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 10470 times)

Online zh cohen

  • Dansdeals Platinum Elite + Lifetime Gold Elite
  • ******
  • Join Date: Dec 2013
  • Posts: 883
  • Total likes: 287
  • DansDeals.com Hat Tips 1
  • Gender: Male
    • View Profile
  • Location: Brooklyn
Re: Dave Ramsey Plan
« Reply #75 on: July 23, 2020, 08:43:11 PM »
I assume you do realize that a 40 year period that ended 3/9/2009 is very different than a 40 year period that ended 1/9/2020

Yes, which is why it should be very easy for you to respond to him.

Online ExGingi

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Nov 2015
  • Posts: 8416
  • Total likes: 2079
  • DansDeals.com Hat Tips 12
    • View Profile
  • Location: 770
Re: Dave Ramsey Plan
« Reply #76 on: July 23, 2020, 08:45:10 PM »
Yes, which is why it should be very easy for you to respond to him.

I hope you do realize that I am Jewish. I respond with questions.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline CountValentine

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Mar 2013
  • Posts: 8628
  • Total likes: 1900
  • DansDeals.com Hat Tips -1
  • Gender: Female
    • View Profile
  • Location: Poland - Exiled
  • Programs: DAOTYA, DDF Level 3, 5K Lounge
Re: Dave Ramsey Plan
« Reply #77 on: July 23, 2020, 08:45:47 PM »
Then please bring up those points so that we can discuss them. I went there to look (when you sent me there last time we had this discussion) and the impression that I got was that people there felt that there was no need to address his arguments, because "he used to accept credit cards".

As to CB in general, I have nothing against them. Other than the Dave Ramsey threads, I've barely read anything there .
AFAIK they don't talk about him anymore since their point of him being a conman is well known.
One thing I remember is saying pay off your lowest CC balance first no matter the interest rate charged on your cards. Is that correct?
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline YoelFried

  • Dansdeals Silver Elite
  • **
  • Join Date: Jun 2019
  • Posts: 79
  • Total likes: 5
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: New York
Re: Dave Ramsey Plan
« Reply #78 on: July 23, 2020, 08:47:35 PM »
When the market crashes after 40 years as you use in your example, the investment for have grown nice. Even you would cash out a small percentage for a living and leave the most possible than it would recover within the next few years plus even more. As we have seen in 2000, 2008 and probably 2020 as well.

Offline Kobe bryent

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Jan 2017
  • Posts: 1051
  • Total likes: 435
  • DansDeals.com Hat Tips 5
    • View Profile
Re: Dave Ramsey Plan
« Reply #79 on: July 23, 2020, 08:51:27 PM »
"Don't take financial advice from broke people", Dave ramsey.

For all those that say that leverage is good, please post your net worth.

Net worth is calculated Assets minus liabilities.

Lines of credit or not assets.......
I don't ask for weight loss advice from overweight people.

Online moko

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Jul 2011
  • Posts: 2990
  • Total likes: 259
  • DansDeals.com Hat Tips 1
    • View Profile
Re: Dave Ramsey Plan
« Reply #80 on: July 23, 2020, 08:51:56 PM »
I hope you do realize that I am Jewish. I respond with questions.
but we've already responded to your questions question.
Now please, answer with a different question. Not the same one again.
Also, the question has to be an answer. Not just a random question
Using your g-d given right of stupidity is an option, not a requirement. Please use sparingly.

Online moko

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Jul 2011
  • Posts: 2990
  • Total likes: 259
  • DansDeals.com Hat Tips 1
    • View Profile
Re: Dave Ramsey Plan
« Reply #81 on: July 23, 2020, 08:52:32 PM »
I don't ask for weight loss advice from overweight people.
that's probably sound advice unless you want to know what not to do.
Using your g-d given right of stupidity is an option, not a requirement. Please use sparingly.

Offline farmbochur

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Dec 2011
  • Posts: 1526
  • Total likes: 94
  • DansDeals.com Hat Tips 8
    • View Profile
Re: Dave Ramsey Plan
« Reply #82 on: July 23, 2020, 08:55:16 PM »
Other listeners of Dave can correct me but I believe that these responses are consistent with his philosophy.


A sound financial plan usually involves having a certain percentage in cash, cash equivalents, or other safe vehicles. If you understand how a properly designed overfunded whole life plan works, you would want that asset class for (at least a portion of) your safe money allocation.
Dave's plan calls for having a liquid emergency fund of 3-6 months expenses prior to prepaying the mortgage.



Presumably you're talking about ROTH IRAs. And what does one do after the contributions were maxed?
I've heard Dave advocate for any of the following: (1) Non-qualified brokerage account invested in actively managed mutual funds, (2) real estate, or (3) small business.

Or where does one put the safe money allocation of the portfolio?
Dave would say that it doesn't matter because it's a small percentage of your net worth.
Risk is opportunity

Online moko

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Jul 2011
  • Posts: 2990
  • Total likes: 259
  • DansDeals.com Hat Tips 1
    • View Profile
Re: Dave Ramsey Plan
« Reply #83 on: July 23, 2020, 08:59:06 PM »
Other listeners of Dave can correct me but I believe that these responses are consistent with his philosophy.
Dave's plan calls for having a liquid emergency fund of 3-6 months expenses prior to prepaying the mortgage.


I've heard Dave advocate for any of the following: (1) Non-qualified brokerage account invested in actively managed mutual funds, (2) real estate, or (3) small business.
Dave would say that it doesn't matter because it's a small percentage of your net worth.
let's stop talking about DR and actually discuss the issues.
(Of course, it's the DR thread) :)
Using your g-d given right of stupidity is an option, not a requirement. Please use sparingly.

Offline farmbochur

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Dec 2011
  • Posts: 1526
  • Total likes: 94
  • DansDeals.com Hat Tips 8
    • View Profile
Re: Dave Ramsey Plan
« Reply #84 on: July 23, 2020, 09:02:14 PM »
Lol, my point was to address ex-gingi's issues. It's not like DR recommends emptying the checking account just to prepay the mortgage. It's only done if one is already sitting on a decent cash cushion.
Risk is opportunity

Offline Kobe bryent

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Jan 2017
  • Posts: 1051
  • Total likes: 435
  • DansDeals.com Hat Tips 5
    • View Profile
Re: Dave Ramsey Plan
« Reply #85 on: July 23, 2020, 09:24:21 PM »
When the market crashes after 40 years as you use in your example, the investment for have grown nice. Even you would cash out a small percentage for a living and leave the most possible than it would recover within the next few years plus even more. As we have seen in 2000, 2008 and probably 2020 as well.
2020 fully recovered.

Offline Kobe bryent

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Jan 2017
  • Posts: 1051
  • Total likes: 435
  • DansDeals.com Hat Tips 5
    • View Profile
Re: Dave Ramsey Plan
« Reply #86 on: July 23, 2020, 09:26:47 PM »
Other listeners of Dave can correct me but I believe that these responses are consistent with his philosophy.
Dave's plan calls for having a liquid emergency fund of 3-6 months expenses prior to prepaying the mortgage.

Baby step number 3.

Offline whYME

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2008
  • Posts: 3029
  • Total likes: 794
  • DansDeals.com Hat Tips 3
  • Gender: Male
    • View Profile
Re: Dave Ramsey Plan
« Reply #87 on: July 23, 2020, 09:36:17 PM »
One thing I remember is saying pay off your lowest CC balance first no matter the interest rate charged on your cards. Is that correct?
One of the themes of his program is that for the vast majority of people the psychological aspect is far more important than the savings offered by the mathematically best option.
i.e. his claim is that from what he's seen over the course of the years is that people are far more likely to stick with it when they start seeing the wins right away and get accounts paid off. So even though mathematically paying off higher interest first is better, if people don't follow through and drop out because  they feel they're not seeing results, יצא שכרו בהפסדו

Offline Kobe bryent

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Jan 2017
  • Posts: 1051
  • Total likes: 435
  • DansDeals.com Hat Tips 5
    • View Profile
Re: Dave Ramsey Plan
« Reply #88 on: July 23, 2020, 10:04:51 PM »
You'd be surprised
Agreed. Thank G'd DRP is really picking up steam in the frum community, "Living within one's means" and "Spending less than one earns" shouldn't be so controversial.

Online ExGingi

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Nov 2015
  • Posts: 8416
  • Total likes: 2079
  • DansDeals.com Hat Tips 12
    • View Profile
  • Location: 770
Re: Dave Ramsey Plan
« Reply #89 on: July 23, 2020, 10:20:58 PM »
"Living within one's means" and "Spending less than one earns" shouldn't be so controversial.
FTFY

+1000000000000
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan