Counting on a large future inheritance? The Ramsey Show hosts say ‘act like none of it’s coming’ — and Canadians should listen

In the meantime, Brian holds US$155,000 (C$212,000) in a non-registered investment account — one he vowed never to touch. He also has a US$40,000 (C$55,000) emergency fund, carries no debt beyond a US$500,000 (C$685,000) mortgage and contributes 4% of his income to his workplace retirement plan — enough to get his employer match, but no more.

Knowing the money is potentially coming, Brian's question to The Ramsey Show hosts Ken Coleman and Rachel Cruze was this: Is it reasonable to pull US$40,000 to US$50,000 (C$55,000 to C$68,500) from his investment account to fund home renovations — and owe roughly US$10,000 (C$13,700) in capital gains taxes in the process?

For Canadians in a similar position — perhaps expecting an investment account from an aging parent, a share of a family home or a piece of a family trust — the advice that Brian received is relevant.

Breaking it down

Coleman and Cruze's answer was essentially yes — but not because of the inheritance. Their approval came down to Brian's own stable financial position, which they deemed strong enough to support withdrawing the cash he needed.

"I think that's fine," Cruze said. "I would say you could pull 40 or 50 out of 150 in a brokerage account anyway, regardless of the inheritance. That's cash for you all to use now or later."

Cruze's emphasis on 'anyway' means a lot. Her point was that the withdrawal Brian proposed was acceptable, pending inheritance aside. It means that Brian's financial setup is already favourable without factoring in a single dollar of potential future wealth.

But the hosts pushed back sharply on his retirement savings rate. Contributing only 4% at age 36 — even with employer matching — made Cruze redirect.

"I would be investing 15%," she said, noting that the cash Brian expects to receive from the inheritance could help replenish his savings once it arrives.

The spending cadence Brian uses is the real lesson: Spend from existing savings only if current finances can support it, increase any retirement contributions immediately and treat any forthcoming cash as a top-up later rather than a green light to spend today.

Cruze summed up the bigger picture: "You've stayed out of debt and built up your own emergency fund, your own brokerage, you're doing it. And when money magnifies great habits and stewarding money well, that's a wonderful thing."

What this looks like for Canadians

While Brian's situation involves U.S. financial structures, the underlying dilemma is similar in Canada. If you're holding a non-registered investment account, the same math applies whether through Wealthsimple, Questrade or a bank brokerage and you're considering a large withdrawal.

In Canada, when you sell investments held in a non-registered account, 50% of your capital gains are included in your taxable income for the year — this is known as the capital gains inclusion rate (2). That taxable amount gets stacked on top of your regular income and taxed at your marginal rate based on your income bracket. So, depending on your income level and province or territory, the effective tax hit on capital gains can range from roughly 12% to 27%.

Withdrawing C$50,000 in gains from a non-registered account could trigger a C$25,000 taxable income inclusion — a sizeable but manageable cost if the renovation is necessary and the rest of your finances are solid.

Where Canadians have a significant structural advantage over their American counterparts is in the Tax-Free Savings Account (TFSA). Investment gains inside a TFSA are completely sheltered from tax — meaning no inclusion, no marginal rate impact and no tax bill on withdrawal (3). The 2026 TFSA annual contribution limit is C$7,000, bringing the total cumulative room for someone eligible since the account’s inception in 2009 to C$109,000.

If you have the flexibility to draw from a TFSA rather than a non-registered account, the tax story changes entirely. That should always be the first question.

On the retirement savings side, the Canadian equivalent of Brian's 4%-and-done approach is contributing just enough to your group Registered Retirement Savings Plan (RRSP) or Defined Contribution Pension Plan (DCPP) to get the advantage of the employer match — and stopping there. The Canada Revenue Agency (CRA) allows Canadians to contribute up to 18% of the previous year’s earned income to their RRSP, to a maximum of $33,810 for 2026 (4). Cruze’s 15% contribution benchmark treads closely to that ceiling — and, as she notes, is a target many people are still missing well into their working years.

'Act like none of it's coming'

The broader lesson from The Ramsey Show is also very relevant to a veritable mix of Canadians: Anticipated inheritances aren't guaranteed. They aren't fully within your control, and often arrive very differently than expected.

A survey conducted on behalf of Vanguard Investments Canada found that roughly 34% of Canadians aged 18 to 34 say receiving an inheritance is crucial to them meeting their financial goals, while 61% said an inheritance would at least be an important part of their financial future (5).

But in reality, estates get contested, the probate process of validating a will can delay receiving an inheritance for months or even years and government administrative costs can significantly drain assets. In Ontario, for example, the estate administration tax runs at 1.5% of estate value above C$50,000 (6).