Don’t Listen to Dave Ramsey

Transcript

Mike:

Welcome to another episode of Mike on money. I’m Michael Reese, certified financial planner, founder of Centennial Advisors, and of course, creator of the prosperity planning system. All right. Today’s episode is going to be glorious. We are going to talk a little bit about another personality out there in the investment world. I want to talk a little bit about Dave Ramsey and some advice that I’m hearing from him recently. And I want to share with you, like here’s, when you should listen to people like Dave Ramsey, and then I’m going to share with you. Here’s when you should essentially blow them off. So this could be a great episode. Now, before we dive in, remember as always click the like button below. If you like it, you’ll thumbs up. Make sure you subscribe. If you haven’t done so already. And of course, feel comfortable sharing this video with your friends and neighbors. Okay. My man, Dave Ramsey first, let me get something straight. I admire him.

Mike:

I love him. I think he’s fantastic. Right? I love how he communicates. He’s got such a wonderful communication style. I love how he ties the Bible into concepts with your money. I mean, I think overall he has built an empire and he is fantastic. When here we go, when he sticks to his knitting, as my mother would say, so what do I mean by that? What is Dave Ramsey famous for? Like, what is he really, really good at? Well, the answer is helping get you out of debt, right? That’s what he does. He’s really good at helping the average everyday person get out of debt. And I think that is wonderful. I think that’s the most wonderful service that is fantastic. I love him when he talks about that. I love when he helps people do that. You know why? Because that’s what he knows. That’s what he understands this way. He’s really, really good at that’s his expertise.

Mike:

Okay. Now, with that being said, this is a part that started this whole discussion because I’ve been hearing this over the last few days. I’ve gotten a couple people asking me about it. I’ve I’ve seen some videos of him talking about this, but it all has to do with Dave Ramsey’s investment recommendations. I’m going to share this with you that generally speaking, maybe you might want to consider another opinion. So why let’s talk about what they are. This is what Dave wants you to do. According to him. This is how everybody should be investing money. Like all the time for funds, all you need four and he loves mutual funds. I don’t know why, but I mean, it’s like, It’s almost like it’s kind of

Mike:

Like Dave Ramsey, this investment advice he’s giving, it’s kind of like the old computer guy that still thinks he needs to use one of these bag phones, you know, instead of an iPhone, like I’ve got an iPhone 12 that’s what’s new. That’s, what’s the coolest thing lately, but it’s kinda like the guide says, no, all you need are these bag phones. That’s all you need. So here’s what he says. First, four mutual funds. You need a growth fund, a growth and income fund and international funding, like an aggressive growth fund, basically growth, growth, growth, growth.

Mike:

Now let’s imagine that you are my man, Luke right behind the camera. You don’t see Luke, you just wave or something. Yeah. He’s waving to me. You don’t see him, but Luke who’s behind the camera. He’s like 22 or 23 or something. Right? Young guy, super smart, super talented. Now let’s imagine Luke is saving for retirement. I would have no problem if he wanted to use those four mutual funds. If he said, yeah, I like the idea of getting a growth fund and a growth and income fund international fund and an aggressive growth fund. Yeah, fine. There’s no problem with that. He’s 22. Like my daughter she’s 27, my son, 25. I have kids in their twenties. If you’re in your twenties. That’s great advice. Go

Mike:

Ahead. Use it. Heck if you’re in your thirties, go ahead and use it. But once you start getting a bit of money, you start getting into your forties and especially specially you start getting into your fifties. You have to start recognizing that retirement for you might be on the not too distant future. And if you follow Dave’s advice on those four funds, growth, growth, and income, aggressive growth, and international. You know, if you follow that advice, you need to understand that you are exposing yourself

Mike:

To essentially a 50% loss of your money in a really bad market environment. So let’s say you’re 58 years old and you’re thinking to yourself, Hey, I’ve saved a million dollars and I’m going to retire in a couple of years. And I’m following Dave’s advice and oh look I’m and growth when times are good. Yay. You want to retire in a couple of years, but oh no. Oh no. The market

Mike:

Decided it. Wasn’t going to cooperate with your little plan in the stock market decides up. We’re going to have a 2008 environment. We’re going to just, just crash and burn for, for a period of time. Or we’re going to have a 2000, 2001, 2002 environment where we just crash and burn over three years and the stock market’s down 50%, you lose 50%. Next thing you know, you say, okay, I had a million. I was going to retire in two years.

Mike:

Now you got 500,000 and guess what’s not going to happen anymore. You’re not going to be retiring in two years. Right? You got to understand Dave, all the time talks about this is how I invest my money. That’s great. He’s got tens of millions. If not hundreds of millions of dollars, Right? He can lose half his money. Who cares. He’s never going to use it all anyway, is that you? Is that you? I mean, that’s you too great.

Mike:

Then follow his advice. Who cares? But if you’re like most people, when you get closer to retirement, you can’t be following that advice. It’s like, it’s almost like a, Hey, you’re almost, I’m going to say this. I hope I don’t offend too many people. It’s almost like you’re bending over and saying the stock market. Hey, whack me a good one. Right? I mean, you’re just asking for it. No, you have to have a more sophisticated approach than for mutual funds. All right. Listen to people like Dave Ramsey on stuff. He’s good at getting out of debt. But when it comes time to other areas, like how should you invest your money? Especially if you’re getting close to retirement or if you’re in retirement, boy, avoid his advice. Like the plague at that point, because that’s the kind of advice that will bankrupt you. If the markets decide they don’t want to cooperate, how’s that? I love the guy. He’s a great guy. I think he’s really, really good at getting people out of debt. He’s really, really bad at telling someone who is nearing retirement or in retirement, how to invest money. That’s our message this week. Folks. Hope you enjoyed it. All right. Again, if you liked it, click like feel free to subscribe, share with your friends, neighbors, countrymen, and with our member, you deserve a fantastic retirement. Let’s make great financial decisions so that you can enjoy the retirement that you truly deserve. See you next time.

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