Your Viewpoint On Dave Ramsey

[phantom]

Do you mean Chris Hogan, or someone else? When I watched DR's radio show a few times earlier this year, he was on and they were pushing his new book. So, I picked it up at the library and gave it a read. It was a very quick read because it was all fluff. Basically, just motivation to go ahead and save for retirement. He told a story about an elderly woman who was eating canned dog food because she hadn't saved for retirement. It is obviously a completely fabricated story. I can't believe anyone would take that story seriously.

Yes, I mean Chris Hogan. I haven't read his book, but I've caught a few episodes where he's been on to promote his book or one of his speaking engagements. If nothing else, he's got a nice, deep radio voice.

[DaveInPgh]

If nothing else, he's got a nice, deep radio voice.

[tripods68]

Everyone knows where I stand when it comes to DR.


I'm not a fan of Chris Hogan or Rachel Cruz that DR constantly promotes so much! In fact, I skip my podcast when they are on. I like them but if you have 3 hours of radio every day, this how you fill it.

[TexasHusker]

Everyone knows where I stand when it comes to DR.


I'm not a fan of Chris Hogan or Rachel Cruz that DR constantly promotes so much! In fact, I skip my podcast when they are on. I like them but if you have 3 hours of radio every day, this how you fill it.

Rachel Cruz is his daughter - he's going to spam her every opportunity.

[LivingAlmostLarge]

I think he's great up to a point and he's DEAD on for getting out of debt. It's a hair on fire. I think he's motivating and excellent at helping people realize that debt is bad.

But after that? Well I think you need to ignore all advice as soon as you get out of debt and save and emergency fund.

RUN don't walk away from his ELP. Run don't walk and COVER your ears about his 100% stock investment advice. You'll lose a lot.

[Eagle]

Do you mean Chris Hogan, or someone else? When I watched DR's radio show a few times earlier this year, he was on and they were pushing his new book. So, I picked it up at the library and gave it a read. It was a very quick read because it was all fluff. Basically, just motivation to go ahead and save for retirement. He told a story about an elderly woman who was eating canned dog food because she hadn't saved for retirement. It is obviously a completely fabricated story. I can't believe anyone would take that story seriously.

He and others just seem to mimic what Dave teaches. Not much original thinking or anything different from Dave's other books.

Seems like he's divided out the Baby Steps by personality... Rachel Cruz (daughter) does the material on youth and college kids. Chris Hogan does the retirement stuff post baby step 3/4. The other Chris Brown I think it is is the "nice" guy who has a stewardship radio show. Christy Wright appeals to women who want to own small businesses and the whole MLM culture.

[Eagle]

I think he's great up to a point and he's DEAD on for getting out of debt. It's a hair on fire. I think he's motivating and excellent at helping people realize that debt is bad.

But after that? Well I think you need to ignore all advice as soon as you get out of debt and save and emergency fund.

RUN don't walk away from his ELP. Run don't walk and COVER your ears about his 100% stock investment advice. You'll lose a lot.

Why run away from his ELPs?

Why will you lose a lot of money on his stock investment advice?

I don't disagree. Just curious as to the reasoning behind those statements.

[LivingAlmostLarge]

Why run away from his ELPs?

Why will you lose a lot of money on his stock investment advice?

I don't disagree. Just curious as to the reasoning behind those statements.

Because do you know what the risk and return rate is associated with a 100% stock portfolio he suggests? That the risk is ridiculously high and the rate of return I believe 12% or only 2% more than a 60/40 balanced portfolio returning 10% or so over the same time frame?

But the risk and potential loss i think is about 3x as high. It's something to RUN AWAY from. You could lose your shirt easily.

Second anyone selling loaded mutual funds which that ELPs do is wrong. It's morally wrong and yet he pushes them and ELP because he's making money. People who have been following his teachings as "gods" will get into the most trouble. Those are probably the ones who'd be best off following a very basic investment plan of 60/40 mix in vanguard or ETF or even fidelity funds.

My third issue has always been how do you listen to someone who went broke about investment advice? He got out of BK and debt, but he didn't make money like Warren Buffet. Instead he made it hucking "get out of debt" story. So he's not exactly and investment guy. I'd even take advice from Kramer and before Dave Ramsey and I think he's a hack. But at least he did make money in the stock market before.

[disneysteve]

Why run away from his ELPs?

Why will you lose a lot of money on his stock investment advice?

Paying someone else to put your money in high cost load mutual funds is a total waste of money. It will sharply eat into your investment returns over the course of time to the tune of tens or hundreds of thousands of dollars as compared to investing in low cost index funds on your own.

So I agree with running away from these guys.

[GoodSteward]

Sadly, you all miss the point I've made over and over about loaded mutual funds.

Let's all run away from Doctors who charge a ton just to tell you your sick, or a mechanic who thinks his time is worth hundreds of dollars!

1. He can't legally tell people where to invest money because he doesn't have a securities license.

2. You can't tell people to go out and invest on their own, they will get overloaded and give up.

3. Even if they did figure it out they would made dumb decision after dumb decsion because they don't understand investing.

IF YOU DO...just don't use that method. Same as if you know what is wrong you don't see a doctor, or if you can fix your car you don't see a mechanic. That doesn't make any of them wrong.

PS. You loose tens of thousands of dollars to hospitals over the years if you have to use them. I see no difference. You pay for the service, if you don't need the service don't pay for it. The avg person that needs his advice needs his simple investment advice to get started. Learn the information and avoid the fees, or just leave them alone and not worry about it. Neither choices is evil.

oh, and the reason for the loaded funds is because it's how they make a living on the information they have. Same as doctors, mechanics, lawyers, etc.

[bigdaddybus]

I look at Dave Ramsey the same way I look at Jim Cramer.

If you read their books you get documented approaches to follow and solid reasoning behind them. The average person looking for their type of help for cheap ($30 book or $100 class) will get a lot of helpful advice and approaches to better financial security or investing. (I have read 3 Jim Cramer books and taken 2 Ramsey courses, and another 50 or more self help/investing books)

On the other hand, they are both entertainers with pretty big egos. If you only catch snippets of advice from them in the form of a call in show, podcast, etc you are likely aren't getting a very complete overview what either one recommends.

[Weird Tolkienish Figure]

It has recently come to my attention that some people don't like Dave Ramsey.

For example, they say he is bad at math, that he gives bad advice, that his saving strategy is good, but his investing strategy is cruddy, that his interest rate assumptions are incorrect, that he doesn't practice what he preaches, etc.

On the other hand, his books have sold millions, his shows are extremely popular and he keeps coming up all over on internet bulletin boards, so he must be doing something right.

Like him or hate him? Whats your view?

Dave Ramsey was the first screed I read on debt that I read that really helped me and made sense.

For someone who has a money problem, he gives good advice.

For those that don't have a money problem, I don't think he gives good advice.

[vseddie]

I like Dave Ramsey alot. His principals and Baby Step method works. I've recently recommended his Total Money Makeover book to a friend that's just about to go bankrupt for owing more on personal loans than his annual income.

Personally I don't follow his Investing advice as I'd rather learn how to do it myself instead of relying on others. I think his 12% managed fund stock market returns with 8% withdrawal rate in retirement is far too optimistic.

[GoodSteward]

Personally I don't follow his Investing advice as I'd rather learn how to do it myself instead of relying on others.

That's the difference between most of the people who come to sites like this, and the rest of the world. If you want to learn how to manage it yourself you are better off and will likely do better from less fee's. However, a lot of people get overwhelmed just doing their checkbook, so they are the ones who need financial managers to get paid in some form for doing it for them.

[Captain Save]

he's definitely doing something right.. as you said above his savings strategies are great.. and that's the most important thing.. saving is always first and foremost... and we all know popular doesn't mean right.. so the amount of books he sells in a span of 10 year .. doesn't mean that his 30 year strategies work.. and I still think his strategies will work for most people but the numbers that he spills out will be way off