The Truth About Dave Ramsey

[@DavidMcKnight]

The L.I.R.P. = Life Insurance Retirement Plan = Cash Value Life Insurance

[@fuzzyelm1]

And it’s a scam ! It’s you giving them your money and you lose all control and they keep your money when you die it’s a scam and only idiot will fall fir the scam

[@sfsfuzzy3597]

Yes and it’s not an investment it’s a scam

[@bryantbrzozowski1814]

@@sfsfuzzy3597 I got 2 minutes into the video and just realized this guy was a whole life insurance salesman😂

[@sfsfuzzy3597]

@@bryantbrzozowski1814 they usually are if they are pushing this trash ! They are usually the only ones that lie and make up stories about it ! Ga t is it’s just over paying fir life insurance by about 5times the cost, then actually giving extra money to the company so you can pay them to loan it back to you and they claim they will give you a little growth that’s tax free , fact is the money is not your money that’s why it’s not taxed ! It’s their money that is only used as collateral! You can’t spend it you can’t use it it’s not your money and you never get this money back unless you cancel the policy you over paid for and here is the kicker , if that happens then you do pay tax on any growth except they add fees and you seldom get any growth to pay taxes on but if you do it’s not at capital gains rate it’s at income rate and according to IRS tax code no less than 28% ! So anyone who understands the facts would never tho k about this , but they lie and they get trained in pushing this so they are taught how to lie what to say that’s misleading and not going to hold up on court ! But yes they do lie and anyone that sells this is a scammer and a liar and a fraud you are correct

[@danroman120]

There’s more then one way to reach wealth people have different comfort levels and styles. The problem I have with him is how he feels he’s the only authority in a subject we’re different ideas are often needed for many people to find the right combination for their situation

[@DavidMcKnight]

Good assessment.

[@fuzzyelm1]

Yes but that does not make him wrong ! Even if you dint like someone when they tell the truth you have to listen ! This scam insurance is not new it’s been around a long time ! What happens is people push it then people buy it then three years later they see the scam and they get out and tell their friends how bad it was ! Then a couple years go by and it’s gets pushed again to the new group then they realize it’s a scam and get out then a couple years the new group gets lured into the scam ! It’s a terrible product and they keep your money when you die ! It’s stupid ! I’ll

[@WesternAdvisors]

Buy term and invest the difference...

[@michaeln2386]

I have books by Dave and David and both have helped me get to a target retirement date of 2027. Many thanks to you both.

[@DavidMcKnight]

Glad I could help!

[@fuzzyelm1]

You must be ignorant at math ! Please find you a real financial advisor and get away from this scam and these lying bastards

[@bluecollarbullionballer4269]

I used Dave to get out of debt including home.I do opposite of Daves investing advice.Happy investing/stacking

[@robertiola88]

Dave, your tireless work in helping people be successful in retirement has made a monumental difference in the lives of so many. Dave Ramsey and others are still dispensing the advice from the last 50 years and thanks to you, my clients are prepared for the next 20-30 years. Keep up the good work. Please.

[@davidmcknight8201]

Thanks Robert!

[@fuzzyelm1]

That’s because the Dave Ramsey stuff actually works and this is just a scam ! You have to be ignorant at math and know nothing about investing to think this even remotely close to building wealth ! The only people that have ever got wealthy from this scam are the ones selling it and the insurance companies

[@guzzi95]

Most investment strategy videos I see are for those with many years left to invest. Many of us don't have 20 years to invest in markets, etc. I like my 2 fixed index annuities and my 4- CD ladder that I am not having to draw off of at this time. I got tire of the yo yo stock market values. Up one day, down the next. Now I need to go find out what an LIRP actually is since I didn't learn it here.

[@DavidMcKnight]

Thanks for chiming in. You can learn about an LIRP here: kzbin.info/www/bejne/r4itl6See6mDj7c

[@hanswhite]

I have a 403(b) plan at work. They match up to 6%. Are you saying that my contributions should also be in the tax deferred bucket up to the match and then anything over into roth? My job currently puts me into the 12% tax bracket. I have always contributed 100% of my portion to roth.

[@DavidMcKnight]

In the 12% bracket you should almost certainly be directing your contributions to the Roth side of things.

[@TheJovanWalker]

This is so good!! Thanks for sharing this info.

[@DavidMcKnight]

My pleasure!

[@isnelson51]

I believe there is a space for both you and DR and neither one of you are really wrong. I agree with you that a PROPER insurance policy is very well worth it. The issue with it is that most of these policies are very complicated for the average person to understand, and the investor is basically hoping that the financial advisor (or at times really just a salesman) isn't screwing you over for their own benefit. Unfortunately, the insurance industry suffers from so many non-ethical advisors/salesman, that people just don't trust them. Its because of these crooks or uneducated advisors you're forced to go on a crusade to defend the insurance industry. I have personally dealt with advisors who underestimated my knowledge of finance (or better yet my ability to read) try to get me into terrible products that I had to explain to them on how they really worked once I read the fine print. Dave's system is clearly flawed, but very simple to understand... 401k to company match, Roth, then back to 401k which will cover most Americans expendable income which would be 29k at that point. Will Dave's plan maximize your take home dollars? I agree with you the answer is no. But the average person doesn't even understand what an IRA is (simple concept in the financial world) and we want to convince them to put their money in way more complicated insurance policy with all the horror stories out there. That's a tough battle to fight.

[@DavidMcKnight]

Great comment. I agree.

[@ScrivenArt]

Thanks! This answers some of my questions.

[@DavidMcKnight]

Glad I could help!

[@ScrivenArt]

@@DavidMcKnight I had to come back to this today because you answer so many questions my clients ask me. It’s nice to say, “You don’t have to trust me, listen to what David says.” Thanks for being my smart friend!

[@jillponce7]

I’m interested in an LIRP (mostly because I don’t qualify for a ROTH) but how many years will the fees be higher? 5, 10? I have less than 8 years to retire- is it too late to get involved with an LIRP?

[@DavidMcKnight]

Definitely not too late. Go to davidmcknight.com and click on the work with David button and I’d be happy to take a look at it for you.

[@miketracy9256]

We sheltered the max into tax-deferred retirement accounts from 1982 to 2016 and started Roth contributions and conversions in 1998. Because we started SS at age 70, we now have way more taxable income than we ever imagined. Our RMDs are now often directed into QCDs.

[@DavidMcKnight]

Thanks Mike. A good cautionary tale.

[@professionalliability]

2 questions. What happens if you either continue working and or inherit money. Is it still possible I to get into the 0% bracket

[@DavidMcKnight]

Pretty hard to get to zero if you’re working unless your taxable income is below your standard deduction. Also, inheritances can make it difficult as well, depending on the size.

[@scottlouis1064]

Life insurance is NOT an investment. Max out your Roth IRA, and particularly with the amount you can put into it with the new limits, grow that into a LARGE tax free distribution account. You can convert your IRAs to Roth IRAs, pay the tax once, and re defer into a Roth. Get some muni bonds, etc. Insurance is for protection, NOT wealth building, because insurance is NOT an investment, you can ask the NAIC, FINRA, or the SEC.

[@DavidMcKnight]

I mostly agree with what you say as evidenced by this video: kzbin.info/www/bejne/rqbEoZVqrd1siJY. I think we’re quibbling over the definition of investment.

[@ArmandoPazJr0914]

I have a real issue with Dave's persistence on Buy Term & Invest The Rest. It was one of his colleagues who some 37 years ago, conned my 65-year old father into surrendering a Whole Life policy he had purchased back in 1970 which he had also used to partially fund my college career, selling him a 15-year term policy, which lapsed at age 80, leaving him and my Mom without the protection they had both enjoyed. My father died without life insurance and with little savings, not because he squandered them: Because he never made a lot of money and did his damnest to care for and provide for two families. BTW, Dave started his career selling this so-called "life protection" with Primerica. Who holds Dave liable for his bad advice? No one. He, like all of these "financial gurus" hides behind the protective curtain of "celebrity status."

[@ArmandoPazJr0914]

PS: My comments are based on my and my family's personal experience. Dave Ramsey gives great advice on staying out of debt. I wish more Americans would follow this type of advice. I am not going to debate anyone on this thread because everyone has different life experiences. For my family now and my clients, the BTID concept is not for everyone. Dave McKnight couldn't have illustrated his LIRP message any better.

[@DavidMcKnight]

Thanks Armando. Couldn’t agree more on your take. May do an episode soon on the dangers of Dave Ramsey’s buy term and invest the difference explanation.

[@DavidMcKnight]

@LLL Thank you!

[@deborahtate192]

@ArmandoPazJr0914 I’m sorry what happened to your dad. Depending on the state your dad lived in, by Insurance Law, someone should have sat with him.

[@createone100]

Ramsay has declared that he is voting for trump. Why would I trust him on anything?

[@ericjuli6576]

The whole stopping 401k contributions until out of debt kills me, assuming you get a match…

[@michaeln2386]

Tough pill to swallow but that advice is directed at people who are terrible with money. Best, in general, for those people to get out of debt as quickly as possible.

[@DavidMcKnight]

Depends on how high the CC interest is but in most cases not a bad move. Definitely get the match though.

[@AK-47ISTHEWAY]

I'd file for bankruptcy before I would ever stop investing. Especially is there was a match. You can always rebuild your credit. You can not travel back in time to recoup free money or compound interest. Dave Ramsey is a charlatan.

[@WFreedomNexus]

Great video, thanks for posting Dave! I will take Dave McKnight's advice ANY day over Dave Ramsey's!

[@DavidMcKnight]

Thanks John!

[@JoelPastor]

Great info. Thanks!

[@DavidMcKnight]

Thanks Joel! Hope you’re well!

[@stephenlaffey]

Very good!

[@DavidMcKnight]

Thanks!

[@GodnMe]

Thank you

[@BW-kv9wj]

What is a LIRP?

[@DavidMcKnight]

Life Insurance Retirement Plan

[@5metoo]

Here's a pro tip. Show some respect for your audience and improve your own efficacy by saying the full expression of whatever LIRP stands for every 3rd time you say LIRP. I'll google it and get there, but I'm watching this working out and I really wonder why people use only obscure acronyms for things they really care about.

[@DavidMcKnight]

Life Insurance Retirement Plan.

[@yashc7132]

@@DavidMcKnighthe’s right… that’s not an everyday term… a 1 minute explanation at the start would have made your video a lot more valuable. Thanks for the conversation though 😊

[@DavidMcKnight]

@@yashc7132 Agreed.

[@brianquigley6862]

Great Video. I came across Ramsey years ago and disagreed with him from the get go. You clarified why. He's big on Term and invest the difference. Period. It's far too complicated to sum up in Black and white like that. I am drawn to IUL bc of the tax free capabilities and leverage. I'm leaving my family growth not tax bills. I personally see the 401K retirement model as a savings plan for the Gov't. Workers take the risks and pay the fees. The Gov't sits by wastes money and collects when 401K start cashing out. One could argue this not only on an investment no-no but a BIG ethical no-no as well. I am in IUL, my kids are in IUL. Take the tax variable out of the equation. The tax variable is a black hole imo. Ramsey doesn't address it at all. Thx for a great video.

[@DavidMcKnight]

You’re welcome! How do you feel about Roth 401(k)s?

[@brianquigley6862]

@@DavidMcKnight I do own a Roth but NOT a 401K IRA. I am retired and have a pension and don't really know about this vehicle. Something I will look into. BTW, I am an advisor and want to sign up for your marketing video series but I don't have enough production to qualify. Since I retired from teaching my marketing plan has been unsuccessful. Most people want to run away from me at the first whisper of Life Insurance. I did read your book Power of Zero but I can't find it on my shelf. I must have loaned it out. I will order it on-line. I will also go research Roth 401K. If it is what I think it is, it is too good to be true that there is a contribution plan out there that will reduce tax collection in the future. My problem with the Roth is it really can't help people who struggle to even contribute the max match of 401k. These folks don't make enough to benefit with additional contributions in unqualified Roth. The wealthy need to hide more than $7,500/year in unqualified Roth. My hope would be that the Roth 401k is an animal that allows all contributions to be put in a Roth with higher annual limits.

[@davidmcknight8201]

@@brianquigley6862 If you worked with a company with a 401(k) plan, you could put $30,000 into the Roth, plus the company match. AND, if you're below the MAGI thresholds, you could put an additional $7,500 into your Roth IRA. AND you could contribute to your IUL as a complimentary strategy.

[@scottlagoy]

I think the biggest pill to swallow about Dave, is that all credit is bad… ok, what happens tho when you try to get a mortgage and you don’t have credit? Including credit cards! It’s called being responsible

[@scottlagoy]

Big fan David, keep up the good work! I’ve read you book many times!

[@davidmcknight8201]

@@scottlagoy Thanks Scott. I appreciate your comments!

[@ryanbrown398]

Plenty of people have gotten a mortgage without credit.

[@danaj9344]

@@ryanbrown398 Hi Ryan. Where did you get that info? As a mortgage lender for the past 29 years I can tell you it's quite difficult to get a mortgage without credit. Certainly an uphill battle and of course the mortgage costs are going to be a higher as well. Why would anyone do that to themselves? I'm still waiting to hear what the financial strategy is to deliberately crash your credit score by closing good accounts when there is no reason to. What's worse is for the many people who have a single negative mark on their credit history, that alone becomes the entire basis for their credit score in the absence of good credit accounts. Sure, and plenty of people can buy a house without a mortgage too. It's extremely unrealistic and costly. :)

[@laurynaszilenas4705]

​@@danaj9344buy house without is costly? 🙄 you don't pay bank any interest and you call it costly? 😂 dude 🤣🤣🤣

[@infinitevelocityCA]

I prefer InfiniteBanking over using a 401(k) or a mutual fund anytime. I want my savings to be safe and my investments to be seperate. Thanks for the content. Looking forward to more videos.

[@infinitevelocityCA]

The Power of Zero

[@DavidMcKnight]

My pleasure!

[@CT-ob2bw]

It is myopic to criticize ANY financial vehicle in of itself. To wholesale dismiss a financial product as “worthless”, “bad”, etc. is ludicrous. It’s their application that matters and it’s their “MISAPPLICATION” that is the “worthless, bad, etc.” Any financial “advice” must be dispensed with proper qualification! McKnight is wholly correct. (I have no association with Mr. McKnight).

[@jimmyfigueroa9580]

Do you have testimonies or anything to prove that you’re advice works? How many people following you have become wealthy using your plan?

[@factshurt5362]

I’ve contributed 55k into my 457 the past 15 years and have 63k today. I thought that my 457 would double every 7 years….Load of crap. 4 years into my fully funded IUL. We’ll see what does better.

[@BW-kv9wj]

You should have maxed out your contributions. If you maxed out for 30 years, you would be a multi millionaire.

[@AK-47ISTHEWAY]

You are most likely in very conservative investments.

[@mccoyji]

Dave is good for normal peeps

[@DavidMcKnight]

Yep. Not throwing the baby out with the bath water.

[@mspblue1]

I dont follow Dave Ramsey but apparantly I dont fall into the power of zero either.

[@DavidMcKnight]

Maybe you should!

[@jasongordon13]

I liked and subscribed hope to get to talk to you...

[@Youknowwhoin2024]

"better than I deserve"

[@DavidMcKnight]

:)

[@amykimmet-humfeld1924]

I have no idea what an LIRP is, but my husband and I are millionaires from following Dave Ramsey's principles. (Ages 45 and 39, respectively). They work! :)

[@IveyFinancial]

his point is there are tax free alternatives to IRA type investments, it pays to do some research

[@egdwritingsonourwalls1876]

The key is not how much money you have but how much you get to keep during Retirement

[@DavidMcKnight]

Following him definitely helps you save more money. The real question is how much you get to keep if tax rates double over time.

[@lionmangolf]

If you only withdraw 90k a year tax rate should only be 12% vs 22. I realize this rate will c hange in 2026

[@todddavis9426]

Dave’s principle of investing only in 4 categories of mutual funds isn’t great for everyone.

[@DavidMcKnight]

Yes, he paints with a very broad brush.

[@FernandoRomero-mb9ee]

👍👍

[@yashc7132]

Especially while you’re young, there’s room to invest and get out of debt, especially mortgage debt. Slow and steady wins the race

[@DavidMcKnight]

If you’re a disciplined investor, there’s massive opportunity cost for paying off your house early. If you aren’t disciplined this makes a lot of sense.

[@yashc7132]

@@DavidMcKnight compound interest!

[@DavidMcKnight]

@@yashc7132 indeed!

[@oneillandrew]

Or MAYBE he realizes that the average LIRP gains 5-6% per year while investing the public markets (S&P500 TR) has an average annual return of over 11% for the last 90 freaking years. Who cares if you have to pay an effective tax rate of 20-30% if you have three times the money. Perhaps you should re-run the numbers in your analysis…

[@DavidMcKnight]

It’s a bond alternative not a stock market alternative. Swap it in for your bonds and you’ll lower the standard deviation and increase the return in your entire portfolio.

[@danaj9344]

Hi Oneill. What products have you invested in the last 20 years that averaged 11% real rate of return? :)

[@AK-47ISTHEWAY]

​@@danaj9344He either willingly or unknowingly left out a lot of information. After you factor in inflation most people are averaging 6%-7%. Maybe 8% if they are very lucky and it happens to be a particularly good year for the market.

[@dennispatterson4998]

why is he a threat to you?

[@sfsfuzzy3597]

There is a reason that the only people that push this scam are the people that make money from your money