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 106160 times)

Offline Kobe Bryant

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Re: Dave Ramsey Plan
« Reply #300 on: July 27, 2020, 10:40:51 PM »
Not one penny more than the saved interest. THe appreciation was yours before paying off the mortgage as well.
There is always a risk of foreclosure.
For the record I would never count appreciation on a net worth statement, solely the equity. 
That comes down to the behavioral aspect of it not which makes more financial sense. If someone is otherwise blowing it on stupidity then they are better off paying down their mortgage. If they have the disipline to invest it that would be better.

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #301 on: July 27, 2020, 10:41:45 PM »
Not one penny more than the saved interest. THe appreciation was yours before paying off the mortgage as well.
Keep the financial basics coming!
Only on DDF does 24/6 mean 24/5/half/half

Online aygart

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Re: Dave Ramsey Plan
« Reply #302 on: July 27, 2020, 10:45:36 PM »
There is always a risk of foreclosure.
For the record I would never count appreciation on a net worth statement, solely the equity. 
WHat is the equity? It is the CURRENT value of the house minus the amount owed.

That it makes financial sense to do over blowing it does not mean it builds wealth it means it is preserving wealth. Preventing foreclosure is also not building wealth but preserving wealth.

Building>preserving>losing
Feelings don't care about your facts

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #303 on: July 27, 2020, 10:49:00 PM »
For the record I would never count appreciation on a net worth statement, solely the equity.
How do you figure the value of a house when it is paid off for your net worth?
Only on DDF does 24/6 mean 24/5/half/half

Online aygart

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Re: Dave Ramsey Plan
« Reply #304 on: July 27, 2020, 10:49:39 PM »
Keep the financial basics coming!
Why would you think that people who have a difficult time keeping to facts regarding other things would do any better when it comes to finance? We can talk about financial basics until we are blue in the face and it won't help any more than talking about science regarding other topics.
Feelings don't care about your facts

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #305 on: July 27, 2020, 10:51:29 PM »
Why would you think that people who have a difficult time keeping to facts regarding other things would do any better when it comes to finance?
Hopefully they will understand it is in their best interest to learn.
Only on DDF does 24/6 mean 24/5/half/half

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #306 on: July 27, 2020, 10:52:49 PM »
We can talk about financial basics until we are blue in the face and it won't help any more than talking about science regarding other topics.
I disagree. Lets see if anyone disputes the dollar for dollar when paying off early.
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Online aygart

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Re: Dave Ramsey Plan
« Reply #307 on: July 27, 2020, 10:56:24 PM »
Hopefully they will understand it is in their best interest to learn.
Just like they all do regarding health?
Feelings don't care about your facts

Online zh cohen

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Re: Dave Ramsey Plan
« Reply #308 on: July 27, 2020, 10:56:59 PM »
Lets see if anyone disputes the dollar for dollar when paying off early.

No one who had listened to any DR would dispute that.

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #309 on: July 27, 2020, 10:59:58 PM »
No one who had listened to any DR would dispute that.
DR or not if you didn't understand this hopefully after you give it some thought it would be clear.
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Offline ExGingi

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Re: Dave Ramsey Plan
« Reply #310 on: July 27, 2020, 11:14:58 PM »
Paying off a mortgage, other than the interest saved, is exchanging one type of asset (guaranteed, liquid cash) for another type (illiquid, non-guaranteed equity in real estate).
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline ExGingi

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Re: Dave Ramsey Plan
« Reply #311 on: July 27, 2020, 11:20:03 PM »
From what I gathered after sitting down with a LIA today is that in the first 4 years, one would lose everything they put in (Not so with retirement accounts.) and that the break even point would be in year 11.

Highly untrue with an OVERFUNDED Whole Life policy.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline ExGingi

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Re: Dave Ramsey Plan
« Reply #312 on: July 27, 2020, 11:22:25 PM »
Do you market WL as life insurance or an investment?
Definitely Life Insurance. But it's difficult to ignore the benefits on the asset side of one's personal balance sheet.
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 #313 on: July 27, 2020, 11:23:40 PM »
Definitely Life Insurance.
Are you allowed to market it as an investment?
Only on DDF does 24/6 mean 24/5/half/half

Offline ExGingi

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Re: Dave Ramsey Plan
« Reply #314 on: July 27, 2020, 11:28:34 PM »
From what I gathered after sitting down with a LIA today is that in the first 4 years, one would lose everything they put in (Not so with retirement accounts.) and that the break even point would be in year 11.

When is your break even with a home purchase/mortgage? I.e. When does your equity equal or exceed the sum of your payments (and please don't disregard closing costs)?
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline ExGingi

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Re: Dave Ramsey Plan
« Reply #315 on: July 27, 2020, 11:30:23 PM »
Are you allowed to market it as an investment?

I've heard of you being the Sheriff of certain DDF threads, have you now become a compliance officer?
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 #316 on: July 27, 2020, 11:31:53 PM »
I've heard of you being the Sheriff of certain DDF threads, have you now become a compliance officer?
Was wondering if what I heard was true.
Only on DDF does 24/6 mean 24/5/half/half

Offline ExGingi

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Re: Dave Ramsey Plan
« Reply #317 on: July 27, 2020, 11:35:41 PM »
Was wondering if what I heard was true.

I don't think I would ever get in trouble with compliance over what I say about products during a sales process. If anything I tend to over disclaim (which doesn't mean that the client will not selectively hear or remember, and why written notes are of utmost importance).
« Last Edit: July 28, 2020, 02:11:56 AM by ExGingi »
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline yos9694

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Re: Dave Ramsey Plan
« Reply #318 on: July 28, 2020, 02:15:19 PM »
What would (or does) DR say about the US national debt? If the next stimulus bill passes we will be $27.6 Trillion in debt, which is 137.6% of GDP. If we have to do it, then we have to do it, but how do we get out of here without bankruptcy?

Offline avromie7

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Re: Dave Ramsey Plan
« Reply #319 on: July 28, 2020, 02:17:25 PM »
If the next stimulus bill passes we will be $27.6 Trillion in debt, which is 137.6% of GDP. If we have to do it, then we have to do it, but how do we get out of here without bankruptcy?
The answer is simple, getting it done is the hard part. Drastically scale back government spending
I wonder what people who type "u" instead of "you" do with all their free time.