of Ramsey and it’s the lone voting stock.”

Ramsey said the transportation was portion of a broader program to support the institution aligned with its founding values. “The institution itself has been operated for God,” helium said. “The kids present run it for God oregon volition erstwhile I’m gone and the grandkids volition too.”

He emphasized the value of not burdening the adjacent procreation with debt. “We built our ain wealthiness connected the broadside distant from Ramsey,” helium said. “That enactment america successful a presumption to bash each that.”

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Ramsey besides spoke astir his woman and however the ownership operation was designed with their semipermanent bequest successful mind. “Sharon gets thing here,” helium said, referring to Ramsey Solutions. “She’s got hundreds of millions of dollars worthy of different stuff. So she’s fine.”

Headquartered successful Franklin, Tennessee, Ramsey Solutions employs implicit 1,000 radical and produces a scope of content, including “The Ramsey Show,” the “SmartDollar” fiscal wellness level and a suite of books and online courses. The institution brought successful astir $300 cardinal successful gross past year, according to Ramsey.

The taxable came up during a telephone from Ronny, a tiny concern proprietor from New Mexico, who asked however helium and his woman could bargain retired his parents’ 50% stock successful their family-run repair concern without taking connected debt.

Ramsey archetypal challenged their concern valuation. Ronny's ma had estimated the institution was worthy $4.1 cardinal based connected past revenue. But Ramsey said that was mode off. “She’s wrong. Your nett profit’s $600K. The astir the concern is worthy is 4 to 5 times that,” helium said. “She’s overvalued it by astir a cardinal dollars.”

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Ramsey suggested a elemental plan: alternatively of borrowing money, Ronny and his woman could conscionable usage the company's profits to bargain retired his parents. They'd wage themselves a wage of $100,000 a year, acceptable speech 10% of profits to support the concern moving smoothly, and nonstop the remainder to his parents each period until the afloat magnitude is paid off.