Dave got me out of my debt spiral even with a large income. But when I reached a 7 figure net-worth and my finances got more complicated, I actually outgrew his teachings.
I outgrew him in a few months but I never personally saw debt as an option growing up and even paid though college (grad in 2019). He's just not good to listen to for anything other than getting motivated to pay off debt. Really most people should switch over to the Money guy show for financial education. I think I've mostly outgrew them as well at this point just from years of watching but at least they bring up new legislation when it comes up / is proposed.
Dave and his methods are great for people that have zero self-control over their finances. He is great at taking someone that has no budget, a mountain of debt, decreasing it and increasing their income and setting them up for wealth building.
This right here. A lot of people in crazy debt can't control themselves or their lifestyles. They might lack various things like discipline, direction, etc and are looking for someone to help them. Some of those people also don't want to work an insane amount to pay off the debt. Some even want to leverage lots of debt to possibly make money/become rich which then leaves them in the situation where they aren't making money and have a lot of debt cause of loans, credit cards, etc. I watch A LOT of the Ramsey Network content (Ramsey Show, some of their personalities' shows, etc) but do not follow his baby steps or some of his ideologies (like not using credit cards or taking loans - you gotta be smart with the loans though cause high rates are dumb). That being said, I take the things/advice I agree or disagree with and the situations of the callers to improve my financial literacy (same thing when watching any good financial people).
I loved the reasonable and calm way that you approached this subject. Dave Ramsey has provided an incredible service to the general public for years. If people who have never been taught about money would incorporate even a fraction of his recommendations, it would benefit their financial situation a great deal. However, he is also a wealthy entertainer with a big ego who cannot possibly be specific enough to analyze the finances for each person who listens to him. Big financial concepts and blanket statements are a starting point only. As with everything in life…listen and learn, be humble about what you don’t know, discern what applies to you and what your priorities are, and disregard what does not serve you. 😊
Dave is great because his advice is solid and it is free. People really would be better off working with someone like you Ari, but unfortunately to get access to work with you the cash threshold is way to high for the average person.
Dave is the “Larry the Cable guy” of finance. Like any funny jokes, he is entertaining because what he says is half true! My situation resinates better with your finance focuses and I agree with you on your points. His guidance works great for people who are in big trouble but he has the rest of us scratching our heads with some of his crazy guidance like his over confidence with 8% withdrawal rate and treating credit cards like the devil. He pushes real estate like we would rather manage property outside of our day jobs instead of getting outdoors and playing like it was 1995.😂
I love Dave. He introduced me to lot of financial concepts in America when I immigrated here almost 2 decades ago. I don’t like real estate either and have nothing but my paid off home. He has mellowed and opened to new ideas like early retirement and that shows that this man can change which seemed impossible about 5/10 years ago.
Turnover rate is very important for after tax accounts. The turnover creates taxable events. Then you’re stuck paying taxes every year on your brokerage account. VOO turnover rate is 2% which is very good. Many mutual funds will have 20-30% turnover. Stay clear of those in taxable accounts.
I’ve watched many of your videos and looked back through your library and am curious how you’d handle a situation like this with a client as I haven’t seen it addressed. Your client is ok with using the substantial equity they have in their home to cover retirement expenses in the event of a market downturn or higher than expected inflation or unexpected expenses. That could mean selling their home and downsizing or taking out a reverse mortgage in order to decrease their probability of ‘ruin’. Thanks and love your videos.
My parents focused on rental real estate instead of the stock market, and they will now retire with a raise on stable income from rents. They also had a 401(a) from my mom's employer, and a small 457(b), and have quite a bit from 30 years of employer contributions, but for income they focused on real estate. After seeing that, I like real estate, but I also realize I'm not in the same situation as they were. Houses are a lot more expensive, and interest rates make it prohibitively expensive. I'm also not as handy or skilled as my father. I'm also focused on growing my income in my career. So, I'm not opposed to real estate, and I probably will invest in it eventually, but not right now. I'm focusing on saving and on passive investments.
@@mandypdx yes. The amount of income required to pay off debt, save 6 months income, pay cash for cars, and put down 20% on a home with a 15 year mortgage and save 15% of your salary is a realistic financial goal to very few people in 2024.
So I learned a very valuable lesson that touches the turnover in mutual funds topic. In my taxable account I had a high growth mutual fund that I bought in the spring of 2020. I was riding an emotional high as is soared and didn’t even realize I was getting hit with cap gains from it because it had a HUGE (72% or more) turnover rate. In 2022 when the market dropped that growth fund dropped to below where I purchased it so adding the cap gains I had paid, I lost more than the original investment. I sold it and bought an S&P 500 ETF and it’s much higher than that stupid growth fund now. I learned a higher lesson about turnover in non-taxable vs taxable. My taxable account is ETFs or stocks only so I control the cap gains problem.
Ari, I'm loving the TH-cam series. Why don't you ever discuss rule 72(t) and SEPP as an option for early retirees in place of or in addition to the "Superhero" account? Also, I have the option to contribute an extra $30+k/year to a Roth IRA with a mega-backdoor conversion from after-tax 401k contributions. Why would I fund the superhero account until that bucket is full? It would be great if you covered the pros and cons of these topics in a future video.
@@earlyretirementari Nice! Glad you addressed it. I do have a brokerage account and with a target retirement at 45 I was planning to use SEPP to pull the RMD to cover the taxes due on large Roth Conversions to stretch the brokerage account to 59.5 when I would be nearly done converting the IRA to Roth. The remainder of the IRA would be drawn down before SS kicked in. I think this will be the optimal strategy for a very early retirement.
As for the rental property getting the money from it at any time. Maybe Dave meant you could take a loan or HELOC onto property and then use that money for other investments. This way if the property is rented, you would not need to kick out tenants.
Dave Ramsey is great for debt reduction advice. I stopped listening to him on investing as it seems from other videos that he uses arithmetic mean instead of geometric mean when describing returns. Can't take someone seriously with this type of approach.
Agree. I know everyone likes to pile on Dave because it gets attention because he's a big name. He's a big name for a reason - he's doing the content that a HUGE number of people need - how to get out of debt, start saving, and get on the path to success. But, it's not possible for personal finance advice to be broadly applicable to everyone, and Dave is not for everyone. He does oversimplify certain things, most famously his idea of a safe withdrawal rate is dangerous. Like Ari, I don't agree with some of his personal values. But the reality is that some of my favorite financial personalities including the folks at Root are ALSO not for everyone. Not that their advice is BAD for a lot of people but it just doesn't land where they are. I love the guys at Root and TMGS and this content is generally pitched right where I am. But if you're the average single-mom waitress trying to pay rent every month and pay off a car and student loans, you'd benefit more from content that focuses on basic budgeting, how to find affordable child care, how not to get fleeced when you need to buy a car, how to prepare meals on a budget, how to get subsidized healthcare, the importance of renter's insurance or maybe life insurance and a will defining who will care for your children if something catastrophic happens, etc. -- mostly things that help you create SOME margin in your financial life, and then some good SIMPLE advice about what to do with that margin (emergency fund, maybe a Roth IRA or HSA, etc.). Investment advice can be as simple as cash for short term , life-cycle funds for retirement, and maybe some ideas about where to put medium-term goal savings like the next car or a future down payment.... there's no need for Roth conversion strategy and early retirement planning discussions for someone in that spot. Dave, like Ari, can't be all things to all people - and that's OK. That said, that doesn't mean we shouldn't call out when they forget to clarify who their audience is or they oversimplify to the point of being dangerous. This is why I choose to watch content from people who are careful to try not to be full of broad, sweeping generalizations without caveats and disclaimers. The key word in "personal finance" is actually "personal." =)
Dave says SP500 only for extra money 5 year time. Long term you agree with him he says "25% Aggressive Growth (small cap), 25% Growth (mid cap) 25% Growth/Income (large cap top of SP) 25% international (non USA)" I don't agree with the 25% international due to so many American companies are world wide. Its such a global economy now 25% is to much. I liked the video very well done.
Where do those fund definitions come from? Aggressive growth typically means risky tech funds like QQQM or VGT. Growth funds can be at any cap and are typically similar to S&P tracking funds - VOO (large cap), IVOO (mid cap) and VIOO (small cap). Growth and income funds are similar to growth funds but include bonds, REITS and/or dividend stocks. A popular example would be DODBX. Those grow the least but are less volatile and pay a higher dividend. There is a lot of overlap between all of those funds. It is a much better idea to follow Jack Bogle's (the Vanguard creator) advice and invest in VTI (total US stock market) that grows slightly less than S&P funds but is less volatile and pays more dividend. VSUX can be used to buy total international market, if desired. QQQM/VGT can produce better gains but they are way riskier so that applies to losses as well.
@@vchap01 Dave himself has made this reference and that's why I added it. I think the general terms have some flexibility for people with less investing knowledge. Its hard to be precise when you need a crayon for people to understand. Most of us do not follow this concept. Dave has never been considered an investing guru just a good business man with a knack for real estate tied up into a great personality.
The problem also is that Dave straight up lies about his returns and won't tell anyone which funds he actually uses.. He says he 'beats the market' by literally using funds that would of underperformed the market with higher violatility and risk.. I think if most people really understood finances they'd really see Dave is disingenuous when it actually comes to investing and retirement.
Dave's just designed for the average American who is in debt. He is not a CFP or holds any relevant certifications. I think it's intentional as a strategy to limit his liability. He doesn't seem to understand basic retirement strategy or risks. He's like the McDonalds of the financial education space. It's atleast edible and will keep you from starving, but it's really not good for you long term and you should change to other alternatives once you're back on your feet.
I followed someone who distilled Dave Ramsey's advice and "sanitized" it by removing all of the Christian content. It was a decade before I actually had read or heard from Dave Ramsey first-hand rather than distilled through someone else. In this post October 7th world, nothing he says is that bad - not even when he talks about submitting to your spouse. I can completely live with someone throwing out a sincerely-held personal belief that harms no one rather than hate and incitement. I'm also educated enough to know which advice to listen to and which to disregard. For example, I LOVE using my credit cards and playing the points game. As long as you pay off the card in full at the end of the month, credit cards are very safe and great.
It just occurred to me when someone referred to Dave Ramsey thinking credit cards "are the devil" - do you think Dave Ramsey's hate for credit cards has anything to do with his Christian beliefs? Growing up, we learned that Christians thought that usury was a sin in the Middle Ages in Europe, which is why so many Jews were money lenders. I don't know what Christians today think of usury.
I can not stand Dave Ramsey. I have a lot of issues with him. But his advice is only one side of it. Plenty of issues there but I won't go there. My main issue is with him and his personality. I have heard him yell at people. His rants are just him berating people or their opinions. He calls CFPs like you "certified financial pharisees" as an insult. I just find his ego is off the chart and I hate the way he talks to his callers if they disagree or question him.
Plus his pushing stuff that is all one size fits all recommendations like tearing up all your credit cards, stopping all investments until all your debt is paid off, having no credit score, pulling out 8 percent of your portfolio each year, etc.
Love your videos Ari but I do disagree with your stance on keeping a mortgage. Yes, you will probably get a better return on investments vs the interest you’re paying but the weight and feeling you have when you don’t owe anyone a single dollar is unexplainable. There is no better feeling than going to work knowing you don’t have to be there because your house is paid. The grass really does feel better when it’s your own. Keep up the great videos,
I think Dave Ramsey’s advice is good for people who have crippling debt and are pathologically incapable of budgeting on their own to get out of it, similar to a person who has a severe problem with morbid obesity, and who must go on a diet of celery sticks and water as an emergency means of getting their weight down. But celery sticks and water is no way to live - and isn’t healthy in the long term. If you find yourself in a very dire situation with respect to debt and feel incapable of extricating yourself, then Dave’s baby steps probably hold some value for you. If you have a manageable amount of debt, then Dave’s program will impede your accumulation of wealth, and his advice about safe withdrawal rates may ruin you.
What Dave teaches, people in Asian countries are born with that wisdom. Debt is evil has been written in religious scriptures. Debt is not bad. because it can make you wealthy. Debt is considered bad because it takes away peace of mind. Peaceful living is what ultimate goal should be.
Financially it does not even make sense to buy most properties to rent right now... You are competing with people who have 3% loans on homes they bought much cheaper who can afford a lower rent price. If housing crashes and rent has to lower anyone who just bought houses would risk going negative. Need really crazy deals to even have a chance for it to be profitable.
Rental real estate in early retirement, for many people, is going to be a terrible idea. (Agree with Ari; disagree with Dave.) As someone who had rental units for a while, it was an unholy nightmare. I made mistakes, obviously, but regardless: never want to do that again, EVER! The last thing I would want to do is deal with rental properties in retirement. Yuck!
Yeah you really need a lot of real estate where you can afford to have your own management team. Using a property management company will just eat too much of the profits that you might as well sell.
I absolutely detest real estate as an investment. It is too risky. Problems that require time and money to solve. Having a good renter is not guaranteed. I'm glad that Dave helps those he helps, but his investment advice after that is not good.
I can't stand Dave Ramsey his ego makes me hate him more. 60% of what he says is good if you are financially irresponsible. For all the normal people go listen to the money guy or buy a damn book
Dave got me out of my debt spiral even with a large income. But when I reached a 7 figure net-worth and my finances got more complicated, I actually outgrew his teachings.
I outgrew him in a few months but I never personally saw debt as an option growing up and even paid though college (grad in 2019).
He's just not good to listen to for anything other than getting motivated to pay off debt.
Really most people should switch over to the Money guy show for financial education. I think I've mostly outgrew them as well at this point just from years of watching but at least they bring up new legislation when it comes up / is proposed.
Dave didn’t do that. You did! Maybe he helped a bit 😊
Dave and his methods are great for people that have zero self-control over their finances. He is great at taking someone that has no budget, a mountain of debt, decreasing it and increasing their income and setting them up for wealth building.
This right here.
A lot of people in crazy debt can't control themselves or their lifestyles. They might lack various things like discipline, direction, etc and are looking for someone to help them. Some of those people also don't want to work an insane amount to pay off the debt. Some even want to leverage lots of debt to possibly make money/become rich which then leaves them in the situation where they aren't making money and have a lot of debt cause of loans, credit cards, etc.
I watch A LOT of the Ramsey Network content (Ramsey Show, some of their personalities' shows, etc) but do not follow his baby steps or some of his ideologies (like not using credit cards or taking loans - you gotta be smart with the loans though cause high rates are dumb). That being said, I take the things/advice I agree or disagree with and the situations of the callers to improve my financial literacy (same thing when watching any good financial people).
I loved the reasonable and calm way that you approached this subject. Dave Ramsey has provided an incredible service to the general public for years. If people who have never been taught about money would incorporate even a fraction of his recommendations, it would benefit their financial situation a great deal. However, he is also a wealthy entertainer with a big ego who cannot possibly be specific enough to analyze the finances for each person who listens to him. Big financial concepts and blanket statements are a starting point only. As with everything in life…listen and learn, be humble about what you don’t know, discern what applies to you and what your priorities are, and disregard what does not serve you. 😊
Thank you
Thanks Ari for another very informative video!
My pleasure!
Dave is great because his advice is solid and it is free. People really would be better off working with someone like you Ari, but unfortunately to get access to work with you the cash threshold is way to high for the average person.
Dave helps the every day person for free!
I followed DR's baby steps and am 100% debt-free with comfortable retirement savings. I'm grateful.
About all DR is good for, getting out of debt.
Dave is the “Larry the Cable guy” of finance. Like any funny jokes, he is entertaining because what he says is half true! My situation resinates better with your finance focuses and I agree with you on your points. His guidance works great for people who are in big trouble but he has the rest of us scratching our heads with some of his crazy guidance like his over confidence with 8% withdrawal rate and treating credit cards like the devil. He pushes real estate like we would rather manage property outside of our day jobs instead of getting outdoors and playing like it was 1995.😂
I love Dave. He introduced me to lot of financial concepts in America when I immigrated here almost 2 decades ago.
I don’t like real estate either and have nothing but my paid off home.
He has mellowed and opened to new ideas like early retirement and that shows that this man can change which seemed impossible about 5/10 years ago.
Turnover rate is very important for after tax accounts. The turnover creates taxable events. Then you’re stuck paying taxes every year on your brokerage account. VOO turnover rate is 2% which is very good. Many mutual funds will have 20-30% turnover. Stay clear of those in taxable accounts.
I’ve watched many of your videos and looked back through your library and am curious how you’d handle a situation like this with a client as I haven’t seen it addressed.
Your client is ok with using the substantial equity they have in their home to cover retirement expenses in the event of a market downturn or higher than expected inflation or unexpected expenses. That could mean selling their home and downsizing or taking out a reverse mortgage in order to decrease their probability of ‘ruin’.
Thanks and love your videos.
New video coming out next week on this! Thank you
Hey Ari, can you link those tables showing the country stock ranking between 2000-2009 and 2010-2019 ?
My parents focused on rental real estate instead of the stock market, and they will now retire with a raise on stable income from rents. They also had a 401(a) from my mom's employer, and a small 457(b), and have quite a bit from 30 years of employer contributions, but for income they focused on real estate. After seeing that, I like real estate, but I also realize I'm not in the same situation as they were. Houses are a lot more expensive, and interest rates make it prohibitively expensive. I'm also not as handy or skilled as my father. I'm also focused on growing my income in my career. So, I'm not opposed to real estate, and I probably will invest in it eventually, but not right now. I'm focusing on saving and on passive investments.
Dave Ramsey's advice makes sense for high income earners with high amount of debt in the 1990s.
High income earners??
@@mandypdx yes. The amount of income required to pay off debt, save 6 months income, pay cash for cars, and put down 20% on a home with a 15 year mortgage and save 15% of your salary is a realistic financial goal to very few people in 2024.
@@119Agent high income earners? I personally think he makes sense for low income earners. And, irresponsible people
So I learned a very valuable lesson that touches the turnover in mutual funds topic. In my taxable account I had a high growth mutual fund that I bought in the spring of 2020. I was riding an emotional high as is soared and didn’t even realize I was getting hit with cap gains from it because it had a HUGE (72% or more) turnover rate. In 2022 when the market dropped that growth fund dropped to below where I purchased it so adding the cap gains I had paid, I lost more than the original investment. I sold it and bought an S&P 500 ETF and it’s much higher than that stupid growth fund now. I learned a higher lesson about turnover in non-taxable vs taxable. My taxable account is ETFs or stocks only so I control the cap gains problem.
I would like to see a review from you on JL Collins and the SImple Path to Wealth
Ari, I'm loving the TH-cam series. Why don't you ever discuss rule 72(t) and SEPP as an option for early retirees in place of or in addition to the "Superhero" account? Also, I have the option to contribute an extra $30+k/year to a Roth IRA with a mega-backdoor conversion from after-tax 401k contributions. Why would I fund the superhero account until that bucket is full? It would be great if you covered the pros and cons of these topics in a future video.
Thank you! This may help: th-cam.com/video/rHxl2h2F8WA/w-d-xo.htmlsi=uwqpkI7Mh6yl76fW
@@earlyretirementari Nice! Glad you addressed it. I do have a brokerage account and with a target retirement at 45 I was planning to use SEPP to pull the RMD to cover the taxes due on large Roth Conversions to stretch the brokerage account to 59.5 when I would be nearly done converting the IRA to Roth. The remainder of the IRA would be drawn down before SS kicked in. I think this will be the optimal strategy for a very early retirement.
Dave is the gateway drug to personal finance... great place to start, but you'll likely outgrow some of his advice over time.
Dave would have told me to pay my 2.75% student loan before taking my employer 6% match
I love DR.
As for the rental property getting the money from it at any time. Maybe Dave meant you could take a loan or HELOC onto property and then use that money for other investments. This way if the property is rented, you would not need to kick out tenants.
Dave Ramsey is great for debt reduction advice. I stopped listening to him on investing as it seems from other videos that he uses arithmetic mean instead of geometric mean when describing returns. Can't take someone seriously with this type of approach.
Agree. I know everyone likes to pile on Dave because it gets attention because he's a big name. He's a big name for a reason - he's doing the content that a HUGE number of people need - how to get out of debt, start saving, and get on the path to success. But, it's not possible for personal finance advice to be broadly applicable to everyone, and Dave is not for everyone. He does oversimplify certain things, most famously his idea of a safe withdrawal rate is dangerous. Like Ari, I don't agree with some of his personal values. But the reality is that some of my favorite financial personalities including the folks at Root are ALSO not for everyone. Not that their advice is BAD for a lot of people but it just doesn't land where they are. I love the guys at Root and TMGS and this content is generally pitched right where I am.
But if you're the average single-mom waitress trying to pay rent every month and pay off a car and student loans, you'd benefit more from content that focuses on basic budgeting, how to find affordable child care, how not to get fleeced when you need to buy a car, how to prepare meals on a budget, how to get subsidized healthcare, the importance of renter's insurance or maybe life insurance and a will defining who will care for your children if something catastrophic happens, etc. -- mostly things that help you create SOME margin in your financial life, and then some good SIMPLE advice about what to do with that margin (emergency fund, maybe a Roth IRA or HSA, etc.). Investment advice can be as simple as cash for short term , life-cycle funds for retirement, and maybe some ideas about where to put medium-term goal savings like the next car or a future down payment.... there's no need for Roth conversion strategy and early retirement planning discussions for someone in that spot.
Dave, like Ari, can't be all things to all people - and that's OK. That said, that doesn't mean we shouldn't call out when they forget to clarify who their audience is or they oversimplify to the point of being dangerous. This is why I choose to watch content from people who are careful to try not to be full of broad, sweeping generalizations without caveats and disclaimers. The key word in "personal finance" is actually "personal." =)
Dave says SP500 only for extra money 5 year time. Long term you agree with him he says "25% Aggressive Growth (small cap), 25% Growth (mid cap) 25% Growth/Income (large cap top of SP) 25% international (non USA)" I don't agree with the 25% international due to so many American companies are world wide. Its such a global economy now 25% is to much. I liked the video very well done.
Where do those fund definitions come from? Aggressive growth typically means risky tech funds like QQQM or VGT. Growth funds can be at any cap and are typically similar to S&P tracking funds - VOO (large cap), IVOO (mid cap) and VIOO (small cap). Growth and income funds are similar to growth funds but include bonds, REITS and/or dividend stocks. A popular example would be DODBX. Those grow the least but are less volatile and pay a higher dividend. There is a lot of overlap between all of those funds.
It is a much better idea to follow Jack Bogle's (the Vanguard creator) advice and invest in VTI (total US stock market) that grows slightly less than S&P funds but is less volatile and pays more dividend. VSUX can be used to buy total international market, if desired. QQQM/VGT can produce better gains but they are way riskier so that applies to losses as well.
@@vchap01 Dave himself has made this reference and that's why I added it. I think the general terms have some flexibility for people with less investing knowledge. Its hard to be precise when you need a crayon for people to understand. Most of us do not follow this concept. Dave has never been considered an investing guru just a good business man with a knack for real estate tied up into a great personality.
The problem also is that Dave straight up lies about his returns and won't tell anyone which funds he actually uses..
He says he 'beats the market' by literally using funds that would of underperformed the market with higher violatility and risk..
I think if most people really understood finances they'd really see Dave is disingenuous when it actually comes to investing and retirement.
Dave's just designed for the average American who is in debt.
He is not a CFP or holds any relevant certifications. I think it's intentional as a strategy to limit his liability.
He doesn't seem to understand basic retirement strategy or risks.
He's like the McDonalds of the financial education space. It's atleast edible and will keep you from starving, but it's really not good for you long term and you should change to other alternatives once you're back on your feet.
I followed someone who distilled Dave Ramsey's advice and "sanitized" it by removing all of the Christian content. It was a decade before I actually had read or heard from Dave Ramsey first-hand rather than distilled through someone else. In this post October 7th world, nothing he says is that bad - not even when he talks about submitting to your spouse. I can completely live with someone throwing out a sincerely-held personal belief that harms no one rather than hate and incitement. I'm also educated enough to know which advice to listen to and which to disregard. For example, I LOVE using my credit cards and playing the points game. As long as you pay off the card in full at the end of the month, credit cards are very safe and great.
It just occurred to me when someone referred to Dave Ramsey thinking credit cards "are the devil" - do you think Dave Ramsey's hate for credit cards has anything to do with his Christian beliefs? Growing up, we learned that Christians thought that usury was a sin in the Middle Ages in Europe, which is why so many Jews were money lenders. I don't know what Christians today think of usury.
Bro won me over for good when he pulled out the DFA matrix book
The best 🙌🏻
I can not stand Dave Ramsey. I have a lot of issues with him. But his advice is only one side of it. Plenty of issues there but I won't go there. My main issue is with him and his personality. I have heard him yell at people. His rants are just him berating people or their opinions. He calls CFPs like you "certified financial pharisees" as an insult. I just find his ego is off the chart and I hate the way he talks to his callers if they disagree or question him.
Plus his pushing stuff that is all one size fits all recommendations like tearing up all your credit cards, stopping all investments until all your debt is paid off, having no credit score, pulling out 8 percent of your portfolio each year, etc.
Love your videos Ari but I do disagree with your stance on keeping a mortgage. Yes, you will probably get a better return on investments vs the interest you’re paying but the weight and feeling you have when you don’t owe anyone a single dollar is unexplainable. There is no better feeling than going to work knowing you don’t have to be there because your house is paid. The grass really does feel better when it’s your own. Keep up the great videos,
Appreciate that and completely understand!
He’s creepy and paternalistic as hell but his simple advice is good for people who don’t know the basics and need to be told exactly what to do.
He’s passive aggressive like a cult leader, don’t question the god man
Yeah, the fact he is so popular really just shows how lost most Americans are. It's like the blind leading the blind.
I think Dave Ramsey’s advice is good for people who have crippling debt and are pathologically incapable of budgeting on their own to get out of it, similar to a person who has a severe problem with morbid obesity, and who must go on a diet of celery sticks and water as an emergency means of getting their weight down. But celery sticks and water is no way to live - and isn’t healthy in the long term.
If you find yourself in a very dire situation with respect to debt and feel incapable of extricating yourself, then Dave’s baby steps probably hold some value for you. If you have a manageable amount of debt, then Dave’s program will impede your accumulation of wealth, and his advice about safe withdrawal rates may ruin you.
What Dave teaches, people in Asian countries are born with that wisdom. Debt is evil has been written in religious scriptures. Debt is not bad. because it can make you wealthy. Debt is considered bad because it takes away peace of mind. Peaceful living is what ultimate goal should be.
Wait are you and James together?
Partners!
Dave likes himself enough so I don’t have to.
HA!
Dave certainly has helped many people however not everyone wants to invest in real estate.
Financially it does not even make sense to buy most properties to rent right now... You are competing with people who have 3% loans on homes they bought much cheaper who can afford a lower rent price.
If housing crashes and rent has to lower anyone who just bought houses would risk going negative. Need really crazy deals to even have a chance for it to be profitable.
Rental real estate in early retirement, for many people, is going to be a terrible idea. (Agree with Ari; disagree with Dave.) As someone who had rental units for a while, it was an unholy nightmare. I made mistakes, obviously, but regardless: never want to do that again, EVER! The last thing I would want to do is deal with rental properties in retirement. Yuck!
I tried being a landlord. Hated it.
Yeah you really need a lot of real estate where you can afford to have your own management team. Using a property management company will just eat too much of the profits that you might as well sell.
I absolutely detest real estate as an investment. It is too risky. Problems that require time and money to solve. Having a good renter is not guaranteed. I'm glad that Dave helps those he helps, but his investment advice after that is not good.
I can't stand Dave Ramsey his ego makes me hate him more. 60% of what he says is good if you are financially irresponsible. For all the normal people go listen to the money guy or buy a damn book
Sorry but Dave is a dinosaur.