Are you serious? I don't understand how you dismiss every single academic study since the 30's. Every single expert (who is not a fund manager) agrees that index funds are simply better, including Warren Buffet.
No mutual fund is going to outperform the index on a risk adjusted basis net of fees. However, it can still make sense to invest in a 401k if your employer matches a portion of your contributions because that could balance the higher fees. Also, past performance of a mutual fund is a poor indication of how well it will perform in the future (mean reversion and fund managers changing companies). I think that Dave Ramsey often takes positions that are economically unsound but might actually be more beneficial for psychological reasons. His snowball debt strategy isn't the best strategy for minimizing interest payments, but it gives people the motivation to keep paying down their debt. Same thing with a mutual fund. If it's set up through your work and you have defined contributions, then it might be easier for someone to invest than if they were to manage the funds themselves. Just my 2 cents.
Wasn't this part of what he said? The number one reason people don't have retirement funds is they don't save. Fees and returns are a distant second and third. Even mediocre investing gets a better return than zero investing, over the course of decades. Therefore, anything to get them saving is better than nothing.
I agree. Index funds generally carry much lower fees compared to "managed" funds and, therefore, will almost always outperform managed funds with higher fees over time. I invest exclusively in Vanguard index funds in my Roth IRA and have done extremely well. My 403b, on the other hand, consists primarily of managed funds with high fees that sap my returns. This kind of nonsense is why I generally don't watch Ramsey's videos. His conservative, religious worldview ruins much of his advice.
Except index funds usually have no commission, the lowest fees, and 80% of managed funds underperform the market, even before taking into account the higher average fees. Dave is right in saying that savings rate is the most important factor in saving for retirement, but it provides no benefit to pay a 5.75% commission, and a higher average annual fee to boot. Virtually everyone would be better off with an index fund.
I am reading Common Sense Mutual Funds currently and just started A Walk Down Wallstreet. Both discuss this as a core value with investing for the longterm.
His point is people are so worried about the fees... Yet they're not puting any money into the account in the first place LOL. It's like these young kids with 500 bucks in a robinhood account. Pretending to be hedge fund managers lol.
he crossed his hands when Ramsey heard index, then soon into talking crossed his entire arms around his body. He's being defensive and protective of information on index funds. gate keeper
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for..
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.....
@@EmilyEvelyn-90 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
@@cancel.lgbtq.6892 Well, actually there ARE such mutual funds (see Bridgewater etc.), but essentially unreachable for regular investors who don't have many, many millions to invest. So for the rest of us, index funds it is!
Most financial planner like Dave's advice for getting out of debt is designed for the 'mental win' or crossing off a debt account. They say to ignore interest rates and focus on low balance. Mathematically, you want to target high interest rates first, regardless of balance. Otherwise, you pay more in the long term. Which is bad advice, in my book.
@@tomwallen7271 mathematically you are correct and a disciplined person can pull this off; those following Ramsey's advice generally aren't the lost disciplined and the psychological win from completely eliminating one debt is valuable if not as cost effective.
Tom Wallen my wife and I paid off about 100k in total debt (mostly from school) In about 1.5 years or less after we got serious. We did the “avalanche” but have since determined that any difference would have been immaterial. My point is, if you do what he says there isn’t a “long term” to consider
@@tomwallen7271 the low interest rate and high dollar amount are generally correlated so in practice it normally doesnt matter (1K credit card will have higher interest than a 10K personal loan and the personal loan will have higher interest than the 100K mortgage). Agree with you if someone for whatever reason owes more on their credit card than on their mortgage. And even then is debatable, since the credit card is bad debt while the mortgage allows you to build equity.
My godfather told me decades ago, for retirement funds, go with a low expense fee Vanguard index fund, add to it every month, don't ever touch it, forget about it until you get closer to retirement. Still true in 2018.
*The fee is actually very important. If you start with a million dollars and get 10% a year. Over 60 years, at 0.04% fee, you'll have 298 million, with a 1% fee, you'll have 176 million, that's a 122 million dollar difference because of that 1% in fees.*
Why one would atribute a 1% for a 10% roi fund is insane. The most expensive funds in my firm are 0.8% max and the roi on those are 16-24% over 3-5 years. Higher risk, higher returns, better active managers and a higher fee.
I sometimes wonder how successful investors manage to accumulate enormous wealth from their investment endeavours because I am an avid investor. I currently have equity from a recent house sale that exceeds $545K, but I'm not sure what to do with my money next. Is now the right moment to buy stocks, or should I wait for a better opportunity?
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Strategists have been aiding folks in recording gains over 250k just in a matter of months, so I think there are alot of wealth transfer in this downtime if you have someone who knows where to look like i do.
It's good you make your own research. and make sure whoever you work with is licensed n verifiable with a repute, this Sharon looks the part but i'd do my due diligence. I set up a call, thanks.
Stock market crying with little down tick while we have been dealing with double digit real inflation for a year. consult with an advisor so you don't get burnt in the market.
you are completely right, Advisors have information and paths that are not disclosed to the public.. I profited $560k in 2023 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.
'Jennifer Leigh Hickman' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment
It doesn't matter, the point hes making is that you get zero return on zero dollars invested. Just do something. The 401k is the easiest way for regular people to invest. Do it. After you are out of debt, THEN look at other ways to invest.
What sets top investors apart from the rest? I've got $385K in equity from a home sale and I'm unsure whether to put it into stocks or wait for a more favorable market condition.
You're correct. I think the smartest way to go is to spread out your investments. By putting your money into different asset classes like bonds, real estate, and stocks from other countries, you can lower the risk if one part of the market goes bad.
Several individuals minimize the importance of counsel until their own feelings become overwhelming. A few summers ago, following a protracted divorce, I needed a significant push to keep my firm afloat. I looked for licensed advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.
'Laurelyn Gross Pohlmeier' a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $560K for sometime now, my major challenge is not knowing the best entry and exit strategies I would greatly appreciate any suggestions
Yes, I've been in constant touch with a Financial Analyst for approximately 8 months. You know, these days it's really easy to buy into trending stocks, but the task is determining when to sell or keep. That's where my manager comes in, to help me with entry and exit points in the industries I'm engaged in. Can’t say I regret it, I’m 40% up in profits just in 5months with my initial capital of $160k
Jenienne Miniter Fagan’’ is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment
Thanks, I saw JENIENNE MINITER FAGAN on google, read through her credentials on her website and it's top-notch! I wrote her an email, hopefully she’s accepting new intakes.
According to the intelligent investor (same book Warren Buffet used), these are red flags for any financial advisor: "Focus on performance, not fee's" "We can beat the market" "Trust me" Sound familiar? It should, especially since Dave Ramsey is paid to promote mutual funds.
paulsan2112 he’s so dumb he’s gotten tens of thousands of people out of debt and to millionaire status. Number one bit of advice I’ve learned is to not listen to broke people like you about money.
Cbreezy if it’s so easy to be like warren buffet why doesn’t everybody do it? Dave has more than enough money to do just about anything he wants. Best part is, just about ANYBODY can get to be a millionaire with Dave’s plan.
@James Marquis Yes, however he is one of the godfathers of value investing which not many have the know how or patience for. He said he would suggest the 500 Index
Simple put your money in an index fund and don't touch it. Over the long term it will out perform most actively managed funds. Plus the fees are minuscule compared to mutual funds.
Exactly. Index funds all the way. Dump your money in it and forget it until approaching retirement, then move it over to Target retirement; lower risk.
Absolutely agree however you will need to get more involved closer to the intended retirement and thus say 10 years before your first intended withdrawal, begin to move towards a balance of index funds (to maintain growth potential) and secure bonds or even an annuity if your risk appetite is low. But for the majority of your investment period, low fee etf is the best bet
No. Target retirement funds are simply asset balanced funds designed to evolve as you approach retirement. For example, when you're young, you want to be almost entirety in equity, as that outperforms in the long run. But as you near retirement, you need to start taking money out, so you are much more risk averse, so you'll want to be more heavily invested in bonds and other lower risk investments. Index funds are about as 'low risk' as you can get, but they do carry the risk of the market. Target Retirement accounts generally also invest in index funds, just with an evolving asset allocation as the fund nears your 'target date'.
10-20% of mutual funds typically outperform their respective index in any given year, but nearly 0% outperform consistently for many consecutive years.
Exactly. If you're retiring in 25+ years, stick to the index and reap the rewards. Being greedy about a few percentages won't matter if you don't contribute a lot of money to the funds anyways.
Funny thing is that he's gotten rich entirely from being a folksy celebrity with a radio show, as a salesman of products, etc., not because of any "financial" things he's done. His biggest accomplishment in doing "financial" stuff was to go bankrupt. Taking advice from Ramsey on how to invest is fundamentally no different from taking advice from, say, Tom Cruise or Cal Ripken, both of whom also happen to be rich celebrities. I.e., the advice may or may not turn out to be any good, but there's no reason to assume it will be just because a guy is good at selling stuff/ being a celebrity. Anyone have a guess as to whether Warren Buffett takes asset allocation advice from Dave Ramsey?
Because investing in the Total US Stock Market Index Fund is not flashy advice. If everyone did that, the financial advice industry would shrink by 80% overnight!
rosepumpkin Not so much biased as incompetent. Several times the host clearly understand the question or answers a completely different one. He also clearly doesn’t understand the math and seems to mostly want to go on political rants. He is likely right about the behavioral potential for allowing more payroll deductions for retirement though, blind squirrel and all.
@@shonalovely2143 You cannot separate the direction of politics and finances. You cannot make sound investment decision without having central philosophy.
The majority of people are better off with an index fund. PERIOD. They perform better than most mutual funds and are a friendly-approach option to investing.
paying higher fees makes you conservative and not wanting to pay high fees makes you a liberal - where did that rant come from? The general ideas here are good (live below your means, avoid debt, invest money) the specific investment advice falls a bit short.
He's got a point. People are more willing to accept a 2% annual fee that they don't notice rather than just pay up the bulk of the fees up front. This is the same logic that makes liberals praise taxes that conservatives deem theft.
Mutual Funds is the best way to make Fund Managers rich, not you. Index all day everyday! Look at the fee's! Most mutual funds are 10-20x more expensive and they under perform over the long term against a index 500.
So true! My index fund's expense ratio is .18% all other mutual funds that are actively managed funds are like 1.2 and above! It's crazy it's been 8 months and i'm up 12 percent.
@@queenred.6159 Of course you can! We can mix and match as much as we want and that's awesome. For instance I have 3 index funds; a large cap blend, a med cap blend and small cap blend that together cover the entire stock market. However there is 1 active "growth" not blend nor value fund that has crushed the sp500 for like 15 years. The fund has a .7 expense ratio which is fine for being such a high flier. So of course I put some money into that as well
best is individual stock picking, you can get anywhere from 15% - 25% per year if you know what you are doing (this is what all the best investors are doing, including Warren Buffett), second best is SP500 if you don't care about stocks or don't want to study the companies (just want the profits, although they are smaller) and I would never use mutual funds, those are ripoff
Dave did not answer the question like was said, side stepped the question. Investing 500K with a average mutual fund with fees in a average life span of a 401k mutual fund will reduce your money by one third=350k.Invest in index funds i.e. compounding with few expectations they almost always beat the normal managed mutual funds because of fees over a long haul.
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Suzanne.
@@Bestjudy001 Suzanne Gladys Xander strategy has normalized winning trades for me also. and it's a huge milestone for me looking back to how it all started.
@@lennoxmutterick6434 Really you people know her? I was even thinking that I'm the only one she has helped walk through the fears and falls of trading.
@@MiaJohnson-l4k OMG is this same person that helped me Invested $2000 and after a week we received $7,500. That really helped us a lot to pay our bills. wow such a small world.
Dave didn't mention the magic formula for selecting the mutual funds that will outperform the market. Many many many mutual funds I looked at under-perform the indexes and charge fees significantly higher(3% vs .18%). My investment strategy is to hold several different index funds (domestic stocks, international developed and emerging markets, and bonds) and some CDs. Like Dave said - just get started and save/invest. Take the mystery and magic out of it and select index funds. Set it and forget it (don't try to buy low / sell high). I did that and woke up one day with $1.5 million.
yeah those fees over long period of time can make a huge difference. that 1% fee compounded over 30 years can make your end result 50% less than it could have been
Yeah, I’m 25 and just became debt free I’ve saved the $5k. $10k would be a better amount to save. I just feel like I kinda miss out not trying to invest now.
Over 30 years, assuming a 7% adjusted for inflation return (similar to stocks over the long run), that 2% fee would erode approximately 2/3 of your investment returns, all while likely being in a fund that is more than 80% likely to underperform the S&P 500 index. I have seen the heartbreak this has caused family members and they wish they had known better during their investing years. Dave is so wealthy his returns don’t really affect his standard of living, but a middle class retiree will have real tears to shed over Dave’s asinine investing advice. I have seen this first hand and it is devastating.
He receives money from ELPs (endorsed local providers). He can't say that 80 percent of mutual funds under perform the indexes. If he did, he would lose a lot of $ in endorsements. He gives great advice in general. This is bad advice.
Do you seriously think the dollars he gains from potential business gained by an ELP is worth tarnishing his image to his followers? How about this: he has an opinion. It's different than yours. Take it, leave it, shove it where the sun don't shine. I don't think he cares what you do with it one way or the other. But he's built an entire empire on the trustworthiness of his opinions on financial matters. It's highly unlikely he's going to risk that just for a few coppers unguaranteed kickback from an ELP.
Yup. I've only just begun doing my own investing outside of my 401K, and today I just opened up an account with 3 ETF's (using those because they are cheap to start with) I have expense ratio's of .04%, .08%, and .11% for the 3 ETF's I've started with. (total us stock market, total international market EX-us, and a nice high dividend ETF) All bought commission free in an account with no annual fee or maintenance expense. Bond FUNDS I think are junk though, I just buy treasuries and brokered CD's of various terms and HOLD them. (with either 0 or a $1 dollar commission) (EDIT I mean a 2nd account.......the other account I have I'm going to keep, but buying another companies ETF's or index funds will have commissions, so now I get a choice of ETF's/funds from 2 companies and always get to buy with no fee :)
He is right that if a fund outperforms the market (by more the the fees) its worth the fees. His wrong assumption is that mutual funds can outperform the market. They can't over the long run.
Rather of relying on penny stocks, I wish to diversify my assets by investing in ETFs/index funds/mutual funds and stocks of corporations with stable cash flows. I received $400k from the selling of my property. What should I do?
Remember that investing in the market carries risks, and it’s important to do your own research and consult with a financial advisor before making any investment decisions.
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.
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2020, and I return at least $30k ROI, and this does not include capital gain.
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, Sonya lee Mitchell 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.
@@darkma1ice That's true but Dave made me question my whole investing strategy for a minute just because I trust him. If you are putting your money in a mutual fund it is much riskier than putting it in an index. Index funds just require you set and forget. I've put money in outperforming active funds only for them to backtrack years later and ultimately close down.
Those fees compound in the same way your returned interest does. There are plenty of high performing index funds (above the average) that have fees around .04%. When you’re paying .80% or more you are getting crushed. And who’s pockets does that 2/3 of your retirement go to? Yep, right to the top.
Conflict of Interest. Old Dave earns a fee from his ELP’s. The ELP’s earn higher fees on managed funds and even more so on Load funds. No load, low fee index funds are the best way to go in long run.
Caller: I have heard the fees are higher with what you recommend than with other funds. Dave: *Something incoherent about liberals* and *keep buying my high-fee mutual funds*
The documentary that the caller is probably talking about is 'The Retirement Gamble'. It's recommended viewing. An important lesson is that investors really need to look carefully at the fees their paying in mutual funds or you risk getting ripped off.
At 7:00 Dave explains how his SVPs charge a 5.75% one-time fee with a 0.5% yearly expense ratio. Then says they'll earn 4% more per year. Really? I don't think so. I love that Dave helps people get out of debt, understand credit cards, car loans, leases, etc. I completely ignore him for investment advice. That makes me a little bit sad. It would be great if Dave were to teach what his friend a JL Collins teaches in "The Simple Path to Wealth".
From what I’ve learned most mutual funds do not out perform the s and p 500. I just use the s and p 500 index fund and don’t worry about it. Sure you may be able to do a little better than the s and p 500 index but I don’t want to put in the time and effort.
Glad to see mot of the people in these comments realize that Dave is not looking out for our best interest regarding this topic. He is incentivized to send us toward mutual funds.
Completely disagree with Dave Ramsey here. The fees do add up in mutual funds, and most ETFS outperform mutual funds with lower expense ratio fees. Dave Ramsey, you're being bias here. Index funds are ultimately better, not to mention they count as long-term capital gains. Mutual funds cost more, earn less, and aren't tax efficient.
I think you mean index rather than ETF. ETF and mutual fund refer to how a fund is structured. An ETF and mutual fund tracking the same index are essentially identical for practical purposes.
@@alankoslowski9473 you’re right, but let’s be clear here, etfs are cheaper and do the same thing as mutual funds. And I emphasize cheaper because those expense ratios matter a lot. Also, Dave never talks about “indexes” he just throws out the term “mutual fund”. There are mutual funds that follow indexes but a lot don’t. And Dave doesn’t invest in index specific ones he chooses ones where Wall Street gurus chose the “best stocks”
Sorry Dave Ramsey, but you are 100% totally wrong about this subject. You should only invest in low-cost index funds. Nobody can predict the future so I avoid actively managed funds like the plague.
@@LaJon28 I didn't say loaded funds were okay. That's what Dave Ramsey recommends on his show all the time. I said I avoid them and only buy index funds
If no one can predict the future, then why do you think a low cost index fund is your saving grace? You do know that index funds can dip into the negative, right?
@MikeThePike316 Dave is a hypocrite. He doesn't recommend people do day trading or buy individual stocks, yet these actively managed mutual funds that he recommends are doing exactly the same thing that he advises against. Actively managed mutual fund pick and chose which companies they think are going to perform well in the long run. They are trying to predict the future by doing that. You do not try to beat the market. You just try to go along with it, which is why everyone should just invest in index funds. Only 4% of actively managed mutual funds are able to beat the index within any ten year time frame.
@@billvigus3719 because the 12% if fake AF. Just remember that he pushing mutual funds because he sells mutual funds or have contracts with people who sell mutual funds.
Lost respect for this guy when he attempted to equate opposition to high fees as an attack on the capitalist way. There is extensive research that shows clearly that in the long run fund performance is inversely proportional to the fund expensive ratio. In other words the mutual fund industry is charging investors these high fees to essentially under perform the market i.e. deliver a sub-standard and mediocre product. They thrive on the financial ignorance of the average investor to get rich.
+Tom, NO LOAD mutual funds. Preferably low expense ratio 0.25% or lower. Broad base index funds like a Total US Stock Market Index fund or S&P 500 Index fund. Stay away from high expense ratios, sales loads and the like. There is really no good reason for you to buy a LOAD mutual fund. There is a good reason for a SALESMAN to want you to buy a LOAD mutual fund.
just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge
Very true, Despite having no prior lnvesting knowledge, I started lnvesting before the pandemic and pulled in a profit of approximately 950k that same year. In reality, all I was doing was getting professional help
How can I participate in this? I sincerely aspire to establish a secure financial future and I am eager to participate. Who is the driving force behind your success?
*Awesome!!! your potential seems limitless.* I have always been fascinated by investing, but without any knowledge on what’s best to invest in, I find it difficult to begin. *I ask politely, what’s the best sector to invest in?*
I will suggest you get a financial advisor who will help you build strategic plans that will meet your financial goals in a short period of time. I got help and also built a passive income working with a Financial Planner (Hamilton Phoebe Zoe). I’m happy with this decision, as it was the best for my finances.
@@rudriguezbauer7520 I work with an Investment Analyst *(Hamilton Phoebe Zoe).* Quickly do an internet research with her full names as mentioned where you can easily get in touch and as well write her.
It’s best to start early to plan your future by making important financial decisions which can help you build passive income and make you live comfortably. I realized that the secret to becoming rich isn’t having multiple jobs but multiple sources of income.
Like others have commented, Dave is great at helping people with basic financial advice, especially getting out of debt and the importance of saving. I have noticed over time that he has somewhat changed his advise on index funds. A few years ago he sounded like he was dead set against index funds / passive investing. In more recent times he has started to say that they are "OK", and I found another recorded broadcast where he said he personally owns some index funds because he likes their stability. For the normal investor who does not have the time to study and compare mutual funds..... or does not want to pay fees or a financial advisor to do that form them.... Index funds are certainly the way to go.
How do you study and compare mutual funds? Unless you have a time machine, you can't. If you read "On Persistence in Mutual Fund Performance", a study by Mark Carhart published in the journal of Finance, you'll read that virtually all mutual funds that overperform the market in a 5 year period go on to underperform the market in the next 5 year period. I mean, there's even plenty of mutual funds that have done great over a long period of time, only for that supposed skill to run out at a certain time. You can pick mutual funds that have beaten the index in the past. But most likely, those funds will end up underperforming the index at some point in the future. You have a shot at outperforming, so if you feel like taking a gamble is something you want to do, by all means go ahead. You might get lucky and pick the one mutual fund that doesn't end up drastically underperforming the market. But you probably won't. Index funds are not just for beginner investors. They're really the best way to invest for virtually all investors.
Warren Buffet's best investment advice is to buy Index Funds like Vanguards because they beat 80% of actively managed mutual funds and have the lowest fees. He even said after his passing his Berkshire fund will be invested mostly in the S&P 500 fund like Vanguards and some bond index funds..
Despite my best attempts to save money, contribute to early retirement, and become financially independent, the economy has sucked out a large portion of my assets since the epidemic. I want to know if I should continue to diversify my investments or if I should look into other industries during these erratic times.
You should look at stocks , they look to be the biggest beneficiaries of AI and Data centers , also DCAing into a good ETF too ...Prioritize patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.
I agree. Exactly why I now work with one. A lot of folks downplay the role of advisors until being burnt by their emotions, no offense. I remember some years back, during the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m
"Laurelyn Gross Pohlmeier," a well-known authority in this field. I would recommend looking into her credentials more because she has a great deal of expertise and is a great resource for anybody looking for advice on how to navigate the financial market.
I am a huge fan of Dave. I am also confident in saying that Dave understands debt management and real estate better than most people. However, he clearly doesn't understand the stock market well enough to give advice and should lead people to Buffett or Lynch in that space.
Dave Ramsey's insights have been a game-changer for me! His practical approach to financial management has empowered me to take control of my money and work towards a debt-free life. The Total Money Makeover is my go-to guide, and I appreciate how he breaks down complex concepts into easy-to-follow steps.
Overall, 51% of traders think this year would favor stocks, mutual funds, and other equity-based investments, despite Treasury yields and other safer cash-like investments paying big. I’m looking for opportunities in the market that could fetch me $1m ahead of retirement by 2025
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
I like Dave, but he is flat out wrong here. He's either ignorant of the facts (there is a MOUNTAIN of research proving that index funds outperform mutual funds), or he's intentionally lying for some reason. Either way, it's disappointing.
Dave definitely knows enough to know everything wrong with this. High MERs hurt compounding, which is the entire power of investing. Seems to have a deliberate blind spot for mutual funds for some reason.
No, he didn't give sound information, unfortunately. He deliberately omits the effect that fees and expenses have on the TRUE returns an investor would gain at the end of the day (I'd love to see how many of his "beats the market" mutual funds actually net you better gains when you factor in fee/expenses. My guess is not many...if any). I like Dave on many issues, but he just seems a bit disingenuous on this issue. It stinks of bias.
Agreed. Even according to Standard & Poor's, more than 90% of large, mid, and small cap mutual funds will fail to beat the S&P 500. Warren Buffet, who Ramsey loves to quote, has stated that the best investment for the average American is an S&P 500 index. Obviously as retirement nears the mix of bonds will have to be reallocated to reduce market risk, but when you're young and looking to build wealth over a 20 or 30 year time horizon, it's hard to find a better deal. With Vanguard Admiral shares in an S&P 500 index, the expense ratio is .04%. That's $40 a year on a $100K investment and the trades are free. Pretty tough to beat that one.
He can’t because his genius brain can’t beat index fund and Instead dances around the topic and picks a bad mutual fund, his ideas work for poor who want to get out of debt but not who understands passive indexing
He taught and gave great general advice on this question. What did he miss? He explained what an index fund is. He explained what a managed fund is. He talked about all the fees. He explained what a fund manger is trying to do and what an index fund is trying to do. What more do you want him to do? Pick the guy's funds for him? He told him to look at the managed mutual funds within his 401K, if they are good funds, go with them. If they aren't, go with index funds. All solid advice.
Low Wages or Wages what do not Increase enough .. Taxes and Inflation makes People poor 60% if not more of the workforce Struggle every couple of months about their Income
We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.
Thank you for saving me hours of back and forth investigation into the markets. I simply copied and pasted her full name into my browser, and her website came up first in search results. She looks flawless.
An index fund is just as easy to invest in via payroll deduction as a managed fund. Fidelity now has index funds that have 0 expenses. An actively managed fund is almost never going to consistently beat the index by more than its expense ratio over a long time period.
I love the comments in this thread as they are 100 % correct. 86% of active fund managers fail to beat the market. Furthermore, mutual funds do not have to quote net rate of return but instead quote the gross rate of return. The net rates of return rarely beat the market. However, dave is 100 percent right that lack of contributions is the main reason why people fail.
The PBS show on mutual fund fees was exaggerated and used "worst case" examples of bad 401ks instead of average 401ks. However, Dave is also exaggerating. There's a big relationship between fees and rate of return. High fee funds typically get lower returns.
I really respect Dave Ramsey and have benefited so much because of his teachings. However, when it comes to this topic, I can't help but wonder how unbiased given that he has a network of investing professionals he endorses.
Dave Ramsey is so full of it!! Under NO CIRCUMSTANCES can he outperform the SP500 over any extended period of time (say 10 years) and a taxable account - especially when fees and taxes are factored in! So here is my open challenge to Mr. Ramsey. I will put $100K into SP500. He puts $100K into his loaded funds and ALL tax consequences and fees will be deducted from both accounts (assume an overall federal and state tax rate combined of 30%). Whoever has the most money after 10 years keeps BOTH pots of money. I will do this challenge with Mr. Ramsey anytime he wants.
Dave needs to read John Bogle's books from Vanguard and you can see he is not confidant talking about the stock market. He is not only weak but this advice is absolutely wrong. Love Dave but this is not his forte
He’s someone’s pony at some mutual fund office. Indexes are far better. Vanguard, Vanguard, Vanguard!!! Buy the index and let it ride long term. You will be happy.
Most mutual funds don't outperform the index they are based on after fees. Even the best money managers can't barely outperform over time. Statistically speaking, you will be much better off buying an s&p 500 index fund than buying a random mutual fund based on that index. Always check your fees.
The vast majority of mutual funds do not outperform the market, but the high fees of the ones that do, erode most (if not all) of your advantage. Dave is great, but I never agreed with this particular stance.
91% of managers do not beat the index for 10 years. Go with the index and you will be very happy. Dave is great for beginners but when it comes to investment advice run from him.
The issue with mutual funds is that you are paying fees regardless of the fund’s performance. Also, just because it may have outperformed, does not mean it will continue to
I would love to see Dave debate his positions with someone other than an uninformed caller that he cuts off in themiddle of the call and goes on a rant. This is just deceptive.
In the end, Dave Ramsey is right: ACTUALLY saving and investing, consistently, year after year, throughout your earning years, is the MOST important factor in success and wealth. If you are not investing at all, or not investing much (as a percentage of your income), and/or not saving and investing consistently, it does not matter what the fees are. Everything else is secondary and tertiary to the PRIMARY purpose.
That being said if person A and person B have the same income and they both save and one invest in mutual funds and the other in index funds, the index fund investor will most likely make substantially more money.
@@Vinnymanvinny1 PROBABLY NOT, IF THEY FOLLOW DAVE RAMSEY'S RECOMMENDED MUTUAL FUNDS (e.g., growth, aggressive growth, international), WHICH CONSISTENTLY outperform THE MARKET-INDEX. A better long-term rate of return is much more important than fees.
yes but to those of us that are investing consistently and with enough money, he should then explain that index funds are the cheapest way to go. He won't because he makes money from the agents.
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.
Are you serious? I don't understand how you dismiss every single academic study since the 30's. Every single expert (who is not a fund manager) agrees that index funds are simply better, including Warren Buffet.
+texas 27 Dave is well-versed. He just chooses to ignore certain facts--probably because it benefits him to do so.
No mutual fund is going to outperform the index on a risk adjusted basis net of fees. However, it can still make sense to invest in a 401k if your employer matches a portion of your contributions because that could balance the higher fees. Also, past performance of a mutual fund is a poor indication of how well it will perform in the future (mean reversion and fund managers changing companies).
I think that Dave Ramsey often takes positions that are economically unsound but might actually be more beneficial for psychological reasons. His snowball debt strategy isn't the best strategy for minimizing interest payments, but it gives people the motivation to keep paying down their debt. Same thing with a mutual fund. If it's set up through your work and you have defined contributions, then it might be easier for someone to invest than if they were to manage the funds themselves.
Just my 2 cents.
Wasn't this part of what he said? The number one reason people don't have retirement funds is they don't save. Fees and returns are a distant second and third. Even mediocre investing gets a better return than zero investing, over the course of decades. Therefore, anything to get them saving is better than nothing.
I agree. Index funds generally carry much lower fees compared to "managed" funds and, therefore, will almost always outperform managed funds with higher fees over time. I invest exclusively in Vanguard index funds in my Roth IRA and have done extremely well. My 403b, on the other hand, consists primarily of managed funds with high fees that sap my returns. This kind of nonsense is why I generally don't watch Ramsey's videos. His conservative, religious worldview ruins much of his advice.
Some of Tony Robbins' books are BS too.
As usual, roll the numbers and think for yourself.
Except index funds usually have no commission, the lowest fees, and 80% of managed funds underperform the market, even before taking into account the higher average fees. Dave is right in saying that savings rate is the most important factor in saving for retirement, but it provides no benefit to pay a 5.75% commission, and a higher average annual fee to boot. Virtually everyone would be better off with an index fund.
I am reading Common Sense Mutual Funds currently and just started A Walk Down Wallstreet. Both discuss this as a core value with investing for the longterm.
I am a big fan of index funds and I don't think Dave should downplay the importance of low fees.
Dave and his ELP friends profit from selling LOAD mutual funds.
Yep and there are lower fee mutual funds too that exist...kind of unjustified to pay 6% front loaded fee and 1-2% a year for average performance.
@@alrocky absolutely nailed it.
His point is people are so worried about the fees... Yet they're not puting any money into the account in the first place LOL.
It's like these young kids with 500 bucks in a robinhood account. Pretending to be hedge fund managers lol.
My index fund outperforms my managed accounts.
Listen to Dave for debt management. For all other investing advice, look elsewhere.
EXACTLY.💥
yup
he crossed his hands when Ramsey heard index, then soon into talking crossed his entire arms around his body. He's being defensive and protective of information on index funds. gate keeper
@@saavyfilms8994 in fairness he almost always has his arms crossed when talking to a caller.
Hes worth 200 Million...I'll listen to Dave
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for..
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.....
@@EmilyEvelyn-90 That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well...
@@MeirPamela My advisor is *MARGARET MOLLI ALVEY*
You can look her up online...
@@EmilyEvelyn-90 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
This might be the first comment thread in youtube history where everyone is on the same side
I’m not.
Biased, and avoiding the question because of the bias. Index funds are the best, cheapest, and safest way to invest for non-experts.
I would love to see uncle dave show us his mutual funds that he said out performed index funds.
@@cancel.lgbtq.6892 Well, actually there ARE such mutual funds (see Bridgewater etc.), but essentially unreachable for regular investors who don't have many, many millions to invest. So for the rest of us, index funds it is!
@@drsusannakemper are you doctor from Russia?
Where do i go to get an index fund?? I am totally new to all of this
I thought the same. 😉
Follow Dave Ramsey's advice to get out of debt. Follow John Bogle's advice when you have money to invest.
Most financial planner like Dave's advice for getting out of debt is designed for the 'mental win' or crossing off a debt account. They say to ignore interest rates and focus on low balance.
Mathematically, you want to target high interest rates first, regardless of balance. Otherwise, you pay more in the long term. Which is bad advice, in my book.
Amen! RIP St. Jack!
@@tomwallen7271 mathematically you are correct and a disciplined person can pull this off; those following Ramsey's advice generally aren't the lost disciplined and the psychological win from completely eliminating one debt is valuable if not as cost effective.
Tom Wallen my wife and I paid off about 100k in total debt (mostly from school) In about 1.5 years or less after we got serious. We did the “avalanche” but have since determined that any difference would have been immaterial. My point is, if you do what he says there isn’t a “long term” to consider
@@tomwallen7271 the low interest rate and high dollar amount are generally correlated so in practice it normally doesnt matter (1K credit card will have higher interest than a 10K personal loan and the personal loan will have higher interest than the 100K mortgage).
Agree with you if someone for whatever reason owes more on their credit card than on their mortgage. And even then is debatable, since the credit card is bad debt while the mortgage allows you to build equity.
My godfather told me decades ago, for retirement funds, go with a low expense fee Vanguard index fund, add to it every month, don't ever touch it, forget about it until you get closer to retirement. Still true in 2018.
Has it helped you
Absolutely!
For getting out of debt, Dave offers solid advice. For Investing Warren Buffett advises Index funds. I think I will go with Warren.
*The fee is actually very important. If you start with a million dollars and get 10% a year. Over 60 years, at 0.04% fee, you'll have 298 million, with a 1% fee, you'll have 176 million, that's a 122 million dollar difference because of that 1% in fees.*
You have $1million to invest for 60 years? ... you were a millionaire at age 5? age 30?
zybard01 you’re missing the point.
@Jorel Boston liar
Why one would atribute a 1% for a 10% roi fund is insane. The most expensive funds in my firm are 0.8% max and the roi on those are 16-24% over 3-5 years. Higher risk, higher returns, better active managers and a higher fee.
@@gandhithewise359 sometimes they dont win
I sometimes wonder how successful investors manage to accumulate enormous wealth from their investment endeavours because I am an avid investor. I currently have equity from a recent house sale that exceeds $545K, but I'm not sure what to do with my money next. Is now the right moment to buy stocks, or should I wait for a better opportunity?
The current market conditions may provide opportunities to increase revenues swiftly; however, experience is required to carry out such a plan.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Strategists have been aiding folks in recording gains over 250k just in a matter of months, so I think there are alot of wealth transfer in this downtime if you have someone who knows where to look like i do.
Hello, how did you handle it? I believe I require a pro after reading these comments
Sonya Lee Mitchell is the manager I use. Just research the name. You'd find necessary details to set up an appointment.
It's good you make your own research. and make sure whoever you work with is licensed n verifiable with a repute, this Sharon looks the part but i'd do my due diligence. I set up a call, thanks.
I am holding a cash position right now, of about 300k. I know a dip is supposed to be the buying opportunity, so whats the best stocks to dive into?
Stock market crying with little down tick while we have been dealing with double digit real inflation for a year. consult with an advisor so you don't get burnt in the market.
you are completely right, Advisors have information and paths that are not disclosed to the public.. I profited $560k in 2023 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.
pls how can I reach this expert, there's bloodbath on my porfolio and I need someone to help me with it
'Jennifer Leigh Hickman' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Fees are not a matter of liberal/conservative it’s a matter of cutting into your overall portfolio return.
Alexander very true. He rants too much for my liking against liberals
Yeah that was rather left field and unnecessary.
correct!! Dave is wrong on this, he spinned it... Fees are outrageously high still in 2020..
It doesn't matter, the point hes making is that you get zero return on zero dollars invested.
Just do something. The 401k is the easiest way for regular people to invest. Do it. After you are out of debt, THEN look at other ways to invest.
@@zachhawkins5005 sure do something but not all choices are the same index funds are clearly the better one
What sets top investors apart from the rest? I've got $385K in equity from a home sale and I'm unsure whether to put it into stocks or wait for a more favorable market condition.
You're correct. I think the smartest way to go is to spread out your investments. By putting your money into different asset classes like bonds, real estate, and stocks from other countries, you can lower the risk if one part of the market goes bad.
Several individuals minimize the importance of counsel until their own feelings become overwhelming. A few summers ago, following a protracted divorce, I needed a significant push to keep my firm afloat. I looked for licensed advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.
You seem to know the market better than we do, so that makes great sense. Who is the guide?
'Laurelyn Gross Pohlmeier' a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
@BrendaAskew That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@BrendaAskew I will give this a look, thanks a bunch for sharing.
Scam bot
Since 2001, FDGRX Fidelity Growth Company actively managed fund has averaged 10.43%
VFIAX Vangaurd 500 index has averaged 7.92%. That's the facts.
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $560K for sometime now, my major challenge is not knowing the best entry and exit strategies I would greatly appreciate any suggestions
If you're not familiar with market investing tactics, you should get advice from a financial counselor
Yes, I've been in constant touch with a Financial Analyst for approximately 8 months. You know, these days it's really easy to buy into trending stocks, but the task is determining when to sell or keep. That's where my manager comes in, to help me with entry and exit points in the industries I'm engaged in. Can’t say I regret it, I’m 40% up in profits just in 5months with my initial capital of $160k
Glad to have stumbled on this conversation. Please can you leave the info of your investment advisor here? I’m in dire need for one.
Jenienne Miniter Fagan’’ is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment
Thanks, I saw JENIENNE MINITER FAGAN on google, read through her credentials on her website and it's top-notch! I wrote her an email, hopefully she’s accepting new intakes.
According to the intelligent investor (same book Warren Buffet used), these are red flags for any financial advisor:
"Focus on performance, not fee's"
"We can beat the market"
"Trust me"
Sound familiar? It should, especially since Dave Ramsey is paid to promote mutual funds.
@James Marquis he did a million dollar bet that mutual fund owners could not beat a index fund, and won
Does he? From who? He doesn't recommend specific mutual funds as far as I've seen.
paulsan2112 he’s so dumb he’s gotten tens of thousands of people out of debt and to millionaire status. Number one bit of advice I’ve learned is to not listen to broke people like you about money.
@@daytonwintle6051 your an idiot. Warren Buffet > Dave Ramsey.
Cbreezy if it’s so easy to be like warren buffet why doesn’t everybody do it? Dave has more than enough money to do just about anything he wants. Best part is, just about ANYBODY can get to be a millionaire with Dave’s plan.
I listen to Tony Robbins, and Warren Buffett. Invest in only Index funds. Low fees.
100% agree man!
True - but keep away from the ones that are 2x time or 3x times. Danger.
Index funds all the way. Mutual funds are less profitable.
James Marquis He just recently changed his mind about “trying to beat” the S&P.
@James Marquis Yes, however he is one of the godfathers of value investing which not many have the know how or patience for. He said he would suggest the 500 Index
Simple put your money in an index fund and don't touch it. Over the long term it will out perform most actively managed funds. Plus the fees are minuscule compared to mutual funds.
Exactly. Index funds all the way. Dump your money in it and forget it until approaching retirement, then move it over to Target retirement; lower risk.
Absolutely agree however you will need to get more involved closer to the intended retirement and thus say 10 years before your first intended withdrawal, begin to move towards a balance of index funds (to maintain growth potential) and secure bonds or even an annuity if your risk appetite is low. But for the majority of your investment period, low fee etf is the best bet
Target retirement is lower risk than index fund?
what about for the short term? 5 years or less? Are index funds good for that as well?
No. Target retirement funds are simply asset balanced funds designed to evolve as you approach retirement.
For example, when you're young, you want to be almost entirety in equity, as that outperforms in the long run. But as you near retirement, you need to start taking money out, so you are much more risk averse, so you'll want to be more heavily invested in bonds and other lower risk investments.
Index funds are about as 'low risk' as you can get, but they do carry the risk of the market. Target Retirement accounts generally also invest in index funds, just with an evolving asset allocation as the fund nears your 'target date'.
10-20% of mutual funds typically outperform their respective index in any given year, but nearly 0% outperform consistently for many consecutive years.
Exactly. If you're retiring in 25+ years, stick to the index and reap the rewards. Being greedy about a few percentages won't matter if you don't contribute a lot of money to the funds anyways.
@@starmorpheus why are you trying to minimize the effect “a few percentages” has?
Dave hosts a radio show, Bogle revolutionized an industry. I think I'll listen to him.
Funny thing is that he's gotten rich entirely from being a folksy celebrity with a radio show, as a salesman of products, etc., not because of any "financial" things he's done. His biggest accomplishment in doing "financial" stuff was to go bankrupt. Taking advice from Ramsey on how to invest is fundamentally no different from taking advice from, say, Tom Cruise or Cal Ripken, both of whom also happen to be rich celebrities. I.e., the advice may or may not turn out to be any good, but there's no reason to assume it will be just because a guy is good at selling stuff/ being a celebrity. Anyone have a guess as to whether Warren Buffett takes asset allocation advice from Dave Ramsey?
phillytiger warren buffet even admits that he has not been outperforming the S&P500 and recommends it for most investors.
Because investing in the Total US Stock Market Index Fund is not flashy advice.
If everyone did that, the financial advice industry would shrink by 80% overnight!
asterisk911 spot on!!
wise words
biased. index fund all day
rosepumpkin Not so much biased as incompetent. Several times the host clearly understand the question or answers a completely different one. He also clearly doesn’t understand the math and seems to mostly want to go on political rants. He is likely right about the behavioral potential for allowing more payroll deductions for retirement though, blind squirrel and all.
@@ericmcdermott2 his political rants throw me off. I just want financial advice.
@@shonalovely2143
You cannot separate the direction of politics and finances. You cannot make sound investment decision without having central philosophy.
@paulsan2112
Tell me would you have made a profit investing in the S&P 500 for the decade of the 1970s. Yes or no.
@@bighands69 Dumas
The majority of people are better off with an index fund. PERIOD. They perform better than most mutual funds and are a friendly-approach option to investing.
paying higher fees makes you conservative and not wanting to pay high fees makes you a liberal - where did that rant come from? The general ideas here are good (live below your means, avoid debt, invest money) the specific investment advice falls a bit short.
Roy Jones agreed. Makes no since
🕵️♀️kick backs. shhhh
He's got a point. People are more willing to accept a 2% annual fee that they don't notice rather than just pay up the bulk of the fees up front. This is the same logic that makes liberals praise taxes that conservatives deem theft.
Don't forget that Buffet is a Democrat and said rich people don't pay their part of taxes. I think that he knows what is spoken about.
yeah that made no sense... conservatives would prefer 0 taxes and 0 fees lol.
Mutual Funds is the best way to make Fund Managers rich, not you. Index all day everyday!
Look at the fee's! Most mutual funds are 10-20x more expensive and they under perform over the long term against a index 500.
So true! My index fund's expense ratio is .18% all other mutual funds that are actively managed funds are like 1.2 and above! It's crazy it's been 8 months and i'm up 12 percent.
Index funds are good. But all of my mutual funds outperform index funds even after expenses/fees.
Can you invest in both ? I just want my money to sit and grow until I dont want to work anymore
@@queenred.6159 Of course you can! We can mix and match as much as we want and that's awesome. For instance I have 3 index funds; a large cap blend, a med cap blend and small cap blend that together cover the entire stock market. However there is 1 active "growth" not blend nor value fund that has crushed the sp500 for like 15 years. The fund has a .7 expense ratio which is fine for being such a high flier. So of course I put some money into that as well
best is individual stock picking, you can get anywhere from 15% - 25% per year if you know what you are doing (this is what all the best investors are doing, including Warren Buffett), second best is SP500 if you don't care about stocks or don't want to study the companies (just want the profits, although they are smaller) and I would never use mutual funds, those are ripoff
Index funds are the way to go. Cheaper (expense ratio) and just as diversified.
Dave did not answer the question like was said, side stepped the question.
Investing 500K with a average mutual fund with fees in a average life span of a 401k mutual fund will reduce your money by one third=350k.Invest in index funds i.e. compounding with few expectations they almost always beat the normal managed mutual funds because of fees over a long haul.
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Suzanne.
I'm surprised that this name is being mentioned here, I stumbled upon one of her clients testimonies on CNBC news last week...
@@Bestjudy001 Suzanne Gladys Xander strategy has normalized winning trades for me also. and it's a huge milestone for me looking back to how it all started.
@@lennoxmutterick6434 Really you people know her? I was even thinking that I'm the only one she has helped walk through the fears and falls of trading.
@@Donnafrank-k6e As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.
@@MiaJohnson-l4k OMG is this same person that helped me Invested $2000 and after a week we received $7,500. That really helped us a lot to pay our bills. wow such a small world.
Dave didn't mention the magic formula for selecting the mutual funds that will outperform the market. Many many many mutual funds I looked at under-perform the indexes and charge fees significantly higher(3% vs .18%). My investment strategy is to hold several different index funds (domestic stocks, international developed and emerging markets, and bonds) and some CDs.
Like Dave said - just get started and save/invest. Take the mystery and magic out of it and select index funds. Set it and forget it (don't try to buy low / sell high). I did that and woke up one day with $1.5 million.
yeah those fees over long period of time can make a huge difference. that 1% fee compounded over 30 years can make your end result 50% less than it could have been
How much money should I save to start investing?
@@BlackGoddess143 have a 3-6 month emergency fund first. $5,000-10,000? Maybe more depending what your expenses are.
Yeah, I’m 25 and just became debt free I’ve saved the $5k. $10k would be a better amount to save. I just feel like I kinda miss out not trying to invest now.
Just clunk out your calculator and take 5% per year off of that / or add and look at difference.
Dave is utterly wrong about downplaying the fees. Even a 2% fees adds up to millions over decades
Over 30 years, assuming a 7% adjusted for inflation return (similar to stocks over the long run), that 2% fee would erode approximately 2/3 of your investment returns, all while likely being in a fund that is more than 80% likely to underperform the S&P 500 index. I have seen the heartbreak this has caused family members and they wish they had known better during their investing years. Dave is so wealthy his returns don’t really affect his standard of living, but a middle class retiree will have real tears to shed over Dave’s asinine investing advice. I have seen this first hand and it is devastating.
He receives money from ELPs (endorsed local providers). He can't say that 80 percent of mutual funds under perform the indexes. If he did, he would lose a lot of $ in endorsements. He gives great advice in general. This is bad advice.
+amafid It's good advice for him. He's trying to sell ELPs.
Do you seriously think the dollars he gains from potential business gained by an ELP is worth tarnishing his image to his followers?
How about this: he has an opinion. It's different than yours. Take it, leave it, shove it where the sun don't shine. I don't think he cares what you do with it one way or the other. But he's built an entire empire on the trustworthiness of his opinions on financial matters. It's highly unlikely he's going to risk that just for a few coppers unguaranteed kickback from an ELP.
+D rB index funds beat 80 % of mutual funds. If he said that the ELPs would drop him like a hot potato.
Dave does good work ,he is stubborn ie EGO will not admit this part of his program he is just wrong .
@@thetravellingjanitor728 What about the remaining 20%?
um... is he serious? fees does effect your return... wth is he talking about
Sure. 5% return with a 2% fee is the same as a 5% return with as 0.015% fee! Especially over 30 years!!!
Yup. I've only just begun doing my own investing outside of my 401K, and today I just opened up an account with 3 ETF's (using those because they are cheap to start with) I have expense ratio's of .04%, .08%, and .11% for the 3 ETF's I've started with. (total us stock market, total international market EX-us, and a nice high dividend ETF) All bought commission free in an account with no annual fee or maintenance expense. Bond FUNDS I think are junk though, I just buy treasuries and brokered CD's of various terms and HOLD them. (with either 0 or a $1 dollar commission) (EDIT I mean a 2nd account.......the other account I have I'm going to keep, but buying another companies ETF's or index funds will have commissions, so now I get a choice of ETF's/funds from 2 companies and always get to buy with no fee :)
DigitalHaze65536 Bond funds > treasures & definitely CDs
He is right that if a fund outperforms the market (by more the the fees) its worth the fees. His wrong assumption is that mutual funds can outperform the market. They can't over the long run.
This is not Dave'g best moment... FEES take away from your bottom line..
Dave trying to make an argument for his smartvester pros. Index funds are far better than mutual funds.
Agree! At first I was confused by his answer since my research shows Index funds to be so much better. Now I get it
@@evenbiggeral5089 Mutual funds have like 300x larger fees. Over time, that is the difference in tens of thousands of dollars.
Index funds are a type of mutual fund, they just have less active management, more passive
@@RobVI yes
Rather of relying on penny stocks, I wish to diversify my assets by investing in ETFs/index funds/mutual funds and stocks of corporations with stable cash flows. I received $400k from the selling of my property. What should I do?
Remember that investing in the market carries risks, and it’s important to do your own research and consult with a financial advisor before making any investment decisions.
Pls who is this coach that guides you? I’m in dire need of one
I Found her online page by searching her full name, I wrote her an email and scheduled a call, hopefully she responds
Scammers
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
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2020, and I return at least $30k ROI, and this does not include capital gain.
Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us.
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, Sonya lee Mitchell 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.
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
Dave is simply incentivized to send listeners to his network of brokers that sell managed funds
Correct.
I’d say it’s also because the people Dave has helped likely need someone to help walk them through investing and keeping an eye on their portfolios
@@darkma1ice That's true but Dave made me question my whole investing strategy for a minute just because I trust him. If you are putting your money in a mutual fund it is much riskier than putting it in an index. Index funds just require you set and forget. I've put money in outperforming active funds only for them to backtrack years later and ultimately close down.
That was a good questions. Too bad Dave didn’t answer it.
Typical Dave
He did. He said look at the managed mutual funds in your 401K plan, if you don't like the managed-fund options, do index funds. What didn't he answer?
Those fees compound in the same way your returned interest does. There are plenty of high performing index funds (above the average) that have fees around .04%. When you’re paying .80% or more you are getting crushed.
And who’s pockets does that 2/3 of your retirement go to? Yep, right to the top.
more worried about spewing his political bias unfortunately
Beats around the bush all the time
I like how Dave dodged the question for 5 minutes😂
Exactly, math doesn’t lie.
He has to. He makes a killing on referring people to his endorsed folks who charge the fees.
I would agree with Dave Ramsey about this, but then we would both be wrong.
Conflict of Interest. Old Dave earns a fee from his ELP’s. The ELP’s earn higher fees on managed funds and even more so on Load funds. No load, low fee index funds are the best way to go in long run.
Caller: I have heard the fees are higher with what you recommend than with other funds.
Dave: *Something incoherent about liberals* and *keep buying my high-fee mutual funds*
Spot on!
100%! You can never trust any of these guys
Index funds have aged well. ETFs too.
The documentary that the caller is probably talking about is 'The Retirement Gamble'. It's recommended viewing. An important lesson is that investors really need to look carefully at the fees their paying in mutual funds or you risk getting ripped off.
At 7:00 Dave explains how his SVPs charge a 5.75% one-time fee with a 0.5% yearly expense ratio. Then says they'll earn 4% more per year. Really? I don't think so. I love that Dave helps people get out of debt, understand credit cards, car loans, leases, etc. I completely ignore him for investment advice. That makes me a little bit sad. It would be great if Dave were to teach what his friend a JL Collins teaches in "The Simple Path to Wealth".
They are not friends.
Exactly!
From what I’ve learned most mutual funds do not out perform the s and p 500. I just use the s and p 500 index fund and don’t worry about it. Sure you may be able to do a little better than the s and p 500 index but I don’t want to put in the time and effort.
Suddenly Dave Ramsey knows more than Warren Buffett
Glad to see mot of the people in these comments realize that Dave is not looking out for our best interest regarding this topic. He is incentivized to send us toward mutual funds.
Which fund
Completely disagree with Dave Ramsey here. The fees do add up in mutual funds, and most ETFS outperform mutual funds with lower expense ratio fees. Dave Ramsey, you're being bias here. Index funds are ultimately better, not to mention they count as long-term capital gains. Mutual funds cost more, earn less, and aren't tax efficient.
Amen 🙏🏻
I think you mean index rather than ETF. ETF and mutual fund refer to how a fund is structured. An ETF and mutual fund tracking the same index are essentially identical for practical purposes.
@@alankoslowski9473 you’re right, but let’s be clear here, etfs are cheaper and do the same thing as mutual funds. And I emphasize cheaper because those expense ratios matter a lot. Also, Dave never talks about “indexes” he just throws out the term “mutual fund”. There are mutual funds that follow indexes but a lot don’t. And Dave doesn’t invest in index specific ones he chooses ones where Wall Street gurus chose the “best stocks”
Sorry Dave Ramsey, but you are 100% totally wrong about this subject. You should only invest in low-cost index funds. Nobody can predict the future so I avoid actively managed funds like the plague.
And fees doesn't matter? Loaded funds okay? Crazy!
@@LaJon28 I didn't say loaded funds were okay. That's what Dave Ramsey recommends on his show all the time. I said I avoid them and only buy index funds
Demolition Dude I meant it is crazy for Dave Ramsay to say buying loaded funds is ‘okay’.
If no one can predict the future, then why do you think a low cost index fund is your saving grace? You do know that index funds can dip into the negative, right?
@MikeThePike316 Dave is a hypocrite. He doesn't recommend people do day trading or buy individual stocks, yet these actively managed mutual funds that he recommends are doing exactly the same thing that he advises against. Actively managed mutual fund pick and chose which companies they think are going to perform well in the long run. They are trying to predict the future by doing that. You do not try to beat the market. You just try to go along with it, which is why everyone should just invest in index funds. Only 4% of actively managed mutual funds are able to beat the index within any ten year time frame.
anyone notice he never clearly answers the question?
yep.
Yes, he gave a lot of information and threw in some ideological opining, but that is not the same as simply answering the caller's question.
Well, he did say there are plenty that out perform. But that also makes it sound like most mutual funds don't.
Just past the 6 min mark he says compare against the index. Odds are the index wins. Otherwise he was ducking and dodging.
@@seanfatzinger Well he flat out said most mutual funds do not outperform the S&P 500 as a whole but some do
Dave is great getting out of debt not great at giving investment advice.
What was wrong with his advice?
his advice was accurate and I'm a financial analyst
@@HeyEveryoneHi "Finance analyst" LOL, specify what you agree with?
@@billvigus3719 because the 12% if fake AF. Just remember that he pushing mutual funds because he sells mutual funds or have contracts with people who sell mutual funds.
@@billvigus3719 go with low cost index funds
Dave be getting them sweet sweet kickbacks from Mutual fund manager.
Lost respect for this guy when he attempted to equate opposition to high fees as an attack on the capitalist way. There is extensive research that shows clearly that in the long run fund performance is inversely proportional to the fund expensive ratio. In other words the mutual fund industry is charging investors these high fees to essentially under perform the market i.e. deliver a sub-standard and mediocre product. They thrive on the financial ignorance of the average investor to get rich.
madan jampani exactly
madan jampani, what do you propose is a better investment instrument?
Tom Tom index funds are great
+Tom, NO LOAD mutual funds. Preferably low expense ratio 0.25% or lower. Broad base index funds like a Total US Stock Market Index fund or S&P 500 Index fund. Stay away from high expense ratios, sales loads and the like.
There is really no good reason for you to buy a LOAD mutual fund. There is a good reason for a SALESMAN to want you to buy a LOAD mutual fund.
Fire Panda Party Penguin thanks!
just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge
Very true, Despite having no prior lnvesting knowledge, I started lnvesting before the pandemic and pulled in a profit of approximately 950k that same year. In reality, all I was doing was getting professional help
How can I participate in this? I sincerely aspire to establish a secure financial future and I am eager to participate. Who is the driving force behind your success?
I'd say a little due diligence on " Dianne Sarah Olson" truly exceptional
thank you for this tip. It was easy to find your coach. Did my due diligence on her before emailing her. she seems proficient considering her resume
*Awesome!!! your potential seems limitless.* I have always been fascinated by investing, but without any knowledge on what’s best to invest in, I find it difficult to begin. *I ask politely, what’s the best sector to invest in?*
I will suggest you get a financial advisor who will help you build strategic plans that will meet your financial goals in a short period of time. I got help and also built a passive income working with a Financial Planner (Hamilton Phoebe Zoe). I’m happy with this decision, as it was the best for my finances.
@@winifredmorris8507 I’m interested and need to start now. If you don't mind how can I get in touch with your consultant?
@@rudriguezbauer7520 I work with an Investment Analyst *(Hamilton Phoebe Zoe).* Quickly do an internet research with her full names as mentioned where you can easily get in touch and as well write her.
It’s best to start early to plan your future by making important financial decisions which can help you build passive income and make you live comfortably. I realized that the secret to becoming rich isn’t having multiple jobs but multiple sources of income.
@@winifredmorris8507 Thanks, Got it 👍
Like others have commented, Dave is great at helping people with basic financial advice, especially getting out of debt and the importance of saving. I have noticed over time that he has somewhat changed his advise on index funds. A few years ago he sounded like he was dead set against index funds / passive investing. In more recent times he has started to say that they are "OK", and I found another recorded broadcast where he said he personally owns some index funds because he likes their stability. For the normal investor who does not have the time to study and compare mutual funds..... or does not want to pay fees or a financial advisor to do that form them.... Index funds are certainly the way to go.
How do you study and compare mutual funds? Unless you have a time machine, you can't.
If you read "On Persistence in Mutual Fund Performance", a study by Mark Carhart published in the journal of Finance, you'll read that virtually all mutual funds that overperform the market in a 5 year period go on to underperform the market in the next 5 year period. I mean, there's even plenty of mutual funds that have done great over a long period of time, only for that supposed skill to run out at a certain time.
You can pick mutual funds that have beaten the index in the past. But most likely, those funds will end up underperforming the index at some point in the future. You have a shot at outperforming, so if you feel like taking a gamble is something you want to do, by all means go ahead. You might get lucky and pick the one mutual fund that doesn't end up drastically underperforming the market. But you probably won't.
Index funds are not just for beginner investors. They're really the best way to invest for virtually all investors.
Folks please listen to JACK BOGLE !!! For the BEST ADVICE !!!
To be honest, Jack just pushes hard so you invest on his company, Vangaurd
@@matthewrozumialski8196 wrong
I'm still investing hard into FSKAX. Dave's got good info, but, there's nothing wrong with investing in Index Funds.
Dave totally dodged the fees part of a question LOL
100 percent
Warren buffet says index funds. Sorry Dave! I’m gonna go with warrens advice every time.
Dave is not saying don't do index funds.
Hey Dave, have Warren Buffet on your show and you be quiet and have him answer this question
Warren Buffet's best investment advice is to buy Index Funds like Vanguards because they beat 80% of actively managed mutual funds and have the lowest fees. He even said after his passing his Berkshire fund will be invested mostly in the S&P 500 fund like Vanguards and some bond index funds..
Can't go wrong with Vangaurd VOO ETF.
I would never touch a mutual fund
The PBS special the caller Is talking about is called the retirement gamble. Episode is on UA-cam.
Despite my best attempts to save money, contribute to early retirement, and become financially independent, the economy has sucked out a large portion of my assets since the epidemic. I want to know if I should continue to diversify my investments or if I should look into other industries during these erratic times.
You should look at stocks , they look to be the biggest beneficiaries of AI and Data centers , also DCAing into a good ETF too ...Prioritize patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.
I agree. Exactly why I now work with one. A lot of folks downplay the role of advisors until being burnt by their emotions, no offense. I remember some years back, during the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m
You appear to know the market better than we do, so that makes great sense. Who is the coach?
"Laurelyn Gross Pohlmeier," a well-known authority in this field. I would recommend looking into her credentials more because she has a great deal of expertise and is a great resource for anybody looking for advice on how to navigate the financial market.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
I am a huge fan of Dave. I am also confident in saying that Dave understands debt management and real estate better than most people. However, he clearly doesn't understand the stock market well enough to give advice and should lead people to Buffett or Lynch in that space.
Dave’s wrong, stick to index funds if your reading this sir.
Rate of return is more important than fees. But fees are a % of return
Dave Ramsey's insights have been a game-changer for me! His practical approach to financial management has empowered me to take control of my money and work towards a debt-free life. The Total Money Makeover is my go-to guide, and I appreciate how he breaks down complex concepts into easy-to-follow steps.
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Overall, 51% of traders think this year would favor stocks, mutual funds, and other equity-based investments, despite Treasury yields and other safer cash-like investments paying big. I’m looking for opportunities in the market that could fetch me $1m ahead of retirement by 2025
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
impressive gains! how can I get your advisor please, if you dont mind me asking? I could really use a help as of now
Her name is 'Amy Desiree Irish’. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Index funds over mutual funds anyday my fees are less then 0.10 won't get that in a mutual fund
I like Dave, but he is flat out wrong here. He's either ignorant of the facts (there is a MOUNTAIN of research proving that index funds outperform mutual funds), or he's intentionally lying for some reason.
Either way, it's disappointing.
Dave definitely knows enough to know everything wrong with this. High MERs hurt compounding, which is the entire power of investing. Seems to have a deliberate blind spot for mutual funds for some reason.
Yes. The reason Dave has a blind spot is because he gets paid by those active fund promoters.
That was a bad explanation between mutual fund and index fund investing.
Not really. I'm not sure what many of you are reading, however Dave gave sound information.
No, he didn't give sound information, unfortunately. He deliberately omits the effect that fees and expenses have on the TRUE returns an investor would gain at the end of the day (I'd love to see how many of his "beats the market" mutual funds actually net you better gains when you factor in fee/expenses. My guess is not many...if any). I like Dave on many issues, but he just seems a bit disingenuous on this issue. It stinks of bias.
Agreed. Even according to Standard & Poor's, more than 90% of large, mid, and small cap mutual funds will fail to beat the S&P 500. Warren Buffet, who Ramsey loves to quote, has stated that the best investment for the average American is an S&P 500 index. Obviously as retirement nears the mix of bonds will have to be reallocated to reduce market risk, but when you're young and looking to build wealth over a 20 or 30 year time horizon, it's hard to find a better deal. With Vanguard Admiral shares in an S&P 500 index, the expense ratio is .04%. That's $40 a year on a $100K investment and the trades are free. Pretty tough to beat that one.
no, that's an entirely accurate description of index funds.
you don't seem to understand that index funds ARE a type of mutual fund.
He can’t because his genius brain can’t beat index fund and Instead dances around the topic and picks a bad mutual fund, his ideas work for poor who want to get out of debt but not who understands passive indexing
Dave Ramsay is great at behavior problems financially. I don't think he's very good at in depth investment questions like this.
He taught and gave great general advice on this question. What did he miss? He explained what an index fund is. He explained what a managed fund is. He talked about all the fees. He explained what a fund manger is trying to do and what an index fund is trying to do. What more do you want him to do? Pick the guy's funds for him? He told him to look at the managed mutual funds within his 401K, if they are good funds, go with them. If they aren't, go with index funds. All solid advice.
Correct. Nice high level info which is useful but he didn't even mention importance of diversification nor asymmetrical risks taking.
Agreed. I'm following the Baby Steps except I'm going to invest in index funds.
Low Wages or Wages what do not Increase enough .. Taxes and Inflation makes People poor 60% if not more of the workforce Struggle every couple of months about their Income
We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.
Could you possibly recommend a CFA you've consulted with?
Thank you for saving me hours of back and forth investigation into the markets. I simply copied and pasted her full name into my browser, and her website came up first in search results. She looks flawless.
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Taxes are insane. We should get a breakdown each year of what goes where, for federal and state .
Buffett recommends index funds. Not sure why Dave against them. Maybe because of his agent network.
An index fund is just as easy to invest in via payroll deduction as a managed fund. Fidelity now has index funds that have 0 expenses. An actively managed fund is almost never going to consistently beat the index by more than its expense ratio over a long time period.
I love the comments in this thread as they are 100 % correct. 86% of active fund managers fail to beat the market. Furthermore, mutual funds do not have to quote net rate of return but instead quote the gross rate of return. The net rates of return rarely beat the market. However, dave is 100 percent right that lack of contributions is the main reason why people fail.
Mutual fund published returns do not include load fees, but all published returns account for expense ratios. No?
The PBS show on mutual fund fees was exaggerated and used "worst case" examples of bad 401ks instead of average 401ks. However, Dave is also exaggerating. There's a big relationship between fees and rate of return. High fee funds typically get lower returns.
mysticaltyger2009 99% of low fee index funds beat the mutual fund industry over 30 years. It's not even debatable. Read john bogles books.
what foo? you work for a bank you foo?
I really respect Dave Ramsey and have benefited so much because of his teachings. However, when it comes to this topic, I can't help but wonder how unbiased given that he has a network of investing professionals he endorses.
letting politics blind his judgement
@@samsonizy yes he didn’t like the source ,PBS so he turned into politics
This made me lose a lot of respect for Dave Ramsey
I have to disagree..I am also so surprised how he makes fees a liberal thing
He didn’t need to bring the “liberal “ comment. Why pay for a service where there’s a method to beat 90 percent of mutual funds with little cost
S&p500 and Nasdaq 100 are safe and have higher returns in Long term than active funds
I am a big fun of index and ETFs
But the main thing is rate of return which often makes the expense not so bothering in some blooming active bluechips
Dave Ramsey is so full of it!! Under NO CIRCUMSTANCES can he outperform the SP500 over any extended period of time (say 10 years) and a taxable account - especially when fees and taxes are factored in! So here is my open challenge to Mr. Ramsey. I will put $100K into SP500. He puts $100K into his loaded funds and ALL tax consequences and fees will be deducted from both accounts (assume an overall federal and state tax rate combined of 30%). Whoever has the most money after 10 years keeps BOTH pots of money. I will do this challenge with Mr. Ramsey anytime he wants.
Dave needs to read John Bogle's books from Vanguard and you can see he is not confidant talking about the stock market. He is not only weak but this advice is absolutely wrong. Love Dave but this is not his forte
He has 100% read it. He just has his own agenda to promote.
He’s someone’s pony at some mutual fund office. Indexes are far better. Vanguard, Vanguard, Vanguard!!! Buy the index and let it ride long term. You will be happy.
Not to mention no stress and no tyranny of compounding cost.
Thank you for the lesson.
@@hthought exactly right, spot on
Most mutual funds don't outperform the index they are based on after fees. Even the best money managers can't barely outperform over time. Statistically speaking, you will be much better off buying an s&p 500 index fund than buying a random mutual fund based on that index. Always check your fees.
This is where he gets lost and doesn't know what he is talking about. It's math that fees hurt not a liberal or political statement. Duhhhhhh
I'm pretty sure i heard Dave does get a cut of the initial investment fee some of which are around 5% fee to invest plus annual fees
The vast majority of mutual funds do not outperform the market, but the high fees of the ones that do, erode most (if not all) of your advantage. Dave is great, but I never agreed with this particular stance.
Majority of managed funds (some say 68%, some say 96%) don't beat the index. Why even consider buying them
Ramsey is the ultimate charlatan 😂😂. He has no clue.
91% of managers do not beat the index for 10 years. Go with the index and you will be very happy. Dave is great for beginners but when it comes to investment advice run from him.
The issue with mutual funds is that you are paying fees regardless of the fund’s performance. Also, just because it may have outperformed, does not mean it will continue to
I would love to see Dave debate his positions with someone other than an uninformed caller that he cuts off in themiddle of the call and goes on a rant.
This is just deceptive.
+1
Dave knows better then to take the call
He is a scared puppet.
In the end, Dave Ramsey is right: ACTUALLY saving and investing, consistently, year after year, throughout your earning years, is the MOST important factor in success and wealth. If you are not investing at all, or not investing much (as a percentage of your income), and/or not saving and investing consistently, it does not matter what the fees are. Everything else is secondary and tertiary to the PRIMARY purpose.
Agreed with its better to save and invest managed or index, but the question was “index or managed?” And he didn’t answer it
That being said if person A and person B have the same income and they both save and one invest in mutual funds and the other in index funds, the index fund investor will most likely make substantially more money.
@@Vinnymanvinny1 PROBABLY NOT, IF THEY FOLLOW DAVE RAMSEY'S RECOMMENDED MUTUAL FUNDS (e.g., growth, aggressive growth, international), WHICH CONSISTENTLY outperform THE MARKET-INDEX. A better long-term rate of return is much more important than fees.
This.
yes but to those of us that are investing consistently and with enough money, he should then explain that index funds are the cheapest way to go. He won't because he makes money from the agents.
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.
I’ve been worried sick about the current state of my portfolio, who is your advisor?
Rebecca Noblett Roberts is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you so much! This is exactly what I needed right now. I wrote her an email and am waiting for her reply. Hopefully, she responds soon.
Obligatory comment here: Please tell me one mutual fund that has outperformed the market over a 10 year period. Just one please.