Dave Ramsey Gets It WRONG! And Here's Why... / Garrett Gunderson 

I usually thought paying off my mortgage earlier was a good idea till I came across my financial advisor/portfolio manager who advised me on the right to do .

Garrett... You need to call in to his show with some "questions"

As a self employed small business owner with multiple income streams, Ramsey’s program made no sense to me. If I’d have been afraid of taking on a well researched and thought out loan for my business 2 years ago, then I’d still be at a job I hated and doing my dream job part time. The loan allowed me to grow faster and quit my job, and go on my own. Once i paid that off and I was looking at where to put money my business was generating, I found you. Maybe I was biased, because in my bones I believed if I stayed liquid with my cash instead of squirreling it into a IRA, my business would grow even faster, and It did, and continues to grow. Your philosophy of investing speaks to me. Especially after watching my blue collar father save and scrimp “for retirement” and then he died at 57 of cancer. No retirement. No social security. No quality of life, and nothing but hard work until his death. I want something different.

Dave is right about using credit card debt but wrong about credit cards. For example I pay my property taxes with a cash back credit card then pay that card off when the bill comes in. It’s an easy 4% to 5% back to me.

Finally ! A coherent rebuttal to the nonsense Dave has been peddling all these years. His condescension and arrogance around things he misunderstands has always made me a little nauseated 🤢 “Always” and “never” are rarely accurate when speaking about financial matters. I believe that Dave is only interested in speaking to the uneducated. This way, he can “always” be is the smartest guy in the room and “never” be wrong. See what I did there? Very nice to see you fairly accessing this guy who has made his money with “do as I say”rather than “do what I do”.

He’s completely ridiculous on some things. I work in finance and I’m pretty sure you would get fired or at least laughed at if you refused to get a corporate credit card, which he’s also against. My flight alone to India for work was $7k and then I needed hotel and food. I couldn’t imagine having to put that all on my debit card, waiting for my company to pay it back or saying no to an all expense trip because I’m afraid of a credit card lol

I don’t agree with Dave on everything, but this is one thing I do agree with him on. Dave is basically saying that if you follow his plan, you will eventually become self insured and won’t need to have life insurance your entire life. However, until you get there, use term life insurance. I do agree with you however that it’s a case by case basis because some people might never get their finances together to become self insured, so should have whole life insurance to cover their family. I am open to changing my opinion on this, but I do think that if you have a good financial plan to eventually become self insured, term life insurance is the way to go.

Wow I cant believe how much of an influence Dave has. I am so glad that i started my policy's and used it to get in a better position in our business. Unfortunately we didn't have a rich relative that helped us start our business and we took out credit to start it. We realized that as entrepreneurs our biggest risk was us and we needed a place to save money for the future and leverage it if possible and needed in our business.

Garrett should call into Dave Ramsey and have a talk with Dave. That would be an interesting conversation.

I love how Garrett Gunderson call people out on people bullshit. I love how much you care your passion make me want to be a better steward of money. I love when you fuss is that crazy Garrett?

Dave has the boomer mindset with credit cards, his argument is no one gets rich using credit cards. We don’t use credit cards to get rich we use credit cards to keep some of our money instead of wasting everything and not seeing it again

Context does matter here - Dave isn’t concerned anything but a person, covering loss of income with whole verse term. Not business. Not saving. So On. Having done the actual FPU classes I can tell you that there are plenty of exceptions related to the cost vs. value issue you mention that Dave does indeed give on many instances where he recommends a pathway or product where cost does not limit the decision to buy or employ such a product: Identity theft insurance, liability insurance related to car or home, 15 year mortgages, etc. The fact that he recommends even term life insurance is a small testament to that. That being said, I believe you are correct to say he is speaking from older information and a general principle bias concerning term life vs whole because he (like you) would say that (if you follow the plan) you would be finding your own “life” insurance by the time the term is expired - kind of like your principle of “be your own bank”. I think what is the sticking point with you, and others, with Dave is the absolute hyperbole with which Dave comes at this and people hear one call or one example or one RU-vid video on this (and other products such as credit cards) and then make that his whole opinion on the matter in ever way and instance. Dave will, if you listen and read long enough, have many exceptions to the rule that he brings out and often works even further along the “edges” of said principles, as he talks with specific people and their specific circumstances. Here I would say he is simple not going to give any insurance guy the time of day or one inch with regard to said principle since it’s his show and may go against his general principle regarding whole life being bad compared to Term, when you are talking about the context of strictly working his baby step program. Now, I also think that after getting done with Dave’s baby step 3 many people do continue to follow Dave to a Tee as it does continues to be safe and remains in the same steady but slow pace they have been now retrained in and are comfortable with (I.e. The Turtle wins the races): and they really don’t want to take the time to step out of that new comfort zone having seen so much success up to this point. Plus, for many, they are happy enough with the pathway and can’t or won’t be bothered with putting forth the effort to educate themselves further. Others, once they have a handle on the consumer debt and have their finances under control do begin to seek out more opportunities with their money and begin to branch out to people such as yourself. I must say that related to finances - Dave changed our lives positively; for me and my family for the better and I will eternally be grateful for all that he and his team and program did for us. That being said, I also realize that, now that I have the financial foundation solid again, my wife and I can save AND build at the same time according to our risk comfort level moving forward and I have learned from and appreciate so many points of view with regard to investing, wealth building, protecting, and even giving back.

You are in a strange city at night. You stop for gas. Your debit card won't work because the bank has frozen it since it has yet again been compromised. So you pull out your credit card, fill up the tank and get on your way...instead of being stranded. That's a time when you and your loved ones should use a credit card!

I get 2% back on my CC for bills I have to pay anyway and I always have 0 balance and get about 1k back every year.

Please just try to remember, Dave Ramsey is talking to a specific audience. An audience that is underwater and they see no way out. Dave Ramsey is speaking to people so desperate in debt that he has to have a very basic system for these people to follow, check the list, and follow steps to see the light. All of us come out of high school and college with very little practical teachings in personal finance. At least most of us. I’m glad I follow some or most of his rules.

Life insurance policies with cash value, of which there are different versions, can be a good Financial & tax planning tool. for many people buying term and (regular disciplined) investing the difference of course in much higher rates of return than the Bank savings account is a good method too. it's also a good strategy to have a term policy especially for the length of time one has a mortgage. When Dave starts out the conversation talking about no good reason to ever use a credit card, it's a difficult way to start the conversation.

Garrett is fired up! This is the best. Garrett please start a new show where you watch other financial experts and critique them. Better yet you need to call into the Ramsey show and crush him with knowledge.

Loved your rant too!👏👏

Don't use credit cards period

This is why I choose not to argue. Some people have their mind made up BEFORE we even argue. Not to mention, people have hidden agendas and even when you PROVE them wrong, their ego won't allow them to accept it.

Awesome thanks

“No good way to use a credit card?” I use one that gives me points at the world’s largest online retailer. I pay off my balance every month. I have over $300 to spend on that retailer’s site for my holiday shopping, and I didn’t pay any fees or spend a dime more than I normally would on anything. I dunno, seems like a pretty good deal to me? (That’s not even mentioning how Dave thinks people are going to be able to buy cars or houses or possibly even get a job with zero credit rating.)

Loved this! More reaction videos please.

Dave Ramsey is always talking about outdated stuff. For example, all his mortgage analogies he references "going to Countrywide." Someone tell the guy Countrywide went belly-up in 2008 and has been BofA ever since. He's like listening to a dumbed down version of my grandpa pontificating.

I love DR for getting out of debt and saving. Not the best for disciplined and lucrative investing in America, too conservative for me now being in my early 30’s and I’m surely very conservative.

I agree that people need to be careful with credit cards and using leverage, but I like whole life policies for young people, and I’ve used debt to buy multi unit rental properties. I’m careful to have plenty of my own resources, but in general, I’ve used OPM. I’m interested in who you recommend for whole life policies.

I mostly agree with Dave on term insurance. Whole life is not exactly a scam but it often gets sold to people who don't need it and would be better off with term and investing the rest outside of an insurance policy. The payout thing is not an issue. You buy term insurance hoping it will never pay out because it's insurance not an investment.

I think people are using the word "budget" wrong. Budgeting does not equal penny pinching and living like a miser. Budgeting is knowing and controlling where your money goes. Companies budget their money, and you should do the same with your personal finances. Budgeting allows you to do what you want with your money without fear of going into the red. I bought a $100 grass fed, dry aged, beef brisket from a local rancher ($9 a pound as opposed to $3 a pound at the grocery store for a regular brisket). That's not penny pinching, that's my budget telling me I have plenty of money to spend on groceries because I don't waste money on things I don't need. And it doesn’t matter how much money you make. There are plenty of high earners out there living way above their means because they don’t control or know where their money goes. The only difference between them and the rest of us is that they have a $150,000 car instead of a $30,000 car, and they have a $1,000,000 mortgage instead of a $200,000 mortgage, but they would still be utterly screwed if they lost their income because they are living on the edge or over the edge of their income. I’m not a Dave Ramsey fan, but I am a big time budgeter.

Thanks for this it very helpful.

You have a policy that has done 6.32%!!!! Tell me more how can I get a whole life policy that is yielding 6.32%? Really... I am not sure that is something worth bragging about.😂

Dave has some good points !

Yeah this is the exact video that helped me see how passionately stuck Dave is! Good reaction video! Thank you

There are many paths to wealth. You guys can both be correct. Dave has changed my life but I do consume content that’s contradictory to his methodology. Dave helps the average joe gain control of their finances. Through my research, I don’t necessarily agree with his investing strategy but I definitely think he’s worth the listen and his principles do work

Great Video 🏆🏆 thank you 🇺🇸

Dave is the safe bet on life I listened to him makes sense for those who are boring. But if you wanna go on vacation it may be needed for mental health reasons Dave doesn’t factor in actual life and experiences along the way.

At 4:57 mark why not then just invest the money and get far more than 4% ?

Great perspective

Dave is brilliant at selling his philosophy and it works well for those who are fearful and/or those who've made bad financial decisions and need to dig out and reset

We use credit cards every month, earning 5% cash back. They get paid off every month so no interest in added!! Huh 🤔

Love it! So true

In high inflation debt is your friend not your enemy savings is stupid if the government just print it Ps I'm not talking about emergency funds but I'm talking about general savings Ps 2 I try to have 1 to 2 years of bills in the bank at all times but I don't want cash assets too much

What I take from this video is the insurance salesman and Dave don't understand what cash value is and Dave doesn't understand capital formation and generational wealth.

Love the opening

Just like most issues...What's the goal? Whose the audience? This changes the answer. Is this advice for the poor person? Average person? Wealthy individuals? Entrepreneurs? W2 workers? etc. This is why the conversation can continue for eternity. This is not cookie cutter. Life is much more colorful.

🤣🤣🤣🤣 I’m laughing and I haven’t even watched the whole video

he started in mutual fund and then bought businesses,there is 2 types of investors they say the one that can lay down a huge lumpsum and the one that has to invest on a per month or weekly basis, coz either they get a employer sponsored retirement plan or a personal retirement fund.

Love this reaction video

Great video

Only 1.1% of term pays out? Cool good chance I'll survive the next 30 years.

Garrett, I am actually a financial representative and I agree with you - but just so you know, the FCC has been investigating the whole life product and cash value will NEVER pay 4% - anything other than a direct investment with an investment company is the only way to get a good yield. When you put your money in a bank or insurance company you will never make money from your investment. However I also believe in abundance! I agree that living with saving rather than living is ridiculous. I commented on someone who was bragging that they had ordered products for free to 'try' and then wrapped them up and re-gifted them for Christmas gifts! OMG!!! That is just SO wrong!!! IF you can't afford to buy gifts you shouldn't have any money to save because love is definitely the right reason to save - but not at the expense of the people we love. Saving so your family is safe if something happens to you is one thing but living on nothing and sacrificing your own wellbeing is ridiculous! My company allows an insured to renew their term policy if needed with no medical exam and a much lower premium...I SO relate to what you say!!! The people who live on a budget really make me sad at their own unhappiness. They are so mislead!

Dave will never debate you cuz you would embarrass him an people would question if they should follow his advice

there is no financial planner or consumer financial advocate who would ever advise whole life over term..follow the $...no insurance agent would ever push term over whole life..the difference in commission is ridiculous

Average Joe listens to Ramsey! Thank you for sharing your thoughts Garrett 🙏

Yesterday I came across to your channel, Garret! And I’m very grateful I did. Love your channel and all the value you bring to people 💚

If someone has Estate Tax issues then Cash Value LI works to pay the estate taxes. That would be a situation where Cash Value would be a better option. Ramsey does a great job of helping people who have credit card debt that is out of control get that in control. Besides that, there is a lot better advice out there.

Are you Tim carton? I want to look up his videos as well

I think choose fi has the some of the best answers on this , so what if people budget their life down to minimal and they are no fun for everyone else ( they’re all broke ) when your retired at 35 🤷🏼‍♂️ .

I find his budgeting style of planning ahead does not work for me. I tend to do better when I see what I have left after I pay necessary expenses. Neither way is right or wrong. Some people do better planning ahead.

trying to use the concept that many companies and business bought whole life policies or covered them. does not mean or prove the policies themselves are any good, B.S the reason they bought them was cuz they made huge profits off the insured. yet the policies themselves are frought with problems that come back to haunt you later in life. Ramsey is right on this one. Indeed there is money to be made in investing in insurance companies bu7t that does not mean the policies are really any good

Let investments be investments and insurance be insurance. Don't confuse the 2

did Saul Rosenburg call Dave Ramsey?

Your first point is invalid because it’s also incorrect to use a savings account for anything more than an emergency fund

Avoiding credit card debt, smart Avoiding credit cards altogether. Unwise. I use credit cards as method of payments to ensure my purchases. I rent cars when I am on vacation. I save a lot of money using a credit card.

money wise Dave is spot on. socially he and i disagree on a lot

I’m a business owner and multi millionaire. I’m always using business rewards credit cards and lines of credit. And have real estate with multi millions in loans as mortgages. As long as my credit to equity ratio is good what’s the problem.

Dave created a simple Step process that has helped many people. Outside of that, it is up to the individual to teach them self financial education and do what they think is best for their given situation. Do i agree with all Dave's points..No but it is a good tool to keep in the back pocket to begin the debt free journey. But obviously since he created it and he is a Capitalist, you can bet he is going to stand behind it 100%.

#Bitcoin

Dave Ramsey’s advice for getting out of debt is great but both his anti-investment stance while paying off debt and his anti-credit usage stance sucks. Dave’s advice is totally biblical and it works for very few, mainly those who have enough money to cash-flow everything which 99 percent of people do not.

a lot of people would say dave ramsey is mathematically 100% wrong about paying off your mortgage early. i paid my mortgage off, but i know mathematically it doesnt make sense. and a lot of people say his advice to use mutual funds doesnt make sense either. etf's get the same or better returns than most mutual funds, and the fees are negligeable compared to mutual funds

To your comment at 6:15 you need significantly less after the avg persons family raising years so that why it’s likely negligible at that point to let the insurance go or 🤷🏼‍♂️ and most at this point should have some decent investments, no need at that point to pay for an expensive life policy . But if your a dad of 3 kids and a wife ....yes you need a life policy of a million ( example ) while the kids are being raised . And so on 🤷🏼‍♂️ . If you don’t have the basics to cover at least your funeral expenses, it really doesn’t matter you basically are financially inept at this point and all your decisions are nearly nullified your lifetime of financial poor decision making .

Being out of debt isnt a bad thing..its freedom!! Stuff gets old and depreciates...life and freedom from debt doesn't 🤷‍♀️

Dave is right about credit cards

Dave Ramsey has good advice for freeing up income. That's an awesome tool for guess what having money to invest in yourself. Yes your right about he doesn't teach about starting a business, so guess what I learn from other people that teach how to invest in myself and so on and so on. Then use all that cash to start a business lol

Credit cards are only bad if you have poor spending habits and allow interest to take over

keep in mind that Dave Ramsey sells term life insurance through Zander Insurance. Dave has to keep things as simple as possible because that is the majority of his audience. Using credit cards, paying off your balance every month, is too complicated for most people and opens up his audience to plenty of opportunities for abuses. So Dave tells people to only use debit card.

Only 3% of term policys are paid out

Dave is Misinforming people in the masses thanks for making this video, you beat me to it 😂😂

Too emotional - raising my blood pressure.

At 9:55, you were preaching!

Think there is a whole life that pays out at retirement...

I follow Bruce Lee's philosophy absorb what is useful and make it your own.I used Dave Ramsey to get totally out of Debt including my home but his investing philosophy sucks.I used Garret Gunderson and put money in a whole life policy. Finally I followed Peter Schiff and took my cash from my whole life and bought large amount of gold and silver.Bottom line listen to both sides and make your own financial decisions. Get educated and use your brains people.Thanks for the channel.

when it comes to Dave Ramsey, his advice on getting out of debt is spot on. Once you get past the get out of debt phase of his plan you will need to move on and find other experts to help you invest. Dave isn't teaching finance, he's teaching psychology. And a lot of people need that when it comes to money. I never understood why Dave gets into the life insurance and mutual fund stuff. It seems unnecessary for what he is doing to help people.

That first caller sounds like Donald Trump

I take Dave Ramsey’s financial advice with a grain of salt.

This was fun to watch. I loved the pissed off-ness you had cuz it's legit. In 2006, I found Dave and bought his book and bought into his system. We weren't in a financial bind but his stuff made sense at the time. We followed budgeting for a few years and it went well. But then my wife and I just got tired of the "cash envelope" system that he promotes and budgets so we dropped it all. He's really there for ppl who are 30 feet deep in debt and need help getting out and who have zero financial literacy. Aside from that, I stopped listening to him years ago. He's too set in his ways and like you said, expects ppl to live on rice and beans which is terrible. He wants to keep ppl trapped in the middle class mentality which is also terrible advice. Meanwhile, he's a multi, multi millionaire sitting on his throne talking down to ppl.

He tells ppl in crippling debt to be miserly. He tells the ppl with only mortgage debt to spend & have fun. Quite often too

Indexed Universal Life Insurance is a great way to insure cash flow

I feel like a finance war is a brewin, and I love it, I critically need this knowledge. I'm sure Dave means well, but I trust you because you tell me to go research. I don't feel like you're just trying sell me something.

The kid that got away...

The only thing I like about Dave Ramsey is first baby step should be 2000, paying off credit card debt smallest first. I think his answer about giving up all credit cards and sell your car if you have student loans is absolutely stupid. His mommy and daddy started him in real estate industry because that was their family business like a lot kids from money in the US!

Graham Stephen refuses to spend money on restaurants or coffee, he is know as the 20 cent iced coffee guy. He also researches how to do laundry at off peak hours to save money. Thoughts on him Garrett? He has a wad of money but his philosophy is the exact opposite of mine. I'll buy the most expensive single origin coffee on the menu. I've never had a budget and spend thousands per month on food. I'm also financially free. I don't want to waste any time or brain power pinching pennies.

You forgot crypto

It’s the Dave Ramsey show. His market is for the lower income job holding people. He has a great Debt eliminating Snowball program. But... Garrets Debt pay off program is simple to understand and use. Dave Ramsey. ‘Thinks’ the permanent policies are a bad idea. This to me is false information. We use permanent policies to cash flow through.

Rich people and wealthy people have credit cards they just don't have credit card debt

Dave Ramsey is a nice guy and the one thing that I agree with him on is getting out of debt or even better never getting into debt in the first place. I think he's an absolute idiot when it comes to investing since he's promoting the huge hyper bubble stock market and appears to be completely against in oblivious to the inherent value of precious metals.

Whole life is only good when you have exhausted other savings or tax savings vehicles. Dave is rather antiquated, but most people don’t need or can afford whole life.

Dave should be worth at least $100-300mill based on his business and celebrity and knowledge on real estate markets. I get the feeling he’s around $15mill because his view on debt and mutual funds. And paying max tax.

Whole life has made people millonaires

Have a moderated debate between you and Dave. I dont think you accurately represented Dave on a few points....he is about investing not saving and he never is so careless about mutual funds as you have made him out to be...he often says do your research. I believe Dave is more right than wrong! Also...the idea is for temporary denial...living like no one else so that you can live like no one else! Lets at least accurately represent those we disagree with. God Bless

You don’t understand Dave’s program. You said, “tells us Dave, how else we can be miserable”. Being debt free, is not going to bring you misery. His program is not just cutting back on expenses and everything fun to save every dollar possible. It’s more about budgeting. Every dollar has a place it goes to and to cut back on things you really don’t need. You can budget for entertainment and budget for miscellaneous things for when things come up. It’s about having a plan and being disciplined. In the end of the day, he’s not talking to the people who know how to manage their money. He’s talking to the people who have mismanaged their money and have a lot of debt and he’s trying to help them.