Should you follow Dave Ramsey and his baby steps to financial success? On this episode of the Retirement Reality Podcast, Mike takes a critical approach to help you determine if Dave’s advice is right for everyone.
The Reality of the Matter:
You may have heard of Dave Ramsey, be it from listening to his financial show or reading his book. He’s popular for his financial advice, but there may be things to be aware of before following his advice. What do financial advisors like Mike think about Dave and his recommendations?
One of the big parts of Dave’s financial strategy is the debt snowball. You pay off debts and build momentum while paying them off from smallest to largest. Mike has found this to be a good strategy to help people stay motivated and be able to visualize paying off debt. But is it a good idea or a bad idea to put a hold on saving for retirement while paying off your debt?
When it comes to mutual funds, what are you investing in? How much does it really cost? Is it a good long-term strategy? Also, it’s important to ask what your expectations are when it comes to your returns as well as how much you can spend in retirement. Dave gives one set of numbers, whereas many financial advisors suggest planning otherwise. Check with your advisor to help set realistic expectations.
While some of Dave Ramsey’s principles may be good, consider what’s really right for you and what’s not. Working with a financial advisor can help you customize your plan and focus on your situation.
Listen to the full episode or click on the timestamps below to hear what Mike does and does not agree with when it comes to Dave Ramsey’s financial advice.
1:04 – Mike looks forward to summer weather and football season.
3:01 – Mike shares about his favorite charity to support.
5:55 – Is the debt snowball a good strategy?
7:43 – Should you just invest in mutual funds?
10:07 – Can you spend eight percent of your money in retirement?
12:42 – Is it a good idea to stop saving for retirement while getting out of debt?
14:23 – Dave Ramsey has seven baby steps, but are they for everyone?
17:14 – Know who the audience is for these financial experts.
Thanks for checking out the Retirement Reality Podcast. We’ll talk to you again next week.
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