Dave Ramsey's Dangerous Financial Advice
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- เผยแพร่เมื่อ 9 ก.พ. 2025
- Financial Experts React to Ramsey's Terrible Financial Advice regarding the safe withdrawal rate.
Article: Supernerds Unite Against Dave Ramsey's 8% Safe Withdrawal Rate
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Here is the link to the article: www.thinkadvisor.com/2023/11/13/supernerds-unite-against-dave-ramseys-8-safe-withdrawal-rate-guidance/
@@FinancialFastLane thanks... I'll check it out
Those 3 Ph.D.s are “financial goobers!” ha ha ha ha
You come off sounding mad and jealous he has and audience of millions while your adverting base is a mere 308k. Earn a reputation for doing right for your clients and forget about what the other guy is saying and doing. On the whole I think Ramsey is a huge positive. Americans need to hear his message.
@@XLTraderSoftware As stated in the video, much of what Dave teaches about getting out of debt is excellent and valuable for sure. But he is actually wrong in other areas and he gives dangerous and risky advice regarding withdrawal rates and he ignores sequence of returns risk during the retirement years. If you would like to understand the specific issue just read this short article: www.thinkadvisor.com/2023/11/13/supernerds-unite-against-dave-ramseys-8-safe-withdrawal-rate-guidance/
the best get out of debt advice I ever heard is "when you find yourself in a hole the first thing you do is stop digging"
I found a fund that returns 12% return each and every year. Unfortuneatly it was run by Bernie Madoff
Good One--
A good conman doesn’t claim 18% returns because that would draw too much suspicion. Bernie actually claimed 10% if I’m not mistaken. He was a crafty conman.
Exactly.
Except that’s not what Dave is saying. He says on average the SP500 returns 8%. Not that every year it will.
@@themuskrat5776 Actually, Dave talks about a 12% return as if it was common.
When I dicovered Ramsey on the radio 30 yrs ago, he simply reminded me of my father and his matter of fact approach to how I should avoid financial blunders. Funny when Dave taught it, I actually did it, not when dad was preaching😂
Cuz Dave a millionaire and your dad’s not
Dave is very helpful to those who don't have a million dollar portfolio. He helps some people to get out of debt. His advice to these folks is sound although not perfect. The baby steps, etc. that he provides are good. Once you get out of debt and actually have money to invest, Dave is not your man.
You are correct. Dave's principles can only take you so far. I've always said that Dave is great at taking people from broke, to not-so-broke. But if you want to move on from there, you need to move on to anyone that can give you personal attention. Its not about what you know, it's about who you know. You need a mentor that you can call in the middle of night when life sucks. You don't need access to information, you need access to the right relationships. You could read all the financial principles in the world as still be broke. You could even DO all the right things, and still be broke, because you didn't have the right mindset going into it. How do I get the right mindset? Get around the right people.
Best comment here……Daves simple method works for the MANY who get themselves into a debt mess. Sadly he come from an old school financial attitude, real estate heavy background that makes me think of my loan officer dad from the 1980s. If you are in debt trouble he has helped many thousands get out of the hole. Once your back on solid ground his advice is of very limited value.
agreed
Exactly I even think he's offer people who are in debt. He wants us all to be miserable
Interesting that not one commenter on here has a net worth that will ever begin to come close to DR.
Thank you for posting this. I am a Dave Ramsey fan when it comes to getting out of debt. Your video reminds me to carefully consider my retirement planning and not to follow anyone blindly.
That's really the takeaway from all of this. When you hold up people that you admire as idols, that's when you can be suckered, fooled and led astray. This is how the Bernie Madoffs of the world are able to do what they do. They build up such a reputation that the idea of questioning them is heresy.
I'm more of a math guy when it comes to debt. Snowballing like Dave suggests sucks in comparison to avalanche methodology. Same for building credit when it costs you nothing and literally pays you to do so responsibly.
He's not fir me and I would never follow his investment advice. He's just not a math guy. If you're an emotional guy though then he's your guy. Emotions often cost you money. I just stick to the numbers and for that, he misses the mark.
I’ve heard Dave encouraging people to build portfolios that return 10% annually in safe mutual funds with low risk and low fees. It’s not crazy they’re out there options to do this and they work.
I think the most telling thing is, notice how he never tells you his actual investment portfolio distribution. He just gives a vague 'oh I get a better return than SP500".
A book I’m currently reading called “how I invest my money” by Joshua brown has done a good job so far. A bunch of ceos and financial advisors have their snipets in it where they actually tell you what funds they use personally and which ones they avoid.
Yep: plain and simple. Dave Ramsey is a fraud.
@@igorspitz Any claim that large made without proof is not worth heeding.
Dave has hundreds of millions in real estate I've always assumed that's what he meant.
there are rules against telling people what to exactly invest in if you dont have a signed piece of paper. i fail to understand why people dont know this.
We’ve followed the Dave Ramsey Total Money Makeover plan since 2011. Got out of debt, lived on less than we make, and invested as he advised. We’ve prospered tremendously.
Awesome but that is not what this video is about. It is about the withdrawal rate and sequence of returns risk. I strongly recommend reading the article linked in the description.
AGREE!!!🎉
Dave likes to give a “one size fits all” advice.
he is talking to a mass audience of millions. Can give advice on every potential scenario. His advice is typically spot on.
Why not?
@@scottworthington5764He refuses to acknowledge other valid methodologies even when the math is telling of him being wrong on it. He's often mathematically inefficient with his advice. The better you are with money the worse his advice becomes.
If he could admit to being wrong about the math at times or be more open to more valid strategies it'd be fine, but his ego won't let em. That's the issue folks are talking about.
Common sense doesn't have different sizes.
I used his debt snowball to get out of debt and really love that but I don't seek his advice on anything else. Frankly, I don't like his personality so I can't listen to him much but a friend of mine told me about the snowball and it worked really well and quickly so I give him credit for that.
Ramsey doesn't address the negative power of interest. At the same time, his thing is to create a formula turned mantra which works more so than other approaches with the masses. The snowball approach gives you enough cash flow to work with while addressing the psychological issues related to getting into debt in the first place. But the first rule is: First add no more debt. In some cases, it quickly becomes important to pay down debts which due to daily compounding interest have balances owed increasing daily. - Those people who have come out of debt fairly quickly, all things considered, have used a mix of rationale and approaches during thier debt journey.
@@dbdb4962 Everyone's debt profile, income, credit score, and the like are different. It is also very important to figure put the functional interest on each debt. The interest percent is but one part of the equation used to assign interest dollars owed. Functional interest is: ($interest/$min ×100). Daily compounding starts to make the interest rate less important. There is a Walmart card out there that has an 85% functional interest; the monthly minimum payment is relatively low though.
And yes, the Ramsey snowball method does address the psychological aspects of a debt journey but it also provides enough cash flow that people can meet thier minimums and still live. Ramsey isn't as interested about credit score but the snowball method does have the possibility of creating more un-used credit/ available credit faster too. The snowball method enables more cash flow from the income/ budget for debt paydown and payoff.
He never came up with that. It's also less efficient than the avalanche method. I'm more of a numbers guy and he misses the mark there.
@@kerrydaniels8460It is less efficient, slightly. It is much easier to achieve than the avalanche method, however.
He sounds like a preacher. And he is - - he's preaching a particular gospel of finance. So if you're into preachers and salvation, you'll love Dave.
Say what you want about Dave, reading his books years ago saved my butt. I am 21 days away from paying off the house, and finally cutting the ball and chain. Paying off the credit cards helped me get here, and I will NEVER borrow money again!
From a personal debt viewpoint, IMO Ramsey is spot on with his advice. HOWEVER, regarding the "portfolio withdrawal rate" topic, he is 100% dead wrong. No one in retirement, unless they are worth hundreds of millions of dollars and/or earn upwards of $30 million per year, like Ramsey, should ever invest 100% of their portfolio in the S&P 500, which Ramsey references from his "8%" withdrawal "advice". Ramsey DOES NOT withdraw from his portfolio and his income can more than fix any market slide experienced by his equity investments. The "average Joe" is in a much more financially percarious position, and can ill afford to withdraw at a 8% rate when they might have only Social Security and their savings to live on. Also, Ramsey's asertion that his portfolio grows "12%" every year (his exact words) is a lie, and does not take into consideration the sequence of withdrawal risk which translates into the risk of prematurely depleting one's portfolio by taking out too much funds when the market steeply declines. And, no Dave Ramsey, one's portfolio does not "increase annually by the rate of inflation", as he's often said.
Again, for offering savings and living debt-free advice, I give Ramsey 5 stars. For giving sound investment advice, I give him zero stars, and he's actually dangerous for the uninformed retirees and near-retirees who chose to rely on his investment advice to satisfy their income retirement needs.
Ramsey's bad advice doesn't have to do with getting out of debt, rather it's his awful advice on investing and withdrawal rates. He conflates average returns with actual returns and completely ignores sequence of returns risk. He says everyone regardless of situation should be 100% invested in the stock market which is terrible advice.
@@beernutzbob Totally agree!
Dave Ramsey didn't invent the concept of not getting in debt. You're not obligated to him at all.
@@RossLemon True, but Ramsey deserves some credit for influencing people who needed direction to get out of debt and live a debt free life. However, I'm not of fan of him, particularly due to his arrogant and dismissive way of talking with people who think differently than him, and his dangerous guidance on excessive retirement fund withdrawals.
Dave rocks. I’ll keep doing what I’m doing. After all it’s my life.
Have fun being broke and having no retirement money
That's fine but Dave's investment advice is horrible.
I know nothing about Dave Ramsey and viewed this because of its label of dangerous financial advice which I want to avoid. I do 'financial advisors' have a good thing going for themselves. They get to provide a service that will (maybe) pan out many years later but they get paid now. Imagine an electrician handing you his bill and saying that outlet will start to work in 10 years. I think all financial advisors' advice should be labeled 'dangerous'.
These idiots are only upset because he is exposing these financial idiots who call them selves financial planners.
Well said.
I will move in to live with Dave when I run out of money. Hope he will have arms wide open to welcome me!
Nah think he would prefer to live with his wife solely. 🤓😎
I can't listen to Dave more than 5 mins. I would never move in with the guy. 🤪
If u run out of money it’s because your a loser
Dave is a salesman first and a financial advisor second
the only way he makes money is all his useless books
Well you got the first part right and I would even say he is an entertainer only. He definitely is no financial advisor.
@@gregwessels7205 yeah and his daughter is trying to get in the game her BOOKS nothing really to say
1st Dave is a God fearing Christian
2nd Dave is a happily married family man and great provider
3rd Dave and his family attend church
4th Dave is an astute business Realtor and investor.
5th Dave is a millionaire
@@Bobbyelijah who cares
It's a maybe. I can put my entire retirement in Tbills at 5% and withdraw 5% and never touch principal. But, if I withdraw 8%, I am slowly winding down the principal and may be close to zero when I pass. The question really is do you want to leave anything and how healthy do you predict in your retirement years?
True. I'm not sure how much longer we'll be seeing those "risk free" 5% T-Bill rates. It's been a nice change, though.
Tbills won't stay at five percent much longer
Dave Ramsey's plan for getting out of debt is good but his investment advice is not. Also, his plan assumes you can always find another job or hold several jobs, or rely on a spouse for a second income, and emergencies happen one at a time. Far too many people are dependent on their individual income, are not able to take on more work due to family commitments, and many experience multiple emergencies at the same time (job loss, medical illness, accidents, natural disasters, divorce). Sometimes life just sucks.
I don't even like his advice on paying off debt. His debt snowball is mathematically stupid. He completely ignores interest rates.
@@debbielockhart7762 It ignores interest rates because it's based a little on psychology. It's a reward and relief to pay something off and so it leads you to continue with the plan. Mathematically paying the highest interest rate is correct and he even says so multiple times. But people are the problem, not math. Just like a heloc at 10% interest to pay off 22%+ credit card interest, then you pay off the heloc makes mathematical sense. The problem again is people. Unless you change your spending habits and stop using the credit card, no method will work. If you spend more than you make, you will be in debt and this causes a lot of stress on middle aged adults.
That's because the idea is to pay so much more than the minimum payment that the interest rates are way less of a factor..@@debbielockhart7762
@@debbielockhart7762that’s because the percentage rates are usually very nominal in their differences
@debbielockhart7762 it's a difference of a few hundred to a few thousand dollars. The debt snowball is better because it builds your confidence that your budgeting and paying off debt is actually working. People drowning in debt need the little wins to get started.
I agree with Dave about 90% of the time and his free advice has made us financially independent and wealthy beyond anything I could have imagined over the course of 20 years.
Yeah, people seem to not realize that you can follow his advice and plan without paying a single dime. We did the same thing you did and are glad we did. Do I always agree with Dave, no, but the country would be far better off if more people followed his steps.
Years ago, I watched Ramsey's "Financial University" series, or whatever it was called, because a friend was a big fan and had bought the course. The one thing I thought he got right that might contradict some experts was his advice to pay the smallest debt down first, rather than the debt with the highest interest rate. I think he correctly tapped into the emotional connection we have with our finances and the concurrent need we have for gratification--Paying a debt down to zero gives that gratification and encourages us to continue the journey to debt freedom. That was about it. Other than that, he sounded like a snake oil salesman. And then I saw him pitching investment services from which he obviously earned a commission, and I completely tuned him out.
"And then I saw him pitching investment services from which he obviously earned a commission". So right Rick! His radio show, personal appearances, TH-cam channel, books, courses, and school curriculum, are all a coordinated pitches to get the masses to forever only invest with mutual fund salespeople (his Adviser Network) who split their commissions with him. He encourages investing but blatantly shits on any investment paths that don't earn him a commission. And then there's his commission-earning timeshare exit pitches that currently has him being sued for $150m.
I think his advice about paying the smallest debt first is stupid. Go with the interest rates.
@@debbielockhart7762it’s not about the math, it’s about behavior modification. Pay the smallest balance off first, as quick as you can and it gives you some hope and staves off discouragement.
Yeah. It’s advice that doesn’t add up. Screw psychological. Give me logic and facts.
@vivalapsych I agree with Dave on this one. If you wanted logic and facts then you wouldn't have gotten yourself into a bunch of consumer debt to begin with. It doesn't just take math to get out of it; it takes a change in behavior which is what he is good at. When you succeed at the debt snowball, the difference you're paying in interest is minimal since you're paying them all off anyway. And, the difference in interest rate does not account for the gazelle intensity in which you change your lifestyle, cut your expenses, and earn extra money. That is all a part of what makes his program successful for millions of people.
We don't have to beat down Dave Ramsey (not implying you did). Dave has a clear ego problem that usually stems from feeling less than those who are certified and have greater experience. He is quick to malign others on his program but extremely slow to admit when he is wrong (repeatedly). Dave won't sit in a live discussion with financial industry professionals because he would be exposed very quickly and that would not be good for his brand. We have seen this act before.
So when you said “we don’t have to beat down Dave…”, you meant “let me beat down Dave for all of you…”, right? 😊
Reversal, it's actually Dave who was beating. He was beating on licensed professionals who are held to an all time high fiduciary standard.
Dave Ramsey is Mr. Know it All! And actually he does NOT know it all!!!
Thanks Lane for the reminder, don’t always believe everything internet says, no matter who, always fact check from multiple reliable sources
Ok...Ramsy is way more right than wrong. However, he is a bit aggressive on investing and projections. Now that said, he is "usually" right. In hindsight, most of the time, 8% is safe to withdraw....ASSUMING you are 100% invested in the SP500. Ramsy is good for the basics, but one size doesn't fit all in the investment realm.
I listened to Dave Ramsey back in the mid 90s, when he was on local radio in West Nashville. His get-out-of-debt strategy is great advice. But I am well past listening to someone who thinks $80K /year is a safe withdrawal on only $1M -- more $40K in reality.
if all you can get is 40K on a Million then you obviously have no idea how to work the markets, I think you need to educate yourself on covered calls, put protection, Buying CEF style funds, pays dividends, also learn to trade each week, you can make yourself well more then 10% on that every year.
@@robert-ku7zr I have been an investor for over 20 years, so I know how derivatives work. But, my wife actually forbade me. To get high returns, I invest heavily in Microsoft, Google, and later NVDA. My returns are almost always above the markets, and I could theoretically withdraw well above 10% -- when I retire in 5 years. At that point, though, I will shift to less risky etfs and stocks.
I heard Dave say “if he were half wrong” would work perfect in the numbers I see here. 😂
@@robert-ku7zr I am retired, and don't NEED more than $40K/year from my stocks. So, I would much rather get rapid growth from stocks like Microsoft and ETFs like VGT. I pay much less in taxes than I would selling options or playing other derivatives, and do not have to keep a margin account. If my monthly expenses are higher than normal, I also have 9 renters + whatever my wife earns from her investments.
60 would be fine with high success
The problem I see is advisors believe everyone can handle finances. Most people are beyond broke
yep. they believe everyone can handle a credit card. The vast majority of people can't. and then end up in debt.
The best advice Dave gives is to start anew. Get out of debt as early as one can, then live within your means, and keep doing that till you retire, plain and simple.
Yes absolutely, but the problem is with his retirement distribution advice. To understand better and to look at the math please take a look at this article: www.thinkadvisor.com/2023/11/13/supernerds-unite-against-dave-ramseys-8-safe-withdrawal-rate-guidance/
The baby steps are solid. Beyond that, get a professional.
Does my heart well to hear this program. I had 40+ years in the financial industry and only listen to him a few times. He has a massive following, most of them taking his word as gospel. Unfortunately with my background I can not stop & watch the train wreck. He has given numerous video's with bad advice. Not just my opinion but actual factual bad advice. I wrote back on a couple of them with documented citations & examples. NEVER got a reply. I fully admit I have only watched a couple of shows & can not bear to listen to more than a few minutes. I have to switch him off. Yes, a few items he may "get right" for the masses, but most of the time I would advise different approaches. He sells a lt of books & video's though. Yes; HE IS AN ENTERTAINER !
Who do you recommend listening to online TH-cam?
I like the “money guys”
Daves a good hearted man with intentions on helping people with a scary thing called debt. He has made more people millionaires than any of these "financial advisors" could dream of producing.
That may be true but it doesn’t change the fact that when it comes to withdrawal rates and sequence of returns risk during the retirement years, he is absolutely dead wrong, and his advice on that subject is dangerous and risky.
Some people are out of touch...you never assume a one-size-fits all strategy for ANYone.
Everyone should eat apples.
Everyone should go on a diet.
Everyone should leave milk and cookies out for Santa..
Everyone should change their oil.
The exception does not change the standard…
But Dave Ramsey sounds so confident! How can he be wrong?
We've seen this before. Maybe that's why he shows off his gun in one of his videos.
Dave has made his money and more then every financial GURU out there, so why beat that man up learn to guide your own finances and thats what dave tries to tell you all, , Dave is in the business of getting fools out of debt,
@robert-ku7zr that's all he does. Anyone can get out of debt. Its not rocket science. Save money to pay off debt. Duh!
@@robert-ku7zr He's made money BECAUSE of his business, not necessarily all from his 'investment' management.
@@miketheyunggod2534 yet millions don’t do it. Lots of things are simple, but not necessarily easy to do. People have to change their mindset and I think that’s what Dave does is help them change your mindset and ways of thinking about things and he gets them to take action.
I love Dave Ramsey, but hate how he’s unwilling to hear opposing opinions and understand the math they’re following. He goes straight to insulting instead of hearing others out.
I don't think he says things without doing any homework. He is a calculated person and gives reason for what he says. Now I just listened to this video and several others that 8% withdrawal is dangerous financial advice but does not go into telling why?
@@bittertruthnavinhe is sponsored by many money organizations. He’s not giving out advice. He selling it.
@bittertruthnavin it does not take into account sequence of returns risk. Average returns over time is only the average. Some years are down. And drawing 8% when it is down will drain your account.
Dave is like: Do you have a million dollars? No? Then ya live in your mother's basement and can't speak on the matter. Then the people in his comment sections are like🤤bro he don't got a million dollars he live in his mom's basement.
What if... I have a million dollars because I live in my mother's basement?
So, Dave Ramsey is to financial advisor as Dr. Laura Schlesinger is to physiologist?
BINGO
Yes, that is why he is so wealthy, because he is incompetent.
As Orville redenbacher is to popcorn and col. Sanders is to chicken.
@@rollinsdet8229 you are right and all I can say to an old reply is autocorrect strikes again! Duck!
Psychologist but we knew what you meant
Thank you for covering this very important topic! I sincerely appreciate it.
This was a very good video. I do follow Dave Ramsey's advice. Now that I am retired, however, the only withdrawals that I take are RMDs (after I pay the taxes, I roll the remainder into brokerage). I was always skeptical of his 12% average annual return rate. Again, it's not an issue for me personally. I think that pointing out that his numbers are probably overstated is important. He has been successful for so long he is probably over the top. What he does well is help people get out of debt and to invest the 15%. Because Americans are not saving as much as they should while spending too much using credit, his message is sorely needed.
Just call it what it is. Hes great for getting people out of debt. After that its shaky.
Ramsey callers 95% of the time have silly little "humble bragging" questions. They are in great financial shape & want a pat on the back.
Dave picks the callers.
People call in all the time with high car payments & high a Visa balance. Then they inform Dave they make $275k lolol.
Oh me oh my what to do lolol.
95% is obvious exageration
@@greggpurviance7252 I meant to say 94%.
The majority of his callers have too little income
“Advice is one thing that is freely given away, but watch that you only take what is worth having.”
DR is elementary and we should all strive to graduate from him. His 8% withdrawal rate and 12% market return have all you 'professionals ' right where he wants you- talking about him. LOL
We’re more worried about the poor fools who listens to him and believe that 12% exists and retires and then loses his house, etc. 🙁
Ramsey has a PhD in fuzzy math
He told me to pay off debt with a small inheritance even though I had just lost my job; instead of putting it in a good savings venue. I would have still been out of debt in a year - but the nest egg would have helped me save, invest, and feel safe enough to go back to school while starting a business. In essence, he cost me time, money, and peace of mind. The job market was terrible then, & it took me a while to find something. So I had some paid-off debt, no savings; and then I had to start running the credit cards up again to live.
You were free to not take his advice.
@ReneeDeane, that's rough. You learned a lot though. Always good to get a second opinion and go with your gut too.
@@maryricketts7337 I paid for the advice and thought he was more knowledgeable than me, so I took it. The problem is with going with a one trick pony "get out of dept no matter what", and not someone who would have optimized that inheritance based on real expertise in multiple areas.
Dave Ramsey = one size fits all financial planning
Thanks you for this video, and the link to the article. I have listened to Dave on and off for many years. I like much of what he says. I have followed a lot of what he teaches for personal finances. But not his retirement advice! When I heard him claiming that an 8% retirement withdrawal rate was reasonable I cringed. It is ludicrous to believe that is workable for the majority of retirees. I like what the 401klady said, "Dave doesn't need his nest egg." But, Dave, the rest of us working folk do.
Dave is the perfect example of why you don't just blindly trust someone because you like them. I love listening to him take calls and giving advice. But yeah, an 8% withdrawal rate assumes that, even in retirement (when you're investing less aggressively), you can get at least an 11% rate (with the other 3% keeping up with inflation). The S&P 500, which is one of the best "set it and forget it" investments out there, historically only gives you 10% over any 30 year block of time. Of course, in retirement, you might not have decades to recover from a huge drop in your portfolio and need to be less aggressive. A 7% rate of return and a 3.5 - 4% rate of withdrawal is more realistic.
Dave Ramsey makes a lot of generalizations, generic statements, etc. its totally unprofessional and the absolute worst way to give financial advise.
I don' t know how Dave or anyone could look at a lifetime chart of the Dow where there have been several periods the Dow went basically sideways for 10, 15, 20, even 25 years and then say the market (or a "good" growth mutual fund/ETF) goes up take or give 12% a year (some years more some years less). Based on history, you could very easily retire in 2025 and see the market at that same level in 2040. I'm not predicting it, I'm just saying it happens. BTW I didn't need a calculator for any of that analysis Dave.
As with any advice you get from anyone: consider it advice and not law. Do your own studying. No one will be willing to put as much work into figuring out YOUR situation as you.
True Auntie but unfortunately many people don't want to think for themselves. They will uncritically follow anyone who promises them a simple path. Dave repackages basic common sense and trademarks it "baby steps" for a reason.
Well sure. But its not even substantiated advice.
Anyone trying to give generic advice to a specific situation is going to give mediocre guidance. But, people want simple, quick answers.
Dave Ramsey is smart in catering to the right market: lots and lots of poor and broke people. These are the people will buy his book and listen to his advice. The % of rich people is very small who would not go to him for high level financial advice. So there, he got his huge audience and therefore makes huge income.
Christians that read and understand their Bible don't fall for his schtick either.
“Dave Ramsay is a professional entertainer, masquerading as a financial planner.” Beautifully stated. Any ‘advice’ Ramsay pronounces is just such simple common sense arithmetic. Nothing magic about what he says. It proves clearly that you don’t need a whole lot of any substance to get rich on a TH-cam channel.
Except, he has helped h7ndreds
How many have y'all helped?
100%
More of the rich telling the rest of us how to live...
True, but Dave didn't get "rich" investing in equities like stocks, ETFs, or CDs -- he got rich hustling little people into buying his strategy. I take my investment advice from professional investors like Peter Lynch, Warren Buffet, or Jack Bogle.
Exactly.
Would you rather get financial advice from a poor person?
@@LenP-oj1mz Dave only got rich from conning people
I am very close to a million-dollar portfolio... That is my magic number for retiring as well. Truth is with no house payment, if I'm spending more than four grand a month that would be nuts.
property tax, insurance, hoa fee, and maintenance allowance is $1,500/ mth just for paid off house
@@wernerfoerster3666 I wouldn't live in an HOA if someone paid me for it
This woman is spot on about Ramsey. A 12 % return every year without any crashes ? I guess Ramsey is better than Buffet and Munger. He is a marketeer of his own celebrity and not much more.
12% guaranteed? Let’s see it.
call bernie m
@ I think they confiscated his cell phone
Just have faith 😂
I also have a question for Dave Ramsey . He states that you should never file for bankruptcy and that we should always try to repay our debts. My question is for him is at the time he filed he was broke like many are. But now that he is worth millions, did he go back to his debtors and say he is now a very well made man now and he thinks it time to make his own debts right? It’s called practice what you preach. He may have. It’s a question only he can answer.
He did go back and repay them.
Yes he did.
He never filed bankruptcy. That's just a business origin story he made up.
He repaid them. 💰
What a stupid comment. Lmao
This it is an incredible vid.. thank you.. the most important think is that he is not Licensed...
Blanket recommendations will always be bad advice for some folks.
I have been retired for just a year now, and only living off my 401K and IRA, I am 65 will not take my SS for one more year. My financial adviser/planer tells me my withdrawal rate needs to be fluid and change with the financial environment and my own financial needs. Right now my withdrawal rate is 6%, it will then change next year to 4%. We are Blessed to own our new home and zero CC debt. Over 80 years of the stock market the 'medium' not average rate of return has been 9.3% not 12%.
What does 'medium' mean? Is 'medium' equal to mean? Or is 'medium' equal to median?
You lost me at “I like Dave Ramsey”.
Dave Ramsey is an opportunist that plagiarized the book "The Millionaire Next Door" and just added some cutesy "baby steps" names, folksy sayings, and made a business out of it.
One more thing. Car payments can cripple your financial planning. But repeatedly putting cash into a POS car that can leave you stranded and cause job loss, "... your greatest wealth building tool." is not a good option either. It's wise to plan for retirement, but the kids have to eat every day.
Totally agree with you, of course don’t buy a new car every 3 years on credit, but I will not apologize for spending 20k on credit of a used minivan with low miles. I needed this for work, for my part time business and my once a year 2000 mile trip to visit my two oldest adult children, and grandkids. Something that I could not do with a cheaper car. And this current one will probably be paid off next month, and I will drive it until it looks like a Dave car.
@@paulphillips6151 My SUV is 14 years old and still in good shape. However, I worry about long trips with it and breaking down in some remote area. My solution was to rent a car for these long trips. Of course costs a few hundred, but the peace of mind is well worth it.
Not justified car payments
Dave says go buy a used car, not a POS car lol
No one said buy a garbage car. Making shit uo to attack dave
Thanks for the article. It was very effective in explaining the flaw in Dave’s investing and withdrawal advice.
Dave’s unchristian rants and self righteousness are the result of too many idolaters and too much $$$success. Time for another dose of humility in your life, Dave.
Maybe dose of less judgememtal attitude
“Unchristian” lol. Tell me you don’t know what you are talking about without saying you don’t know what you are talking about. Christianity isn’t about being sweet all the time. You can be rebuked and shown the error of your ways. Proverbs says “he who doesn’t like correction is stupid.” Get a clue
Dave gives great advice on dealing with debt (which is 90% common sense), but I've heard advice from him on investing (including real estate) that just seems wrong. I would love to see a list of all his sponsors and the organizations that do business with his. That would probably explain a lot.
She is right. Dave is the Goober. An assumption of 12% return is asinine. There have many long periods where market returns where in low single digits.
😂😂😂😂
When?
@@themuskrat5776 66-81 was 0%. 29-45 was -50%
This is just ignorance. There are NOT many long periods where the market returns low single digits. Just insanity.
@@knightwriter2989 as they say, “Those who do not learn history are doomed to repeat it.” Good luck!
Dave just explains the way he does things,the way he became wealthy and worked for him,he is trying to share that,maybe some people have a different way to do things but he is explaining his way,thats all
I think you are missing the point here. This is about his adivce regarding withdrawal rates and sequence of returns risk during the retiremente years. This is important for millions of people but it would not apply to Dave personally as he will never spend all of his money. He simple gets the math wrong. If you would like to understand the issue better here is an article that explains it very well: www.thinkadvisor.com/2023/11/13/supernerds-unite-against-dave-ramseys-8-safe-withdrawal-rate-guidance/
Thanks Martin for the heads up!
Question for you. Would you take fitness advice from a fat trainer? I think it's a good analogy. A vast majority of these so called certified "FINANCIAL PLANNERS" are not independently wealthy. Do they have enough money in the bank that they don't have to work & their profession is a vocation-a calling-rather than an absolute means to making a living? I have dealt with these guys in the past. They don't care about their clients past getting their hooks in them. Once they have a clients money under THEIR management they have some computer algorithm to help remind them to call their client for an obligatory annual call feigning effort on their behalf. Really they collect a percentage of their clients portfolio annually for just managing it regardless of if it goes up or down in value. As for the clip of the woman excoriating Dave, what does HER PERSONAL FINANCIAL situation look like? No seriously. Is she independently wealthy? You mention an article with a few scholars, PHD's weighing in. What's their net worth? It matters. Just like I wouldn't hire a personal trainer who hasn't been successful in his own fitness journey I would not hire a so called FINANCIAL ADVISOR who doesn't have a multi-million portfolio.
I can understand why Dave came out with this advice at this point in time - fixed income investments have gotten crushed these last few years due to inflation, and CFPs who have doggedly adhered to “tried and true” investment allocation strategies based on a clients age to minimize risk potentially INCREASED investment risk instead. It’s quite possible that many CFPs have gotten a bit complacent regarding this risk as fixed income has been either in the black or stable over the last couple of decades and so were caught unawares when inflation spiked as aggressively as it did. I believe that the “safety” of fixed income investments is a myth, unless you can buy and hold and live off the coupon rate. Also, suggesting that folks live off LESS than a 4% withdrawal rate in these inflationary times is really ridiculous - how much easier do CFPs want their job to be? The less a retiree withdraws the easier it is for a CFP to maintain the portfolio balance or even increase it. No wonder all the CFPs are upset at Dave - his listeners are probably taking a much closer look at how their portfolios are actually performing and are asking hard questions.
Gotcha, sooooo 1) So "this point in time" means 100% overweighted S&P is validated? 2) This advice of Dave's has not been isolated to this interest rate cycle as you represent 3) Safety of fixed is not absolute. However, relative to equities it's safer. See the order of claims in corporate bankruptcy 4) Like Dave, you can throw stones at people who took the time to study and be credentialed. But let's be clear, you have offered NOTHING that contradicts the Bengen studies of the 4% rule. Referencing only current inflationary times shows that you didn't read how the study was done. You have offered nothing other than a Ramsey-esque baseless rant. Ohhhhhh, there it is. That explains it!
@@wannamontana4130 Thank you for your detailed reply - my thoughts: 1 - I do believe that, at this point in time, overweight in equities is validated - we have entered an inflationary period and I believe the potential upside in fixed income investments is overshadowed by inflationary risk. 2 - Understood about Dave, and I am not defending his previous comments/advice. However, many CFAs have stated that Dave has said some valuable things in the past. 3 - Order of claims in bankruptcy is not the only factor to look at to evaluate risk. Everyone knows that bond holders get paid while shareholders are wiped out. It’s inflationary risk that can impact any and all fixed income investments, even those issued by solid companies and governments. 4 - No one is negating the hard work it takes to become credentialed. However, money management is a profession that is ultimately judged by results, not credentials. Asking investors to take out less and less from their portfolios just makes the job easier for money managers and, for those who work on a fee based on the amount being managed, a better payday.
@@wannamontana4130 Dave’s 12% yearly return and 8% withdrawal with $1 million could easily end up with many people being financially devastated at retirement. All it would take is a 25% market downturn as they retire and even with a 12% return afterwards, their funds would be gone in less than 20 years.
Not to mention Dave’s advice on buying houses with cash… having zero credit cards… no investing in single stocks… but his advice in general is helpful for financially irresponsible people
Yeah, at times Ramsey can be very off base on some things. I find that sometimes people can do all the right things but then "life happens", and even of you have money saved and a nice safety net, it can and does all go bye-bye in some cases. I stopped listening to Dave on the radio show because when people are in debt, even if no fault of their own, his answer seems to be most times to tell people to find a way to make more money, get 3 jobs, blah, blah, blah. Its not always possible Dave!!!!!!!
I still listen to his show out of pure entertainment and amazement of human behavior.
Dave or no, if your financial advisor has less money than you, you should be very wary of their advice.
Exactly. I dont care if anyone likes Dave or not, but he has helped thousands become debt free and many millionaires. I would love to know how many millionaires the certified advisors like the lady here have made out of their clients and of themselves.
@@markela18 Dave’s stock market advice, combined with a big stock market dip of 25% in a year, will financially devastate a lot of retirees following his advice. BTW - for the vast majority of millionaires, it takes a lifetime to get there. I wouldn’t expect planners or most of their clients to be millionaires, but they’ve learned from countless others who have come before them.
For me, it took one meeting with a financial planner when I was in my twenties to set me on the right path. Now at 64, I have $3.1 in my 401K.
@@markela18 These CFP are selling a product to make a buck...just like Dave. If they truly understood DR, they would know his true message, "live like no one else today, so you can live like no one else tomorrow...then build wealth and be generous."
2 years ago it was not atypical to have investment advisors from major financial institutions tell you that they could get a 7 percent on average with funds that were only medium risk. I didn’t go for it as I have been investing a long time. And there is a lot of wiggle room in that statement, if you know anything about investing. So I would disagree with anyone that 7 or 8 percent guarantee is a sure thing, but Dave didn’t say anything different than what some other major financial institutions claimed to be true as well. And in this current market, not even sure they can guarantee 4 percent.
He has absolutely terrible advice regarding when to take Social Security. "Social Insecurity" is what he calls it. The fact is, the vast majority of Americans rely on this as large (40% on average) part of their retirement income.
I actually agree with Ramsey's "it's ok to take SS and invest the money at 62". But one size doesn't fit all.
Social Security should be abolished.
@@frothybeaver4869 Why?
When someone with
$500,000,000
gives a poor person financial advice you might have a bad time when they run out of money.
Relying on government programs or even inheritance has some risk. It's possible you won't get as much as you expect, because you're depending on others for your own financial success. I haven't heard his arguments about Social Security, but his whole mentality is around making yourself financially independent and lowering risk by removing debt.
Some reasons that Social Security might worsen is that if the trust fund runs out of money (no sign of that being reversed), if taxes aren't increased, benefits would have to be decreased for recipients. I don't think taxes can help, because there are more old people nowadays and less young people. This fact diminishes the benefit of increasing taxes for Social Security.
I listen to many different advice channels and read books & articles regarding financial investment strategies. Then I formulate my own decision on which plan to execute. When uncertain, I'll re-direct small amounts experimentally. But in the end, I own the decision, because I must live with the consequences.
Dave needs to leave his company and retire. Especially after those court documents released. Don't get me wrong I think the basic advice of paying down debt and getting out of debt is just fine, but he as a person has been a scumbag and he needs to step away.
Thanks for exposing this DANGEROUS FINANCIAL ADVISOR.....
Dave is not a financial advisor.
Thanks for linking the article Martin. It was both educational and entertaining (even for a non-supernerd).
You have to remember, Dave Ransey is funded by viewership so he’ll say whatever he needs to to keep people watching. He’s also an extremely biased guy who loves leveraging his personal experience and actual evidence. He tends to be right on very basic and simple concepts. Do not spend all of your money on dumb things, save most of it, invest some of it. Where he tends to get things wrong is, anything that requires risk, or things that are complicated. He gets around it by calling whatever it is dumb and insulting anyone who promotes things he doesn’t fully understand, failed at, or trust.
Funded for HIS ideas
Which he has consistently held since before any sponsorships
He is funded by his affiliates. Ramsey solutions is a marketing firm. Not a financial advisory firm. They are not licensed appropriately for that. They are not professionals in the finance/investment space. He is a sales funnel nothing more.
@michael589m
Credential, credential, credential
How manybpeople have y9u brought out of debt?
I think Dave is right when he cautions people not to take on debt for frivolous reasons such as temporary pleasure or to buy unneeded depreciating assets
Yes, for sure.
That is common sense; not expert advice.
The only dangerous thing he said (Rice and beans!)
Dave saved my financial life. My wife and I were heading nowhere. We are now on track for a great retirement.
I hope Dave reviews this content and adjusts his comments accordingly, on air, to his fans.
Dave Ramsey obviously does not understand the difference between average annual return and Actual Rate of Return. Dave obviously does not understand Negative Sequence of Returns risk.
Dave Ramsey while great at helping families get out of debt is way off here.
Many would call this Financial Malpractice
Shameful!
He has faith 😂
I notice Dave like other Southerners, when they're light on content or evidence for their beliefs quickly devolves into name calling and the tired mother's basement routine.
And don’t forget the Bible. Gotta throw some evangelical Christianity in there.
ALL Americans are like this. You
I hope you stay up north. WTF
Replace southerners with some other slang and you'd be called some pretty nasty words
Dave's advice on getting out of debt, paying off your mortgage asap, having a budget and a financial plan, saving for emergencies, saving/investing a percentage of your monthly income, is just commonsense. But every one of us has different circumstances, income and goals, which means we should all seek professional advice from regulated financial advisers before investing money.
My house has a mortgage on it. I’m retired. I also have an apartment that grosses a chunk of change. I could pay my mortgage off, but it would cost me in taxes. I am not following our good friend Dave’s strategy. He would want me to sell this good income property and put this non productive money in the bank, or worse yet put it into riskier investments. Not to mention I would loose the taxes I would have to pay on a depreciated asset,
Yes, since you have debt you must sell the income property, pay off the debt, and invest the rest. Don't worry about taxes. Only invest in front-end load mutual funds through a Ramsey Solution's endorsed sales person from his Adviser Network. You'll indirectly pay the adviser a hefty commission but it's all good because that sales person will pay Ramsey a nice referral commission and likely split on-going commissions with him too when you start your monthly investment deposits. Don't invest in ETFs or stocks because with those Ramsey doesn't get a commission.
If that doesn't sound like a good plan you need re-education. Take a course from Ramsey's Financial Peace University and buy his book$. Drink the kool-aid and join the cult!
Paying off a mortgage will cost you in taxes?!? Nope. The tax rate is far less than 100%. You are paying out a dollar to save maybe a quarter.
I never knew Dave Ramsey lived in his mother's basement with a calculator!!!
Most 'withdrawal rates' are bunk. 4, 6, 8, none work. Each family /person is diffrent
The only correct withdrawal rate is 1%
12%? Where Dave?
In his magical 10% front load fee mutual funds
4% is safe guess and is a good planning tool. It is however not a gold std and or the only safe or always safe withdraw rate. The market has avged 8+ percent for the last 20 years. So if your money is making more than 8%, then you could take out 8%, on avg, forever. If you are 75 and you family doesnt have longevity or you have problems, and you have a mil in the bank and you decide to take out 80K, you can do that without ever earning a dime in interest for 12.5 years and likely be dead before you are broke. So why is it exactly that a person could NOT take 8% in the right situation? I wont because I want to leave a legacy, that doesnt mean for some it isnt possible.
You are right, one size does not fit all! To understand the issue better I recommend this article www.thinkadvisor.com/2023/11/13/supernerds-unite-against-dave-ramseys-8-safe-withdrawal-rate-guidance/
He is only good for getting out of debt…
Nitpicking a guy that has 100s of thousands of hours I’m sure you can find something for your content
I can’t stand Dave Ramsey with his attitude & name calling etc… !!!
Getting out of debt and investing are two different things. If Dave would stay to his area of expertise where he is qualified then that would be one thing. Investing is highly personal based on age, goals and the type of investments you want to make. Real estate is different than mutual funds or index funds. Anyone who has done any research on his own should understand that taking advice from a radio personality alone lacks common sense. Unfortunately there are a lot of people who will 🤷🏻♂️
Dave Ramsey is a professional entertainer masquereding as a financial advisor. Does anyone see an orange parallel in the political world?
And the absolute irony of that is your orange man, a complete outsider, did the best job running this country than any other "permanent political class" has ever done. Your obvious TDS has kept you from realizing this and you'll follow the permanent political class (enemies of the people) that has and is in real time destroying our country...Unless you are the 1% of the 1% in wealth, you are a target. A target to be stripped of anything you have that gives you your freedom, prosperity, and pretention. THE LARGEST TRANSFER OF WEALTH IS NOW. And we're all on the wrong side of that transfer.
Do you people Ever think of anything else besides Trump. Move on with your life.
@@georgeseymour7116 Except the part where he is running for ... wait for it ... President. ... and won't move on with his life.
Goodness... get a life already.
Actually, I’m more worried about the senile man currently masquerading as president 😬😬😬
So what you’re saying is Dave Ramsey is to financial advice as Dr. Phil is to psychological advice.
Aside from general advice about basic financials, no one should listen to Ramsey. He is a youtuber & radio personality (entertainer) with no time, license, or skill to look at a person's individual situation more specifically. He is NOT a go to for advice regarding your specific situation. Seek professional advice for that.
Dave Ramsey is 100% right on common sense advice that your grandmother gave but keeps our teeth in. 😂😂😂
I refuse to listen to this Financial Quack "Dave Ramsey".
three bad years taking 8% and you just tanked your retirement. I use a 2% withdrawal rate and doubled my money in the last 5 years.
Hey, Bernie Madoff got his clients 12% returns annually for years. Ooops!
20%. 12% is actually realistic.
@@michaelsasso1312% is not realistic
But, but, but, the financial services industry says it's perfectly fine to pay them a 2% a year fee for assets under management. They have no room to criticize. And where are the clients' yachts?
Yes, Dave is in the financial entertainment business. A business in which he pitches financial services that earn him commissions and give him a real conflict of interest. But Dave knows his audience of bible thumpers very well. He knows exactly how to bait them into accepting a sensationalized belief system that turns him into their personal financial Jesus and the makes him the biggest beneficiary of his religiously driven financial philosophy. His trademark "I'm debt free" declarations have all the elements of an old-time revival meeting. I guess some people need miracles in their lives to believe common sense. I'll be that nerd in the basement who sticks to the numbers that actually work.
Agree that Dave is great for helping people to get out of debt and avoiding debt. But the investment side is not realistic. It always gets me when he days the market has returned 10% or whatever over the past hundred years. THAT'S NOT YOUR TIME WINDOW. It may be up 30-50% this year and then in two weeks lose all those gains and then languish for years. Like in 2008. Like in 2020. Got many years to invest? Absolutely, be all in. Retiring in a couple years? Most of your money should be in something safe.