Dave Ramsey--Debt Free Revolution

I think that Ramsey fans will be in for a big disappointment in regards to mutual funds when they retire. There is quite a lot he's NOT telling you about MFs vs. investing directly in those underlying stocks.

I never said that Ramsey et al said it was "not possible". And, your statement is erroneous. It's not "too risky" for the average Joe. 99.99% won't fail if they have the help of a good financial adviser. Dave went bankrupt because he didn't hedge his debt properly and then somehow decided that "leveraging debt is dumb". You don't need fancy gimmicky products. All you need are fixed interest on the loan and the interest bearing account. It's provable and safer than wrapping up money in your home.

he didn't say it was not possible. he just says its dumb because it's way to risky. and %99.99 of people who try to play with debt will fail and die miserable, depressed and in debt, and leave their loved ones holding the bag. i think its better to be responsible. (i'm not bashing your view. im just sayin it's too risky). i want to be happy and not worry if i'm goin to lose everything from playing with fire. take care!!!

...by not delineating between "good debt" (debt borrowed to save or invest) and "bad debt" (debt incurred to artificially expand one's lifestyle) and by refusing to acknowledge such a thing exists) is detrimental to his listeners. It's insulting to the "average" individual who deserves much, much more than half-truths about how the financial markets work. Proper education never hurt anybody, sophisticated or not.

Math works the same whether you are "smart" or "dumb", and I disagree. The average person will need to adopt a more sophisticated approach, especially with the current filial responsibility statutes reaching across 30 states and the expected rising costs of medical care in this country. Plus, some of the assertions by Dave about mutual funds, stocks, life insurance, and annuities are factually incorrect and out of context. The fact that he insists on asserting erroneous advice is troubling.

I agree with you, but you got to realize Dave is intent on helping the average person. The average person isn't going to need to leverage debt as a real estate investor or anything. Telling them debt can be good is just going to confuse his message. I agree with his mesasge to his listeners that debt is BAD. A more sophisticated investor isn't going to be listening to his show for advice on how to get out of consumer debt, IMO. So, he's got the right message for his listeners.

I'm debt free!

No, it's not a bad example. As I SAID BEFORE, Milken going to jail had nothing to do with the method he used to make the money, so it is a perfect example. It worked and there is a sound reason why it worked. Enron execs made a fortune from manipulation not from debt leveraging. I agree that buying consumable goods is a pretty poor use of credit though.
It doesn't matter if Dave is talking about venture capitalists or the man in the street, the CONCEPT is the SAME for both.

Milken went to jail, so kind of a bad example. Enron execs made fortunes too, but how'd that turn out? Not my kind of role models. Anyway, Dave isn't interested in high-finance capitalists that "leverage debt." He's talking to people that run households. Using a credit card or car loan to buy consumer goods is not "leveraging debt." CC companies and other consumer loan vendors have told a lie that "leveraging debt" to buy "cool" jeans or a BMW is OK. It's not OK. It's just plain dumb.

Excuse me, $500 million not $500,000.

Not really. Dave always preaches that leveraging debt is dumb. 1) Simple Math proves him wrong, and 2) Michael Milken's annual income in 1986 or "85" was $500,000 which he made entirely by leveraging debt. Even though he was barred from his profession by the questionable use of RICO laws, that doesn't change the fact that his methodology made investors and himself TONS of money.

Try STUDENT DEBT KILLER program as seen on YouTube

I have a lump in my throat as I listen to the exhuberance in the voices of these winners! That will be my husband and me next year.
Get your earplugs because we'll be screaming "we're debt free!" with the rest of them.

You'll spend less by NOT watching TV.

Common Sense is so refreshing!