Author Topic: What is your opinion of Dave Ramsey?  (Read 18322 times)

highplainsdrifter

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Re: What is your opinion of Dave Ramsey?
« Reply #150 on: April 02, 2018, 09:50:42 AM »
Quote
Do to higher than normal spending last year I generated $1,000 in rewards for my roth. After 20 of compounding, the rewards might make me rich (Dave Ramsey often says that rewards dollars will never make you rich. To this sentiment, I laugh in your face Dave).

$1000 a year for 20 years at 8% interest is only around $50k.

Lol!

And with that $50k, I will be old man rich in so many bicycles, beer and bananas! Life is sweet.

mtbbrown

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Re: What is your opinion of Dave Ramsey?
« Reply #151 on: April 02, 2018, 10:01:26 AM »
I really agree with highplainsdrifter, Dave has some good stuff but shouldn't be the all-encompassing source for any true Mustachian. If you're trying to introduce people to Mustachianism, then I think that his tips are somewhat valuable and help to build some good financial principles.

madgeylou

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Re: What is your opinion of Dave Ramsey?
« Reply #152 on: April 02, 2018, 12:10:03 PM »
I'd prefer to introduce people who need financial education to our very own monstermonster, who is building out her own personal finance education business, with more cats and less no horrible faux Christianity bs. There are many other, better places to go for better guidance.

Bro-mero

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Re: What is your opinion of Dave Ramsey?
« Reply #153 on: April 05, 2018, 11:45:12 PM »
My credit card gives double cash back (2%) if you put the proceeds into a retirement account. I often think how it's a legal loophole to get tax free credit card rewards and put them into a roth. The time value of money increases so much here with the tax free earnings. Do to higher than normal spending last year I generated $1,000 in rewards for my roth. After 20 of compounding, the rewards might make me rich

Which credit card is this, if I may ask? I am looking to get a credit card, and adding as much money as possible to my IRA sounds wonderful!

Road2Freedom

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Re: What is your opinion of Dave Ramsey?
« Reply #154 on: April 06, 2018, 11:19:27 AM »
My credit card gives double cash back (2%) if you put the proceeds into a retirement account. I often think how it's a legal loophole to get tax free credit card rewards and put them into a roth. The time value of money increases so much here with the tax free earnings. Do to higher than normal spending last year I generated $1,000 in rewards for my roth. After 20 of compounding, the rewards might make me rich

Which credit card is this, if I may ask? I am looking to get a credit card, and adding as much money as possible to my IRA sounds wonderful!

It sounds like the Fidelity Rewards Visa Signature card.  I received an offer with unlimited 2% cash back and $100 bonus if you spend $500 in 90 days.  Looks like you can deposit the money into several different types of Fidelity retirement accounts. 

I would consider using it but have a 2.5% unlimited cash back with the USAA Limitless card.  Hard to beat it since the 2.5% is for any type of purchase.

highplainsdrifter

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Re: What is your opinion of Dave Ramsey?
« Reply #155 on: April 10, 2018, 06:50:04 PM »
My credit card gives double cash back (2%) if you put the proceeds into a retirement account. I often think how it's a legal loophole to get tax free credit card rewards and put them into a roth. The time value of money increases so much here with the tax free earnings. Do to higher than normal spending last year I generated $1,000 in rewards for my roth. After 20 of compounding, the rewards might make me rich

Which credit card is this, if I may ask? I am looking to get a credit card, and adding as much money as possible to my IRA sounds wonderful!

RoadtoFreedom is correct and gave a better breakdown of the rewards. I have the Fidelity rewards card which gives 2% into nearly any Fidelity account; IRA, Brokerage, 529, etc...

libertarian4321

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Re: What is your opinion of Dave Ramsey?
« Reply #156 on: April 11, 2018, 05:25:43 AM »
Dave Ramsey's advice is mostly sound.

For the financially lost/clueless, he can get them on the right path.

Especially for those who like his religious stuff.

That said, a lot of his advice will seem amateurish to those who know a bit more.  His jihad about NEVER using credit cards is ridiculous.  Great advice to those wallowing in debt, but to suggest that frugal multimillionaires who never pay a penny in interest should not use credit cards is absurd.  I'm pretty sure 99.9% of those of us who are millionaires use credit cards, despite Dave's protestations to the contrary.

He also points people to high cost "advisers."  His financial advisers and tax prep people.  Most of us know that index funds are a far more efficient path to wealth than paying a big fee to one of his "ELPs."

So it's fine if you are drowning and looking for a life raft.  But once you get a bit further along, you'll realize that a lot of his advice isn't the best when it comes to becoming wealthy.

poniesandFIRE

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Re: What is your opinion of Dave Ramsey?
« Reply #157 on: April 11, 2018, 09:02:28 AM »
Agree with the sentiment that he offers a good introduction and kick in the pants to get started. We started with following the baby steps and still find a ton of good insight from The Total Money Makeover, but with FIRE 2025 being the new goal, we are looking past his advice and delving deeper into our personal finances and sometimes straying from his suggestions.

Astreja

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Re: What is your opinion of Dave Ramsey?
« Reply #158 on: April 11, 2018, 09:15:19 AM »
Overall I'm put off a bit by the religiosity in his writing, but I did get one very useful piece of advice from him -- "If you will live like no one else, later you can live like no one else."  I used that as the inspiration to amortize a refinanced mortgage balance of $40K CDN over five years, with weekly payments.

My cash flow was so tight it squeaked, but I got to the other side on schedule five years later and am mortgage-free.  Also reined in my spending quite a bit and developed an appreciation for minimalism.

tomsang

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Re: What is your opinion of Dave Ramsey?
« Reply #159 on: April 12, 2018, 01:12:09 AM »
Overall I'm put off a bit by the religiosity in his writing, but I did get one very useful piece of advice from him -- "If you will live like no one else, later you can live like no one else."  I used that as the inspiration to amortize a refinanced mortgage balance of $40K CDN over five years, with weekly payments.

Did you calculate how much this coasted you over investing in the stock market?  I would think that this set you back several years from financial independence based on the stock markets return over the past decade.

kayvent

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Re: What is your opinion of Dave Ramsey?
« Reply #160 on: April 12, 2018, 05:13:59 AM »
Overall I'm put off a bit by the religiosity in his writing, but I did get one very useful piece of advice from him -- "If you will live like no one else, later you can live like no one else."  I used that as the inspiration to amortize a refinanced mortgage balance of $40K CDN over five years, with weekly payments.

Did you calculate how much this coasted you over investing in the stock market?  I would think that this set you back several years from financial independence based on the stock markets return over the past decade.

Astreja is a Canadian. Looking up the S&P/TSX Composite index, over the last 10 years it has grown by 3.7%. That's not per year. Looking at the Total Return of that index, it's about 25% (I'm eyeballing a chart that won't give the number). That's ~2.3% average annualized return.
« Last Edit: April 12, 2018, 05:15:32 AM by kayvent »

jlcnuke

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Re: What is your opinion of Dave Ramsey?
« Reply #161 on: April 12, 2018, 06:32:24 AM »
Overall I'm put off a bit by the religiosity in his writing, but I did get one very useful piece of advice from him -- "If you will live like no one else, later you can live like no one else."  I used that as the inspiration to amortize a refinanced mortgage balance of $40K CDN over five years, with weekly payments.

Did you calculate how much this coasted you over investing in the stock market?  I would think that this set you back several years from financial independence based on the stock markets return over the past decade.

Astreja is a Canadian. Looking up the S&P/TSX Composite index, over the last 10 years it has grown by 3.7%. That's not per year. Looking at the Total Return of that index, it's about 25% (I'm eyeballing a chart that won't give the number). That's ~2.3% average annualized return.

Being a Canadian does not preclude one from investing in other markets...

kayvent

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Re: What is your opinion of Dave Ramsey?
« Reply #162 on: April 12, 2018, 08:30:05 AM »
Overall I'm put off a bit by the religiosity in his writing, but I did get one very useful piece of advice from him -- "If you will live like no one else, later you can live like no one else."  I used that as the inspiration to amortize a refinanced mortgage balance of $40K CDN over five years, with weekly payments.

Did you calculate how much this coasted you over investing in the stock market?  I would think that this set you back several years from financial independence based on the stock markets return over the past decade.

Astreja is a Canadian. Looking up the S&P/TSX Composite index, over the last 10 years it has grown by 3.7%. That's not per year. Looking at the Total Return of that index, it's about 25% (I'm eyeballing a chart that won't give the number). That's ~2.3% average annualized return.

Being a Canadian does not preclude one from investing in other markets...

Home country bias + favourable tax treatments + currency risk means Canadians tend to have a heavily weighted portfolio of Canadian assets. I think 30-50% is the industry standard advice but more conservative ones (due to currency risk) are higher weighted.

Astreja

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Re: What is your opinion of Dave Ramsey?
« Reply #163 on: April 12, 2018, 09:23:56 AM »
Overall I'm put off a bit by the religiosity in his writing, but I did get one very useful piece of advice from him -- "If you will live like no one else, later you can live like no one else."  I used that as the inspiration to amortize a refinanced mortgage balance of $40K CDN over five years, with weekly payments.

Did you calculate how much this coasted you over investing in the stock market?  I would think that this set you back several years from financial independence based on the stock markets return over the past decade.

I was not investing at the time.  Being mortgage-free was more important to me, and I have no regrets.

saguaro

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Re: What is your opinion of Dave Ramsey?
« Reply #164 on: April 12, 2018, 09:29:06 AM »
I agree that Dave is good for those just starting out in getting a grip on their finances, not so good for those who are past the "pants on fire" point and want to build wealth.  I don't care for the whole religious thing as I personally see it as irrelevant, but I can see how it works for some.

I never regularly listened to Dave because by the time I was aware of him we were already well along on the path of mustachianism.  My gateway was Your Money Or Your Life.

Nate79

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Re: What is your opinion of Dave Ramsey?
« Reply #165 on: April 12, 2018, 10:30:47 PM »
I like Dave Ramsey. I always feel the best plan is a simple plan and DR has been very successful because he is very clear, consistent and his plan is extremely simple to follow. Baby steps. 7 steps. Very little thinking required. No wishy washy do this in this circumstance but something else entirely in another blah blah blah. Black and white answers.

I believe that for a majority of people they will win better by asking for advice from DR vs sites like this or others because DR offers a plan that a person is much more likely to follow thru. Its motivating for success.

Just because I don't agree with all the little details of his plan doesn't mean I don't think his plan is good enough for most.

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Lan Mandragoran

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Re: What is your opinion of Dave Ramsey?
« Reply #166 on: May 17, 2018, 10:59:55 AM »

Just because I don't agree with all the little details of his plan doesn't mean I don't think his plan is good enough for most.

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It just means it's poorly optimized. If someone can cut off years of time off their sentence, but doesn't because they can't handle a bit of detail it seems to me that they are making poor decisions. 

Obviously better than saving 0% and getting into credit card debt or w/e, but that just means the person in huge debt has made even worse decisions.

It's not like its close either. It would be one thing if he were saying, its ok to live a reasonable life or something, but its stuff like pay off your debt at all costs that gets me. That stuff can be the differences of tens or hundreds of thousands of $$$ or years of a working life.

Maybe making the bar low is more realistic for most people... but screw that I don't want to barely get by a low bar.  It's not even like you have to do anything crazy, just do some sound math before you make choices.

v8rx7guy

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Re: What is your opinion of Dave Ramsey?
« Reply #167 on: May 17, 2018, 11:03:06 AM »

Just because I don't agree with all the little details of his plan doesn't mean I don't think his plan is good enough for most.

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It just means it's poorly optimized. If someone can cut off years of time off their sentence, but doesn't because they can't handle a bit of detail it seems to me that they are making poor decisions. 

It's just optimized for something different than early retirement...  Dave's plan is optimized for potential success for the average American.

rob in cal

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Re: What is your opinion of Dave Ramsey?
« Reply #168 on: May 17, 2018, 11:08:32 AM »
Compared to most other finance talk on the radio, he's very good, especially to get people started. My biggest complaint is how he suggests that its really easy to beat typical stock market returns, by finding out which mutual funds have beaten the major indexes over the last several years. 

Lan Mandragoran

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Re: What is your opinion of Dave Ramsey?
« Reply #169 on: May 17, 2018, 11:24:53 AM »

Just because I don't agree with all the little details of his plan doesn't mean I don't think his plan is good enough for most.

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It just means it's poorly optimized. If someone can cut off years of time off their sentence, but doesn't because they can't handle a bit of detail it seems to me that they are making poor decisions. 

It's just optimized for something different than early retirement...  Dave's plan is optimized for potential success for the average American.

Yeah your right. It's the most effective method for the sheeps. Idk why anyone would want to be a sheep.... even if its a well led sheep or w/e (analogy breaking down lol).
« Last Edit: May 17, 2018, 11:27:35 AM by Lan Mandragoran »