Author Topic: Dave Ramsey's Millionaire Hour  (Read 7554 times)

Jags4186

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Dave Ramsey's Millionaire Hour
« on: March 11, 2016, 02:29:24 PM »
Does anyone listen to Dave Ramsey's Millionaire Hour?  I like listening to it because its usually people who have normal jobs and saved a lot of and have between 1-2mm between the ages of 45-60.

The one from this week had a very interesting caller.  You could tell Dave was sort of...not really sure what to say.

65 year old women calls in all proud of her and her husbands $1.9 million nest egg.  Dave starts asking what they do--she's a retired HR Exec and her husband is a doctor.  Here's the conversation:

Dave: "How much do you guys make?"
Crazy lady: "We started low but finished high"
"give me an idea what your average earnings were"
"around 250k-300k/yr over the last 30 years.  We're at $850k/yr now.  It's all about living frugally and saving.  anyone can do it."

Wait until this guy stops working.  They'll be in the poor house in about 3 years.  How can they have accumulated so little with such a huge income?

onlykelsey

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Re: Dave Ramsey's Millionaire Hour
« Reply #1 on: March 11, 2016, 02:32:45 PM »
Wow, that's intense.  Back of the envelope that's ~7% savings rate.  I guess that's a bit better than average.

dandarc

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Re: Dave Ramsey's Millionaire Hour
« Reply #2 on: March 11, 2016, 02:40:55 PM »
All about living frugally.  Riiiight . . .

I'd venture that anyone on this board could have accumulated $2 million in 5 years or less with that income.  So what happened the other 25 years?

Jags4186

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Re: Dave Ramsey's Millionaire Hour
« Reply #3 on: March 11, 2016, 02:47:34 PM »
In case anyone wants to look up:

It's podcast episode #8018, March 9, 2016, minute 21.

rencelas

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Re: Dave Ramsey's Millionaire Hour
« Reply #4 on: March 13, 2016, 10:53:09 PM »
I caught this on the podcast today too. I kept waiting for Dave to say...anything. Absolutely absurd.

They're the definition of a UAW.

LPeters

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Re: Dave Ramsey's Millionaire Hour
« Reply #5 on: March 13, 2016, 11:23:32 PM »
Anyone got a link? I'm not familiar with the podcast.

Apples

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Re: Dave Ramsey's Millionaire Hour
« Reply #6 on: March 14, 2016, 09:35:15 AM »
I love the Millionaire Hours for the entertainment purposes.  Usually the people are upper middle income, not lower or middle income like most of the regular callers that Dave gets.  He asks questions that sometimes show the caller has not at all done his plan and gotten nowhere near a 12% return (I remember one was a Boglehead and averaged around 6% or 7% due to his bond allocation).  And the people are willing to point out the high income or the lower returns.  I feel like Dave likes the hours, but they're a bit risky.  I spend most of the hour waiting for a call that leads to something like this crazy lady, just to find out what Dave will possibly say to them.  I'm several months behind on the podcast, and only listen to about 4 hours a week so I will probably miss this episode; thanks for sharing!

MgoSam

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Re: Dave Ramsey's Millionaire Hour
« Reply #7 on: March 14, 2016, 10:55:14 AM »
I love how the lady is proud of her nest egg.

$2.5M at 4% withdrawal is $100k annually, or about $8333/month. I believe nearly everyone on here will be able to live like kings on that. But for someone making $850k annually, I highly doubt they would be comfortable living under that.

Of course, with a doctor they have to spend significant on conferences, continuing education, malpractice insurance, and other things that will be eliminated once he stops practicing, but I suspect that they will need a significantly higher nest egg to live off of.

Dezrah

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Re: Dave Ramsey's Millionaire Hour
« Reply #8 on: March 14, 2016, 05:59:11 PM »

Anyone got a link? I'm not familiar with the podcast.

Archives on Itunes here:

https://itunes.apple.com/podcast/the-dave-ramsey-show/id77001367

As noted above, the latest Millionaire Theme Hour episode is #8018. There are others in the archives, too -- he does them pretty regularly these days.

Once we get our apartment sold I'm really tempted to call in.  It would be fun to answer his "what role did debt play in your wealth accumulation" question with "Well, we made 2/3 of our money by leveraging a mortgage against one of the world's most speculative property markets, saved $2k on a new car last year by financing it for one month, and make up to $1000/year plus lots of free travel by playing the credit card bonus game.  And by the way, we primarily invest in no-fee index funds and have an average 9% return since 1999.  And we don't use your ELPs."

Click.

I remember a Million Hour not long ago where the caller very quickly and nonchalantly acknowledged (when asked) that their family had always leveraged their rental investments to buy the next one. They had only tapered off their debt recently and only because they'd reached the limit on their ability to manage that many properties.

DR's response was less interesting than you would guess. I'm pretty sure he's heard it all at this point and regularly cavorts with the normal rich folks. As much fun as it would be to make a know-it-all squirm, it just simply won't happen.

You might have better luck finding a stupid financial quote and asking him about it. A caller did this and he said the author was idiot (I actually agreed) only to find out his good buddy Robert Kiosaki (SP?) of Rich Dad, Poor Dad said it. That was nice and schadenfreudey.

Proud Foot

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Re: Dave Ramsey's Millionaire Hour
« Reply #9 on: March 15, 2016, 10:17:28 AM »

Anyone got a link? I'm not familiar with the podcast.

Archives on Itunes here:

https://itunes.apple.com/podcast/the-dave-ramsey-show/id77001367

As noted above, the latest Millionaire Theme Hour episode is #8018. There are others in the archives, too -- he does them pretty regularly these days.

Once we get our apartment sold I'm really tempted to call in.  It would be fun to answer his "what role did debt play in your wealth accumulation" question with "Well, we made 2/3 of our money by leveraging a mortgage against one of the world's most speculative property markets, saved $2k on a new car last year by financing it for one month, and make up to $1000/year plus lots of free travel by playing the credit card bonus game.  And by the way, we primarily invest in no-fee index funds and have an average 9% return since 1999.  And we don't use your ELPs."

Click.

I remember a Million Hour not long ago where the caller very quickly and nonchalantly acknowledged (when asked) that their family had always leveraged their rental investments to buy the next one. They had only tapered off their debt recently and only because they'd reached the limit on their ability to manage that many properties.

DR's response was less interesting than you would guess. I'm pretty sure he's heard it all at this point and regularly cavorts with the normal rich folks. As much fun as it would be to make a know-it-all squirm, it just simply won't happen.

I heard that one too!  I was surprised that he let the caller actually get through and on the air.  He always asks what role giving played in their finances, I would love to hear his reaction if someone would say that they either did not give or only gave a small amount occasionally.

SMCx3

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Re: Dave Ramsey's Millionaire Hour
« Reply #10 on: March 15, 2016, 10:33:47 AM »
All about living frugally.  Riiiight . . .

I'd venture that anyone on this board could have accumulated $2 million in 5 years or less with that income.  So what happened the other 25 years?

Living frugally = debt free living in DR's world.  Not a bad thing at the end of the day. 

coolistdude

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Re: Dave Ramsey's Millionaire Hour
« Reply #11 on: March 20, 2016, 02:57:12 PM »
Does anyone listen to Dave Ramsey's Millionaire Hour?  I like listening to it because its usually people who have normal jobs and saved a lot of and have between 1-2mm between the ages of 45-60.

The one from this week had a very interesting caller.  You could tell Dave was sort of...not really sure what to say.

65 year old women calls in all proud of her and her husbands $1.9 million nest egg.  Dave starts asking what they do--she's a retired HR Exec and her husband is a doctor.  Here's the conversation:

Dave: "How much do you guys make?"
Crazy lady: "We started low but finished high"
"give me an idea what your average earnings were"
"around 250k-300k/yr over the last 30 years.  We're at $850k/yr now.  It's all about living frugally and saving.  anyone can do it."

Wait until this guy stops working.  They'll be in the poor house in about 3 years.  How can they have accumulated so little with such a huge income?

She'll get to do her debt free scream after Dave fixes their lack of frugality! Dave gets some crazy callers. People who think they have their act together but don't...at all.