It would be better if they didn’t pretend to understand it. People trust these guys and they’re being false with the audience on this topic. Just say, “I don’t know. Ask Dave.” And move on.
There’s a reason that for years Ramsey solution disclosed they did not provide financial advice. There are ethics involved with telling people what to do with their money. There’s liability involved. Disclosing you’re not a financial advisor is a legal loophole to.. well… giving advice. However. Given the modern day loop hole of entertainment. RS now falls under that. You can never sue RS. Nor do they employ a single Financial Advisor. I love RS. Good advice. But they’re not professionals outside of the baby steps. Investments is NOT their expertise.
I'm glad this kid had the intelligence to call George out on his 12-month analysis. That's called lying with data. The caller's data was actually accurate. The problem is the Ramsey team has a conflict of interest. There are MANY things the team does well. Investment advice is not one of them.
@@Paxevo no one is ignorant. anyone with basic intelligence will go find out when this question gets asked the first time. This is a ramsey talking point. People know what they are doing, they just choose it. Ask the team to talk about things they disagree and they will all draw a blank :) cos that is the expectation to be in this team.
Just follow Ramsey intensely through Baby Step 3 and switch to Brian Preston (FOO) along with Jack Bogle for the rest of the steps. The challenge is that the vast majority of the population can't get to Baby Step 4, so Dave Ramsey is the absolute best personality you'll find for the most basic things. And without that foundation, the rest will never make sense. So, yes, buyer beware on the whole Ramsey thing. But, he's the best in the business if you really suck at saving and avoiding debt.
You can tell this kid got them in a corner with this one. Index funds often out perform mutual funds because of lower fees and the returns are consistent.
The kids actually annoying, when he asks for advice and they say "just look for changing managers, recent changes means the data you have may not continue in the same pattern" and his response is "well management always changes, that's going to happen" Um.. duhhh, what does that have to do with the advice given ?
Not to mention, you’re going to likely pay less in capital gains taxes (unless they’re being held in a Roth account) with index funds because asset turnover by way of a fund manager is less with index funds.
This kid is awesome, 21, decent income, great savings rate towards his investments. Bright too. George brought up the Morningstar article referencing a 12 month period, and he immediately called BS, good for him. I think he’s got a bright future
George cherry picks an example that proves his point, the kid points it out, then George tries to play it off like the kid is the one doing the cherry picking and not him. Sheesh, poor George, he doesn't know enough to know how much wiser that kid is.
@@tate6809 Yes. And in all this time that George has been in the finance space, he hasn't read a single sentence of John Bogle?! This is lunacy. As I have said before, stick with Ramsey stuff right through Baby Step 3, but immediately read Bogle and others (Brian Preston just launched a book) on more nuanced and sane options of investing and living.
Exactly. My 401k is in VINIX and it out-performed all of the "Growth" mutual funds that my company enrolls you in by default for the 2024 calendar year. I changed mine immediately from those "Growth" funds with 1% to 0.7% fees to the index with a 0.035% fee.
So George just blew off this call at the end, and said it was not about index fund vs. mutual. Yes it is. That is the callers question. That's the whole point of the call.
Index funds and mutual funds are not different things. Index funds and active funds are two different types of funds, both of which can be packaged up as mutual funds or ETFs. The advantage of a mutual fund over an ETF is that there's less risk of the price diverging significantly from the NAV, and mutual funds discourage excessive trading. Dave Ramsey does not say whether to invest into an index-based mutual fund or an actively-managed mutual fund.
@@me-myself-i787 he's said on numerous occasions that he recommends actively-managed funds, and that it's "not hard" to pick one that will beat the market.
This is one of the many points where the hosts engage in intellectual dishonesty. George knows damn good and well that index funds are the superior product for the vast majority of folks. Ramsey advice is excellent for getting out of debt. As far as investing or retirement planning goes, listeners beware. The advice is largely outdated and inflexible, bordering on obsolescence.
Picking a good mutual fund is like picking a good stock. Can be done, very difficult to do. Over an entire investment life 30-40 years, mutual funds will underperform the index on average. This isn’t an opinion.
@@mitchelllyon712 and yet "paying attention" to the market usually has the opposite effect. Best strategy is SP500 set it and forget it. You'll out perform the managers 80%+ of the time
Yup! This is one of those situations when the Ramsey team will use the argument of, “Well; even if we’re wrong, you’d still be wealthy if you invest in these!” While not entirely wrong, those fees are costing you thousands, often times reaching in to multiple 6 figures if you spent decades investing in them. All so Ramsey can get paid by their “Smarvestor Pros.” Scummy. The refusal to acknowledge reality is just another one of the indicators of the cult-ish behavior of Ramsey Solutions.
…which is why Dave doesn’t recommend them. His “SmartVestor Pro” program allows him to indirectly make money by selling leads to financial advisors who all sell expensive mutual funds.
This kid absolutely destroyed them, lmaoooo Caller was calm, cool, collected, and logical while the Ramsey dudes got all emotional, referenced bad data, and rushed him out the door - weird vibes
Dave’s ELP people pay them a lot a money. They have to stay on the script as a business. Index funds are the way to go. They all know what they are saying is wrong.
@@marshalliize they don't know what they are saying is wrong. That's the scary thing. They are so indoctrinated in their cult they can't think straight for themselves
Calls like these are fascinating, because this is one of the few subjects this institution gets consistently wrong and you can tell you know their wrong, because they have no argument back. George even ended up contradicting himself because he was grasping at straws. George: "You wanna pick a fund that hasn't changed teams recently with a good track record." Caller: "If you have a mutual fund for 30+ years, won't it change hands at some point?" George: "Yeah but those new people will follow the same principles of the last group." SO WHICH IS IT?!
George is sticking to the Ramsey script. If this was on his personal youtube channel, he'd 100% side with the kid. Index funds are so much safer and better long term over decades
Also we're acting like the only index funds that exist are S&P 500 broad market funds. You can pick from a million different funds to do what you want without paying 1% a year in cost basis.
@@Dan16673 Why are they awful? Just saying it is doesn’t make it so. Like Dave said in another video, he’s making the effort while people like you just complain. Time to offer value and support your opinions with facts.
He recommends Mutual Funds and then will point you to a "smartvestor" pro. There is no valid reason to choose a Mutual Fund over an Index fund, especially with the higher fees. It's been proven over and over again; managers fail to mirror the market far more often than they actually beat it. It's a fact, and we know George loves facts :) Who cares about a 12-month period? love this kid, he is schooling them at their own game!
Yeah, I thought that was an example of cherry picking. While I’m generally a big DR fan, this MF recommendation seems misguided to me. I think they were drawing a distinction between active vs passive managed funds, the former being ‘mutual’ funds, unless I misunderstood something.
@@speedlever I believe you're correct. And even then actively managed funds don't produce the same over the long run. The amount of money you lose out in fees over a 30-yesr period is ridiculous. If you're like DR and have $700M it doesn't matter but the average person that $50k or $100k over that period can make a huge difference.
George is not accurate. The SPIVA report shows only 40.3% of active mutual funds outperformed the S&P 500 over 1 year. Same report also shows only 12% of active mutual funds outperformed the S&P 500 over 15 years. Good luck picking the good ones, haha! 😂 I’m 100% S&P 500 index funds. You never have to constantly buy and sell any funds over the years, it’s literally one fund. Just buy weekly and never start to sell until retirement. You’ll be a multimillionaire if you start in your 20s. You’re welcome!
Yep and it gets worse. Check back in ten years and almost NONE of the small percentage that beat the index now will be on the list. They simply cannot do it consistently. Index funds ALWAYS win in the long term when you factor in expense ratios.
My company 401k offers a ton of mutual funds, and just one index fund. They default you into the "Growth" fund for your age. I moved all of my stuff to the index fund immediately. The index outperformed ALL of the "Growth" funds in 2024.
Not just publicly shame. He'll fire him for not toeing the company line, a company which makes money from the "wealth managers" that pay to be on his platform.
At some point, George need to become his own voice and if Dave doesn't like it, so be it. I think he's an awesome personality but it's blatantly clear when he's forced to do the DR playbook.
I agree with the majority of advice given on this show, except for this. Jack boggle in the founder of vanguard and he will tell you to invest in index funds, warren buffet is the richest and most talented investor ever and he will tell you to invest in index funds. Pick the ones with the lowest fees and the most amount of companies, and you will out perform everyone who claims that they can “pick stocks” or “pick people who can pick stocks” over a long period of time.
Morning star themselves has said that ranking a fund by performance and ranking them by fee is pretty much the same thing. Over a long period of time (the time frame in which all investing should be done) the funds with the smallest fees will put perform. that is factual.
Index funds all day. VOO for 30 years and call it a day. Mutual funds are dinasaurs and have a place in a museum lol. I can beat the market. VOO and IBIT in a 2 fund portfolio. Or 3 fund VOO, SCHD and IBIT imo Or QQQ or QQQM incorporated into it. Matt has the right questions that they couldn't really eleaborate or answer. Well done.
I started my portfolio last year with SCHD, VOO, and VUG after inheriting $300k. In terms of share price, VOO is up! and VUG is doing even better. What stock do you think has the best chance to 10x in 5 years?
my first rule is survival before flipping for chunky gains! with such amount, you can afford a license advisor or personal portfolio manager help diversify your investments and maintain steady growth while mitigating risk
Agreed, opting for financial advise is now the best way to go about the market. I average 4 figures/month in dividends, my overall ROI just hit $500k in 3 yrs. I only have 30 stocks (20%) of my portfolio, more of my investments are in digital assets.
truly appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a financial advisors... mind sharing info of this professional guiding you please?
The market's direction can swiftly change, with indexes frequently transitioning from a bear market to a bull market precisely when the news is most negative and investor sentiment reaches its lowest point.
For the average person, the strategies are fairly demanding. In actuality, most professionals who have the necessary abilities and knowledge to complete such occupations do so successfully.
If you do decide to make new purchases, have an exit strategy ready. Consider taking partial profits quickly to lock in some gains. I've been in regular contact with a financial analyst since covid. Investing in popular stocks is now quite straightforward; the issue is determining when to buy and sell. My advisor makes investment and exit decisions for my account, which has risen to more than $500K in less than a year.
I have worked with a few financial advisors before now but i ultimately settled for 'Annette Marie Holt'. She is SEC regulated and licensed in US. You can easily look her up
I am going to look her up, I have about $81k i want to start with, might be small but it's better than nothing though. Since the 08 crash is playing out again.
George’s argument that mutual fund investors do a “wealth of research”, that’s simply not true, almost all these investors, especially at large investment firms, use software and other technology that chooses the investments, many of the investment managers do either minimal research or zero, the computer picks the strategy.
Great video. So do you think it's best for us who are not institutional investors to focus on index funds or individual stocks? I want to redistribute my 60k portfolio and I preferably want the asset class with the best return on investment.
I would say index funds are a safer bet to start. They offer good diversification. But individual stocks could make you a fortune if you know how to go about it. Some people make upper six figures yearly from investing alone. But it's always a good idea to work with a financial advisor. It raises your chance of profit by a lot.
Sometimes I'm surprised most people don't even know they can do that. I've been making at least 200k every year from my investments by working with an FA. When you realise it, it feels like a life hack.
93% of actively managed funds (mutual funds) over a 15 year span will underperform the market.... its an outdated product. come on dave ramsey. I admire what you do and am a huge believer in you but time to get out of mutual funds....
That’s true. And I agree with the caller. However, for context, not all mutual funds aim to beat the market so it is disingenuous to include those, which the data does
@@NoRegertsHerepls tell me the point of an active mutual fund that DOESNT aim to beat the market? They have high fees, high transaction fees thus return is way less. What is their goal then?
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Charlotte Grace Miller for helping me achieve this
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I'm surprised that you just mentioned and recommended Charlotte Miller, I met her at a conference in 2018 and we have been working together ever since.
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
Once I heard "12 months" I'm like isn't that sample size way too small to make an assumption of the return? I'm glad the caller was asking the right questions.
The cut that he gets from the Smart Vestor folks way out weighs the honest advice he could give. Dave is a very great businessman and the quality is being shrewd for success.
Financial advisor and CFP here. Index funds don't have 12b-1 fees and, therefore, don't replace the higher fees of actively managed mutual funds. George should know better and shouldn't be giving millions of people advice on something he isn't an expert on. This 21 year old caller is way ahead of the game. Good for him.
This kid is smarter than George. His questions are very valid. And George couldn’t give one criteria as to how to pick a mutual fund so that you pick one which would in theory outperform an index fund. WE NEED DAVE
Calls like these are fascinating, because this is one of the few subjects this institution gets consistently wrong and you can tell you know their wrong, because they have no argument back. George even ended up contradicting himself because he was grasping at straws. George: "You wanna pick a fund that hasn't changed teams recently with a good track record." Caller: "If you have a mutual fund for 30+ years, won't it change hands at some point?" George: "Yeah but those new people will follow the same principles of the last group." SO WHICH IS IT?!
This kid is incredibly smart and is much smarter than the 2 at the desk. I wouldn't be surprised if the Dave Ramsey Show receives commissions from mutual funds to recommend them. Index fund fees rund on low single digit basis points say for the S&P 500 (VOO is 0.03%) and mutual finds can charge 50-100 basis points. And this is nearly always for underperfomance over an long period if time.
He gets a kick back from the Locally Endorsed Providers, who charge an arm and a leg for their services. Even IF the mutual fund performs better than an index fund (Big IF, they rarely do, if ever), the front-load fees and yearly management fees eat up the return on investment. I stopped investing with a LEP, set up an account with Vanguard and put my retirement into S&P500 mutual funds. They actually perform better and cost way less.
I want anyone listening to this who has an active mutual fund to go look at its YTD, one year, three year, five year, 10 year returns versus the Vanguard S&P 500 index fund. Almost all of the active funds will have under-performed, and you got charged a fee for that under performance.
The S&P500 is also not set in stone as George claimed, it changes over time. George and Dave teach the magic of compounding interest, the same principle can be applied to the fees charged by mutual funds: $50,000 in fees over the life of an investor can result in a loss of hundreds of thousands if not millions of dollars that otherwise could’ve been allocated towards owning an index fund and making money over time.
The caller just called to let these people know how stupid they sound preaching about mutual funds over index funds. This is the entertainment I like to see.
Mutual vs Index is a false question. It actually is index funds vs managed funds. Index is a catagory of mutual funds or ETFs. It is arguable whether, statistically, after management fund fees on managed funds, whether actively managed funds actually exceed returns of Index funds.
Generally, people know what someone means when they say index funds, just index based funds. Plus, anything is arguable, statistically, mutual funds are not the way to go.
Exactly this. It's hilarious to me whenever someone asks about "index funds vs mutual funds" - that's like asking is it better to get a Honda Acura or a car?
I lost all respect for George the way he cited an article talking about active beating passive over the course of ONE YEAR. All the data is very clear over, the long-term passive crushes active. And he knows this, and he is comfortable lying to all your faces because it’s the company line.
Investing in mutual funds offers a structured and diversified approach to building wealth, managed by professional fund managers. While there are costs and some limitations, the benefits of diversification, professional management, and ease of access make mutual funds a popular choice for achieving a variety of financial goals.
Exactly, I used to doubt the value of a financial advisor until my wife's company assigned her an investment adviser in 2020. Honestly, it’s been the best financial decision I’ve made. It helped tremendously; I went from barely making any profit to having a well-diversified portfolio that has grown significantly, with gains exceeding $850k.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Sonya Lee Mitchell’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Seems like the caller read “The Little Book of Common Sense Investing.” The caller is 100% correct. The Ramsey team should have this book as mandatory reading as a part of their onboarding.
He asked a simple question and George asked 75 questions related to the caller to see if there was something they could attack about the caller without having to answer the question. Lol. John literally doesn't understand index funds then calls the caller "dude" and throws in a baseball reference. Buying actively-managed funds in 2024 is lunacy. Dave won't update his principles from 1992.
AI stocks will dominate 2024. Why I prefer NVIDIA is that they are better placed to maintain long term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.
I agree, just because the market presents opportunities doesn't mean we should rush in headfirst. For this reason, we should look for appropriate market analysis or guidance or, alternatively, seek advice from certified market strategists.
Agreed! this is why I work with one. My $520k portfolio is well-matched for every market season yielding 85% rise from early last year to date. I and my advisor are working on more figures for this year. IMO, financial advisors are the most sought-after professionals after doctors.
Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her.
As the upcoming inauguration approaches, I see potential economic benefits on the horizon. With $345K from my home sale, I'm weighing investment options. Will the inauguration spark market growth, making now an ideal time to buy into stocks, or should I wait for the dust to settle?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
Many individuals overlook the importance of advisors until their emotions cause them problems. I recall a few summers ago, after my lengthy divorce, I needed support to keep my business going. I searched for licensed advisors and found someone extremely qualified. She helped grow my reserve from $175K to $650K, despite inflation.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, “Nycole Christina Vannata” turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
Oh dave has been doing it for years. Claims to be in a fund that for 20yrs beats sp500. Which would put the fund manager on level of buffer or lunch. So we all know its bullshit
So, if you're doing Mutual funds at 1% which are managed in the course of your lifetime, you're giving away about 30% of the entire portfolio value. Just invest into an Index Fund like the VOO at your 10% annual return. With the S&P 500 you're investing into 80% of the entire market which is diversified and historically advisors fail to beat out the index. Kind of makes sense..
People that tell you actively managed funds are the best way universally have something to gain by you going with that choice. Dave Ramsey is no exception.
The Money Guy Show did a great episode debunking Dave's takes on mutual funds being better than index funds. They show the math and historical data proving how Dave's mutual fund picks have not outperformed index funds and why index funds are better.
@@me-myself-i787 ... and? That is objectively good advice because an instant 50-100% return on your money is going to always beat even the highest interest credit card debt. But what does this have to do with their debunking of Dave in relation to mutual funds?
I initially did the big ticket buy, 150k into SCHD, 75k TSLA, 25k VYM, 25K VUG, AMZN 25K. Now I'm dca buying roughly 2k every week of whatever is on sale, and looking to add more tech positions to my portfolio. I'm looking to hold long term 15 - 20 years, so hopefully my lump sum buy in doesn't bite me in the ass long term.
In the past month, my "unexciting" index funds provided me with over $6,000 in dividends, giving me the option to spend without selling shares. Currently, I've opted to reinvest the dividends to acquire additional index funds for future growth.
I agree; I have approximately $1m in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, having a portfolio-advisor for investing is genius!
When I started investing, I bought into a managed fund. Then opened an index fund as well. Soon realised how badly the mutual fund was doing, and how amazingly well the index fund was doing. Switched the mutual for a different index. Both indexes continue to do well. Subjective, but that's my experience of investing so far. I read the book " How to own the world" by Andrew Craig. Reading it helped me understand about mutual vs index, compound interest. Regular monthly investing and holding your nerve, not selling in the dips. Dave is great on budgets, getting out of debt and giving, but he is not an expert in investing.
I am currently holding north of $250,000 in Cash in bank making me around 5.15% currently. I was advised to invest in INDEX FUNDS, are there better strategy to get high returns from stocks?
A lot of folks downplay the role of CFA until being burnt by their emotions, no offense. During the covid-outbreak, I needed a good boost to stay afloat, hence researched for CFA and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m.
Thank you for putting this out, was able to spot Lauren after inputting her full name on the web, she seems highly professional with over a decade of experience.
I worked on a mutual fund trade desk. The amount of financial reps that would call and say their client's wanted index funds, but they weren't licensed so they couldn't solicit trades for ETF's, and would ask for mutual fund recommendations so they could get paid a commission. The amount of fees these clients were paying were insane. Getting often lesser performance while paying fees out the butt. Compound interest works both ways.
The young fella nailed it.. … Everyone old enough will remember Peter Lynch and the Magellan fund. … It was unstoppable thur the 1980’s. … The point about fund managers changing is spot on.
Caller sounds like he knows more. I owned a mutual fund once and didn't really like how someone is managing the fund (buying and selling holdings), charging load fees, and I realized my other index fund was making more money.
On this subject you trust the great John Bogle instead of Dave Ramsey. Dave Ramsey is a professional on real estate and maybe personal finance, but not on stock investing.
index funds are the best choice. i like george & dave but they are wrong about this one. in the same way that they are right about credit cards. most people are better not using them. a few people can win with the rewards but most people lose out. a few funds can beat the market but most will not and none will over 20 years. most people will do much better matching the market in the long run. but hey, gotta get those kickbacks from the referrals i suppose.
What George doesn't mention is while mutual funds can beat the index, that's before fees. Over the long term, after fees, index funds are difficult to beat.
There’s not a single Actively managed mutual fund that has outperformed the market long-term. Also many of the gains that they do do offer over an index fund are consumed by the fees.
Did mutual fund beat index funds over a 10 year period???? Nooooooo. What the Ramsey show doesn’t want to admit is mutual funds come with high fees that compound along with the gains. That kills your rate of return. Index funds will outperform mutual funds over long periods of time. This kid made both these hosts very uncomfortable. Because they know the caller is right!
Ramsey Solutions should stick to what they do best - budgetting, getting out of debt, saving, giving, etc. But NOT investing. They are way off beam with that.
The problem with aggressively managed mutual funds is not only the higher fees, but higher short term capital gains taxes because of the higher turnover. Second, in order to beat any benchmark, more risk has to be taken than the benchmark. Yes, this could lead to a greater return; in the short term, but over the long term it is EXTREMELY RARE.
“The goal here is to slightly beat the copycat of the stock market…”. Really? The fees just to try to beat (hope that it beats which is low) will erode your goal.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing below the $100k mark and in the first 2 months, my portfolio was reading $234,800. Crazy right!, I decided to reinvest a huge percentage of my profit and it got more interesting.! For over a year we have been working together making consistent profit just bought my second home at the beginning of summer.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@EthanCarter-n2y However, if you do not have access to a professional like Suzanne Gladys Xander, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
Aside from the other critiques already mentioned, even if you were able to identify a mutual fund that consistently st the market after fees, the chances of that specific fund being offered in your 401k are low. Meanwhile S&P 500 index funds all hold virtually identical investments and are practically universally offered.
I’m a financial advisor and this is such an outdated topic. In the industry we are projecting most mutual funds will be irrelevant in 5 yrs. Why? Every company is coming out with active ETF’s that’s are NOT passively managed . These active ETF’s have better tax efficiency and fees. This is where we are going and this has been discussed at every conference I have been to from the companies that ISSUE MUTUAL FUNDS. Love Ramsey, but this is old info and they need to get up to date.
So future is not individual stovks but just baskets of stocks (etfs)? So its same sjit as before just packaged differently. How can your whole industry work 24/7 for a year and then underperform as a group little old ME who puts in zero work and has sp500 index?
Because Ramsey and team can't get a cut off of referring you to "smart vester pros" who can't make money off of your index fund investing. This is the only answer.
The biggest myth is that Ramsey isn't aware that mutual funds aren't the best. Of course he is aware, he is very smart. He just can't make money off of your investing without mutual funds.
Why would they even post this video? Gave a weak defense of mutual funds with a 12 month study, was called out for it, and then dismissed the question at the end.
For mutual funds to be better than an index fund, they would have to beat the the S&P500 over time, which has not happened over a long period of time. Then you have to take the fees into the account too. In the modern day, the index fund is simply the best option since the average investor does not beat the market.
Oh this was great, this caller knows exactly what he’s talking about and was able to call them out on the downsides of mutual funds. Loved it. Oh 12 months you say? Who cares about 12 months, when we’re talking about a retirement investment? Makes no sense. Over the long term, index funds almost always beat mutual funds.
If George didn’t have to stick to Dave’s script, he would absolutely tell people to buy index funds.
I honestly don't think he has ever researched it. I don't think he actually understands
@@thedopplereffect00 exactly
@@thedopplereffect00 They arent actual experts in these things, just cult members
It would be better if they didn’t pretend to understand it. People trust these guys and they’re being false with the audience on this topic. Just say, “I don’t know. Ask Dave.” And move on.
There’s a reason that for years Ramsey solution disclosed they did not provide financial advice.
There are ethics involved with telling people what to do with their money. There’s liability involved. Disclosing you’re not a financial advisor is a legal loophole to.. well… giving advice.
However.
Given the modern day loop hole of entertainment. RS now falls under that.
You can never sue RS. Nor do they employ a single Financial Advisor.
I love RS. Good advice. But they’re not professionals outside of the baby steps. Investments is NOT their expertise.
I'm glad this kid had the intelligence to call George out on his 12-month analysis. That's called lying with data. The caller's data was actually accurate. The problem is the Ramsey team has a conflict of interest. There are MANY things the team does well. Investment advice is not one of them.
Spot on
Exactly.
@@Paxevo no one is ignorant. anyone with basic intelligence will go find out when this question gets asked the first time. This is a ramsey talking point. People know what they are doing, they just choose it. Ask the team to talk about things they disagree and they will all draw a blank :) cos that is the expectation to be in this team.
Just follow Ramsey intensely through Baby Step 3 and switch to Brian Preston (FOO) along with Jack Bogle for the rest of the steps.
The challenge is that the vast majority of the population can't get to Baby Step 4, so Dave Ramsey is the absolute best personality you'll find for the most basic things. And without that foundation, the rest will never make sense. So, yes, buyer beware on the whole Ramsey thing. But, he's the best in the business if you really suck at saving and avoiding debt.
The 12 month call out was the gotcha moment.
You can tell this kid got them in a corner with this one. Index funds often out perform mutual funds because of lower fees and the returns are consistent.
💯
It has more to do with the concentration of returns in the top names within the index.
The kids actually annoying, when he asks for advice and they say "just look for changing managers, recent changes means the data you have may not continue in the same pattern" and his response is "well management always changes, that's going to happen"
Um.. duhhh, what does that have to do with the advice given ?
Not to mention, you’re going to likely pay less in capital gains taxes (unless they’re being held in a Roth account) with index funds because asset turnover by way of a fund manager is less with index funds.
This caller nailed it, index funds are sooooo much better. Its a joke paying 1+% in fees.
The good ones can be as high as 4-6%
@AS-gf5jnJack Bogle created vanguard with the principal of index funds. How has that worked out????
It’s crazy how they try to justify it using only 12 months of data when it's all about long-term investing.
This kid is awesome, 21, decent income, great savings rate towards his investments. Bright too. George brought up the Morningstar article referencing a 12 month period, and he immediately called BS, good for him. I think he’s got a bright future
@@leborhal7450no they don’t 😂 if you’re paying that in fees you’re a fool
You can hear George struggle after the guy asks why we are using a 12 month study lmao
😂😂😂
George cherry picks an example that proves his point, the kid points it out, then George tries to play it off like the kid is the one doing the cherry picking and not him. Sheesh, poor George, he doesn't know enough to know how much wiser that kid is.
Exactly!
@@tate6809 Yes. And in all this time that George has been in the finance space, he hasn't read a single sentence of John Bogle?! This is lunacy. As I have said before, stick with Ramsey stuff right through Baby Step 3, but immediately read Bogle and others (Brian Preston just launched a book) on more nuanced and sane options of investing and living.
@@tate6809George probably forced to say what he said
Caller is absolutely right. It is intellectually dishonest use a 12 month span as evidence that mutual funds outperform index funds over the longterm.
Exactly. My 401k is in VINIX and it out-performed all of the "Growth" mutual funds that my company enrolls you in by default for the 2024 calendar year. I changed mine immediately from those "Growth" funds with 1% to 0.7% fees to the index with a 0.035% fee.
This caller should be giving financial advice to George and John.
He kinda was.. he was guiding them and having them change their tune on the fly
Yes😅😊
So George just blew off this call at the end, and said it was not about index fund vs. mutual.
Yes it is. That is the callers question. That's the whole point of the call.
He was just mad he got owned
@@perotal YUP
Index funds and mutual funds are not different things. Index funds and active funds are two different types of funds, both of which can be packaged up as mutual funds or ETFs.
The advantage of a mutual fund over an ETF is that there's less risk of the price diverging significantly from the NAV, and mutual funds discourage excessive trading.
Dave Ramsey does not say whether to invest into an index-based mutual fund or an actively-managed mutual fund.
@@me-myself-i787 When people talk about index and mutual. We all know what it means.
@@me-myself-i787 he's said on numerous occasions that he recommends actively-managed funds, and that it's "not hard" to pick one that will beat the market.
This is one of the many points where the hosts engage in intellectual dishonesty. George knows damn good and well that index funds are the superior product for the vast majority of folks. Ramsey advice is excellent for getting out of debt. As far as investing or retirement planning goes, listeners beware. The advice is largely outdated and inflexible, bordering on obsolescence.
You're assuming the host have any intellect to be dishonest with. That's a stretch.
Picking a good mutual fund is like picking a good stock. Can be done, very difficult to do. Over an entire investment life 30-40 years, mutual funds will underperform the index on average. This isn’t an opinion.
@@beng3345precisely
@eq2092 You clearly don't know what you're talking about.
@@beng3345yup lol over a 20 year period only 15% of mutual funds beat index funds
Index funds all the way. A “small 1% fee” cost you $200k plus over your investment life.
A safe withdrawal rate is usually 4%. A 1% fee is a quarter of how much you can withdraw!
@@thedopplereffect00 that’s the fee that the mutual funds charge
You're hedging your bets on someone who pays much more attention to the market. He's not saying you can't choose it.
@@mitchelllyon712 and yet "paying attention" to the market usually has the opposite effect. Best strategy is SP500 set it and forget it. You'll out perform the managers 80%+ of the time
@@mitchelllyon712and yet mutual funds do worse than index funds, so the actual cost is more than 1%.
Anyone who makes a living off of the fees from active mutual funds will never recommend index funds that don’t pay those fees.
Now please call smart vestor pro. 😅😅😅
Yup! This is one of those situations when the Ramsey team will use the argument of, “Well; even if we’re wrong, you’d still be wealthy if you invest in these!”
While not entirely wrong, those fees are costing you thousands, often times reaching in to multiple 6 figures if you spent decades investing in them.
All so Ramsey can get paid by their “Smarvestor Pros.”
Scummy. The refusal to acknowledge reality is just another one of the indicators of the cult-ish behavior of Ramsey Solutions.
…which is why Dave doesn’t recommend them. His “SmartVestor Pro” program allows him to indirectly make money by selling leads to financial advisors who all sell expensive mutual funds.
Facts!
Bingo!
This kid absolutely destroyed them, lmaoooo
Caller was calm, cool, collected, and logical while the Ramsey dudes got all emotional, referenced bad data, and rushed him out the door - weird vibes
Don’t forget Dephony’s false equivalence and strawman fallacies.
Dave’s ELP people pay them a lot a money. They have to stay on the script as a business. Index funds are the way to go. They all know what they are saying is wrong.
@@marshalliize they don't know what they are saying is wrong. That's the scary thing. They are so indoctrinated in their cult they can't think straight for themselves
Index funds ftw. Forget paying fees
And they don't outperform the indexes
@@PokemonHolo Exactly. Out of my 401k options ALL of the "Growth" funds did worse than the available Index fund for 2024.
@@PokemonHoloyou can pick which index you want to follow. I guarantee VGT beats any of Ramsay’s mutual funds without paying stupid high fees
This kid spot on, calling bs on George here. No one can predict which funds will outpace an index fund. All speculation.
Calls like these are fascinating, because this is one of the few subjects this institution gets consistently wrong and you can tell you know their wrong, because they have no argument back. George even ended up contradicting himself because he was grasping at straws.
George: "You wanna pick a fund that hasn't changed teams recently with a good track record."
Caller: "If you have a mutual fund for 30+ years, won't it change hands at some point?"
George: "Yeah but those new people will follow the same principles of the last group."
SO WHICH IS IT?!
If you could, everyone would buy it.
George is sticking to the Ramsey script. If this was on his personal youtube channel, he'd 100% side with the kid.
Index funds are so much safer and better long term over decades
@@SRTBOATHe's Dave puppet.
Also we're acting like the only index funds that exist are S&P 500 broad market funds. You can pick from a million different funds to do what you want without paying 1% a year in cost basis.
Just buy index funds. Dont listen to these clowns
How about both?
@@John3.36 no. mutuals are aweful
@@Dan16673 Why are they awful? Just saying it is doesn’t make it so. Like Dave said in another video, he’s making the effort while people like you just complain.
Time to offer value and support your opinions with facts.
@@GigaChad_169 cant sell options, can control exact moment of buy and sell, and who wants to pay fees, especially when they do not out perform
@@Dan16673 Not everyone has the time to watch the index numbers and shift stuff around constantly, which is why they outsource to Mutual funds.
He recommends Mutual Funds and then will point you to a "smartvestor" pro. There is no valid reason to choose a Mutual Fund over an Index fund, especially with the higher fees. It's been proven over and over again; managers fail to mirror the market far more often than they actually beat it. It's a fact, and we know George loves facts :) Who cares about a 12-month period? love this kid, he is schooling them at their own game!
Yeah, I thought that was an example of cherry picking. While I’m generally a big DR fan, this MF recommendation seems misguided to me. I think they were drawing a distinction between active vs passive managed funds, the former being ‘mutual’ funds, unless I misunderstood something.
@@speedlever I believe you're correct. And even then actively managed funds don't produce the same over the long run. The amount of money you lose out in fees over a 30-yesr period is ridiculous. If you're like DR and have $700M it doesn't matter but the average person that $50k or $100k over that period can make a huge difference.
@@roburb73 100%
Well said, I applaud you.
I'm a fan of the show, but here I say the kid is o point.
If you won't name the funds you're in it's probably because you know they won't beat index funds long term
Semiconductor mutual funds seem to do well
Nvidia individual stock seems to have been doing OK as well.
They legally cant
@@rodneyodell8959oh boy what a childish remark
Question: looking over past say 25yrs, how long has the semiconductor market been beating the sp500?
@@DarkoFitCoach Do your own research. I'm not your secretary.
George is not accurate. The SPIVA report shows only 40.3% of active mutual funds outperformed the S&P 500 over 1 year. Same report also shows only 12% of active mutual funds outperformed the S&P 500 over 15 years. Good luck picking the good ones, haha! 😂 I’m 100% S&P 500 index funds. You never have to constantly buy and sell any funds over the years, it’s literally one fund. Just buy weekly and never start to sell until retirement. You’ll be a multimillionaire if you start in your 20s. You’re welcome!
but remember they will not tell you the ones that will win
Yep and it gets worse. Check back in ten years and almost NONE of the small percentage that beat the index now will be on the list. They simply cannot do it consistently. Index funds ALWAYS win in the long term when you factor in expense ratios.
@@truthsayer9534 100 percent correct! Survivorship bias!
My company 401k offers a ton of mutual funds, and just one index fund. They default you into the "Growth" fund for your age. I moved all of my stuff to the index fund immediately. The index outperformed ALL of the "Growth" funds in 2024.
@@penguin12902 Sounds great!
George has to say this or Dave will publicly shame him again
Not just publicly shame. He'll fire him for not toeing the company line, a company which makes money from the "wealth managers" that pay to be on his platform.
At some point, George need to become his own voice and if Dave doesn't like it, so be it. I think he's an awesome personality but it's blatantly clear when he's forced to do the DR playbook.
When did it happen before?
Sounds like Dave Ramsey may need to hire the caller, Matt.
He's too good to work there.
@@jimmymcgill6778 Exactly, guys like this caller would not drink the Ramsay coolaid
Not everyone wants to be a puppet. Even for a nice salary.
Dave Ramsey gets paid by "Smarvestor Pros" and those guys get paid by recommending mutual funds with fees.
I agree with the majority of advice given on this show, except for this. Jack boggle in the founder of vanguard and he will tell you to invest in index funds, warren buffet is the richest and most talented investor ever and he will tell you to invest in index funds. Pick the ones with the lowest fees and the most amount of companies, and you will out perform everyone who claims that they can “pick stocks” or “pick people who can pick stocks” over a long period of time.
Morning star themselves has said that ranking a fund by performance and ranking them by fee is pretty much the same thing. Over a long period of time (the time frame in which all investing should be done) the funds with the smallest fees will put perform. that is factual.
Love how this kid ask questions. No wonder he makes 90k at 21yrs old. Congrats man
Index funds all day. VOO for 30 years and call it a day. Mutual funds are dinasaurs and have a place in a museum lol. I can beat the market. VOO and IBIT in a 2 fund portfolio. Or 3 fund VOO, SCHD and IBIT imo
Or QQQ or QQQM incorporated into it.
Matt has the right questions that they couldn't really eleaborate or answer. Well done.
Yep. $50K lump sum for 30 years and let it grow.
Thanks for the IBIT recommendation!
I started my portfolio last year with SCHD, VOO, and VUG after inheriting $300k. In terms of share price, VOO is up! and VUG is doing even better. What stock do you think has the best chance to 10x in 5 years?
I’ve been eyeballing SCHD for 2 years now and so far really just don’t find any reason to put money in…
my first rule is survival before flipping for chunky gains! with such amount, you can afford a license advisor or personal portfolio manager help diversify your investments and maintain steady growth while mitigating risk
Agreed, opting for financial advise is now the best way to go about the market. I average 4 figures/month in dividends, my overall ROI just hit $500k in 3 yrs. I only have 30 stocks (20%) of my portfolio, more of my investments are in digital assets.
truly appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a financial advisors... mind sharing info of this professional guiding you please?
Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like
You can tell the caller was testing them.
I didn’t even finish the video because I felt so embarrassed for George 😂
I had to force myself to watch this😂😂
@Hawaii567 🤣🤣right
I can't even watch it lol
The market's direction can swiftly change, with indexes frequently transitioning from a bear market to a bull market precisely when the news is most negative and investor sentiment reaches its lowest point.
For the average person, the strategies are fairly demanding. In actuality, most professionals who have the necessary abilities and knowledge to complete such occupations do so successfully.
If you do decide to make new purchases, have an exit strategy ready. Consider taking partial profits quickly to lock in some gains. I've been in regular contact with a financial analyst since covid. Investing in popular stocks is now quite straightforward; the issue is determining when to buy and sell. My advisor makes investment and exit decisions for my account, which has risen to more than $500K in less than a year.
Could you kindly elaborate on the advisor's background and qualifications?
I have worked with a few financial advisors before now but i ultimately settled for 'Annette Marie Holt'. She is SEC regulated and licensed in US. You can easily look her up
I am going to look her up, I have about $81k i want to start with, might be small but it's better than nothing though. Since the 08 crash is playing out again.
Because Smartvestor pro need to justify their existence.
"You need someone who is willing to pay me to be listed on my website, huh I mean someone who has the heart of a teacher". Dave Ramsey
@@perotal He's not worth his godly sum because he does Charity.
ding, ding, ding this is the real reason
George’s argument that mutual fund investors do a “wealth of research”, that’s simply not true, almost all these investors, especially at large investment firms, use software and other technology that chooses the investments, many of the investment managers do either minimal research or zero, the computer picks the strategy.
@@jwt155 It's a sales and management job. Most funds closet index anyway.
Great video. So do you think it's best for us who are not institutional investors to focus on index funds or individual stocks? I want to redistribute my 60k portfolio and I preferably want the asset class with the best return on investment.
I would say index funds are a safer bet to start. They offer good diversification. But individual stocks could make you a fortune if you know how to go about it. Some people make upper six figures yearly from investing alone. But it's always a good idea to work with a financial advisor. It raises your chance of profit by a lot.
Sometimes I'm surprised most people don't even know they can do that. I've been making at least 200k every year from my investments by working with an FA. When you realise it, it feels like a life hack.
Wow, that's interesting . I've recently been exploring the option of working with an FA too. Any chance you could recommend who you work with?
*Marissa Lynn Babula* is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
Thank you for the recommendation. I'll send her an email and I hope I'm able to connect with her.
The voice in his earpiece is telling him to cut the caller and stop looking stupid.
93% of actively managed funds (mutual funds) over a 15 year span will underperform the market.... its an outdated product. come on dave ramsey. I admire what you do and am a huge believer in you but time to get out of mutual funds....
That’s true. And I agree with the caller. However, for context, not all mutual funds aim to beat the market so it is disingenuous to include those, which the data does
I think it's underperformed their index.
@@NoRegertsHere great, lets under perform on purpose lol
Sadly, Ramsey's business model depends on promoting financially inefficient models. He cares more about his company's bottom line than yours.
@@NoRegertsHerepls tell me the point of an active mutual fund that DOESNT aim to beat the market?
They have high fees, high transaction fees thus return is way less.
What is their goal then?
Pretty sure George especially knows that index funds are better, but he can't actually say that on air or else Dave will get mad
Which makes his willful disingenuity even worse.
U seem true fan of him 😆
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Charlotte Grace Miller for helping me achieve this
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I'm surprised that you just mentioned and recommended Charlotte Miller, I met her at a conference in 2018 and we have been working together ever since.
The very first time we tried, we invested $1400 and after a week, we received $5230. That really helped us a lot to pay up our bills.
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
Once I heard "12 months" I'm like isn't that sample size way too small to make an assumption of the return? I'm glad the caller was asking the right questions.
Because Ramsey gets a cut of the funds he offers
dave ramsey owns a mutual fund company?
@@Bass60134Player no, but do his "smartvestor pros" pay him to be on his list? I think RS is one big informercial.
The cut that he gets from the Smart Vestor folks way out weighs the honest advice he could give. Dave is a very great businessman and the quality is being shrewd for success.
This kid just torched George with one question “why would you use a 12 month period?”
Financial advisor and CFP here. Index funds don't have 12b-1 fees and, therefore, don't replace the higher fees of actively managed mutual funds. George should know better and shouldn't be giving millions of people advice on something he isn't an expert on. This 21 year old caller is way ahead of the game. Good for him.
This kid is smarter than George. His questions are very valid. And George couldn’t give one criteria as to how to pick a mutual fund so that you pick one which would in theory outperform an index fund. WE NEED DAVE
George is a tool, keeps giving the exact same answer to any question.
Dave is going to retire soon.
George knows better... He just can't cross Dave
Calls like these are fascinating, because this is one of the few subjects this institution gets consistently wrong and you can tell you know their wrong, because they have no argument back. George even ended up contradicting himself because he was grasping at straws.
George: "You wanna pick a fund that hasn't changed teams recently with a good track record."
Caller: "If you have a mutual fund for 30+ years, won't it change hands at some point?"
George: "Yeah but those new people will follow the same principles of the last group."
SO WHICH IS IT?!
😂😂😂
This kid is incredibly smart and is much smarter than the 2 at the desk. I wouldn't be surprised if the Dave Ramsey Show receives commissions from mutual funds to recommend them. Index fund fees rund on low single digit basis points say for the S&P 500 (VOO is 0.03%) and mutual finds can charge 50-100 basis points. And this is nearly always for underperfomance over an long period if time.
He gets a kick back from the Locally Endorsed Providers, who charge an arm and a leg for their services.
Even IF the mutual fund performs better than an index fund (Big IF, they rarely do, if ever), the front-load fees and yearly management fees eat up the return on investment.
I stopped investing with a LEP, set up an account with Vanguard and put my retirement into S&P500 mutual funds. They actually perform better and cost way less.
So Dave can get a fee from endorsed local providers who manage people’s money. Dave knows Index funds are better but can’t make any money that way
thats probaly true
100%
You didn’t listen very carefully to the video
Their fees are probably crazy too, because there's going to be a Dave cut, the ELP cut, and then the fees from the mutual funds.
@@JoenzinatorYep
I want anyone listening to this who has an active mutual fund to go look at its YTD, one year, three year, five year, 10 year returns versus the Vanguard S&P 500 index fund. Almost all of the active funds will have under-performed, and you got charged a fee for that under performance.
The S&P500 is also not set in stone as George claimed, it changes over time.
George and Dave teach the magic of compounding interest, the same principle can be applied to the fees charged by mutual funds: $50,000 in fees over the life of an investor can result in a loss of hundreds of thousands if not millions of dollars that otherwise could’ve been allocated towards owning an index fund and making money over time.
The caller just called to let these people know how stupid they sound preaching about mutual funds over index funds. This is the entertainment I like to see.
Mutual vs Index is a false question. It actually is index funds vs managed funds. Index is a catagory of mutual funds or ETFs. It is arguable whether, statistically, after management fund fees on managed funds, whether actively managed funds actually exceed returns of Index funds.
2:25 yeah he tried to clarify it
But we all know what they mean when someone say mutual funds.
Generally, people know what someone means when they say index funds, just index based funds.
Plus, anything is arguable, statistically, mutual funds are not the way to go.
Yes, I invest in mutual funds that are passive.
Exactly this. It's hilarious to me whenever someone asks about "index funds vs mutual funds" - that's like asking is it better to get a Honda Acura or a car?
This kid is smart. Asking good questions
This poor guy called in with a question and is bombarded with 50 questions before they answer his one question. 🤦🏻♂️
The answer is because dave benefits when people use his financial advisors who use active funds.
The difference is Dave doesn't get paid if you buy index funds like you should.
Warren Buffett and Jack Bogle disagrees with you.
And the Math backs up Warren’s and Jack’s claim. Index Funds all the way for long term.
Yep and they are richer then DR.
@@tyrecarmon20 they didn't get rich off of index funds 🤣
No index funds are essentially the same as mutual funds. For index funds, you don’t have to pay some clown to manage the fund 😂
They also tend to have lower rates of return since they're not managed
@@MrJimmy3459 that is just false.
@@MrJimmy3459wrong
@@MrJimmy3459 That's been proven wrong.
Didn't you guys listen? It's like choosing the Yankees or the Astros. 😅😅😅😅
the hosts didn't do a good job convincing anyone mutual funds are better. just get a high quality index fund and avoid the fees.
I lost all respect for George the way he cited an article talking about active beating passive over the course of ONE YEAR. All the data is very clear over, the long-term passive crushes active. And he knows this, and he is comfortable lying to all your faces because it’s the company line.
Investing in mutual funds offers a structured and diversified approach to building wealth, managed by professional fund managers. While there are costs and some limitations, the benefits of diversification, professional management, and ease of access make mutual funds a popular choice for achieving a variety of financial goals.
ADBE, VWINX and FSPGX are all still good buy, but what do I know I’m not a financial advisor lol
Exactly, I used to doubt the value of a financial advisor until my wife's company assigned her an investment adviser in 2020. Honestly, it’s been the best financial decision I’ve made. It helped tremendously; I went from barely making any profit to having a well-diversified portfolio that has grown significantly, with gains exceeding $850k.
Could you possibly recommend a CFA you've consulted with?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Sonya Lee Mitchell’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Seems like the caller read “The Little Book of Common Sense Investing.” The caller is 100% correct. The Ramsey team should have this book as mandatory reading as a part of their onboarding.
I have that book on my table right now. Red colour
He asked a simple question and George asked 75 questions related to the caller to see if there was something they could attack about the caller without having to answer the question. Lol. John literally doesn't understand index funds then calls the caller "dude" and throws in a baseball reference. Buying actively-managed funds in 2024 is lunacy. Dave won't update his principles from 1992.
Because he can’t scam his followers if they buy ETFs or index funds
AI stocks will dominate 2024. Why I prefer NVIDIA is that they are better placed to maintain long term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.
I agree, just because the market presents opportunities doesn't mean we should rush in headfirst. For this reason, we should look for appropriate market analysis or guidance or, alternatively, seek advice from certified market strategists.
Agreed! this is why I work with one. My $520k portfolio is well-matched for every market season yielding 85% rise from early last year to date. I and my advisor are working on more figures for this year. IMO, financial advisors are the most sought-after professionals after doctors.
I could really use the expertise of these advsors.
Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her.
George is the only Ramsey personality with a brain of his own. Unfortunately, Dave would put him in his place in 5 seconds if he ever used it.
5:10 12b-1 fees apply to index funds and mutual funds and as mandated by the sec are INCLUDED IN THE EXPENSE RATION OF EACH. So dishonest, dang.
As the upcoming inauguration approaches, I see potential economic benefits on the horizon. With $345K from my home sale, I'm weighing investment options. Will the inauguration spark market growth, making now an ideal time to buy into stocks, or should I wait for the dust to settle?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
Many individuals overlook the importance of advisors until their emotions cause them problems. I recall a few summers ago, after my lengthy divorce, I needed support to keep my business going. I searched for licensed advisors and found someone extremely qualified. She helped grow my reserve from $175K to $650K, despite inflation.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, “Nycole Christina Vannata” turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
Her name, “Libertad Morente Rosenkranz” Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Long term watcher of this show and this is the first time I feel like they are leaning into their own interest to recommend their smartvester pros
Oh dave has been doing it for years. Claims to be in a fund that for 20yrs beats sp500. Which would put the fund manager on level of buffer or lunch. So we all know its bullshit
John wants to know if your portfolio is safe right now..
🤣
Hahahaha
He should ask George if he feels safe cos he probably doesn't 😂
This caller knows more about this stuff than these two...
They know it as well. But their income depends on them not knowing it
So, if you're doing Mutual funds at 1% which are managed in the course of your lifetime, you're giving away about 30% of the entire portfolio value. Just invest into an Index Fund like the VOO at your 10% annual return. With the S&P 500 you're investing into 80% of the entire market which is diversified and historically advisors fail to beat out the index. Kind of makes sense..
Not for save and crew whos lunch depends on fees from advisors they push
4:52 wow these guys are masters at evading the question 😂
“60% best it over one year.” Caller was great to catch that. Just play the index and you’ll be fine.
People that tell you actively managed funds are the best way universally have something to gain by you going with that choice. Dave Ramsey is no exception.
The Money Guy Show did a great episode debunking Dave's takes on mutual funds being better than index funds. They show the math and historical data proving how Dave's mutual fund picks have not outperformed index funds and why index funds are better.
The money guy advice is far superior
The Money Guys also think that you should max out your employer contribution to your 401k before you start paying off your credit card debt.
@@me-myself-i787 ... and? That is objectively good advice because an instant 50-100% return on your money is going to always beat even the highest interest credit card debt. But what does this have to do with their debunking of Dave in relation to mutual funds?
So? @@me-myself-i787
@@me-myself-i787 Uh no they don't. They say to contribute up to the match before paying off debt.
I initially did the big ticket buy, 150k into SCHD, 75k TSLA, 25k VYM, 25K VUG, AMZN 25K. Now I'm dca buying roughly 2k every week of whatever is on sale, and looking to add more tech positions to my portfolio. I'm looking to hold long term 15 - 20 years, so hopefully my lump sum buy in doesn't bite me in the ass long term.
In the past month, my "unexciting" index funds provided me with over $6,000 in dividends, giving me the option to spend without selling shares. Currently, I've opted to reinvest the dividends to acquire additional index funds for future growth.
I agree; I have approximately $1m in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, having a portfolio-advisor for investing is genius!
I find your situation fascinating. Would you be willing to suggest a trusted advisor you've worked with?
Her name is ‘’Aileen Gertrude Tippy’’ can't divulge much. Most likely, the internet should have her basic info, you can research if you like
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
When I started investing, I bought into a managed fund. Then opened an index fund as well. Soon realised how badly the mutual fund was doing, and how amazingly well the index fund was doing. Switched the mutual for a different index. Both indexes continue to do well. Subjective, but that's my experience of investing so far. I read the book " How to own the world" by Andrew Craig. Reading it helped me understand about mutual vs index, compound interest. Regular monthly investing and holding your nerve, not selling in the dips.
Dave is great on budgets, getting out of debt and giving, but he is not an expert in investing.
I am currently holding north of $250,000 in Cash in bank making me around 5.15% currently. I was advised to invest in INDEX FUNDS, are there better strategy to get high returns from stocks?
I got into stocks few years ago and my candid advice for a newbie like you is to seek help from market experts rather than UA-cam
A lot of folks downplay the role of CFA until being burnt by their emotions, no offense. During the covid-outbreak, I needed a good boost to stay afloat, hence researched for CFA and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m.
Could you recommend your advis0r? I'll be happy to use some help.
'Lauren Michelle Comer' is the CFA I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for putting this out, was able to spot Lauren after inputting her full name on the web, she seems highly professional with over a decade of experience.
I don't think the caller was arguing with George at all. He was just asking good follow-up questions.
I worked on a mutual fund trade desk. The amount of financial reps that would call and say their client's wanted index funds, but they weren't licensed so they couldn't solicit trades for ETF's, and would ask for mutual fund recommendations so they could get paid a commission. The amount of fees these clients were paying were insane. Getting often lesser performance while paying fees out the butt. Compound interest works both ways.
George is following the company line. Very,very few actively managed fund managers can beat the index over a decade or more. That's unequivocally true
The young fella nailed it.. … Everyone old enough will remember Peter Lynch and the Magellan fund. … It was unstoppable thur the 1980’s. … The point about fund managers changing is spot on.
Caller sounds like he knows more. I owned a mutual fund once and didn't really like how someone is managing the fund (buying and selling holdings), charging load fees, and I realized my other index fund was making more money.
On this subject you trust the great John Bogle instead of Dave Ramsey. Dave Ramsey is a professional on real estate and maybe personal finance, but not on stock investing.
Not true. Almost 90% of the mutual funds lag behind the index funds. So just invest in index funds.
Index funds have treated me very well
index funds are the best choice. i like george & dave but they are wrong about this one. in the same way that they are right about credit cards. most people are better not using them. a few people can win with the rewards but most people lose out. a few funds can beat the market but most will not and none will over 20 years. most people will do much better matching the market in the long run. but hey, gotta get those kickbacks from the referrals i suppose.
What George doesn't mention is while mutual funds can beat the index, that's before fees. Over the long term, after fees, index funds are difficult to beat.
There’s not a single Actively managed mutual fund that has outperformed the market long-term. Also many of the gains that they do do offer over an index fund are consumed by the fees.
Did mutual fund beat index funds over a 10 year period???? Nooooooo. What the Ramsey show doesn’t want to admit is mutual funds come with high fees that compound along with the gains. That kills your rate of return. Index funds will outperform mutual funds over long periods of time. This kid made both these hosts very uncomfortable. Because they know the caller is right!
Ramsey Solutions should stick to what they do best - budgetting, getting out of debt, saving, giving, etc. But NOT investing. They are way off beam with that.
The more confused their listeners are about investing, the more likely they are to call and trust a Smartvestor Pro.
The problem with aggressively managed mutual funds is not only the higher fees, but higher short term capital gains taxes because of the higher turnover. Second, in order to beat any benchmark, more risk has to be taken than the benchmark. Yes, this could lead to a greater return; in the short term, but over the long term it is EXTREMELY RARE.
Sorry, Warren Buffet says invest in index funds. He’s richer than Dave, sorry not sorry.
People love throwing DR networth as a argument against his teachings 😅
Buffet got rich off of selling puts
As someone who doesn’t care about getting crazy rich, I have no problem with index funds. I just want to have enough to be comfortable in retirement.
“The goal here is to slightly beat the copycat of the stock market…”. Really? The fees just to try to beat (hope that it beats which is low) will erode your goal.
The baby steps are a great beginner step to get people out of debt and in a great mindset. This kid is just more advanced
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing below the $100k mark and in the first 2 months, my portfolio was reading $234,800. Crazy right!, I decided to reinvest a huge percentage of my profit and it got more interesting.! For over a year we have been working together making consistent profit just bought my second home at the beginning of summer.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@EthanCarter-n2y However, if you do not have access to a professional like Suzanne Gladys Xander, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@@LilyClark-g3q Oh I would love that. thank you .
@EthanCarter-n2y Suzanne Gladys Xander is her name .
Lookup with her name on the webpage.
Aside from the other critiques already mentioned, even if you were able to identify a mutual fund that consistently st the market after fees, the chances of that specific fund being offered in your 401k are low. Meanwhile S&P 500 index funds all hold virtually identical investments and are practically universally offered.
I agree with Ramsey on a lot of things. This is one of the things I disagree on.
I’m a financial advisor and this is such an outdated topic. In the industry we are projecting most mutual funds will be irrelevant in 5 yrs. Why? Every company is coming out with active ETF’s that’s are NOT passively managed . These active ETF’s have better tax efficiency and fees. This is where we are going and this has been discussed at every conference I have been to from the companies that ISSUE MUTUAL FUNDS. Love Ramsey, but this is old info and they need to get up to date.
So future is not individual stovks but just baskets of stocks (etfs)? So its same sjit as before just packaged differently.
How can your whole industry work 24/7 for a year and then underperform as a group little old ME who puts in zero work and has sp500 index?
Because Ramsey and team can't get a cut off of referring you to "smart vester pros" who can't make money off of your index fund investing. This is the only answer.
The biggest myth is that Ramsey isn't aware that mutual funds aren't the best. Of course he is aware, he is very smart. He just can't make money off of your investing without mutual funds.
Of course, you guys only invest in mutual funds. I think when you work at Ramsey, it’s either all in or you’re out.
Buying an actively managed mutual fund is like paying $50,000 for a Toyota Corolla but only getting 10 miles per gallon! Nope…not gonna do it!
Why would they even post this video? Gave a weak defense of mutual funds with a 12 month study, was called out for it, and then dismissed the question at the end.
For mutual funds to be better than an index fund, they would have to beat the the S&P500 over time, which has not happened over a long period of time. Then you have to take the fees into the account too. In the modern day, the index fund is simply the best option since the average investor does not beat the market.
Oh this was great, this caller knows exactly what he’s talking about and was able to call them out on the downsides of mutual funds. Loved it. Oh 12 months you say? Who cares about 12 months, when we’re talking about a retirement investment? Makes no sense. Over the long term, index funds almost always beat mutual funds.
Index funds - hands down.
With mutual funds you are paying for the slight chance a mutual fund manager will beat the market.
mutual funds are the worst. F8ck fees, F8ck not being able to sell options against shares, f8ck not being able to choose the exact moment you buy