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$1,000 Rainy day fund
Pay off all debt using the debt snowball
3 to 6 months of expenses in savings
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College /Simcha fund for children
Pay off home early (prepay mortgage)
Build wealth and give!

Author Topic: Dave Ramsey Plan  (Read 106140 times)

Offline Mordyk

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Re: Dave Ramsey Plan
« Reply #520 on: November 24, 2020, 10:13:38 PM »
Why is everyone so touchy?
If someone has flawed financial advice in one area it is good bet it is flawed in other areas. That is my opinion on parts of his plan that I mentioned a "gazillion" times.
No need to go into attack mode.
Growth.
Growth and Income.
Aggressive Growth.
International.

can you answer recommendations for these categories? because that was the question
#TYH

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Re: Dave Ramsey Plan
« Reply #521 on: November 24, 2020, 10:21:56 PM »
can you answer recommendations for these categories? because that was the question
I am not big on mutual funds. I would stay away from international funds at this time since the US should outperform others.
Also with the market at an all time high I would highly recommend DCA (dollar cost average). Tons on articles explaining it if you are not familiar with it.
The bottom line is you need to do your research. If not just put it in a major S&P fund.
Only on DDF does 24/6 mean 24/5/half/half

Offline ExGingi

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Re: Dave Ramsey Plan
« Reply #522 on: November 24, 2020, 10:24:19 PM »
Growth.
Growth and Income.
Aggressive Growth.
International.

Could you rationalize those categories?

What about periodic rebalancing?

What's the strategy?

Where's the asset class diversification?
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline Mordyk

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Re: Dave Ramsey Plan
« Reply #523 on: November 24, 2020, 10:33:17 PM »
Could you rationalize those categories?

What about periodic rebalancing?

What's the strategy?

Where's the asset class diversification?
https://www.daveramsey.com/blog/daves-investing-philosophy
#TYH

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Re: Dave Ramsey Plan
« Reply #524 on: November 24, 2020, 10:38:51 PM »
Only on DDF does 24/6 mean 24/5/half/half

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Re: Dave Ramsey Plan
« Reply #525 on: November 24, 2020, 10:40:04 PM »
https://www.daveramsey.com/blog/daves-investing-philosophy
How about you write in your words what you understand to be the answers to my questions/queries?

I strongly believe one should not be following an investment strategy they don't understand.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline aygart

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Re: Dave Ramsey Plan
« Reply #526 on: November 24, 2020, 10:41:11 PM »
https://www.daveramsey.com/blog/daves-investing-philosophy
Note that in that link he repeatedly shies away from saying that this is a recommendation of a strategy for you. He writes at the beginning


Quote
Knowing how to deal with debt is easy—pay it off! Investing, however, isn’t quite so simple. Most people have questions about when and how to invest their money, so here’s an inside look at Dave Ramsey’s investing philosophy. Just remember, investing is personal. A financial advisor or investment professional can help you create a retirement plan that’s right for you.....


....Don’t copy Dave’s plan simply because that’s what Dave does. Work with an investment professional to compare all your options before choosing your investments.[/size]



Take his advice and work on a plan that takes into account YOUR situation and goals as well as your stage in life. This is how you will get the best results according to him. The main part of hos plan is how to make sure you actually put the money away. Once it is put away then it becomes much more personalized.

Feelings don't care about your facts

Offline Mordyk

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Re: Dave Ramsey Plan
« Reply #527 on: November 24, 2020, 10:42:07 PM »
How about you write in your words what you understand to be the answers to my questions/queries?

I strongly believe one should not be following an investment strategy they don't understand.
he agrees with you. This is the last paragraph
Quote
A good financial advisor or investment professional provides insight and direction based on years of investing experience, but they know you’re the decision-maker. Look for a pro who takes time to answer your questions and gives you all the information you need to make good investing choices.

in my words:

Im a novice because as I said upthread I'm BH just getting to this point now. I came hear for Ideas, I will then research and decide on my own if it works for me.
#TYH

Offline aygart

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Re: Dave Ramsey Plan
« Reply #528 on: November 24, 2020, 10:43:36 PM »
his last paragraph
You don't seem to be following that when asking for advice on how to mirror what he does for his situation.
Feelings don't care about your facts

Offline Mordyk

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Re: Dave Ramsey Plan
« Reply #529 on: November 24, 2020, 10:45:25 PM »
You don't seem to be following that when asking for advice on how to mirror what he does for his situation.
see my updated post above
#TYH

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Re: Dave Ramsey Plan
« Reply #530 on: November 24, 2020, 10:47:10 PM »
see my updated post above
Are you looking long term? Is this for 401k, IRA or the likes?
Only on DDF does 24/6 mean 24/5/half/half

Offline ExGingi

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Re: Dave Ramsey Plan
« Reply #531 on: November 24, 2020, 10:47:55 PM »
he agrees with you. This is the last paragraph
in my words:

Im a novice because as I said upthread I'm BH just getting to this point now. I came hear for Ideas, I will then research and decide on my own if it works for me.

So here's my idea for you. Look into the questions I asked above. Make sure you understand the questions and the rationale behind them. Then move to the next step. In the meantime keep your money where you can understand and explain where it is.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline aygart

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Re: Dave Ramsey Plan
« Reply #532 on: November 24, 2020, 10:48:05 PM »
see my updated post above
The facts are that you came asking for recommendations on his categories. I advise you to work on a more comprehensive plan together with an advisor who will ensure that your accounts remain properly balanced and that you take advantage of the tax-advantaged options available to you. Choosing the actual fund or other investment is the last step not the first.
Feelings don't care about your facts

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Re: Dave Ramsey Plan
« Reply #533 on: November 24, 2020, 10:49:16 PM »
Are you looking long term? Is this for 401k, IRA or the likes?

That's another major question to ask. What's the current tax situation, what's the personal outlook, as well as personal belief regarding future tax environment.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline Mordyk

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Re: Dave Ramsey Plan
« Reply #534 on: November 24, 2020, 10:53:25 PM »
So here's my idea for you. Look into the questions I asked above. Make sure you understand the questions and the rationale behind them. Then move to the next step. In the meantime keep your money where you can understand and explain where it is.
this discussion here is pretty fast paced. but I will take the time to respond to the best of my current knowledge. I'm not afraid to say that I'm still constantly learning regarding long term investment strategies.

The facts are that you came asking for recommendations on his categories. I advise you to work on a more comprehensive plan together with an advisor who will ensure that your accounts remain properly balanced and that you take advantage of the tax-advantaged options available to you. Choosing the actual fund or other investment is the last step not the first.
I actually had the discussion with my accountant regarding Tax advantaged Account. and I am still in the planning stages. One of a few stops was here. Believe it or not I have found that sometimes people give good advice here :D. so I'm all ears to see what others are doing and why.

Are you looking long term? Is this for 401k, IRA or the likes?
yes Long term IRA

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Re: Dave Ramsey Plan
« Reply #535 on: November 24, 2020, 11:01:09 PM »
this discussion here is pretty fast paced. but I will take the time to respond to the best of my current knowledge. I'm not afraid to say that I'm still constantly learning regarding long term investment strategies.
I actually had the discussion with my accountant regarding Tax advantaged Account. and I am still in the planning stages. One of a few stops was here. Believe it or not I have found that sometimes people give good advice here :D. so I'm all ears to see what others are doing and why.
yes Long term IRA

I didn't mean for you to come up with instant answers. I hope you take the time to learn an understand what I wrote, so you can do better for yourself.

In my personal experience, most accountants are NOT the right people to advise you on what type of tax qualified account (IRA, Roth IRA, 401k, HSA, etc) is best for you. They usually barely know the rules for those, except if that's their speciality.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

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Re: Dave Ramsey Plan
« Reply #536 on: November 24, 2020, 11:05:52 PM »
yes Long term IRA
I would just store it in a S&P 500 fund. This would just be temporary until you figure out a long term plan. There is a lot involved so take your time.

My government plan offered me options based on ones age. Aggressive when young, then decreasing as you got older. 
Only on DDF does 24/6 mean 24/5/half/half

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Re: Dave Ramsey Plan
« Reply #537 on: November 24, 2020, 11:10:08 PM »



My government plan offered me options based on ones age. Aggressive when young, then decreasing as you got older.
The major mutual fund companies have funds that do this as well.
Feelings don't care about your facts

Offline Mordyk

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Re: Dave Ramsey Plan
« Reply #538 on: November 24, 2020, 11:10:30 PM »
I would just store it in a S&P 500 fund. This would just be temporary until you figure out a long term plan. There is a lot involved so take your time.

My government plan offered me options based on ones age. Aggressive when young, then decreasing as you got older.
Thats my goal. Thank G-d Im starting pretty young. so current actions can make a huge difference over time.
#TYH

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Re: Dave Ramsey Plan
« Reply #539 on: November 24, 2020, 11:11:27 PM »
The major mutual fund companies have funds that do this as well.
Absolutely.
Only on DDF does 24/6 mean 24/5/half/half