Dave Ramsey’s Dangerous Financial Advice | Onlyinvesting.info

During the debt snowball Dave does not account for major emergencies especially as a home owner. My emergencies especially repairs are $5,000 minimum. So from my experience Dave hasn't done anything but piss me off repeatedly

You need to remember where Ramsey is coming from. He is wealthy and made his money of the backs of other people. He abhors Social Security and views it as a Ponzi scheme. He has no clue why you would need a bucket strategy and quite frankly pisses away more money than most people live on. For most people following what a middle class person does with his finances and is successful is far better than listening to a 1%.

Be listened to Dave since around 2005 mostly for the interesting people who call in. The stuff he preaches about debt is mostly common sense. We have spent our whole life living below our means. Dave has been a multi millionaire for too long to relate to regular middle class people. He will make comments like you can earn $1000 a month delivering pizzas before wages spiked or the rich couple who are “killing it” because they are now only living on 80k to get out of debt when the average house doesn’t make that on a good year.

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.

Dave’s debt advice is great but VERY obvious to most people. Some of that he also gets wrong (like using a debit card everywhere and not needing a financial score) His financial advice is absolutely horrendous. I used to love Dave but over the years his ego has turned into his Achilles heel. He acts like he is Jesus Christ himself and everyone else challenging him is wrong. His advice worked better in the 80’s but is quite out of date today. When’s the last time you saw a $1,000 car for sale?

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.

According to Dave, he’s doing better than he deserves, isn’t that special?

Dave is great to get you out of debt.
Dave is terrible to get you wealthy/rich.

Dave’s a salesman. Period. 👨‍💼

I really like Dave Ramsey's advice, insofar as it was relevant in the 2000s through 2010s when I was getting established. It's basically being very aware of your finances and intentionally living a leaner lifestyle to get out of debt and save. That being said, it's no longer relevant, especially for young people in their 20s-early 30s now. It's still good if you're trying to trim fat off of an already healthy budget as a middle aged or elderly person, but not for young people.

In Dave's defense though, if you're in a low cost mutual fund and not trying to time the market, 10-12% annualized returns as an aggregate are not unrealistic. Even a typical S&P 500 fund would have those returns over the past 15-20 years annualized. Dave's also spot on about term life and is correct in highlighting how bad whole life policies are.

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.

Sometimes, you need to pull down some feathers in order to get your point across. If you're in financial stress 😩 then you might look for someone who MIGHT have some of the answers you have been dying for to calm you down in the right direction. It might be wisdom or just hot air getting you into a cycle of just temporary relief. 🤔

Dave Ramsey gives great financial advice, but this is a great lesson that you shouldn't depend on one source for your information. Simply put, if you draw 8% a year from your retirement account, they chances are higher than not that you'll run out of money before you run out of life!

Over any 30 year block of time, the S&P 500 has always returned 10%. So if we make the (wrong) assumption that you will get 10% every year, even in that case, you should only withdraw 7%, with the other 3% keeping up with inflation. However, as we all know, just because you average 10% doesn't mean you'll get a consistent 10% year after year after year. You might go a full decade with meager returns, then get a few years of 50% returns. Well what happens if you need to draw from your account in a year when it's down 20%?

This is why when you're retired, you can't be as aggressive and need more steady returns, if not the greatest. Long story short, most experts will tell you that shooting for 7% returns is more realistic. You take 4% and the other 3% keeps up with inflation. Some will tell you that even a 7% rate of return is too aggressive and you should aim for 6.5% and only withdraw 3.5%. At best, if you have $1 million saved up, you should only aim to take out $40K a year.

Dave is an entertainer, so again, don't just listen to what he says without checking it out yourself.

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.