Home Forums Hunting & Shooting Hunter's Campfire Dave Ramsey's Six Retirement Myths

As Dave says “ don’t ask broke people for financial advice “

That is a fact.

Devise and adhere to a plan that you are comfortable with.

Live within your means.

DO NOT invest money into anything that you cannot easily explain how it works to someone unfamiliar with it.

Consider risk, return potential, and tax implications before investing.

Do not take investment advice from broke people.

That is a fact.

More important than any other advice.

If you can't afford to pay cash for it, you can't afford it.

And yes..that goes for cars and houses too.

You can't believe how cheap you can live when everything is paid for.

Have to disagree to a degree, ingwe.

2 words.

Leverage
Equity

It all depends on your age. If you owe money on a house and you're in your 30-40s, it's okay. If you have a mortgage in your 60's, you're screwed.

Bottom line?

Dave Ramsey has a plan.

95% or more of the average Joe's out there don't.

Therefore, Dave Ramsey's plan wins 95% or more of the time.

You can sit and split red pu$$1 hairs arguing if it's better to save and invest in real estate, or REIT's or dividend stocks, or health care stocks, or index funds, or ETF's, but it is all whining about how many angels can dance on the head of a pin.

Dave Ramsey's plan is simple:

1) Be deliberate in your career. Don't get stuck in a dead end low paying job. Make some money.
2) Be deliberate with your money. Spend some, save some, give some. Devise a plan and stick to it.

That's it, really. You can go all Pharisee on the details and fuss about all kind of stuff, but if you do 1) and 2), things will be just fine.

I fully agree with this.

I have many mortgages, and I'm not screwed.

I think you, and ingwe and I are talking about different things. We are talking about personal finances and you're talking about real estate investments.

dave ramsey has lots of good advice but its not for everyone. I would say its for most people though. The problem I get is he always says "good growth stock mutual fund" uhh where? I have personally be unable to find anyone who has gotten wealthy with this strategy. NONE and I do ask. I ask my accountant, my mortgage guy, who sees 1000 tax returns a year. The problem is people don't get wealthy by investing that way. They just don't. The numbers never seem to work. the 401k people may have 100k in some account in a mutual fund they have made some money on. to that I say big whoop, 100k aint getting anything done. Where are most people's greatest wealth? in their house, right? YES that is where your average persons biggest amount of wealth is at, Soo

If you ask people that have really made it, its going to be insanely rare to find someone who doesn't trace their wealth back to real estate somehow.

Dave's advice on budgeting, settling debts, and not actually being bankrupt is spot on. I do tune in at times to listen to him but, when he tells someone to sell a rental property they have 50% equity in that makes them money every month, my eyes glaze over and he loses me.

DR has good advice for the most part but he really sets people up for disappointment when he touts 10% return on investments. i guarandamntee that most of his "Pro's" don't get that. i know that for a fact because i used one for about 7-8 years and wasn't impressed. you better plan on 5-6% with standard long term mutual fund investing and plan to be happy if it does better. if you retired in 2000 and used his advice you'd be fugged a while now.

Exactly. All my long term planning is based on 5% growth, which stays ahead of inflation enough for modest gains. Anything else is a gamble. Now, I’ve certainly done better than 5% over time, but I’m not basing future earnings or hope of retirement on past earnings.

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