Quote:
Originally Posted by Scanner
Well of course it's an opinion. (which is right). I deal in the world of opinions every day. People ask my opinions all day.
Actually, I like Suze Orman's advice better than DR's. I can appreciate debt reduction as a worthy goal. In fact, I prefer to reduce debt vs. hold bonds as part of my financial plan.
But if DR is advocating "Pay yourself last" as part of the equation of building wealth, then I very much disagree with that.
As I said, in life, someone will always have their hand out.
You can never go back in time and contribute to your 401(k) and/or Roth. My measley $85,000 portfolio and my home equity (considerable) are all we have to show for our years of hard work. (and our beautiful, kind children)
I really don't care about the "PAID OFF" status on my credit report on all the loans (student and business) I have had.
That and $5.00 will buy you a cup of Starbuck's coffee.
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You obviously do not understand DR's approach to finances. It's one thing to disagree with something you have knowledge of and another for something you don't.
DR does not advocate against investing first. He advocates that you payoff your debts within two years and then invest 15% religiously.
DR views finances more from a behavoir standpoint and not from an math standpoint. Paying off debt first and quickly is designed to motivate people to a better form of managment over their money. His advice is simple and useful for those who do not micro manage their finances.
You tell me which of these fundamentals of Dave's you find harmful.
Having a 1000 ef while in debt.
Paying off all debt within 2 years. (other than the house)
Building a 3 to 6 month ef quickly.
Investing 15% of income into 4 groups of mutual funds.
saving for college funds.
paying off home.
Paying cash for autos and all other consumer debt.
Buying a home with a 15 year note and 20% down on 25% of your take home pay.
Do not have credit cards
Carry term life, disability and HSA health ins.
He make exceptions for those who may loose their jobs of are about to have babies to build ef before paying off debt.
Ask yourself these questions and give a truthful answer. If a person was to follow this advice, would they live well and sleep at night? Would they be better off than 75% of americans are today? What percentage of them would file bankruptsy? How many of them would retire broke? How many of them would have their car reposessed?
I could cririsize something about every financial adviser on the planet. But overall, I have no respect for anyone who can say DR is worthless.