Comments on: Is Dave Ramsey A “Financial Expert”

By: JoeTaxpayer

JoeTaxpayer — Mon, 16 Jan 2012 16:05:15 +0000

American Soldier – First, I tip my hat to you, I have the utmost respect for those who have put their lives at risk to protect this country.

I think that Dave, as your experience shows, has been helpful to many. It may seem petty, but those who are in the limelight set themselves up to be criticized. No different than the way overweight couch potatoes scream epithets at sport players on TV.

Dave has a “my way is the only way” approach that’s off-putting to many of us. To be clear, I have no issue, per se, with the debt snowball. My issue is when Dave answers the specific question – “how about if I pay from highest rate first?” – I understand and agree that his method provides the psychological boost of small wins upfront, but as a numbers guy, I can calculate, and referred readers to a (3rd party) spreadsheet to see if there’s a small difference with the two methods. Dave’s response that the reader’s high-rate approach is the wrong one is just wrong.

His other advice that I have issue with is the 12% return assumption allowing an 8% withdrawal each year. It’s not me, most advisors will agree this is simply wrong. 1980-1999 this was what the market appeared to support, but any other, earlier or later periods show otherwise.

By: Americansoldier

Americansoldier — Mon, 16 Jan 2012 06:28:01 +0000

If Dave is not an expert yet his credentials fall into the exact definition of “Expert”, than I’m not sure what is. And as far as getting out of debt not being the only part of financial planning, if those of you that feel that way than you are ignorant to his teachings and should probably listen to his show for a few days or read his book. In doing that you will find that he teachs to have a “zero” budget plan, meaning every dollar has a name as he often says, where you would take a monthly income of 4,ooo (in rough estimate) and pay all expenses as far as basic bills, rent, food, utilities, etc. and then if you have lets say 2,000 left you then apply that towards debt, savings, investments, etc. depending on where you are in his babysteps.
And in response to JOETAXPAYER, I have like dave been at the top, made poor financial decisions and went bankrupt and now I am back on top due to his teachings, my hard work, and most of all doing exactly what he has preached. For example 6 years ago I spoke with him on investing, then he turned the phone over to an employee of his and I spoke with her for a short period of time, then in taking is advice and his employees advice I invested 3,000 into growth mutual, 5,000 in stocks that i intended to turn fast but it wound up being 3.5 years, I flipped the stock for 17,650 and re-invested, 6 months ago i placed 67,800 into my growth mutuals making less than 70k per year. My net worth far exceeds 650,000 which isn’t saying much, aside from the fact that I’m not yet 30 years old and have no debt, and I live in a lower middle class section of town with a paid for house, car, and 2 other pieces of property in which i just let sit. I live on 53% of my annual income (which includes my monthly “bill” of saving 850 for my emergency fund, and the rest is invested, saved, and given to local charities. Not to mention 40% of my savings is going to be going towards building a very nice home in the next 5 years with cash and sweat equity. Within pessimism is doubt, fear, envy, and lack of discipline. If the debt reduction is not the way you would do it than don’t, but it is very ignorant to sit there and say that what he teaches is either false or glorified to a level in which is false. As a 4 year soldier, father of 3, and someone who has more to learn, I think that i have had more of a handle on my finances than most, and I give Dave and his crew 60% of the credit, because once upon a time when i was’nt even 20 years old i invested in real estate and made more than 450,000 in 30 months, yet lost it all while making very ignorant and immature decisions 2 years into the USAF, then I was left with a salary of 24,000 roughly per year with a wife and new born baby. His teachings and advice helped me realize what was going wrong and where I needed to make changes. It is very hard yet rewarding, and if you aren’t willing to to sacrifice your precious credit score if need be ( which mine is currently 340 and I’m completely debt free) and live on the bare minimum for 2 years, than you won’t be the cream that rises to the top and you will take 3 times as long getting to where you want to be.
Sorry for any grammatical errors or criticism, This post is not to implement doubt or start an argument, but take my story which is very basic compared to most, and read into his book, or set up an audible account and use your one free download for his audio book and just listen, don’t look into his little quips about animals make you turn him down, thats foolish. Maybe the gazelle isn’t the best animal to use but why focus on that crap, he doesn’t make millions on selling that phrase so why even bring it up, look into the message and actually give his program a try, if it doesn’t work than you didn’t sacrifice something and in most cases it’s the car or the precious fico, which is insane due to the fact that when I started my snow ball, even while not being very wealthy I never got another loan because was able to better my family without paying out money every month that I didn’t have to if I did my budget right. In any regard good luck with your investing, debt reduction, and financial peace.

By: Crewman

Crewman — Thu, 17 Nov 2011 15:13:42 +0000

And one more thing. I never paid a Dave a dime for his plan. I got his book from the library and read it for FREE and listened to him on the radio for FREE.

By: Crewman

Crewman — Thu, 17 Nov 2011 15:10:09 +0000

I used Dave’s plan and paid off 27K in car loans, student loan debt and credit card debt in 15 months. I now have ESA accounts for my kids, a nice savings account and I contribute more to my IRA. Dave is not perfect but he has helped a lot of people become debt free and for that I am thankful for him. My family and friends all made fun of me when I made a $2000 car payment during our debt snowball. Now my only debt is my mortgage. To my amazement they still make fun of me. When I ask them what would you do with an extra $1500 a month they always say “I would spend it” and that is why it’s all about personal discipline. Many people do not have the ability to control themselves. Dave helps people focus. Dave ROCKS!

By: kidvelvet

kidvelvet — Tue, 28 Jun 2011 15:36:22 +0000

Calling Dave Ramsey a financial expert would be like calling the person that changes your oil at Jiffy Lube a mechanic. He is a one-trick pony that has a marketable method for reducing debt. He is a great salesman, and being a great salesman and making money through a business does not make someone a financial expert; it makes someone a good salesman and businessman. NOT the same thing.

And I am sorry…a gazelle is quick to react. That is NOT intensity. That is a quick reaction time. The cheetah that sits and waits for the opportune moment to hunt the gazelle has intensity. But hey, the phrase markets well to the unwashed and uneducated masses.

By: Joetaxpayer

Joetaxpayer — Mon, 29 Nov 2010 04:32:43 +0000

Mellie – I wonder how the average Dave follower who retired in late 90s made it thru the decade. 8%/yr as a safe withdrawal rate? They are likely in a world of hurt following his advice.

By: Mellie

Mellie — Sun, 28 Nov 2010 22:30:53 +0000

I would say that at the end of the day, Dave Ramsey has helped a LOT of people get out of debt. His advice is sound and he doesn’t make the claims of expert status…that seems to be tagged on to him by others. He DOES have the education in finance, he does have the experience in business…and his ministry (and that is what it IS, whether or not people like it) is to help people get out of debt. Of course part of that is going to be motivational. But that doesn’t make it any less valid. If you don’t like his ministry, go find someone else to listen to. It isn’t a cult…it is a group of uninformed and in debt people who are willing to listen to sound advice.

And if you want to be a socialist, stay in Canada. Regardless of what Obama wants, we are not a socialist country and most of us don’t want to be. If you want to be, good for you. Go to Canada. They are good people and will welcome you with open arms.

By: Lucas

Lucas — Tue, 09 Mar 2010 05:19:09 +0000

I wouldn’t call him a financial expert in any sense. Motivational yes. Good at developing budgets yes. However my biggest beef with him is like most who proport to be financial experts on tv and radio. He’s not licensed. If he was he couldn’t make the claims he makes. He’s actually held to a much lower standard because he’s not licensed. He can make general reccomendations for huge swaths of people (or every single person) without any consideration for suitability. That’s grounds for license revocation and being banned from the industry except he’s not licensed so he can’t be held in compliance to any state or federal securities or insurance law. What he is good at is selling books. And for that I congratulate him.

By: Rick

Rick — Sun, 31 Jan 2010 13:53:41 +0000

I never once heard that he was an �Expert�, but building up a multimillion dollar company with over 200 employees is pretty good for someone you would not call creditable. I have close friends who are experts and professionals in their field and only through the school of hard knocks.
Radio talk show host is his expertise. Which he states in the Understanding Insurance DVD of FPU, as far as investing goes I have applied his method and am doing quite well, then again I started right after the big crash in 2008, but he also states to you seek a personal certified financial planner as well with the heart a teacher. Take it for what it�s worth dish out the junk and do your best.

By: chad

chad — Sun, 15 Nov 2009 23:40:53 +0000

Dave Ramsey is a joke! If he is going to call himself an “expert” than he needs to be knowledgable on all financial topics that he discusses. I respect “experts” if, when they don’t know the answer to a question….they say, “I am sorry I don’t know for sure, but I will find out and get you the correct answer shortly.” However, Ramsey thinks he knows it all and just makes up some crap if he doesn’t know. Also, I am sorry to all those people who listen to every word Ramsey says (invest all your money in growth stocks). I am sure that everyone was extremely happy to see their investment account down 40-50% last year! The everyday investor doesn’t understand volatility and risk/reward. He makes his listeners think they will return 12% every year….Freaking JOKE! I hope he is saving his money because he will get sued big-time some day soon.