Dave Ramsey's Dangerous Financial Advice

[@FinancialFastLane]

Here is the link to the article: www.thinkadvisor.com/2023/11/13/supernerds-unite-against-dave-ramseys-8-safe-withdrawal-rate-guidance/

[@paulhathaway5907]

@@FinancialFastLane thanks... I'll check it out

[@danielvillarreal6610]

Those 3 Ph.D.s are “financial goobers!” ha ha ha ha

[@maxshiraz3447]

I found a fund that returns 12% return each and every year. Unfortuneatly it was run by Bernie Madoff

[@paulbrungardt9823]

Good One--

[@glasshalffull2930]

A good conman doesn’t claim 18% returns because that would draw too much suspicion. Bernie actually claimed 10% if I’m not mistaken. He was a crafty conman.

[@stevegamm2724]

Exactly.

[@themuskrat5776]

Except that’s not what Dave is saying. He says on average the SP500 returns 8%. Not that every year it will.

[@glasshalffull2930]

@@themuskrat5776 Actually, Dave talks about a 12% return as if it was common.

[@larryps]

Thank you for posting this. I am a Dave Ramsey fan when it comes to getting out of debt. Your video reminds me to carefully consider my retirement planning and not to follow anyone blindly.

[@dontbanmebrodontbanme5403]

That's really the takeaway from all of this. When you hold up people that you admire as idols, that's when you can be suckered, fooled and led astray. This is how the Bernie Madoffs of the world are able to do what they do. They build up such a reputation that the idea of questioning them is heresy.

[@kerrydaniels8460]

I'm more of a math guy when it comes to debt. Snowballing like Dave suggests sucks in comparison to avalanche methodology. Same for building credit when it costs you nothing and literally pays you to do so responsibly. He's not fir me and I would never follow his investment advice. He's just not a math guy. If you're an emotional guy though then he's your guy. Emotions often cost you money. I just stick to the numbers and for that, he misses the mark.

[@brianlane9534]

Dave is very helpful to those who don't have a million dollar portfolio. He helps some people to get out of debt. His advice to these folks is sound although not perfect. The baby steps, etc. that he provides are good. Once you get out of debt and actually have money to invest, Dave is not your man.

[@jerrybanley7695]

You are correct. Dave's principles can only take you so far. I've always said that Dave is great at taking people from broke, to not-so-broke. But if you want to move on from there, you need to move on to anyone that can give you personal attention. Its not about what you know, it's about who you know. You need a mentor that you can call in the middle of night when life sucks. You don't need access to information, you need access to the right relationships. You could read all the financial principles in the world as still be broke. You could even DO all the right things, and still be broke, because you didn't have the right mindset going into it. How do I get the right mindset? Get around the right people.

[@tonybowman8902]

Best comment here……Daves simple method works for the MANY who get themselves into a debt mess. Sadly he come from an old school financial attitude, real estate heavy background that makes me think of my loan officer dad from the 1980s. If you are in debt trouble he has helped many thousands get out of the hole. Once your back on solid ground his advice is of very limited value.

[@richardwallace1405]

agreed

[@Gforu81]

Exactly I even think he's offer people who are in debt. He wants us all to be miserable

[@pjevans1830]

Interesting that not one commenter on here has a net worth that will ever begin to come close to DR.

[@alexandraadams2070]

I used his debt snowball to get out of debt and really love that but I don't seek his advice on anything else. Frankly, I don't like his personality so I can't listen to him much but a friend of mine told me about the snowball and it worked really well and quickly so I give him credit for that.

[@terryhenderson424]

Ramsey doesn't address the negative power of interest. At the same time, his thing is to create a formula turned mantra which works more so than other approaches with the masses. The snowball approach gives you enough cash flow to work with while addressing the psychological issues related to getting into debt in the first place. But the first rule is: First add no more debt. In some cases, it quickly becomes important to pay down debts which due to daily compounding interest have balances owed increasing daily. - Those people who have come out of debt fairly quickly, all things considered, have used a mix of rationale and approaches during thier debt journey.

[@terryhenderson424]

@@dbdb4962 Everyone's debt profile, income, credit score, and the like are different. It is also very important to figure put the functional interest on each debt. The interest percent is but one part of the equation used to assign interest dollars owed. Functional interest is: ($interest/$min ×100). Daily compounding starts to make the interest rate less important. There is a Walmart card out there that has an 85% functional interest; the monthly minimum payment is relatively low though. And yes, the Ramsey snowball method does address the psychological aspects of a debt journey but it also provides enough cash flow that people can meet thier minimums and still live. Ramsey isn't as interested about credit score but the snowball method does have the possibility of creating more un-used credit/ available credit faster too. The snowball method enables more cash flow from the income/ budget for debt paydown and payoff.

[@kerrydaniels8460]

He never came up with that. It's also less efficient than the avalanche method. I'm more of a numbers guy and he misses the mark there.

[@BRTowe]

​@@kerrydaniels8460It is less efficient, slightly. It is much easier to achieve than the avalanche method, however.

[@alcantwell]

He sounds like a preacher. And he is - - he's preaching a particular gospel of finance. So if you're into preachers and salvation, you'll love Dave.

[@Lolatyou332]

I think the most telling thing is, notice how he never tells you his actual investment portfolio distribution. He just gives a vague 'oh I get a better return than SP500".

[@dustinp161]

A book I’m currently reading called “how I invest my money” by Joshua brown has done a good job so far. A bunch of ceos and financial advisors have their snipets in it where they actually tell you what funds they use personally and which ones they avoid.

[@annaburns2865]

Yep: plain and simple. Dave Ramsey is a fraud.

[@igorspitz]

Why would he do that though? To lose the edge?

[@kevinadams9468]

@@igorspitz Any claim that large made without proof is not worth heeding.

[@josephandreuccetti3706]

When I dicovered Ramsey on the radio 30 yrs ago, he simply reminded me of my father and his matter of fact approach to how I should avoid financial blunders. Funny when Dave taught it, I actually did it, not when dad was preaching😂

[@mercedeswilkins9085]

Cuz Dave a millionaire and your dad’s not

[@royhoco5748]

the best get out of debt advice I ever heard is "when you find yourself in a hole the first thing you do is stop digging"

[@whiskey_tango_foxtrot__]

It's a maybe. I can put my entire retirement in Tbills at 5% and withdraw 5% and never touch principal. But, if I withdraw 8%, I am slowly winding down the principal and may be close to zero when I pass. The question really is do you want to leave anything and how healthy do you predict in your retirement years?

[@rubicon3416]

True. I'm not sure how much longer we'll be seeing those "risk free" 5% T-Bill rates. It's been a nice change, though.

[@markellinghaus5925]

Tbills won't stay at five percent much longer

[@StorytimewithGrandpaAndLala]

We’ve followed the Dave Ramsey Total Money Makeover plan since 2011. Got out of debt, lived on less than we make, and invested as he advised. We’ve prospered tremendously.

[@FinancialFastLane]

Awesome but that is not what this video is about. It is about the withdrawal rate and sequence of returns risk. I strongly recommend reading the article linked in the description.

[@rnarzu]

AGREE!!!🎉

[@lindadorman2869]

Dave Ramsey's plan for getting out of debt is good but his investment advice is not. Also, his plan assumes you can always find another job or hold several jobs, or rely on a spouse for a second income, and emergencies happen one at a time. Far too many people are dependent on their individual income, are not able to take on more work due to family commitments, and many experience multiple emergencies at the same time (job loss, medical illness, accidents, natural disasters, divorce). Sometimes life just sucks.

[@debbielockhart7762]

I don't even like his advice on paying off debt. His debt snowball is mathematically stupid. He completely ignores interest rates.

[@strokes334]

@@debbielockhart7762 It ignores interest rates because it's based a little on psychology. It's a reward and relief to pay something off and so it leads you to continue with the plan. Mathematically paying the highest interest rate is correct and he even says so multiple times. But people are the problem, not math. Just like a heloc at 10% interest to pay off 22%+ credit card interest, then you pay off the heloc makes mathematical sense. The problem again is people. Unless you change your spending habits and stop using the credit card, no method will work. If you spend more than you make, you will be in debt and this causes a lot of stress on middle aged adults.

[@joshmurray8249]

That's because the idea is to pay so much more than the minimum payment that the interest rates are way less of a factor..​@@debbielockhart7762

[@dmarshall5148]

@@debbielockhart7762that’s because the percentage rates are usually very nominal in their differences

[@thatoneguy9473]

​@debbielockhart7762 it's a difference of a few hundred to a few thousand dollars. The debt snowball is better because it builds your confidence that your budgeting and paying off debt is actually working. People drowning in debt need the little wins to get started.

[@chrispnw2547]

We don't have to beat down Dave Ramsey (not implying you did). Dave has a clear ego problem that usually stems from feeling less than those who are certified and have greater experience. He is quick to malign others on his program but extremely slow to admit when he is wrong (repeatedly). Dave won't sit in a live discussion with financial industry professionals because he would be exposed very quickly and that would not be good for his brand. We have seen this act before.

[@RogerZoul]

So when you said “we don’t have to beat down Dave…”, you meant “let me beat down Dave for all of you…”, right? 😊

[@wannamontana4130]

Reversal, it's actually Dave who was beating. He was beating on licensed professionals who are held to an all time high fiduciary standard.

[@zuozhen4758]

Dave Ramsey is Mr. Know it All! And actually he does NOT know it all!!!

[@GunGrave0]

Thanks Lane for the reminder, don’t always believe everything internet says, no matter who, always fact check from multiple reliable sources

[@JohnBowl14690]

Ok...Ramsy is way more right than wrong. However, he is a bit aggressive on investing and projections. Now that said, he is "usually" right. In hindsight, most of the time, 8% is safe to withdraw....ASSUMING you are 100% invested in the SP500. Ramsy is good for the basics, but one size doesn't fit all in the investment realm.

[@texasjody9835]

Dave likes to give a “one size fits all” advice.

[@scottworthington5764]

he is talking to a mass audience of millions. Can give advice on every potential scenario. His advice is typically spot on.

[@calebgibson55]

Why not?

[@kerrydaniels8460]

​@@scottworthington5764He refuses to acknowledge other valid methodologies even when the math is telling of him being wrong on it. He's often mathematically inefficient with his advice. The better you are with money the worse his advice becomes. If he could admit to being wrong about the math at times or be more open to more valid strategies it'd be fine, but his ego won't let em. That's the issue folks are talking about.

[@kevinadams9468]

Common sense doesn't have different sizes.

[@roseymalino9855]

I know nothing about Dave Ramsey and viewed this because of its label of dangerous financial advice which I want to avoid. I do 'financial advisors' have a good thing going for themselves. They get to provide a service that will (maybe) pan out many years later but they get paid now. Imagine an electrician handing you his bill and saying that outlet will start to work in 10 years. I think all financial advisors' advice should be labeled 'dangerous'.

[@Ginox723]

These idiots are only upset because he is exposing these financial idiots who call them selves financial planners.

[@kevinadams9468]

Well said.

[@lbrumleve]

Dave rocks. I’ll keep doing what I’m doing. After all it’s my life.

[@phuck8627]

Have fun being broke and having no retirement money

[@davidforte964]

Say what you want about Dave, reading his books years ago saved my butt. I am 21 days away from paying off the house, and finally cutting the ball and chain. Paying off the credit cards helped me get here, and I will NEVER borrow money again!

[@stevemaggs6781]

From a personal debt viewpoint, IMO Ramsey is spot on with his advice. HOWEVER, regarding the "portfolio withdrawal rate" topic, he is 100% dead wrong. No one in retirement, unless they are worth hundreds of millions of dollars and/or earn upwards of $30 million per year, like Ramsey, should ever invest 100% of their portfolio in the S&P 500, which Ramsey references from his "8%" withdrawal "advice". Ramsey DOES NOT withdraw from his portfolio and his income can more than fix any market slide experienced by his equity investments. The "average Joe" is in a much more financially percarious position, and can ill afford to withdraw at a 8% rate when they might have only Social Security and their savings to live on. Also, Ramsey's asertion that his portfolio grows "12%" every year (his exact words) is a lie, and does not take into consideration the sequence of withdrawal risk which translates into the risk of prematurely depleting one's portfolio by taking out too much funds when the market steeply declines. And, no Dave Ramsey, one's portfolio does not "increase annually by the rate of inflation", as he's often said. Again, for offering savings and living debt-free advice, I give Ramsey 5 stars. For giving sound investment advice, I give him zero stars, and he's actually dangerous for the uninformed retirees and near-retirees who chose to rely on his investment advice to satisfy their income retirement needs.

[@beernutzbob]

Ramsey's bad advice doesn't have to do with getting out of debt, rather it's his awful advice on investing and withdrawal rates. He conflates average returns with actual returns and completely ignores sequence of returns risk. He says everyone regardless of situation should be 100% invested in the stock market which is terrible advice.

[@stevemaggs6781]

@@beernutzbob Totally agree!

[@RossLemon]

Dave Ramsey didn't invent the concept of not getting in debt. You're not obligated to him at all.

[@stevemaggs6781]

@@RossLemon True, but Ramsey deserves some credit for influencing people who needed direction to get out of debt and live a debt free life. However, I'm not of fan of him, particularly due to his arrogant and dismissive way of talking with people who think differently than him, and his dangerous guidance on excessive retirement fund withdrawals.

[@RickRose]

Years ago, I watched Ramsey's "Financial University" series, or whatever it was called, because a friend was a big fan and had bought the course. The one thing I thought he got right that might contradict some experts was his advice to pay the smallest debt down first, rather than the debt with the highest interest rate. I think he correctly tapped into the emotional connection we have with our finances and the concurrent need we have for gratification--Paying a debt down to zero gives that gratification and encourages us to continue the journey to debt freedom. That was about it. Other than that, he sounded like a snake oil salesman. And then I saw him pitching investment services from which he obviously earned a commission, and I completely tuned him out.

[@rossmacintosh5652]

"And then I saw him pitching investment services from which he obviously earned a commission". So right Rick! His radio show, personal appearances, KZbin channel, books, courses, and school curriculum, are all a coordinated pitches to get the masses to forever only invest with mutual fund salespeople (his Adviser Network) who split their commissions with him. He encourages investing but blatantly shits on any investment paths that don't earn him a commission. And then there's his commission-earning timeshare exit pitches that currently has him being sued for $150m.

[@debbielockhart7762]

I think his advice about paying the smallest debt first is stupid. Go with the interest rates.

[@dustinp161]

@@debbielockhart7762it’s not about the math, it’s about behavior modification. Pay the smallest balance off first, as quick as you can and it gives you some hope and staves off discouragement.

[@vivalapsych]

Yeah. It’s advice that doesn’t add up. Screw psychological. Give me logic and facts.

[@bradycone]

​@vivalapsych I agree with Dave on this one. If you wanted logic and facts then you wouldn't have gotten yourself into a bunch of consumer debt to begin with. It doesn't just take math to get out of it; it takes a change in behavior which is what he is good at. When you succeed at the debt snowball, the difference you're paying in interest is minimal since you're paying them all off anyway. And, the difference in interest rate does not account for the gazelle intensity in which you change your lifestyle, cut your expenses, and earn extra money. That is all a part of what makes his program successful for millions of people.

[@josephschmidt2183]

I agree with Dave about 90% of the time and his free advice has made us financially independent and wealthy beyond anything I could have imagined over the course of 20 years.

[@acebragg5559]

Yeah, people seem to not realize that you can follow his advice and plan without paying a single dime. We did the same thing you did and are glad we did. Do I always agree with Dave, no, but the country would be far better off if more people followed his steps.

[@byrosiemayne]

I love Dave Ramsey, but hate how he’s unwilling to hear opposing opinions and understand the math they’re following. He goes straight to insulting instead of hearing others out.

[@bittertruthnavin]

I don't think he says things without doing any homework. He is a calculated person and gives reason for what he says. Now I just listened to this video and several others that 8% withdrawal is dangerous financial advice but does not go into telling why?

[@annaburns2865]

@@bittertruthnavinhe is sponsored by many money organizations. He’s not giving out advice. He selling it.

[@allenpriest8985]

​@bittertruthnavin it does not take into account sequence of returns risk. Average returns over time is only the average. Some years are down. And drawing 8% when it is down will drain your account.

[@Aex3f4]

Dave is like: Do you have a million dollars? No? Then ya live in your mother's basement and can't speak on the matter. Then the people in his comment sections are like🤤bro he don't got a million dollars he live in his mom's basement.

[@frauleinhohenzollern]

What if... I have a million dollars because I live in my mother's basement?

[@Duke_of_Prunes]

I listened to Dave Ramsey back in the mid 90s, when he was on local radio in West Nashville. His get-out-of-debt strategy is great advice. But I am well past listening to someone who thinks $80K /year is a safe withdrawal on only $1M -- more $40K in reality.

[@robert-ku7zr]

if all you can get is 40K on a Million then you obviously have no idea how to work the markets, I think you need to educate yourself on covered calls, put protection, Buying CEF style funds, pays dividends, also learn to trade each week, you can make yourself well more then 10% on that every year.

[@Duke_of_Prunes]

@@robert-ku7zr I have been an investor for over 20 years, so I know how derivatives work. But, my wife actually forbade me. To get high returns, I invest heavily in Microsoft, Google, and later NVDA. My returns are almost always above the markets, and I could theoretically withdraw well above 10% -- when I retire in 5 years. At that point, though, I will shift to less risky etfs and stocks.

[@Pecunia3]

I heard Dave say “if he were half wrong” would work perfect in the numbers I see here. 😂

[@Duke_of_Prunes]

@@robert-ku7zr I am retired, and don't NEED more than $40K/year from my stocks. So, I would much rather get rapid growth from stocks like Microsoft and ETFs like VGT. I pay much less in taxes than I would selling options or playing other derivatives, and do not have to keep a margin account. If my monthly expenses are higher than normal, I also have 9 renters + whatever my wife earns from her investments.

[@justinfletcher7630]

60 would be fine with high success

[@herb7877]

Does my heart well to hear this program. I had 40+ years in the financial industry and only listen to him a few times. He has a massive following, most of them taking his word as gospel. Unfortunately with my background I can not stop & watch the train wreck. He has given numerous video's with bad advice. Not just my opinion but actual factual bad advice. I wrote back on a couple of them with documented citations & examples. NEVER got a reply. I fully admit I have only watched a couple of shows & can not bear to listen to more than a few minutes. I have to switch him off. Yes, a few items he may "get right" for the masses, but most of the time I would advise different approaches. He sells a lt of books & video's though. Yes; HE IS AN ENTERTAINER !

[@gmrrnracr]

Who do you recommend listening to online KZbin? I like the “money guys”

[@nywiechmann2739]

Some people are out of touch...you never assume a one-size-fits all strategy for ANYone.

[@calebgibson55]

Everyone should eat apples. Everyone should go on a diet. Everyone should leave milk and cookies out for Santa.. Everyone should change their oil. The exception does not change the standard…

[@stevec9669]

I will move in to live with Dave when I run out of money. Hope he will have arms wide open to welcome me!

[@davidmmm8]

Nah think he would prefer to live with his wife solely. 🤓😎

[@rosemarykingpate7832]

I can't listen to Dave more than 5 mins. I would never move in with the guy. 🤪

[@darrellgetty9991]

If u run out of money it’s because your a loser

[@matthewjohnson1643]

The problem I see is advisors believe everyone can handle finances. Most people are beyond broke

[@daniel-vn4ql]

yep. they believe everyone can handle a credit card. The vast majority of people can't. and then end up in debt.

[@esanford]

This was a very good video. I do follow Dave Ramsey's advice. Now that I am retired, however, the only withdrawals that I take are RMDs (after I pay the taxes, I roll the remainder into brokerage). I was always skeptical of his 12% average annual return rate. Again, it's not an issue for me personally. I think that pointing out that his numbers are probably overstated is important. He has been successful for so long he is probably over the top. What he does well is help people get out of debt and to invest the 15%. Because Americans are not saving as much as they should while spending too much using credit, his message is sorely needed.

[@seminolefantodd4736]

So, Dave Ramsey is to financial advisor as Dr. Laura Schlesinger is to physiologist?

[@wannamontana4130]

BINGO

[@jamesrecknor6752]

Yes, that is why he is so wealthy, because he is incompetent.

[@saintbees2088]

As Orville redenbacher is to popcorn and col. Sanders is to chicken.

[@seminolefantodd4736]

@@rollinsdet8229 you are right and all I can say to an old reply is autocorrect strikes again! Duck!

[@lisag18]

Psychologist but we knew what you meant

[@bigmoose143]

She is right. Dave is the Goober. An assumption of 12% return is asinine. There have many long periods where market returns where in low single digits.

[@rodger7029]

😂😂😂😂

[@themuskrat5776]

When?

[@bigmoose143]

@@themuskrat5776 66-81 was 0%. 29-45 was -50%

[@knightwriter2989]

This is just ignorance. There are NOT many long periods where the market returns low single digits. Just insanity.

[@bigmoose143]

@@knightwriter2989 as they say, “Those who do not learn history are doomed to repeat it.” Good luck!

[@AuntNutmeg]

As with any advice you get from anyone: consider it advice and not law. Do your own studying. No one will be willing to put as much work into figuring out YOUR situation as you.

[@rossmacintosh5652]

True Auntie but unfortunately many people don't want to think for themselves. They will uncritically follow anyone who promises them a simple path. Dave repackages basic common sense and trademarks it "baby steps" for a reason.

[@wannamontana4130]

Well sure. But its not even substantiated advice.

[@brendamoon2660]

Dave is a salesman first and a financial advisor second

[@sammyocgirl7411]

the only way he makes money is all his useless books

[@gregwessels7205]

Well you got the first part right and I would even say he is an entertainer only. He definitely is no financial advisor.

[@sammyocgirl7411]

@@gregwessels7205 yeah and his daughter is trying to get in the game her BOOKS nothing really to say

[@Bobbyelijah]

1st Dave is a God fearing Christian 2nd Dave is a happily married family man and great provider 3rd Dave and his family attend church 4th Dave is an astute business Realtor and investor. 5th Dave is a millionaire

[@sammyocgirl7411]

@@Bobbyelijah who cares

[@johnnybeckwith2754]

I also have a question for Dave Ramsey . He states that you should never file for bankruptcy and that we should always try to repay our debts. My question is for him is at the time he filed he was broke like many are. But now that he is worth millions, did he go back to his debtors and say he is now a very well made man now and he thinks it time to make his own debts right? It’s called practice what you preach. He may have. It’s a question only he can answer.

[@TwoKeysStudio]

He did go back and repay them.

[@allenpriest8985]

Yes he did.

[@amireallythatgrumpy6508]

He never filed bankruptcy. That's just a business origin story he made up.

[@rogerbemis5859]

He repaid them. 💰

[@josephsaab7208]

What a stupid comment. Lmao

[@djl9154]

2 years ago it was not atypical to have investment advisors from major financial institutions tell you that they could get a 7 percent on average with funds that were only medium risk. I didn’t go for it as I have been investing a long time. And there is a lot of wiggle room in that statement, if you know anything about investing. So I would disagree with anyone that 7 or 8 percent guarantee is a sure thing, but Dave didn’t say anything different than what some other major financial institutions claimed to be true as well. And in this current market, not even sure they can guarantee 4 percent.

[@eddenoy321]

This woman is spot on about Ramsey. A 12 % return every year without any crashes ? I guess Ramsey is better than Buffet and Munger. He is a marketeer of his own celebrity and not much more.

[@hopefilledfinancial]

Thank you for covering this very important topic! I sincerely appreciate it.

[@robertspencer5219]

Blanket recommendations will always be bad advice for some folks.

[@bentleydawg8573]

Thanks you for this video, and the link to the article. I have listened to Dave on and off for many years. I like much of what he says. I have followed a lot of what he teaches for personal finances. But not his retirement advice! When I heard him claiming that an 8% retirement withdrawal rate was reasonable I cringed. It is ludicrous to believe that is workable for the majority of retirees. I like what the 401klady said, "Dave doesn't need his nest egg." But, Dave, the rest of us working folk do.

[@dontbanmebrodontbanme5403]

Dave is the perfect example of why you don't just blindly trust someone because you like them. I love listening to him take calls and giving advice. But yeah, an 8% withdrawal rate assumes that, even in retirement (when you're investing less aggressively), you can get at least an 11% rate (with the other 3% keeping up with inflation). The S&P 500, which is one of the best "set it and forget it" investments out there, historically only gives you 10% over any 30 year block of time. Of course, in retirement, you might not have decades to recover from a huge drop in your portfolio and need to be less aggressive. A 7% rate of return and a 3.5 - 4% rate of withdrawal is more realistic.

[@kalijasin]

Dave Ramsey makes a lot of generalizations, generic statements, etc. its totally unprofessional and the absolute worst way to give financial advise.

[@matt75hooper]

Ramsey callers 95% of the time have silly little "humble bragging" questions. They are in great financial shape & want a pat on the back. Dave picks the callers. People call in all the time with high car payments & high a Visa balance. Then they inform Dave they make $275k lolol. Oh me oh my what to do lolol.

[@greggpurviance7252]

95% is obvious exageration

[@matt75hooper]

@@greggpurviance7252 I meant to say 94%.

[@raiden031]

The majority of his callers have too little income

[@thecasualrver]

I have been retired for just a year now, and only living off my 401K and IRA, I am 65 will not take my SS for one more year. My financial adviser/planer tells me my withdrawal rate needs to be fluid and change with the financial environment and my own financial needs. Right now my withdrawal rate is 6%, it will then change next year to 4%. We are Blessed to own our new home and zero CC debt. Over 80 years of the stock market the 'medium' not average rate of return has been 9.3% not 12%.

[@russellseaton2014]

What does 'medium' mean? Is 'medium' equal to mean? Or is 'medium' equal to median?

[@AmandaHugenkiss2915]

Agree that Dave is great for helping people to get out of debt and avoiding debt. But the investment side is not realistic. It always gets me when he days the market has returned 10% or whatever over the past hundred years. THAT'S NOT YOUR TIME WINDOW. It may be up 30-50% this year and then in two weeks lose all those gains and then languish for years. Like in 2008. Like in 2020. Got many years to invest? Absolutely, be all in. Retiring in a couple years? Most of your money should be in something safe.

[@josephklimchock5412]

Yeah, at times Ramsey can be very off base on some things. I find that sometimes people can do all the right things but then "life happens", and even of you have money saved and a nice safety net, it can and does all go bye-bye in some cases. I stopped listening to Dave on the radio show because when people are in debt, even if no fault of their own, his answer seems to be most times to tell people to find a way to make more money, get 3 jobs, blah, blah, blah. Its not always possible Dave!!!!!!!

[@philochristos]

But Dave Ramsey sounds so confident! How can he be wrong?

[@curiouspenguin6887]

We've seen this before. Maybe that's why he shows off his gun in one of his videos.

[@robert-ku7zr]

Dave has made his money and more then every financial GURU out there, so why beat that man up learn to guide your own finances and thats what dave tries to tell you all, , Dave is in the business of getting fools out of debt,

[@miketheyunggod2534]

​@robert-ku7zr that's all he does. Anyone can get out of debt. Its not rocket science. Save money to pay off debt. Duh!

[@aviewer9516]

@@robert-ku7zr He's made money BECAUSE of his business, not necessarily all from his 'investment' management.

[@joeglennaz]

@@miketheyunggod2534 yet millions don’t do it. Lots of things are simple, but not necessarily easy to do. People have to change their mindset and I think that’s what Dave does is help them change your mindset and ways of thinking about things and he gets them to take action.

[@emerald640]

three bad years taking 8% and you just tanked your retirement. I use a 2% withdrawal rate and doubled my money in the last 5 years.

[@timbmd]

Dave Ramsey is smart in catering to the right market: lots and lots of poor and broke people. These are the people will buy his book and listen to his advice. The % of rich people is very small who would not go to him for high level financial advice. So there, he got his huge audience and therefore makes huge income.

[@thruthefirepubl]

Christians that read and understand their Bible don't fall for his schtick either.

[@bootsbooy]

You have to remember, Dave Ransey is funded by viewership so he’ll say whatever he needs to to keep people watching. He’s also an extremely biased guy who loves leveraging his personal experience and actual evidence. He tends to be right on very basic and simple concepts. Do not spend all of your money on dumb things, save most of it, invest some of it. Where he tends to get things wrong is, anything that requires risk, or things that are complicated. He gets around it by calling whatever it is dumb and insulting anyone who promotes things he doesn’t fully understand, failed at, or trust.

[@kerrybyers257]

Dave’s unchristian rants and self righteousness are the result of too many idolaters and too much $$$success. Time for another dose of humility in your life, Dave.

[@greggpurviance7252]

Maybe dose of less judgememtal attitude

[@YouCantHandleTheTruth399]

“Unchristian” lol. Tell me you don’t know what you are talking about without saying you don’t know what you are talking about. Christianity isn’t about being sweet all the time. You can be rebuked and shown the error of your ways. Proverbs says “he who doesn’t like correction is stupid.” Get a clue

[@ReneeDeane]

He told me to pay off debt with a small inheritance even though I had just lost my job; instead of putting it in a good savings venue. I would have still been out of debt in a year - but the nest egg would have helped me save, invest, and feel safe enough to go back to school while starting a business. In essence, he cost me time, money, and peace of mind. The job market was terrible then, & it took me a while to find something. So I had some paid-off debt, no savings; and then I had to start running the credit cards up again to live.

[@maryricketts7337]

You were free to not take his advice.

[@pamelag7553]

@ReneeDeane, that's rough. You learned a lot though. Always good to get a second opinion and go with your gut too.

[@ReneeDeane]

@@maryricketts7337 I paid for the advice and thought he was more knowledgeable than me, so I took it. The problem is with going with a one trick pony "get out of dept no matter what", and not someone who would have optimized that inheritance based on real expertise in multiple areas.

[@daralynx2]

DR is elementary and we should all strive to graduate from him. His 8% withdrawal rate and 12% market return have all you 'professionals ' right where he wants you- talking about him. LOL

[@glasshalffull2930]

We’re more worried about the poor fools who listens to him and believe that 12% exists and retires and then loses his house, etc. 🙁

[@MidwestPrepper]

Just call it what it is. Hes great for getting people out of debt. After that its shaky.

[@norgelopez1935]

Dave just explains the way he does things,the way he became wealthy and worked for him,he is trying to share that,maybe some people have a different way to do things but he is explaining his way,thats all

[@FinancialFastLane]

I think you are missing the point here. This is about his adivce regarding withdrawal rates and sequence of returns risk during the retiremente years. This is important for millions of people but it would not apply to Dave personally as he will never spend all of his money. He simple gets the math wrong. If you would like to understand the issue better here is an article that explains it very well: www.thinkadvisor.com/2023/11/13/supernerds-unite-against-dave-ramseys-8-safe-withdrawal-rate-guidance/

[@PoliticallyIncorrect90]

Dave is very wise as far as personal debt issues. However, I've heard him tell callers to lower their 401K below company-matching funds, or even stop contributing entirely, so they can use that to pay off debt. Giving up free money is a horrible idea, and you'll regret it come retirement time. Not to mention, it's pretax. Find another way to come up with that money.

[@daveyvega7348]

This it is an incredible vid.. thank you.. the most important think is that he is not Licensed...

[@MarkPurnell-er1lx]

Thanks for the article. It was very effective in explaining the flaw in Dave’s investing and withdrawal advice.

[@joshm3342]

I listen to many different advice channels and read books & articles regarding financial investment strategies. Then I formulate my own decision on which plan to execute. When uncertain, I'll re-direct small amounts experimentally. But in the end, I own the decision, because I must live with the consequences.

[@michaelpeebles3490]

More of the rich telling the rest of us how to live...

[@Duke_of_Prunes]

True, but Dave didn't get "rich" investing in equities like stocks, ETFs, or CDs -- he got rich hustling little people into buying his strategy. I take my investment advice from professional investors like Peter Lynch, Warren Buffet, or Jack Bogle.

[@thomasjohnlynch]

Exactly.

[@LenP-oj1mz]

Would you rather get financial advice from a poor person?

[@Aex3f4]

@@LenP-oj1mz Dave only got rich from conning people

[@mattm597]

Dave gives great advice on dealing with debt (which is 90% common sense), but I've heard advice from him on investing (including real estate) that just seems wrong. I would love to see a list of all his sponsors and the organizations that do business with his. That would probably explain a lot.

[@CeeJay591]

I can understand why Dave came out with this advice at this point in time - fixed income investments have gotten crushed these last few years due to inflation, and CFPs who have doggedly adhered to “tried and true” investment allocation strategies based on a clients age to minimize risk potentially INCREASED investment risk instead. It’s quite possible that many CFPs have gotten a bit complacent regarding this risk as fixed income has been either in the black or stable over the last couple of decades and so were caught unawares when inflation spiked as aggressively as it did. I believe that the “safety” of fixed income investments is a myth, unless you can buy and hold and live off the coupon rate. Also, suggesting that folks live off LESS than a 4% withdrawal rate in these inflationary times is really ridiculous - how much easier do CFPs want their job to be? The less a retiree withdraws the easier it is for a CFP to maintain the portfolio balance or even increase it. No wonder all the CFPs are upset at Dave - his listeners are probably taking a much closer look at how their portfolios are actually performing and are asking hard questions.

[@wannamontana4130]

Gotcha, sooooo 1) So "this point in time" means 100% overweighted S&P is validated? 2) This advice of Dave's has not been isolated to this interest rate cycle as you represent 3) Safety of fixed is not absolute. However, relative to equities it's safer. See the order of claims in corporate bankruptcy 4) Like Dave, you can throw stones at people who took the time to study and be credentialed. But let's be clear, you have offered NOTHING that contradicts the Bengen studies of the 4% rule. Referencing only current inflationary times shows that you didn't read how the study was done. You have offered nothing other than a Ramsey-esque baseless rant. Ohhhhhh, there it is. That explains it!

[@CeeJay591]

@@wannamontana4130 Thank you for your detailed reply - my thoughts: 1 - I do believe that, at this point in time, overweight in equities is validated - we have entered an inflationary period and I believe the potential upside in fixed income investments is overshadowed by inflationary risk. 2 - Understood about Dave, and I am not defending his previous comments/advice. However, many CFAs have stated that Dave has said some valuable things in the past. 3 - Order of claims in bankruptcy is not the only factor to look at to evaluate risk. Everyone knows that bond holders get paid while shareholders are wiped out. It’s inflationary risk that can impact any and all fixed income investments, even those issued by solid companies and governments. 4 - No one is negating the hard work it takes to become credentialed. However, money management is a profession that is ultimately judged by results, not credentials. Asking investors to take out less and less from their portfolios just makes the job easier for money managers and, for those who work on a fee based on the amount being managed, a better payday.

[@glasshalffull2930]

@@wannamontana4130 Dave’s 12% yearly return and 8% withdrawal with $1 million could easily end up with many people being financially devastated at retirement. All it would take is a 25% market downturn as they retire and even with a 12% return afterwards, their funds would be gone in less than 20 years.

[@rdmineer1]

One more thing. Car payments can cripple your financial planning. But repeatedly putting cash into a POS car that can leave you stranded and cause job loss, "... your greatest wealth building tool." is not a good option either. It's wise to plan for retirement, but the kids have to eat every day.

[@paulphillips6151]

Totally agree with you, of course don’t buy a new car every 3 years on credit, but I will not apologize for spending 20k on credit of a used minivan with low miles. I needed this for work, for my part time business and my once a year 2000 mile trip to visit my two oldest adult children, and grandkids. Something that I could not do with a cheaper car. And this current one will probably be paid off next month, and I will drive it until it looks like a Dave car.

[@glasshalffull2930]

@@paulphillips6151 My SUV is 14 years old and still in good shape. However, I worry about long trips with it and breaking down in some remote area. My solution was to rent a car for these long trips. Of course costs a few hundred, but the peace of mind is well worth it.

[@MarkShy-sz8zo]

Not justified car payments

[@williamkent2446]

Dave says go buy a used car, not a POS car lol

[@josephsaab7208]

No one said buy a garbage car. Making shit uo to attack dave

[@gregwessels7205]

Thanks for linking the article Martin. It was both educational and entertaining (even for a non-supernerd).

[@FreedomWealthTV]

Dave Ramsey obviously does not understand the difference between average annual return and Actual Rate of Return. Dave obviously does not understand Negative Sequence of Returns risk. Dave Ramsey while great at helping families get out of debt is way off here. Many would call this Financial Malpractice Shameful!

[@GBU61]

Getting out of debt and investing are two different things. If Dave would stay to his area of expertise where he is qualified then that would be one thing. Investing is highly personal based on age, goals and the type of investments you want to make. Real estate is different than mutual funds or index funds. Anyone who has done any research on his own should understand that taking advice from a radio personality alone lacks common sense. Unfortunately there are a lot of people who will 🤷🏻‍♂️

[@GoodwalkSpoiled]

Excellent video and the article is even better. Also, the pace of inflation is ruinous to your hard earned dollars. That is really tragic. Despite what the federal government and Federal Reserve say, the rate of inflation remains high and it cuts your spending power in half every 8 - 10 years. Keep working and earning. You'll need that income to make ends meet.

[@ninjashep5264]

I listen to Dave’s advice most of the time, although I always take everything with a little grain of salt since it’s generalized advice not personalized advice General info I will listen to Dave on but if there’s something very specific then I’ll get an advisor from my bank

[@acebragg5559]

From your bank? I'm sure there's no conflict of interest there.

[@tritosac]

Question for you. Would you take fitness advice from a fat trainer? I think it's a good analogy. A vast majority of these so called certified "FINANCIAL PLANNERS" are not independently wealthy. Do they have enough money in the bank that they don't have to work & their profession is a vocation-a calling-rather than an absolute means to making a living? I have dealt with these guys in the past. They don't care about their clients past getting their hooks in them. Once they have a clients money under THEIR management they have some computer algorithm to help remind them to call their client for an obligatory annual call feigning effort on their behalf. Really they collect a percentage of their clients portfolio annually for just managing it regardless of if it goes up or down in value. As for the clip of the woman excoriating Dave, what does HER PERSONAL FINANCIAL situation look like? No seriously. Is she independently wealthy? You mention an article with a few scholars, PHD's weighing in. What's their net worth? It matters. Just like I wouldn't hire a personal trainer who hasn't been successful in his own fitness journey I would not hire a so called FINANCIAL ADVISOR who doesn't have a multi-million portfolio.

[@Singlesix6]

But, but, but, the financial services industry says it's perfectly fine to pay them a 2% a year fee for assets under management. They have no room to criticize. And where are the clients' yachts?

[@rdmineer1]

I don't get the 8% either. Even if your portfolio is earning 15% annually, you might be comfortable drawing 2-4%, leaving the rest to continue growing. Depends on your situation. For instance, I'm 64 and pulling SS retirement early and still working 20 hours most weeks. My retirement account has fallen off 20% the last three years. Fortunately, I don't need it yet. Also, I'm recovering from cancer and survival rate for this type is marginally 5-10 years. Started SS six months before it came up, on instincts I suppose. Have the VA for healthcare, another advantage. My point is Dave's ideas are mostly useful, but from his very secure POV doesn't seem to realize that one size does not fit all.

[@wadewittrock3673]

Think you for the link, I read it in detail. The numbers in the article appear legit. I will play with the numbers in the near future to see if I can find any flaws. Thank you.

[@hectorrodriguez2686]

The problem with paying off long-term debt is that your liquidity is almost gone. If you want maximum return on your home, you have to be leveraged. Ramsey is against all this.

[@thomascaddy4529]

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

[@ColtonJohnsonBrice09]

I still listen to his show out of pure entertainment and amazement of human behavior.

[@timprussell]

It is why people need to get information from multiple sources and be financially educated. Dave gets a lot of things right but in this and a few others I think he is dead wrong. I disagree with him on stopping all investing when getting out of debt. 401K match is 100% return and while it takes your today to near future self, longer to get out of high interest debt your far future self is going to be way better off. 12% returns every year is an unlikely assumption. Pay off your house early with no regard to the mortgage rate vs saving rate. I commented on an article how I had a 2.25% mortgage and was getting 5% so I was piling up cash to eventually sink the mortgage in a few years pre-retirement. I get a response "Dave Ramsey says baby step 6, and I should take all that money and put it against my mortgage now." I heard that in a Brainy Smurf voice. IDK the Money Guy's FOO makes more sense to me as a path to success but each their own. Don't follow that entirely either.

[@FinancialFastLane]

I appriciate your comment, thank you!

[@rdmineer1]

The market has been down @20% since early 2021, according to my rollover IRA, created in January of that year and started a new 401k. Has almost recovered, since EV investors started moving their money elsewhere. My gains until now have been my own contributions and matching to the 401k, and that has eroded along the way. A year ago the entire account was worth less than everything put in, but I left it and continued buying, at a discount. There certainly hasn't been 12% growth in the last 3 years! I do live in the basement, for $400/month, which covers the mortgage on this house. Win-win. Also have an accounting degree, 3.5 GPA, and actually do know how to use my calculator, spreadsheet and algebra.

[@RobertoLopez-ew6ly]

You are doing something very wrong if you are down 20% since 2021.

[@Cajunman1977-k3f]

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

[@johnbaranowski6840]

Dave Ramsey is a brand. He has a valuable message for many. Unfortunately, his brand is partly founded on giving everyday people hope. Hope that may give you a false sense of sense of security. You can budget and snowball all you want but to have more freedom often you just need to make more money. Yes, you can live paycheck to paycheck making 6 figures. Bottom line: everyone should be deliberate with their money.

[@axelamps1279]

Dave factors in emotion, and that's extremely important when dealing with humans who are in debt.

[@MieXuL]

Daves a good hearted man with intentions on helping people with a scary thing called debt. He has made more people millionaires than any of these "financial advisors" could dream of producing.

[@FinancialFastLane]

That may be true but it doesn’t change the fact that when it comes to withdrawal rates and sequence of returns risk during the retirement years, he is absolutely dead wrong, and his advice on that subject is dangerous and risky.

[@KatsDad]

My house has a mortgage on it. I’m retired. I also have an apartment that grosses a chunk of change. I could pay my mortgage off, but it would cost me in taxes. I am not following our good friend Dave’s strategy. He would want me to sell this good income property and put this non productive money in the bank, or worse yet put it into riskier investments. Not to mention I would loose the taxes I would have to pay on a depreciated asset,

[@rossmacintosh5652]

Yes, since you have debt you must sell the income property, pay off the debt, and invest the rest. Don't worry about taxes. Only invest in front-end load mutual funds through a Ramsey Solution's endorsed sales person from his Adviser Network. You'll indirectly pay the adviser a hefty commission but it's all good because that sales person will pay Ramsey a nice referral commission and likely split on-going commissions with him too when you start your monthly investment deposits. Don't invest in ETFs or stocks because with those Ramsey doesn't get a commission. If that doesn't sound like a good plan you need re-education. Take a course from Ramsey's Financial Peace University and buy his book$. Drink the kool-aid and join the cult!

[@allenpriest8985]

Paying off a mortgage will cost you in taxes?!? Nope. The tax rate is far less than 100%. You are paying out a dollar to save maybe a quarter.

[@sinisakarabatkovic-fq8qg]

Mark Cuban said you can save money by using only cash or saving cash in a mattress. Buy appreciating asset, hold it for a while, sell it. Repeat it. For dummies, make sure your yearly income increase is bigger than rate of inflation.

[@jackcarraway4707]

Ramsey is good for beginners who need to learn how to budget and build up an emergency fund.

[@MrRomucha]

Nonsense! My calculation shows that if you have $1,000,000 and this amounts earns 5% annually you can withdraw 7% annually or $70,000 and you will have enough retirement for 50 years. So, if you retire at 67, you will not run out of funds until you are 117 years old.

[@davidjsouth231]

Years ago my wife and I took the FPU course. I didn’t agree with a lot of his stuff. We were financially struggling as a married couple

[@AK-47ISTHEWAY]

Are you two doing ok now?

[@davidjsouth231]

@@AK-47ISTHEWAYyes, considering our current economy and inflation

[@vamcaptain]

I have placed $600,000 in a private equity position in 6 hotels with a friend of mine. I am drawing an average of 19% yearly which pays me $115k/yearly...without touching the equity. This is separate from my 401K. Educate yourselves!

[@JB-uw5yh]

Ramsey is great on basic money management, getting out of debt, and creating a budget. Go someplace else for investment and retirement info.

[@SKBottom]

The baby steps are solid. Beyond that, get a professional.

[@jimedmundson465]

He has absolutely terrible advice regarding when to take Social Security. "Social Insecurity" is what he calls it. The fact is, the vast majority of Americans rely on this as large (40% on average) part of their retirement income.

[@JohnBowl14690]

I actually agree with Ramsey's "it's ok to take SS and invest the money at 62". But one size doesn't fit all.

[@frothybeaver4869]

Social Security should be abolished.

[@alekhidell3644]

@@frothybeaver4869 Why?

[@daviddavis6876]

When someone with $500,000,000 gives a poor person financial advice you might have a bad time when they run out of money.

[@tylerkropp4380]

Relying on government programs or even inheritance has some risk. It's possible you won't get as much as you expect, because you're depending on others for your own financial success. I haven't heard his arguments about Social Security, but his whole mentality is around making yourself financially independent and lowering risk by removing debt. Some reasons that Social Security might worsen is that if the trust fund runs out of money (no sign of that being reversed), if taxes aren't increased, benefits would have to be decreased for recipients. I don't think taxes can help, because there are more old people nowadays and less young people. This fact diminishes the benefit of increasing taxes for Social Security.

[@aidanbush4910]

His system is the best . Im on baby step #2 and we are knocking out debt . Its basically live on what you make , have no debt and invest

[@FinancialFastLane]

As stated in the video, we don't disagree with any of those concepts. But he is dangerously wrong about withdrawal rates and sequence of returns risk during retirment years. To better understand the issue, here is the link to the article: www.thinkadvisor.com/2023/11/13/supernerds-unite-against-dave-ramseys-8-safe-withdrawal-rate-guidance/

[@toddandrews2222]

I do not agree with Ramsey's advice on this subject. However, it is true that you COULD withdraw 8% as an initial rate, as long as you are prepared to cut your withdrawals substantially if the market underperforms, and if your lifespan is limited. That being said I have not heard Ramsey give the 8% withdrawal rate suggestion as anything other than universal, so it is faulty advice, to be sure. The correct way to evaluate it (and even that is basing a future estimate on past results) is with the SWD calculations of Bengen et al, of approximately 4%, and even that is often applied too universally without considering tax rates, and portfolio construction, and thus misapplied.

[@anadaker3939]

One, if you're swimming in debt then yes Dave Ramsey's program can help as long as you don't mind being called a moron for getting in debt. Second, never listen to Dave Ramsey for investment advice. He's a get out of debt expert not a financial advisor.

[@ProvenMoneyPlan]

Dave's financial advice when it comes to investing is to consult a professional who will teach you about investment opportunities, and then to do the one you best understand. I can't disagree with that.

[@junguchoi8318]

Not to mention Dave’s advice on buying houses with cash… having zero credit cards… no investing in single stocks… but his advice in general is helpful for financially irresponsible people

[@lizardmilk]

You lost me at “I like Dave Ramsey”.

[@davidpowell3347]

Didn't the late John C. Bogle predict available real returns on practical investment portfolios of 2 or 3% per year (and qualified that that was only a chance,optimistic and not assured) ? Shortly before his passing?

[@jeffcokenour3459]

Dave or no, if your financial advisor has less money than you, you should be very wary of their advice.

[@markela18]

Exactly. I dont care if anyone likes Dave or not, but he has helped thousands become debt free and many millionaires. I would love to know how many millionaires the certified advisors like the lady here have made out of their clients and of themselves.

[@glasshalffull2930]

⁠@@markela18 Dave’s stock market advice, combined with a big stock market dip of 25% in a year, will financially devastate a lot of retirees following his advice. BTW - for the vast majority of millionaires, it takes a lifetime to get there. I wouldn’t expect planners or most of their clients to be millionaires, but they’ve learned from countless others who have come before them. For me, it took one meeting with a financial planner when I was in my twenties to set me on the right path. Now at 64, I have $3.1 in my 401K.

[@rogerbemis5859]

​@@markela18 These CFP are selling a product to make a buck...just like Dave. If they truly understood DR, they would know his true message, "live like no one else today, so you can live like no one else tomorrow...then build wealth and be generous."

[@ryankiel4895]

Thanks for the video. It's incredibly ironic that Dave is the most popular Financial Guru who has ever existed in America, but he's not actually licensed in finances! His license is in real estate and radio I assume. That tells you what a brilliant businessman he is to market financial advice without actually having the credentials to do so.

[@johndavidmaher5557]

Financial professionals make money on the debt of others. The Dave Ramsey show has helped me get out of 20 years of debt, by following the directions his show gives. I do not need car financing. I drive clunkers. I pay no rent and my mortgage is paid off. I no longer use credit cards, and all credit cards I have are zero balance .The only expenses I have now are utilities and groceries. I live on $2500.00 a month. I have porter house steak when I want it and go to the movies once a week. I am retired and 70 years old. I am now divorced. Life is good.

[@FinancialFastLane]

Doesn’t sound like you actually watched the video. We agree with the good get out of debt advice, it’s his investment advice in retirement years and his lack of understanding on sequence risk. Just because some of his advice is great it doesn’t mean it’s all great.

[@greggpurviance7252]

Most 'withdrawal rates' are bunk. 4, 6, 8, none work. Each family /person is diffrent

[@amireallythatgrumpy6508]

The only correct withdrawal rate is 1%

[@bigrichdude]

For debt free advice, Dave is very good. When it comes to getting a 12% APR every year in the stock market without risk, WRONG! Also, I did take his class at a local church and he was going over life ins. illustrations here in CO. For him to do this without being licensed, is illegal. I brought it up to the leaders with a blank stare. I have been in the ins. industry for 33 years and I have to keep the law. Is he above the law? And he knows zero about how life ins. and annuities really work. He is going to get sued; BIG time.

[@davidleonard4925]

I think that lots of financial advisors are not understanding an 8 percent plan. Comparing a 4 percent plan to an 8 percent plan depending on your situation and use of funds may be like comparing apples and oranges. The 4 percent rule is very limited in scope to to using those funds for spending on cost of living. So with an 8 percent withdrawal rate lets say from a traditional IRA your plan could use just 3 percent on cost of living and the other 5 percent you are taking for tax efficacy purposes. You need to consider your RMDs and the tax consequences.

[@davidleonard4925]

efficiency not efficacy.

[@allenpriest8985]

That is not a withdrawal from investments. That is moving from one investment to another

[@jasonlaughlin7438]

This is the first video that contradicts Dave Ramsey that I agree with. I used the debt snowball to get out of debt and it works! However, I never agree with how much he thinks you can put towards debt or the expected return rate on investments. I think he doesn’t understand all the payroll deductions normal people have.

[@terrywix6844]

He is a legend in his own mind. He thinks he knows everything about everything. EINSTEIN RAMSEY...

[@annalisagentile6028]

I like the no debt philosophy. Very freeing

[@MsAmelia55]

Ramsey's ego and ranting get on my last nerve. Glad this video has been released. He is clearly not in touch with reality for the masses.