Dave Ramsey, How Could You?

Dave Ramsey, a well-known talk show host, is brilliant when it comes to managing spending, debt, and real estate. I recommend his books in my books and frequently hand out his DVD's on budgeting and cash flow management. However, when it comes to understanding investments and portfolio withdrawal rates, Dave could use a little education.
Rick Kahler, CFP, resides in Rapid City, South Dakota and is a fee-only financial planner. He is the co-author of "The Financial Wisdom of Ebenezer Scrooge" and "Conscious Finance," both available on Amazon.com. You can learn more about Rick at wwww.kahlerfinancial.com.

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[rapidcity55]

Ummmm.......there are mutual funds that invest in REITS. REIT's are no more complex than any stock. Any Joe Shmoe can buy a mutual fund that invests in REITs just as simply as one that invests in the stocks of companies. Who's missed the point?

[robstang66]

I didn't click past the first page, I noticed this video was posted 11/07...............Dave talks about long term growth funds. LONG TERM GROWTH meaning 20. 30, 40, plus years. Bond funds?!?!?!?! (variety of different bond funds, beginning at 5:05 on the video). Now I know this video is over 3 years old, but Sir.............please, show me a bond fund with at least a 20 year positive track record over 8%.

[rapidcity55]

@robstang66 Who mention bonds in this video? Listen to the video again and then Google REITs. REITS are not bonds, my friend.

[rapidcity55]

@robstang66 REITs long term returns still beat those of “good growth stock mutual funds.” A recent study done by Francis and Ibbotson that compared the 30 year returns on stocks and REITs ( from 1978 to 2008) found that stocks (S&P 500) had an average annual return of 10.84% while equity REITs averaged 11.94%. :

[bthomd]

Dave does a great job motivating and teaching those in heavy debt and financial straits good basic financial priciples so that they can get to the point where they have money to start investing! He is pitching his opinion! Thats why people call him! Obviously, anyone with half a brain seeks wise council (plural) not just one wise councillor! You might have done better to position yourself as complimentary instead of opposition! He always admits to how conservative he is in investing.

[rapidcity55]

@bthomd Did you listen to the opening of the video where I referred to Dave's advice on cash flow management as "brilliant?" Seems that was a fairly complimentary statement. Reading the comments to this video are very interesting to me. It seems a lot of folks have such a blind alliance to Dave that they are unable to admit he got his facts wrong in this one area. That doesn't make him wrong in everything, as many seem to suggest I am saying.

[djswizz]

You're wrong there buddy. Dave NEVER said growth stock mutual funds earn 10-12% PER YEAR! It's 10-12% over the life of the stock market's history. Get your facts correct..

[bc1969214]

The thing is Ramsey has to answer callers right there. He can't say hold on let me go research it. If this was an article Ramsey wrote where there is time to fact check, that's one thing but on the spot radio talk shows are another.

As always get your info from many sources, just don't say Dave where do I put my money then take that advise blindly.

[TheScriptureMan]

I think this video poster and many here are missing the point. This occurs when things are taken out of context and one statement is focused on without taking into account the entire message. Dave notes the wealthy get there through simple investment vehicles. A REIT is not a simple investment vehicle that any Joe Shmoe can obtain and utilize easily. This is why Mutual Funds which are a common investment vehicle is the vehicle he promotes. He is trying to help the masses, not the experts.

[mcclurn11]

2.6 average annual return for mutual funds sounds really, really low for any kind of mutual fund during this time period.

[zombie4165]

you suck

[drburgwald]

@djswizz I'm sure someone has pointed this out in the last year, but this is wrong: Dave's website says this: "When Dave says you can expect to make 12% on your investments, he’s using a real number that’s based on the historical average annual return of the S&P 500."

Unfortunately, Dave is wrong on that... the annualized return of the S&P 500 is 9.89%, not 12% as Dave claims. And once you account for inflation, it's 6.7%.

[Filmore87458]

Facts are facts. It is unwise to follow anyone blindly. Thank you. 

[06junebug]

@ FDIguy......Ditto!!!!

[Multicasas]

worldwidedata.ws has a surprise for everyone...This is your best investment.

[FDIGUY828]

Dave Ramsey is selling his stuff. He does not care about you.

How can you trust anyone in the MEDIA? Anyone?

They hope you are in misery. They remind me of the doctors in this country, who need you to be sick all the time. They pump you up with medications and NEVER want you to be healthy.

Dave Ramsey is another blowhard on the radio. Ignore him. You are better off meeting with someone who is not going to sell you another program but, work with you one on one.

[bc1969214]

@sasquatchexpress I hear what you're saying but it would be worthwhile knowing if Ramsey answered on a live program or pre-recorded. If live, I don't picture any of these gurus saying "I'm not sure, I need to research that and I'll have a staff member get back with you" even when they should say that. Even info that's been out there for years doesn't come to mind instantly. Some of these gurus try to be jack of all trades instead of wisely sticking to specific areas.