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|Subject: Re: Bad Investment Advice from Dave Ramsey||Date: 9/29/2013 2:12 PM|
|Author: Rayvt||Number: 73369 of 81982|
It's funny -- before I clicked the link I said to myself, "Ramsey's savings & debt advice is good, his investment advice isn't." The headline of the story was almost word for word what I said.
While Dave Ramsey has inspired many people to get out of debt, his method of focusing their snowball on debts from smallest to largest, rather then from highest interest rate to lowest interest, usually turns out to be more expensive.
No, his advice is spot on FOR THE PEOPLE WHO ARE IN THAT POSITION. People like us aren't in that position. We're looking for the most efficient way to make/save money. They are needing help getting out of cement galoshes.
If they could think logically about it, they wouldn't be in trouble in the first place. The solution they need is something --anything-- to help them breask out of the debt cycle. For them, seeing the big stacks of monthly bills become small stacks is *exactly* what they need to motivate themselves.
<... you will see results and you will stay motivated to dump your debt. but he provides no studies or data to back up his assertions.
How is this even questionable? It's the basis for every motivational support group. AA, Weightwatchers, 12-step drug rehab, etc.
His investment advice is crap, though. And his ELP/kickback program is unethical, IMHO. He's taking advantage of the people who have self-identified as being financially incompetent, when they are vulnerable.
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