Financial Advisor or Dave Ramsey? Whose Advice Do I Take?

[@worldnomad2301]

Dave, the advisor did listen to them. He gave his advice, but said if you’re going to do this, then pull from your bonds. That sounds like a good advisor.

[@otrebla8944]

The problem is that he put her into bonds.

[@ClayneBanks]

Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.

[@BendyChoy]

You're speaking from experience?

[@ClayneBanks]

Yes,I converted my 401k to a Roth IRA to avoid higher taxes in the future. I'd rather pay taxes now than be stuck paying taxes on my retirement income when I'm 59 and living off my savings.

[@BarbaraPearson55]

People downplay planner’s role, until they are burnt by their mistakes.

[@sebastiaanthijn7982]

Finding one who understands what I want and can work with me to achieve it is essential, although I'm yet to find one. Any recommendations, please?

[@ClayneBanks]

JOSEPH NICK CAHILL is the CFP for you. I recommend him because I understand where you stand and your need for a listening ear.

[@worldnomad2301]

Dave is interesting. He is the most conservative low risk advisor out there when it comes to debt. He believes in no leverage. However, he gives the most risky advice when it comes to investing in stocks. It’s pretty remarkable.

[@NoelFallstrom]

You can afford much more risk when you have no debt and an emergency fund because you shouldn't be forced to withdraw funds when the market is down. Stocks are much riskier for those people who might be forced to withdraw to make payments on their debts when they'd prefer not to. That is why having a paid off mortgage is so nice. You aren't forced to make withdrawals from your investments to pay your mortgage. I have not once lost money in the stock market because your earnings are calculated from the purchase/sell price, not a graph with all the spikes and crashes.

[@oolala53]

@@NoelFallstrom but if you pay off your mortgage and you don’t have much else of a cushion, your money is tied up. I have two rentals that are paid off and I’m not gonna sell either one of them in order to finish my mortgage on the home I live in because those are accessible in terms of money and they pay me more than my mortgage cost especially with write offs. I’ve said another comments that Dave is great for people who are bad at saving but the wealthy use leverage all the time.

[@0425549345]

Dave is an entertainer. Dave’s schtick works great for people who need “financial rehab”. His advice would not be optimal for people who are good with money.

[@magnusred2945]

His entire life stocks have been up only

[@WhatIsThis-zq4hk]

Mathematically, the advisor is right. The mortgage is only costing them 2.x% per year. Risk free treasuries are paying 4.5% right now. Literally no reason to pay it off other than to do a debt free scream. And bonds are useful to reduce sequence-of-returns risk, which Dave seems to know nothing about. If you retired in or around the year 2000 with only stocks and withdrew 8% like Dave recommends, you would have run out of money in 10 years, whereas this advisor's plan would have performed much better.

[@jodylarson4697]

There is an excellent reason to pay off the mortgage, which is that you don't have to pay 2.x% per year! The idea that you're "making more" even though carrying debt is silly.

[@HSQadri]

​@@jodylarson4697No. You literally are. They are both fixed rates - and one is (likely) double the other. That is just math. 4.5 > 3.

[@johndone8045]

​@@jodylarson4697your comment is theoratical and mathematical stupid

[@jeffcallicott9269]

Hindsight is 20/20. It’s easy to say what would have performed better after the fact. That said, suppose you had $3.2 million and a paid for $800,000 home. Would you borrow $800,000 on the home to make two or two and a half percent? That’s a paltry rate or return to place a home under a mortgage. If the answer is no… then pay off the house. Because to not pay off the caller’s home is to say yes to the question.

[@Schwanda.1]

@@jodylarson4697you can absolutely make more while carrying debt. 99.9% of companies carry debt, yet they make tons of money. Mathematically, paying off a low rate mortgage when you can make 2-3x that amount in the market makes no sense. A financial advisor not advising them on that would be malpractice.

[@lkj0822g]

LOLOLOL Dave Ramsey calling their advisor "arrogant". Pot, meet kettle. We don't know their entire story, but the caller said they have been working with this advisor for years and they have over $4 million in savings, so he must be doing something right. Dave is right when he said the advisor's role is to listen to you and set you up according to your goals - something that Ramsey often doesn't do.

[@martinwegner9802]

No their house is worth 4 million

[@tjlarson6519]

​​@@martinwegner9802NO their nestegg is $4m, their mortgage balance is $800k. Time index 1:30

[@tjlarson6519]

​@@martinwegner9802 NO their nestegg is $4M, mortgage balance is $800k. Time index 1:30

[@amireallythatgrumpy6508]

The reality is that arrogance is an American trait. You all have it in abundance.

[@clarifyingquestions]

@@amireallythatgrumpy6508 You are so correct!!

[@michaelwaters221]

I started my debt free journey ten years ago even before I found Dave Ramsey. I paid off close to 400k in debt over that time and used the baby steps starting in 2018. Went from a net worth of zero ten years ago to household net worth of 1.3 million today and rising! I will follow Dave Ramsey’s program the rest of my life.

[@katemedley3057]

Good for you!❤

[@BenFabrikant]

A cult leader gave me 1 decent piece of advice so I'm going to join his cult forever.

[@cpchotdog6189]

Paid*

[@amireallythatgrumpy6508]

@@BenFabrikant That's an ironic comment when you consider the USA is a cult.

[@Kin-28-8]

I used to work as an investment advisor. The advice presented in the video is excellent and holds true for the average American. While it's a fact that money can't directly buy genuine happiness, it does provide the means to access experiences that can lead to happiness. However, for individuals with a substantial portfolio, say around $5 million, if you observe closely, you'll find that most people in their 70s are still quite active (I live in LA), but by the time they reach 80, their activity levels tend to decline. So, it's essential to enjoy life at some point before it's too late. That enjoyable vacation might well be the experience that brings comfort in your later years. It's important to distinguish between spending money wisely and squandering it. Be prudent in your value-conscious spending.

[@Theodorebarba]

Experienced the same thing. The financial counselor we met with last year told us, "Guys, you've already made it," even though my spouse has retired. Stop delaying enjoyable activities in life

[@Helen_white1]

I completely agree. I'm 54 years old and recently retired with roughly $1.8m in outside retirement funds, no debt, and very little money in retirement funds relative to the total value of my portfolio over the past 3 years. To be honest, the Fin-advisor's role can only be downplayed, not dismissed. Simply try to identify a reliable one. Spending money on possibilities and things that might not exist much sooner than we realize is completely different from wasting it. As you said, being value-conscious is essential.

[@Thompson-e7h]

Do you mind sharing info on the adviser who assisted you? I'm 39 now and would love to grow my stock portfolio and plan my retirement

[@Helen_white1]

Finding financial advisors like Stacy Lynn Staples who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@DhanaPayar]

I just checked her out on google and I have sent her an email. I hope she gets back to me soon.

[@marcenelj]

Dave.. you're not worried about investing conservatively in your golden years because you're a multi millionaire with multiple streams of income.. you will be fine even if the market tanks.. for the majority of us, if the market tanks while withdrawing from our retirement accounts monthly is a terrible situation to be in.

[@mattcollins4550]

yeah his advice here is nearly criminal

[@derekd1510]

It's really not. If you follow Dave's advice you put your money in a mutual fund. A mutual fund will never go completely broke, because it is a group of companies. Automatic diversification. Say you have a million dollars and you pull off $1200/mo. Even if the market tanks by 50% across the board, ie..every single company in your fund loses close to 50% of their value, you will still have 500K principle. More than enough to give you a $1200/mo. income for the foreseeable future. And how long do you think the longest recession in the past 20 years has lasted? I'll tell you. 5 years. Spending $1200/mo in 5 years you would only reduce your principle by $72,000.00, leaving you with $428,000. Keep your money in the market another 5 years after that and your principle will have doubled again to $956,000 minus the $72,000 spent over those 5 years and still you have maintained a principle of around $800K. The pro tip is to save your profits from a dividend equity etf and buy in at the dips.

[@famousamos1]

@@derekd1510you really don’t understand Dave’s advice on investing in stock mutual funds and needing income from your portfolio. Dave says you should be able to pull $100,000-$120,000 or 10%-12% per year because the stock mutual funds return 10-12% per year!!

[@jeffreymashini]

How does a 69 year old have $800,000 mortgage. Where was the plan behind the mortgage when they took it out? Where was the advisor in the plan and what was their goal of paying off the house, how long has that goal been? Why did they wait until 1 year from retirement to start thinking of paying it off? This should have been a plan for the last 10 years before retirement.

[@411sponge72]

Thank you Jefferey! I was thinking the same thing! You're almost 70 years old and you have an 800,000 mortgage? 🤔🙄

[@jimmymcgill6778]

We don't know what their income is.

[@jmwhambone6223]

The best feeling in the world is to owe no one but yourself. I’m often asked how I retired earlier than my counterparts. Driving a Chevy instead of a BMW and being content with working up to a bigger house with a smaller mortgage worked for me. I can’t imagine having an $800,000 mortgage at any age, let alone at the end of my working life. Thanks mom and dad for raising me with some financial acumen.

[@MrJimmy3459]

You realize not everyone buys a house at 18 right?

[@JosiahK555]

@@MrJimmy3459 i don't care when you buy a house or what your income is. Having 800k mortgage at 69 is stupid.

[@Landmantx]

1% of $800,000 is a lot of commission to let go of. He is smart to talk her into keeping the mortgage. 😂

[@jimmymcgill6778]

It only makes sense. They are throwing away like 4, 5%

[@alexm260]

If you think you shouldn’t listen to the advice of managers who charge AUM fees wait until you learn about Dave’s SmartVestor Pros! 😂

[@oolala53]

I don’t know about these people comma but I know that I have done better with a financial advisor taking that small percentage then I would’ve trying to figure it out on my own. If I can make 12% after the one percent commission rather than the likely, 8% that I would get because I would get scared and pick safer things, or worse, make even less, if I did it on my own because I do not wanna spend even three hours a week looking at stuff like that. Some people feel better having a mortgage paid off. I feel better, not having to look at investments all the time.

[@oolala53]

@@alexm260 so they aren’t charging .5%?😆

[@eaton24]

Dave Ramsey calling people arrogant is laughable

[@amireallythatgrumpy6508]

To be fair, all Americans are arrogant.

[@jimmymcgill6778]

Yup. When he is himself.

[@RalphNorton-x9p]

@@jimmymcgill6778 never understood why people feel like that. he always comments how dumb he was and how he had to make back the money he lost because of his ignorance and dumbness. can he be a bit abrupt at times? sure, but too many people today are way too soft. Ric Flair, Gorgeous George, et al... in their prime were arrogant (even if they were playing a role). Dave is helpful and humble

[@lepoj]

​@@RalphNorton-x9p the guy that says that *anyone* who disagrees with him must live in their mother's basement? That humble Dave?

[@jimmymcgill6778]

@@RalphNorton-x9p He constantly call people names when they don't follow the baby step, and when they have a different opinion.

[@siddheshmirjankar910]

Dave doesn't like her financial advisor because he thinks he talks down to her and tells her what to do without accomodating any nuance in individual circumstances. So Dave doesn't like her financial advisor because the financial advisor behaves like Dave Ramsey?

[@kikyamart8749]

Dave isn't these people's financial advisor they are asking him questions about what he would do in their shoes. The fact that you can't figure that out says volumes...

[@dash4800]

when does dave talk down to people?

[@tate6809]

Big egos don't like competition!

[@jimmymcgill6778]

@@dash4800 All the time.

[@alexm260]

@@dash4800Literally all the time.

[@filip1979]

I recommend everyone to find the book titled The Elite Society's Money Manifestation, It changed my life.

[@oolala53]

I just looked up that title on Amazon and nothing came up.

[@filip1979]

@@oolala53 It is not on Amazon

[@TonyCox1351]

If Dave believes that mutual funds will return 12-14% then it makes even less sense to pay off a mortgage at

[@BrianaBudgets]

It’s not about percentages. It’s about getting your largest expense out of the way by the time you retire. For safety’s sake.

[@TonyCox1351]

@@BrianaBudgets By the time that mortgage is over it will no longer be your largest expense, assuming you have a fixed rate inflation will have widdled it down to less than your car payment.

[@JulioCesarRodriguezEDF]

He has explained in other videos that this advice comes from a piscological perspective rather than mathematical. He explained that knowing your home was paid makes a difference. I haven't tested it yet. I don't even have a home , lol

[@kikyamart8749]

A paid off home is your best asset...

[@thedude5040]

​@JulioCesarRodriguezEDF it does make a difference. At 32 years old I only have 10 years, my retirement accounts made more than I did this year and now there is enough I could technology take the penalty to pay off my house and still have enough nest egg to retire a multimillionaire.

[@YoungWillow36]

For the Newbie if you are actually trading in the crypto space and you don't have a sound mentor. Then you are certainly going to get liquidated in 90% of your trades. Yeah that's sad truth. I remember when i just got into crypto back in 2019 but later in 2020 i ended up selling it because i have lost alot trading all by myself without a guide. Got back into crypto early in 2024 with $20k and I'm up with $232k in a short period of time

[@Johnny.503]

Investing in stocks is planting a tree for your future; with patience, it will bear fruit

[@TeranceJakubus1517]

I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!

[@YoungWillow36]

Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $75k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.

[@Cynthiajoy2050]

Please can you leave the info of your Investment advisor here? I'm in dire need for one

[@YoungWillow36]

Tracy Britt Cool Consulting... has always been at the top of my list.. She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.

[@thedopplereffect00]

Dave has absolutely no idea what he's talking about with bonds. It's really quite embarrassing. He doesn't even mention duration!

[@darthrubik8384]

Stay broke

[@thedopplereffect00]

@darthrubik8384 it's quite the opposite. Once you reach your retirement goals the idea is to protect your wealth. Imagine retiring in 2008 with 100% stocks.

[@mdeodar]

Who are you??

[@DM-dy9cw]

The goal is to retire peacefully. How are you worried if you have 4 millions?? Who cares if you have a mortgage???

[@TonyCox1351]

You’d think someone savvy enough to amass 4 million dollars would be savvy enough not to pay off a mortgage when it’s interest rate is lower than your bond interest

[@gtileo]

Who wants to make payments on a house when they're retired. Who thinks that is peaceful when you're making a $4000 a month payment on a house that you can just pay off? Pay it off, the remainder of the money will generate enough interest per year in good growth mutual funds that will cover your expenses and all your recreational enjoyment. Keeping a mortgage at any point when you have the money to pay it off is always stupid financial advice and you'll never understand how stupid it is until your mortgage and debt free. How much it benefits your wealth building and how freeing it is to be able to watch your total assets grow at exponential rates

[@nickstark8479]

​@gtileo When payments are automatic it could be peaceful... As you said, all that money invested could easily cover the mortgage payments and then some. An entire mortgage worth of money invested in an income fund could easily pay both interest and principal for a sub 2-3% interest rate building equity from principal payments as well as any remaining income/capital gains. If you're one that looks at the markets on a day to day basis and get worried when you see the values going up and down I agree that you'll likely find more peace by paying off the mortgage. But if you "forget your pawword", let it ride and set everything to be automatic, you'll leave your family with a nice inheritance/have more to spend in your lifetime.

[@TonyCox1351]

@@gtileo I plan on making payments when I retire. My stocks average ~10%, my bonds average ~4%, and my mortgage is less than 3%. It's free money. Totally respect those who choose 'financial peace' but mathematically your total assets will grow at a faster rate by keeping such a low mortgage.

[@SoulRevolutionTV]

Yes pay off mortgage and fire your financial adviser because you could have made more for retirement with what looks like bad advice.

[@Moneyosophy]

Appreciate the candid take on financial advisors and their approach. Reminds me to stay focused on our goals, even if it goes against the standard advice 👍

[@crashtestdummy1972]

Everyone saying keep the mortgage seems to gloss over the fact they are in their 60s. You shouldn't have a mortgage at that age. Pay if off after 45 and use those years before that to reap compounding of your invested money. Luckily these folks have a large nest egg to knock it out but after 45 your compounding of your money weakens a lot if you plan to retire at 65, you are better off heading into retirement fully debt free

[@westbccoast]

This ^^^, They got lots of money, pay off the mortgage and live in peace with no debt. Everyone forgets about the emotional side of it, at least if you lookout it from a mathematical point of view, we get it. Choose a camp.

[@Sammy-Rosa]

Wife and I saved to 92k. Goal was 100k, we came a little short. But my marriage, kids and our lives are much better than they were when we were broke. Debt free except for the house. Financial education is important!

[@marilynrybak9154]

We are going to pay off my mortgages before we retire. One year to go. And, no- I am not taking g any funds out of our investments to do so. Having a paid off home in retirement almost guarantees we will never have to rely on anyone else to help support our needs! It’s simply an ease of mi d which is priceless!

[@Nemo-ff9he]

Most advisers don't want to give up $800k from their book, he is probably is making about 1% on that.

[@lorijharman-runyan6433]

Yes, most advisors are more worried about their income than yours.

[@v-2010]

Simple math here. These tax fee bonds are likely yielding 4% to 5.5%. That’s why this is standard advice Dave. Why would I trade something that’s costing me 3% for something that’s paying me 4%? Cause it makes me “feel” better?

[@tommartin3045]

If you have a bond, and you have retained it as a bond in its original form, then its value is exactly as specified in the terms of the loan. If you want to redeem it, the terms tell you how to redeem it. There's no mystery. There's a risk that the borrower can default, but there's no mystery. However, if you decide to TRADE the bond, then the specified terms and conditions will no longer stand alone. You will trade the bond as a negotiable asset, subject to market forces, especially subject to interest rates but also subject to consumer sentiment. What you get for the bond may be radically different from the face value and the original terms. Any bond in its original form, between the borrower and the lender, retains its payout levels and balances regardless of market conditions. Once you decide to TRADE the bond, those payout levels and balances do not govern the outcome of your trade.

[@dtruck90]

Dave doesnt seem to realize that personal finance is just that - perosnal. I've had dozens of clients who thought they were fine with all equity and called absolutely panicking when we have normal market dips of 10% 1-2x a year. There is a ton of information showing that if you are overly risky and the market tanks the first year of retirement, your portfolio might not ever recover. Dave doesn't have anything in bonds... Who cares?? He's also worth around half a billion dollars. His position of not needing low-risk, low-reward bonds for portfolio stability is a luxury.

[@tate6809]

Well said. You sound like a good advisor, understanding different people have different needs and comfort levels, most financial influencers can't grasp that sometimes their opinions are just their opinions

[@dtruck90]

@tate6809 Thanks, I strive to be one!

[@amireallythatgrumpy6508]

That is exactly why retiring before the age of 80 is stupid.

[@Tehui1974]

I like Dave Ramsey, but I thought Dave was hard on the financial advisor. We don't know what discussions he had with the couple. For all we know that couple may have a low-risk (volatility) tolerance and the financial advisor has based his advice on this. We also don't know what options the advisor gave them. The lady who phoned didn't know how much she's got in bonds, so I'm not convinced she herself knows her own financial situation and story as well as she should.

[@Fred2-123]

Phooey, don't pay off a 3% mortgage. Treasuries are paying around 5%.

[@beerkegaard]

Yeah, lock in a 10 year bond and keep the mortgage

[@jodylarson4697]

I'm already retired and have been for 10 years. My retirement investments come out to about 50% stocks/50% bonds. I know the prevailing idea is that I should have 40% stocks/60% bonds, but I want more growth than that. More money doesn't hurt anything.

[@Thurgor_Supreme]

Those are crazy high bond percentages. I would never even think of going above 15%

[@jodylarson4697]

@@Thurgor_Supreme I'm more conservative than you. I don't like big swings.

[@jdrein9511]

Asset allocation should be determined, in part, by risk tolerance. If you have substantial assets in retirement, and relatively few expenses, a high stock allocation may be appropriate.

[@alexm260]

Dave suddenly understands opportunity cost when it comes to being in bonds vs stocks but somehow can’t ever recognize the same when it comes to paying off low interest debt. This guy is such a weasel. He’s entitled to his hard line anti debt approach, I just wish he wouldn’t try to justify it with so many lies and distortions.

[@stevenporter863]

Just because Dave has made lot of money in one area (marketing his get out of debt course) does not mean he knows about everything in every area reguarding money.

[@Siddharth_dif_n_dif_Co.427]

🎄✝️🛐 happy Christmas n happy new year Sir.

[@coderider3022]

Bonds are NOT bad. They serve a specific purpose and should be used properly. Don’t sell bonds, buy them based on maturity dates.

[@TonyCox1351]

Especially at their age and entering retirement at all time stock market highs. Bonds could be a life saver

[@BachBeethovenBerg]

Whatever you think you're going to draw down in the next 3-5 years should definitely be in cash and low-risk bonds (maybe Treasury Bonds?). The rest that you won't need soon should be in equities. The reason for this is that if there's a major downturn in the market you don't want to be forced to sell. Find a good time to sell when it's up and if it's down let it ride as long as you can.

[@rustykatt3870]

I wonder if the couple upsized their home in the last 5 - 10 years. They have $800,000 left to pay on their mortgage. Good luck to Carol, her husband, kids, and us all ✨😊✨

[@jonlopez3642]

@ 3:04 "It's very typical in the financial advising world this level of arrogance" Look in the mirror Dave.

[@carolr7823]

They should not pay off their mortgage since it is under 3% interest. Also, I believe that he put them in some bonds since they are likely tax deductible. I actually think their financial advisor is on the mark and they should keep him.

[@michaelmurphy2112]

It's also possible he put them in bonds based on what they said their risk tolerance was.

[@EmilyCowan-y1n]

Your videos always stand out for their quality and originality. Thank you for your contribution!🍌🏍🎤

[@Charismafire]

The glaring problem I see with her advisor is she doesn't know what's going on with her money. She needs to see where every scent of our money is now!

[@siva47931]

I wonder how Dave is going to answer?

[@BaconMountainMan]

No telling. 😉😅😅😅

[@ratsofatso5525]

Reverse Mortgage

[@Thurgor_Supreme]

This is the part in the program where Dave's obsession with zero debt is actually unhealthy. Why would you get rid of a loan whose interest rate is so low that it's basically free cash and then exchange it for a fifth of your exponentially growing nest egg??? The dividend trickle alone will easily cover their monthly payments

[@engineeringoyster6243]

My SS income is about 90% of my expected expenses. Therefore, I can tolerate a several year long Bear Market. I plan to leave my nest egg in a SP500 index fund during retirement.

[@alinatamashevich3354]

2 really scary things in this call. 1st, their advisor not concerned they are in debt at their age and 2nd she has no clue how much of her money is invested where. Oh heck NO! Wise up ppl.

[@Denverian]

3% mortgage vs market performance 4% safe; 10% safe enough. It's not wise to burn through $800k paying off a stable fixed mortgage IF you plan to stick around. Otherwise, heck ya sell the house and downsize or move to some place else.

[@agentcontrast9784]

sequence of returns risk.

[@michaellong5672]

It really depends on how they are holding their assets…401k, IRA, or regular investment account. If it’s coming out of retirement accounts then it’s all taxable as ordinary income; if regular investments then only taxed on capital gains. CFP may have been trying to get them to pull smaller chunks over few years rather than all at once to reduce taxes. They would probably have to pull out close to $1.2 million to have $800,000 after Federal & State income taxes. Not to mention IRMMA that would raise monthly cost of medicare and Part D an additional $444 and $86 per month for each person. That’s an extra $12,720 they would pay for Medicare and Part D ABOVE the standard rates! As usual there is a lot of information missing to give advice.

[@bvoyelr]

Glad to finally hear that broad market funds aren't any less safe than bonds. Particularly over long time horizons, you have no reason to be afraid of the S&P 500. If you're going to definitely need the money in a year, THEN you go into safer vehicles. Otherwise, let the danged money grow.

[@momkatmax]

I have always heard advisors you should have a mortgage because you can take the interest off the taxes! LOL. I have never itemize and taken the standard deduction so it's not an advantage to have a mortgage. Ours is paid off.

[@jdrein9511]

This hasn't been common advice since the last Trump presidency.

[@momkatmax]

@jdrein9511 Not to be picky, I did say always. So well before Trump was president, all the way back to Carter.

[@Gas_man]

Financial advisor who actually knows your specific situation. All day long, no question.

[@michaellong5672]

Dave is incorrect concerning volatility (risk) of returns on stocks vs. bonds. The Summary Statistics for US Financial Market Annual Returns and Inflation, 1926-2018 shows that Large Cap Stocks had avg compounded return of 10% and std deviation of 19.8% vs. long term corporate bonds with a return of 5.9% and a std deviation of 8.4%. This shows that bonds earn about 40% less return and about 58% less risky. So Bonds will reduce the risk of a portfolio but of course the return as well. It all depends on your risk tolerance.

[@lepoj]

Don't go around throwing facts around a Dave Ramsey video. His followers won't like that

[@Amlux1984]

I actually agree with Dave in this - the mortgage could stay but at 4 million, you can take home just $120k to $160k in dividends depending on the investments you pick. If they are on $800k at their age, the mortgage is literal in this case (mortgage means death pledge in Latin). I’d get it paid off to minimize their monthly cash needs.

[@ryanklosterman9614]

What the advisor should have done in my opinion is do an example. He's probably thinking about it mathematically from a expected return minus the mortgage interest rate. What should have been done is showing the client the spread cost to pay off the mortgage vs keeping that $800k invested. Teaching them about their options versus telling them what to do and having a conversation about what to do next would have solved the problem!

[@austinbar]

Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.

[@rogerwheelers4322]

The pathway to substantial returns doesn't solely rely on stocks with significant movements. Instead, it revolves around effectively managing risk relative to reward. By appropriately sizing your positions and capitalizing on your advantage repeatedly, you can progressively work towards achieving your financial goals. This principle applies across various investment approaches, whether it be long-term investing or day trading.

[@joshbarney114]

I'm sure the idea of an investment-Adviser might sound controversial to a few, but a new study by Motley-fool found out that demand for Financial-Advisers sky-rocketed by over 42% since the pandemic and based on firsthand encounter I can say for certain their skillsets are topnotch. I've accrued north of $880k within 16-months from an initially stagnant Portfolio.

[@FabioOdelega876]

I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.

[@joshbarney114]

Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky’’ for about two years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@FabioOdelega876]

Marisa has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.

[@silentnot4812]

She needs to know all of the facts in order to make a good decision. They have a huge mortgage and hopefully most of their net worth isn’t in their house. $800k is a lot of money to pull out all at once especially if most of their money is in a traditional 401k or IRA. We also don’t know how conservative these people are so they may have instructed the advisor to be more conservative.

[@emoney1231]

Dave doesn't like to paint the whole picture on bonds. While they do lose value when interest rates rise, they return to face value upon maturity. For example, a 20 year treasury bond pays 4.625% right now. Say you buy $1 million of this bond. It will pay $46,250 every year for 20 years and you'll still have the $1 million at the end of 20 years. If you sell at 10, yes, you could lose money, but if you hold another 10 years, it will be back to $1 million. It is safer in a way because you have a definite timeline in which you won't lose money (at least nominally).

[@jimmymcgill6778]

The financial advisor advice was good. Dave thinks he is the only that is always right. He looks down on everyone that goes against and not follow his advice. Bonds are hedging their bets. Nothing wrong with bonds. You would still have to pay capital gains on them. They are not all tax free. Dave have no idea what kind of bonds they got. Interest is locked in until they mature. They used him for decades, so he know what he is doing and talking about.

[@DukeRellington]

Great Advice Dave. While I believe this Financial Advisors advice can be interpreted as solid when comparing APYs of securities vs mortgage APRs (not including the bonds), Dave is correct that the final decision is yours. It is YOUR money. So thank your advisor for his advice then ask exactly how to move forward with your plan, if you decide to do so. If he gives you grief, or refuses to help, then you fire him, and find someone else. I don't always agree with Dave Ramsey's 'zero-debt' strategy, but he isn't incorrect. It limits risk to almost nothing, and it is truly solid advice that will keep you safe and financially secure. I am willing to take more calculated risk, which comes with possible consequence, which may not be for everyone.

[@Flockko342]

Rachel is amazing! 😊

[@mastifflover504]

I personally know numerous financial advisors… many of them worked for Vanguard at some point. They all think they know more than me and everyone else about investing, but they are all still poor.

[@donaldlyons17]

Financial Advisor ever time!!!!

[@lukitasm]

Why does Dave assume the advisor is arrogant? The guy provided his advice and after the client said they still want to pay off the mortgage he told them which part of the portfolio she should pull from.

[@whorhaydelfuego7190]

I think part of the problem is one I've seen with numerous peoples interactions with experts in any given field, even myself. People think they know or understand way more than they really do, and then either because the professional assumes they know more than they do, or the person directs a course of action before being educated, they'll head down a path that doesn't really lead where they wanted to be. The advice to put more and more of your assets into bonds or more stable investments as you age is geared towards being able to have a big chunk of money at a specific point in time. And for small enough portfolios that probably makes more sense than larger ones, because maybe the retiree wants to cash out, buy an RV and camp at their kids houses and live off pension/SSA money. But when you have a large enough portfolio, it'd make more sense to keep a few years worth of distributions in low risk investments, and let the rest continue to grow in a higher risk fund. Personally I'm on track to make significantly more money in retirement than while earning a salary. My mortgage is also very inexpensive, both so far as interest rate and payments go. So I plan to let the mortgage ride all the way into retirement because while my earnings will be going up my spending will be declining, making the mortgage even easier to keep up with.

[@Retired-jr3qs]

I retired at 57 years old with the help of my financial advisor.

[@BrianW211]

When there's no evidence of a behavior problem, you should follow the math.

[@ColtonJohnsonBrice09]

"In accorance to the volatility of the market, trends can follow a pattern and depending on expectations and you willing to stomach the ups and downs I would recommend bonds as a part of you portfolio ". This was the baloney an advisor once barked at me😂

[@mrsteve1257]

The entire video was a complete contradiction. He advises is was bad advice to go long duration and tells her to refund a jumbo mortgagee 5% below the present rate that's effectively a large short of duration offset. Who would listen to this guy?

[@raiden031]

The biggest flaw in Dave's thinking is that he believes the future of the stock market is guaranteed to provide the same average annual returns as the past. We could very well have 2% annual returns over the next 30 years

[@royroyce6620]

Horrible advice. He has no idea what their risk tolerance is. This is a blind recommendation

[@debragiovine9797]

Dave you should be asking this women ,,, how much cash does she have in the bank to pay off the mortgage,,,instead of ranting about the bonds,,,

[@RalphNorton-x9p]

he did at 1:27

[@debragiovine9797]

@@RalphNorton-x9p no he didn’t, All he did was rant about bonds. not about in savings,, she not once said any thing ,,, Saving of Cash ,,,

[@RalphNorton-x9p]

@@debragiovine9797 he asked what her total nest egg was

[@Jeff-p5i2w]

For once, Ramsey is right ! Anyone who recommended bonds when interest rates were low needs to find a new line of work. Ramsey never asked how much income this couple will have and how long the mortgage was for.that goes a long way to determining to do a payoff or not.

[@toddsmart3423]

If you hold a bond to maturity you don’t have principal risk, just default risk. The bonds could have been laddered to pay off the mortgage and earn positive arbitrage vs. sub 3% mortgage.

[@johannamiller527]

I'm not aware of any financial advisor who'd recommend that a 60-something "largely be in bonds and money markets and have very little in equities." What they recommend (and what they implemented, in the caller's case) is having SOME money in bonds, and the rest in equities - not because bonds are inherently less risky (Dave's right that they're not), but because stocks and bonds together create a less volatile portfolio, which reduces the risk of running out of money.

[@hectorvaltierrez5351]

I pay off my mortgage loans last year but I still have a truck 🚚 and porch payments 😂

[@tommasinainnovationandlife7536]

As soon as someone is arrogant and doesnt listen or respect me goodbye

[@percynelson7726]

Your discussion about bonds seems a little bit off to me. I am a yield to maturity guy, and look at bonds as consistent cash flow. Stocks do not pay a very high yield. Bonds are safer if you plan to hold them and use the cash. I do have more than half my portfolio in stocks. My bonds were 5% bonds with long term yields

[@Chet_24]

Take the financial advisor's advice.

[@JoseLopez-jd6kt]

I learned more in 8 minutes that my economics college course.

[@johndone8045]

Oh dave is full of bullcrap, like hes the only solution

[@David-wo9un]

I would like advice directly from DR. We have an ELP who gets mad at us for paying off our mortgage faster; what do we do?

[@weaselton]

Dave. They have 4 million. He did right by them.

[@jacquespieterse5135]

Some advisers do with your money what gives THEM the best returns...

[@rosak.9855]

All that are quick to criticize Dave, he uses the reference of comparison. If you're getting a higher percentage of an investment, paying a lower percent on mortgage, subtract the two. You're only gaining a couple percent. That's how I'm doing the math. Pick or choose!!

[@lepoj]

3% mortgage vs 12-14% (which Dave claims in the video) is not "only gaining a couple of percent"

[@alexm260]

“Only a couple of percent.” The fact that you would utter this phrase shows how utterly unqualified you are to be speaking to this topic.

[@jacobmonti453]

$800,000 in bonds 💀 ouch

[@LongXochitl]

Great analysis, thank you! I need some advice: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How can I transfer them to Binance?

[@nicschaalma3508]

He assumes everyone can handle full risk. And he’s forgetting sequence of return risk. Bonds add volatility control.

[@luisrios1996]

"...this level of arrogance" hahahaha the irony is thick.

[@amireallythatgrumpy6508]

Not really. All Americans are objectively arrogant.

[@JreiZz]

Just wait… in the next 25 years, you’ll have new advisors in this guy’s place saying “once you get to 70, we need to stabilize your income in rare pokemon cards!!”

[@t206kid]

Other big questions are so these people have any kids or grandkids? If it's just them 2 then do whatever you want. I also think advisors look at what route will get you the most return and Dave's is getting out of debt entirely. Their views are going to clash.

[@gobele1]

Dave you are wrong on this one the advisor is right around.

[@amireallythatgrumpy6508]

Both are wrong.

[@gobele1]

@@amireallythatgrumpy6508 explain

[@ZuriekJT]

while I agree that the advisor has misguided them, I don't get how he's "arrogant".

[@amireallythatgrumpy6508]

He is arrogant because he is American.

[@ex0b1t]

I live in NL, you always say first pay off your house. My house is 1.4% interest does it still apply?

[@lepoj]

1.4%??? I am sooooo jealous 😂

[@DensityMatrix1]

No. You can get a MM account paying 4%. Put any money you would have payed extra into the MM.

[@Scottie_Pimpin73]

Let's say their monthly mortgage payment is $4,000, that's $48,000 a year coming out of their pocket. I'd payoff that mortgage so fast, I don't care how low the interest rate is. Imagine what you can do with $48,000 a year while still having over $3 million in investments that will continue to grow!

[@alexm260]

Imagine doing some basic math and realizing what you can do with $800,000 invested that will continue to grow!

[@mybdayis420]

best to learn about money so you dont need an advisor

[@DaxPreval-kg7bv]

🔥🔥

[@DaleEGrant]

My wife and I are debt free except for about $90k mortgage, at 1.99% rate, with less than 7yrs to go. Our monthly payment is so cheap we see no reason to pay it off early, even though we're fully capable. Our ROI on the $90k it would take is considerably more than any monthly interest we'd save by paying off early. In our case all things considered it makes no sense to pay off early.

[@Delvy787]

Paying it off is lowering your risk and having peace of mind.

[@jasoneverett]

I've never been good with numbers, but I will never understand not paying off your home just because you have a good interest rate. My wife and I are probably 10-15 years from retirement and are close to paying off our second home. I will take not paying a mortgage every month over having a payment with a good rate any day. And especially now that tax laws have changed and there is literally no break on your return for the interest you paid all year, where is the benefit?

[@alexm260]

You should try being a little better with numbers and then maybe you would understand. Paying extra on a low interest mortgage can cost you literally hundreds of thousands of future dollars.

[@jasoneverett]

@@alexm260 Maybe instead of being snarky, you should explain it better, because I still don't see a benefit of having a monthly expense vs not having it. Our first house had a 15 yr mortgage that we paid off in ten. We sold that and rolled a good chunk into a remodel and now live in a home with an ocean view that has doubled in value in 5 years. We'll pay this off quickly too.

[@alexm260]

@ I’d be happy to if your question is genuine, Jason. When you pay extra towards low interest debt, you lose the opportunity to do other things with those dollars. So although paying down low interest debt is guaranteed to save you the interest, it could actually cost you much more money had you invested those dollars elsewhere.

[@jasoneverett]

@@alexm260 Guess we'll have to agree to disagree. I still don't see the point. I'm paying off one of the biggest debts most people have, while simultaneously gaining value in one of the only investments that are almost guaranteed to gain in value. If I pay off a mortgage in half the time of the term, I have even more money to invest in other things. Our net worht has become what Dave calls "everyday millionaires" and when we got married, she was just starting a home based business and I was working fast food management. For me, the numbers show otherwise.

[@alexm260]

@@jasoneverettIf you prefer to pay down low interest debt for your own personal, emotional reasons, that is completely fair and valid. But the objective data is what it is, and paying down low interest debt is very likely to result in having less overall money than if someone had invested it in the markets. You can choose to do otherwise for yourself, but these are simply the facts, and are not a matter of agreement or disagreement. They are just the facts.

[@RedakaiCity]

Most of these comments are always people bragging that they're debt free and just want to show their ego lol

[@BKKNOW1]

Get rid of your financial advisor and pay off your house. Real Estate is better than bonds if you have enough money buy a place in Florida and rent it out, I don't think Dave will agree with renting but it's better than gambling with stocks and bonds. You are making money from rent plus the increase in the property.

[@dgmclar]

And this is exactly why dave Ramsey is not a hedge fund manager worth billions. He has absolutely no idea when this guy moved them into bonds, he is waffling away as if this guy has had all their money in bonds for 30 years. He probably (correctly) moved the majority of their cash into bonds in the last couple of years because this woman and her husband have about 20 years left to live and are about to retire. Which is the correct thing to do. Dave is saying he would advise a couple about to retire to stick 4 million dollars into risky investments because he just assumes the stock market will go north every year forever 😂 there is a reason Dave Ramsey is a talk show host and not a money manager. If anything this couple have pissed away their lives, they now sit on 4 million dollars they could have enjoyed life with while they had the income and they will retire only to give it all to someone else, what a waste of a life Also how is gods name do you have an 800k mortgage at 69, thats beyond comprehension

[@marklagasse2012]

Where is a calculator to determine and inherited 401K RMD for the 10year rule?

[@Matt-1926]

Just Google it. There’s a bunch out there by online investment firms. You input the death date of the person giving you the inheritance, their birthdate and your birth date and how much you inherited to get the calculations

[@martinwegner9802]

That’s why I don’t use financial advisors anymore. They do what they think best instead of their clients