Poll

What baby step are you up to?

$1,000 Rainy day fund
Pay off all debt using the debt snowball
3 to 6 months of expenses in savings
Invest 15% of household income into Roth IRAs and pre-tax retirement (401k Etc.)
College /Simcha fund for children
Pay off home early (prepay mortgage)
Build wealth and give!

Author Topic: Dave Ramsey Plan  (Read 11903 times)

Offline aygart

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Re: Dave Ramsey Plan
« Reply #105 on: July 24, 2020, 10:47:35 AM »
Then the person needs a psychologist not a fake financial advisor.


A behavioral economist? @ExGingi
Just because things turned out a certain way doesn't mean you were right.

Online ExGingi

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Re: Dave Ramsey Plan
« Reply #106 on: July 24, 2020, 10:49:24 AM »
Then the person needs a psychologist not a fake financial advisor.
Do you pay off your small balance first before your high interest balances?

How about if paying off the small balance pushes up the credit score, enabling a new card with a 0% balance transfer to pay off the high interest card?
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #107 on: July 24, 2020, 10:54:57 AM »
If his charisma or the psychology behind his plan or something else is succesful in getting people out of bad debt then why would that be anything but a good thing?
We have no idea how many it has helped or not. Financially we know some of his advice is dead wrong.
Also there is better advice for free. Now if the person doesn't have the willpower then that needs to be addressed first.

I am still waiting for a simple answer to my question from those who purchased his course.
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #108 on: July 24, 2020, 10:55:31 AM »
How about if paying off the small balance pushes up the credit score, enabling a new card with a 0% balance transfer to pay off the high interest card?
Wait, he is recommending that?  :)
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline 12HRS

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Re: Dave Ramsey Plan
« Reply #109 on: July 24, 2020, 11:05:11 AM »
We have no idea how many it has helped or not. Financially we know some of his advice is dead wrong.
Also there is better advice for free. Now if the person doesn't have the willpower then that needs to be addressed first.

I am still waiting for a simple answer to my question from those who purchased his course.

His advice is free. If you want more handholding you can pay for it

Offline aygart

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Re: Dave Ramsey Plan
« Reply #110 on: July 24, 2020, 11:09:22 AM »
We have no idea how many it has helped or not.
This is really all that matters. The rest is small stuff.
Just because things turned out a certain way doesn't mean you were right.

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #111 on: July 24, 2020, 11:09:30 AM »
His advice is free. If you want more handholding you can pay for it
If it is more bad advice, no thank you!  ;)
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #112 on: July 24, 2020, 11:12:17 AM »
His program is a psychological one.
Oops a thought he was selling it as financial advice. He has a degree in psychology?
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline aygart

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Re: Dave Ramsey Plan
« Reply #113 on: July 24, 2020, 11:16:56 AM »
Oops a thought he was selling it as financial advice. He has a degree in psychology?
Who cares.
A behavioral economist? @ExGingi
All that really matters is whether or not it works and not any of these other side shows. Especially not whether it is hypocritical of him to be accepting CCs.
Just because things turned out a certain way doesn't mean you were right.

Offline moko

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Re: Dave Ramsey Plan
« Reply #114 on: July 24, 2020, 11:29:29 AM »
I still haven't received an answer from our resident experts to the WL vs Term + S&P mutual funds question.
My uneducated research shows that if I invest 10k annually at an overall 8% rate of return annually (very conservative- over ANY given 40 yr period) will be almost 3mil after 40 yrs.
If my 30 term cost $1500 monthly (total $540,000) and my total 40 yr principal is $480,000, then I've invested a total of approx 1mil for a return of approx 3mil + 1mil life insurance peace of mind.
How much would that cost me in WL?
Using your g-d given right of stupidity is an option, not a requirement. Please use sparingly.

Offline aygart

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Re: Dave Ramsey Plan
« Reply #115 on: July 24, 2020, 11:44:04 AM »

My uneducated research shows that if I invest 10k annually at an overall 8% rate of return annually (very conservative- over ANY given 40 yr period) will be almost 3mil after 40 yrs.


https://dqydj.com/sp-500-historical-return-calculator/



S&P 500 Historical Return Results
Data from Rolling Periods Between:  -  [Link] Using Inflation (CPI) Adjustment: false Calculating Dividend Reinvestment: true Monthly Realized Historical Volatility: 14.107% Annual Realized Historical Volatility: 18.479% All returns are annualized to make them comparable - note the effect this has on apparent returns for shorter time periods.  Volatility is annualized, without inflation, and without dividends.
Summary Statistics Over Period(s)
Length of Investment:40 Years30 Years20 Years10 Years
[/c][/t]
Average Return9.406 %9.436 %9.246 %9.218 %
Median Return9.971 %9.880 %8.041 %8.533 %
Maximum Return13.183 %14.319 %17.948 %21.172 %
Minimum Return4.900 %3.635 %2.048 %-4.021 %
Standard Deviation1.952 %2.210 %3.258 %5.009 %
Just because things turned out a certain way doesn't mean you were right.

Offline aygart

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Re: Dave Ramsey Plan
« Reply #116 on: July 24, 2020, 11:46:14 AM »

If my 30 term cost $1500 monthly (total $540,000) and my total 40 yr principal is $480,000, then I've invested a total of approx 1mil for a return of approx 3mil + 1mil life insurance peace of mind.
How much would that cost me in WL?


I don't think that you are understanding his strategy of "overfunded WL"
Just because things turned out a certain way doesn't mean you were right.

Offline moko

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Re: Dave Ramsey Plan
« Reply #117 on: July 24, 2020, 12:02:37 PM »
I don't think that you are understanding his strategy of "overfunded WL"
clearly not. I've been asking for answers for a while and only getting seemingly unrelated questions in response
Using your g-d given right of stupidity is an option, not a requirement. Please use sparingly.

Offline Mordyk

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Re: Dave Ramsey Plan
« Reply #118 on: July 24, 2020, 12:07:11 PM »
We have no idea how many it has helped or not. Financially we know some of his advice is dead wrong.
Also there is better advice for free. Now if the person doesn't have the willpower then that needs to be addressed first.

I am still waiting for a simple answer to my question from those who purchased his course.
i purchased it once.

yes i paid off smaller balances first. this helped me feel like progress is being made. and i did make progress. 
a lot about being part of a financial program is being intentional with your money(DR's words)   i have started knowing where every dollar goes because its on my head constantly. B"h I'm in a way better place financially but still listen to him because when you constantly think about how can i be perfect with money, you are more intentional. no more how is my account empty for the month etc.


many people can see they are intentional with every dollar monthly, but only a small percentage actually are.

Online ExGingi

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Re: Dave Ramsey Plan
« Reply #119 on: July 24, 2020, 12:12:07 PM »
If his charisma or the psychology behind his plan or something else is succesful in getting people out of bad debt then why would that be anything but a good thing?

+1000000

While there are definitely things I find wrong with what I hear from Dave Ramsey, there are definitely good things about his preaching, and above all - it is a plan to work with.

I often tell people I meet, when you have a goal you might reach it or you might not, but if you don't even have a defined goal, much less so any plan of action, what are your chances of getting anywhere good?

Any plan with consistency (and coaching definitely helps) is better than no plan and direction. This can be seen in many aspects of life. Are we lacking weight loss plans that might not have any scientific basis (fit for life, for example) but work for people just because they create a certain discipline?

What might make tremendous sense and work for people who understand certain things AND have discipline and drive, might not work for someone who might be lacking in any of those components. I meet with many people, some are my clients (in various areas that I serve) and some aren't, and I can probably have a story to tell you about every type of personality that might exist when it comes to finances.

A huge problem exists with people who are bright enough to understand concepts, but only have cursory knowledge and no experience, and definitely aren't willing to dedicate the time and effort to do the work required for what they understand to be best for them, yet can't appreciate fairly paying someone to do said work (whether in commissions or fees) or to choose an alternative that might not require that much time and effort and might sound less lucrative (potentially).

I have a fresh story from this week of a person who met me to review his options after being laid off. This person, despite being less than a decade away from being eligible for social security retirement benefits, has a grand total of $0 in any retirement savings. Some other savings that he's not really sure about in a local bank account (taxable - for crying out loud, I told him to take that money and put it immediately in ROTH IRAs for himself and his wife, even if he left it at the same bank with the same minuscule interest rate, at least they wouldn't be taxed on it, and given his age he could withdraw anytime penalty-free). There are additional sad details to his story, but one thing I did realize was that this person never got proper guidance, he just survived through life, whether when he was in business for himself or an employee, and never took the time to review and plan.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan