Dave Ramsey's Dangerous Financial Advice
Вставка
- Опубліковано 22 лис 2023
- Financial Experts React to Ramsey's Terrible Financial Advice regarding the safe withdrawal rate.
Article: Supernerds Unite Against Dave Ramsey's 8% Safe Withdrawal Rate
www.thinkadvisor.com/2023/11/...
Free Resources:
www.financialfastlane.com/
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.
My retirement account has gone down by 13.7% in the past year due to rebalancing I did out of fear uncertainty and doubt. What are best alternatives to take in other to secure a financially free retirement and achieve ultimate peace? I don’t want to fail after 42 years of working hard.
Retired 13 years ago. Have maintained a 50% stock index fund/ 50% bond index fund over that time. Have carefully tracked my return and it averages 7% annual return with a high of +16% in 2013 and a low of -14% in 2022. My average annual withdrawal rate has averaged 4%, some years more, some years less. I sleep well.
I found a fund that returns 12% return each and every year. Unfortuneatly it was run by Bernie Madoff
Dave Ramsey's plan for getting out of debt is good but his investment advice is not. Also, his plan assumes you can always find another job or hold several jobs, or rely on a spouse for a second income, and emergencies happen one at a time. Far too many people are dependent on their individual income, are not able to take on more work due to family commitments, and many experience multiple emergencies at the same time (job loss, medical illness, accidents, natural disasters, divorce). Sometimes life just sucks.
Dave is very helpful to those who don't have a million dollar portfolio. He helps some people to get out of debt. His advice to these folks is sound although not perfect. The baby steps, etc. that he provides are good. Once you get out of debt and actually have money to invest, Dave is not your man.
Dave is a salesman first and a financial advisor second
Thank you for posting this. I am a Dave Ramsey fan when it comes to getting out of debt. Your video reminds me to carefully consider my retirement planning and not to follow anyone blindly.
Dave likes to give a “one size fits all” advice.
When I dicovered Ramsey on the radio 30 yrs ago, he simply reminded me of my father and his matter of fact approach to how I should avoid financial blunders. Funny when Dave taught it, I actually did it, not when dad was preaching😂
I used his debt snowball to get out of debt and really love that but I don't seek his advice on anything else. Frankly, I don't like his personality so I can't listen to him much but a friend of mine told me about the snowball and it worked really well and quickly so I give him credit for that.
I think the most telling thing is, notice how he never tells you his actual investment portfolio distribution. He just gives a vague 'oh I get a better return than SP500".
Years ago, I watched Ramsey's "Financial University" series, or whatever it was called, because a friend was a big fan and had bought the course. The one thing I thought he got right that might contradict some experts was his advice to pay the smallest debt down first, rather than the debt with the highest interest rate. I think he correctly tapped into the emotional connection we have with our finances and the concurrent need we have for gratification--Paying a debt down to zero gives that gratification and encourages us to continue the journey to debt freedom. That was about it. Other than that, he sounded like a snake oil salesman. And then I saw him pitching investment services from which he obviously earned a commission, and I completely tuned him out.
Some people are out of touch...you never assume a one-size-fits all strategy for ANYone.
It's a maybe. I can put my entire retirement in Tbills at 5% and withdraw 5% and never touch principal. But, if I withdraw 8%, I am slowly winding down the principal and may be close to zero when I pass. The question really is do you want to leave anything and how healthy do you predict in your retirement years?
the best get out of debt advice I ever heard is "when you find yourself in a hole the first thing you do is stop digging"
I’m one of those people that could have done a debt-free scream on his show. God bless that man for getting thousands of people out of debt! But I knew, even while I was implementing his advice to get out of debt, that after I did, I would not be taking his advice further. Great video. 😊
We don't have to beat down Dave Ramsey (not implying you did). Dave has a clear ego problem that usually stems from feeling less than those who are certified and have greater experience. He is quick to malign others on his program but extremely slow to admit when he is wrong (repeatedly). Dave won't sit in a live discussion with financial industry professionals because he would be exposed very quickly and that would not be good for his brand. We have seen this act before.
Thanks Martin for the heads up!
Thank you for covering this very important topic! I sincerely appreciate it.