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 62057 times)

Offline YoelFried

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Re: Dave Ramsey Plan
« Reply #220 on: July 26, 2020, 10:12:32 AM »
I have a different position than what DR teaches. So if you believe DR then of course we will see it differently.

I will try to explain one more time. You can use that 1k to pay off debt and save money. If an emergency arrives you can borrow against that debt to pay the emergency. Once you are out of debt you can work on your emergency fund. That is why I said it should not be #1. You are financial better off this way.
I see that you know so much about financial advise. How much is your net worth?

Quote from Warren buffet.

"Leverage is like Russian Roulette; 99% of the time it works, but neither 83.3% or 99% is good enough when there is no gain to offset the risk of loss,"

https://www.thewealthadvisor.com/article/why-warren-buffett-wont-play-leverage

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #221 on: July 26, 2020, 10:15:09 AM »
But for example now with covid, anyone that stuck to his method should have been ok to weather 6 months...
If you did my method you would have been good for at least 12 months.  :)
I have excel break all household expenses down to the day, bi-weekly and yearly.
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 #222 on: July 26, 2020, 10:18:03 AM »
I see that you know so much about financial advise. How much is your net worth?
Enough to retire and never have to worry about money.
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline YoelFried

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Re: Dave Ramsey Plan
« Reply #223 on: July 26, 2020, 10:21:48 AM »
That can be 500k-50mm it's a very big ballpark to throw. Did you have financial freedom or at least now? I'm not sure your age. DR plan is about having a freedom plan from the twenties up until 120

Offline YoelFried

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Re: Dave Ramsey Plan
« Reply #224 on: July 26, 2020, 10:24:57 AM »
I understand what he is saying and disagree.
From a financial stand point it is wrong.
We can run the numbers if you want.  :)

Lets move on. Does he use a 12% return for investments?
I think to measure the market
10% conservative
12% 30 year period or longer (it probably could be 40 years as well).
12%+ mutual funds that outpreferm I would give it 13-14%

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #225 on: July 26, 2020, 10:29:20 AM »
That can be 500k-50mm it's a very big ballpark to throw. Did you have financial freedom or at least now? I'm not sure your age. DR plan is about having a freedom plan from the twenties up until 120
I have had financial freedom from day one.
Look, what his plan wants you to achieve is great. I and many other disagree with things in the plan. 
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 #226 on: July 26, 2020, 10:30:36 AM »
I think to measure the market
10% conservative
12% 30 year period or longer (it probably could be 40 years as well).
12%+ mutual funds that outpreferm I would give it 13-14%
This is totally unrealistic. Past performance is no guarantee of future performance.
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline Mordyk

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Re: Dave Ramsey Plan
« Reply #227 on: July 26, 2020, 10:31:06 AM »
I understand what he is saying and disagree.
From a financial stand point it is wrong.
We can run the numbers if you want.  :)

Lets move on. Does he use a 12% return for investments?
Financial decisions are behavioral based.  So if you look at dollar signs he may be wrong. But end result he may be right.   I did not say that he is right, I said he may be.  Fully understand his program and then everyone has to decide for themselves
« Last Edit: July 26, 2020, 10:36:42 AM by Mordyk »
#TYH

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #228 on: July 26, 2020, 10:37:38 AM »
Financial decisions are behavioral based.  Some if you look at dollar signs he may be wrong. But end result he may be right.   Judt a thought
Financial many of the things he does is wrong. Don't fool yourself. Now factoring in motivation that is a different story and is beneficial to some.
I never believed the end justified the means.
With that being said of course others and I could be wrong.
Do we have any verifiable figures on his success rate? 
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline ExGingi

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Re: Dave Ramsey Plan
« Reply #229 on: July 26, 2020, 10:52:15 AM »
I think to measure the market
10% conservative
12% 30 year period or longer (it probably could be 40 years as well).
12%+ mutual funds that outpreferm I would give it 13-14%

What are you basing this on?
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline YoelFried

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Re: Dave Ramsey Plan
« Reply #230 on: July 26, 2020, 11:15:45 AM »
What are you basing this on?
Past performance.

Iím my experience people that are busy saying that the market gives less, don't invest at all.

Offline YoelFried

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Re: Dave Ramsey Plan
« Reply #231 on: July 26, 2020, 11:16:14 AM »
This is totally unrealistic. Past performance is no guarantee of future performance.
True. But Is a good data starting point

Offline zh cohen

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Re: Dave Ramsey Plan
« Reply #232 on: July 26, 2020, 11:32:01 AM »
Do we have any verifiable figures on his success rate?

What type of figures would you accept as verification that his way works?

Offline ExGingi

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Re: Dave Ramsey Plan
« Reply #233 on: July 26, 2020, 11:32:51 AM »
Past performance.

Iím my experience people that are busy saying that the market gives less, don't invest at all.

Should I share with you my investment accounts?

With all due respect, how long is your experience? Were you invested in the market in 2008? in 1999? in 1987?

Let's go back to the questions I've asked earlier. What's the definition of "conservative"? (and let me add, what do you base that definition on?)

Also are you suggesting any type of diversified portfolio allocation, or are you suggesting 100% in the S&P500 (though which vehicle?) If you're suggesting diversified allocation, what's the allocation you're suggesting? Are you suggesting any allocation shift at any time? How about any periodic rebalancing?
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline YoelFried

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Re: Dave Ramsey Plan
« Reply #234 on: July 26, 2020, 11:46:07 AM »
Should I share with you my investment accounts?

With all due respect, how long is your experience? Were you invested in the market in 2008? in 1999? in 1987?

Let's go back to the questions I've asked earlier. What's the definition of "conservative"? (and let me add, what do you base that definition on?)

Also are you suggesting any type of diversified portfolio allocation, or are you suggesting 100% in the S&P500 (though which vehicle?) If you're suggesting diversified allocation, what's the allocation you're suggesting? Are you suggesting any allocation shift at any time? How about any periodic rebalancing?
Always staying in equity

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #235 on: July 26, 2020, 11:56:15 AM »
What type of figures would you accept as verification that his way works?
Is there an independent study that was done? I think you agree we can't go by DR figures, correct?
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline zh cohen

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Re: Dave Ramsey Plan
« Reply #236 on: July 26, 2020, 11:57:38 AM »

Also are you suggesting any type of diversified portfolio allocation, or are you suggesting 100% in the S&P500 (though which vehicle?) If you're suggesting diversified allocation, what's the allocation you're suggesting? Are you suggesting any allocation shift at any time? How about any periodic rebalancing?

If you are asking about Dave Ramsey's advice, here is the outline - https://www.daveramsey.com/blog/daves-investing-philosophy

I think the most important part of what he teaches is to never invest in anything you don't understand. He often says that if you meet with an investment advisor and you come out feeling stupid, run the other way.

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #237 on: July 26, 2020, 12:00:31 PM »
True. But Is a good data starting point
Let me tell you a real life story. When I took out my first WL policy the selling point was the dividends were never cut in the history of this very old company. Based on that I would have millions when I retired. Needless to say dividends were cut the next year and several times the following years. If I relied on that to retire I would now need DR 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 #238 on: July 26, 2020, 12:04:40 PM »
Would it be fair to say his course is mostly motivation and not financial advice?
I mean debt is one of the greatest financial tools you have to be very successful.
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline Mordyk

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Re: Dave Ramsey Plan
« Reply #239 on: July 26, 2020, 12:16:29 PM »
Our grandparents that came to the u.s. after the war and became very rich here I don't think they became rich through having debt. It was more about saving and investing. You can become very rich without debt.  At times obviously you need it, but its not a prerequisite to being rich
#TYH