Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to over $750k.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
he said he gets 12% average and better - but he doesnt take any out.. so a bad year can recover.. for the rest of us who WILL be taking out.. a bad year at these rates would kill us... yeah.. this was one video =that breaks trust n Mr Ramsey for me unfortunately. the aggressiveness of his response and not letting Rachel say anything also was very disrespectful
Who cares about who is right or wrong, you don’t publicly call a team member a moron and say his content is trash based on very little information or context. George is a good man and deserves to be treated with respect.
@@RexMoore1984Yeah, he calls 4% People morons and makes himself looks like a moron. He must never heard about the Sequence of Return Risk. 8% Withdrawal rate would kill most portfolios way before the death of the owner. It is so fucking irresponsible to say such a bullshit. And btw when you call 4% people morons a guy who is talking about 3% must be a moron as well.
Here to come to George’s defense. The video that was referenced was talking about FIRE movement. He in no way was recommending you should do the FIRE movement or follow those withdraw rates. Caller needs to rewatch the video.
ya, the caller misunderstood George and now we got social justice warriors who think you should only feel happy 24/7 and never disagree with anyone based on math and never worry that someone is dragging your name/brand through the mud. too busy finding internet links that anyone can make and using those as their "fact-checking" having complete faith that no one ever lies.....idiots with a keyboard.
Agree, Brandon and Barbara. DR should not become that defensive; especially when it comes to George. He, alone with Rachel, are the ones that give the most DR advice.
@@jodyhunt4001or, maybe people are just growing weary of anger on display?? Maybe just me. I started watching Dave 4 years ago and became obsessed, watched daily, and hated when he took on cohosts because it meant less Dave. I believe in the Ramsey platform so much. I have preordered several copies of rachel's childrens book, and one of George's. I'm so sad to write that I'm growing weary of Dave. It's unbelievable to me to even type those words. He remains a stellar communicator with hilarious timing. He hasn't changed a bit, but I have. I agree with you that he was upset over the miscommunication and misinformation, not so much George. Dave reacted exactly as i would have predicted he would. I'm just worn down by all the anger in this World, and more and more I'm wanting to steer clear of it. Dave rants just don't hit like they used to with me. That's just my two cents, nothing to do with social justice/fear porn/being butt hurt as Dave and probably you would say. Dave is Dave, i would never expect him to change, never want him to change. I'm the one going in a different direction i guess.
George did not say 4% withdrawal rate - he said the fire moment does that. I can see why Dave is upset because I had the same problem. I thought I needed million to have a 120k income in retirement.
I cannot believe that Dave took the word of this caller as a fact about George and berated him. George is AMAZING, a great representation of millennials on Ramsey who brings in millions of viewers.
Agreed - I highly respect and value Dave’s insights and teachings, but after this I couldn’t finish watching this episode. It was very uncomfortable and I hope that GK receives a public apology.
I just watched the video the caller was referencing. In the video George said you would have to take out 3% per year if you followed the FIRE movement and retired in your 30s. The caller misunderstood George’s point, that being early retirement isn’t the best option because things change. Regardless, I think 8-10% withdrawal is a bit much.
he didn't. dave said he "hoped" he didnt, then went on to talk about why 4% is fear mongering....guess you couldn't comprehend what was being said and jumped the gun which made you look rude and dumb. it's ok. i forgive you. you don't know any better.
He obviously DOESNT believe what he's saying is true. He had such an extreme reaction to show the caller that there's no way George would say anything like that.
Dave would never make a public apology for anything. If anything, he’ll probably tell George “okay, I’m glad we cleared that up” rather than “please forgive me for being so quick to doubt you on-air”
As much as i LOVE Dave (Ive even facilitated 4 FPU classes), 1:20:00 was the most unbelievably unprofessional rants out of his mouth. Without doing ANY fact-checking, he 100% threw one of his own personalities under the bus. That was SO disappointing to listen to.
I completely disagree. Now, does that make me unprofessional as well? Let me go get the care cup. Oh look! It's empty. I am not sure where your assumptions are coming from. Dave had an issue with the idea of 4% low withdrawl rate. Dave never said anything directly about George except he hoped that is not what he is telling people. You forget, the caller might have misunderstood and then misrepresented what George said. Dave has the issue with 4% because the math doesn't add up. People need to get over themselves and stop being so sensitive that you can't use simple addition and subtraction to disagree with an opinion. This is getting stupid. The stupid fact-checking garbage is getting out of hand as well. I could easily toss up a forum, blog, website and load it with BS and only point out things that will convince people to agree with me too....that's not difficult and it's cheap to do. Sometimes it's ok to use your brain instead of depending on random internet links or the "oh-so-trustworthy" government and corporations to spoon feed you information. Your greatest gift if your brain. It's ok to use it. Dave is just doing simple math. It's not complicated and math doesn't have feelings. Jesus Christ the people that are out there now...unreal.... Dave doesn't want people to be fear mongered into thinking they don't have enough money when they do...case in point the caller he just had.... He doesn't want anything to do with the fear porn. That's his name these people speak under. He has every right to be upset if it is true. It's justified. It's also ok to get upset. It's part of being human. Your comment was disappointing to read.
@@jodyhunt4001 Ramsey assume a constant yearly growth of 12%. Oddly enough, he is not accounting for wide ranging variations in this growth, i.e., Dave is not accounting for risk. He is making wrong *mathematical* assumptions.
@@jodyhunt4001Dave obviously went after George. You can tell in his tone and in his words. Sure, at the heart he was addressing the principle he didn’t agree with, but he could’ve handled it far better than he did. Even something like “interesting. Well there may have been a misunderstanding or misinterpretation, but that’s not what we teach” would have addressed the issue without throwing George under the bus. We’ve also seen time and time again that Dave does not do well when people counter what he teaches with something else they heard. Even the fact that he kept interrupting the caller was unprofessional in itself.
I hope ramsey loyalists take that advice with a grain of salt. Dave is rich and can afford to be all in on the market at retirement because 30% swings wont phase him. A more conservative portfolio the average person should have at retirement will return around 6-7 percent so 4 percent would be a good number. 3 percent is for those that are trying to retire early and never run out of money. Thank you for coming to my Ted Talk!
Man threw George under the bus without checking anything. Plus most mutual funds don’t make 12% average over a long period of time. You could be retired for 30 years in this day and age. If the market drops 30% and you take 10 you could go from 1mil to 600,000
Only ones that promise 12% like Dave said are run by Madalf...he acted like a mean and ignorant putz who clearly doesn't understand the concept or effect of "sequence of returns" related to retirement.
@donaldlyons17 not really the issue, no one actually uses 11%-12% rate of return for calculating returns during retirement. 7-8% is the norm, 5-6% is conservative, and no one uses an 8% withdrawal rate. That's negligent saying that as if you run someones portfolio through a Montecarlo simulator at 8% the percentage of outliving their savings is not good, particularly if there is a bad start in market upon retirement. He's literally talking his ass on this one.
That’s not true at all. My dad showed me his year over year returns and I couldn’t believe nothing under 16% in 20 years. I’m not bullshitting and I know what I was looking at I’m an accountant. I didn’t believe him till he showed me.
I like Dave and by following his advice has made my life wonderful with finances and relationships; however, I'm disappointed by the way he criticized George on air without hearing from George.
Glad you've done well but please do not let it all go away by listening to Dave's unbelievably ridiculous 8% withdrawal strategy. He should be totally embarrassed by 1) spouting this nonsense and 2) being such a poor example of a leader by totally disrespecting George.
How much of this rant just demolished future book sales for George's New book coming out? Yesterday he is promoting George and today he knocks him down (with NO fact checking)? REALLY unfair for George who wasn't there to defend or explain himself 😢
Rachel has an almost constant look of humiliation when she’s with her father. It cracks me up - just that father daughter dynamic. I absolutely love her
Yes it’s something about being with your Dad as an adult that makes you still feel like a little girl! I was the same way with my Dad till he passed away when I was 52years young ❤
Not a fan of her comments that she likes watching Housewives and the Kardashians. Really? What are the skills of those two groups of women? No wonder this podcast tells people they don't need to get a college degree if that is the way to earn money. @@HairwithMonica
Is this the first time you’ve watched Dave rant? 😂 he speaks his mind. He always has. George isn’t a sissy, he can have a grown up conversation and a debate. They will. 😂
@@PurpleLightning2 Dave can't have a grown up conversation because he has the emotional intelligence of a 10 year old. He's got the thinnest skin I've ever seen.
Ramsey’a rant is dangerous. Telling people 12% is ok very risky. There's no chance you’ll see 12% every year. The sequence of return risk could pull your savings down really fast.
I would never listen to Dave Ramsey on withdrawal rates or you will end up broke. He isn’t factoring In down years in the market, just a linear average. That’s what makes Dave’s withdrawal rate a failure.
I think Dave is wrong about the withdrawal rate. Volatility is a huge drag on returns. After compounding over any 30-year period, the average annual rate of return for the S&P 500 Index works out to about 6 percent after inflation. But even this rate of return has a volatility to it, for some 30-year periods (not many, but some) it has been below 4 percent. However, at 4%, historically speaking, you have a 95% chance of success. Using Dave's withdrawal rate of 8% will likely bankrupt folks because it historically does not work. This is bad advice he gave. It would be good of Dave to humble himself, seek to understand where his thinking went wrong and apologize to a lot of people.
Ok. They redid the Trinity study for increased retirement of 30, 40, and 50 years. For a 50 year retirement, 3-4% withdrawal rate would give you a 90% success rate. A 8+ withdrawal rate has like a 40% success rate
Dave Ramsey is imploding on his advice on w/d rates and I couldn’t be more proud. He’ll find out the hard way when 10 years in retirement all these people are taking 8% out in a down 30% year and run out of money in 10 years and then lawsuits will ensue because “Dave Ramsey said I could take out 8% a year”. He has never heard of the word volatility.
I think Dave is pretty well shielded from the lawsuits. I am not an attorney, but there are disclaimers tied to his show, and there is language that states the show is for entertainment purposes and all individuals who are on or listen to the show should seek advice from a certified professional before taking any financial action. There are exceptions out there for those who provide educational material. By my numbers, if the average retirement time horizon continues to climb, ~7 out of 10 those who take 8% to 10% at face value for 'safe' withdrawal rate will run out of money in retirement. I think the number of people who actually fall flat on their face will be fewer as they hopefully realize that volatility risk is a thing or they have an advisor who is worth their 2 cents. Maybe we can pray that Dave changes his mind on the matter for the sake of the listeners and his legacy. Dave has done a lot of good. It would be a shame for this one topic to taint his track record so much.
@jasondespain1 Yes, it is called Sequence of Returns Risk, (SORR) and it is real. Ramsey foolishly uses an average return of the stock market, but the stock market does not return that average every year. There are years where the market is way down and you portfolio can drop 40% or even worse a series of down years when you continue to withdraw your yearly income. The only good thing about an 8% withdrawal rate is you might die before you run out of money.
Man if I'm George I'd try to go elsewhere. He's already opening up to better money advice from other finance people like Money Guy, etc. and now his boss is ranting against his advice and on prior episodes bragged about firing him from another podcast. Worst boss on the planet. "I hope we didn't put out trash like that." So out of touch Dave. This was uncomfortable to watch, even Rachel tried to steer it away from the iceberg, but Dave just crashed the ship right into it. I guess the Money Guy, etc. are all dumb giving bad advice, lol. What a clown show.
The comments on here are far too generous. If this is how he handles business in the office, it makes me glad I never got hired. This is far from professional. "You may have misunderstood George or something, but I'll look into that. Here's my advice..". I've been a massive Ramsey fan for years, have nearly all his books and they are all signed. But Dave is out of line with how he handled this. I hope to hear an apology.
It's time dave retires. The personalities he has, know what they are doing, his rants are without factual merit most of the time. He bases everything off his own investment journey, which is great, but then providing advice about a withdrawal rate, when he admitted he's not living off his investments. It's different when you live off your nestegg, because any risk of losing it (which is a real possibility with an 8% withdrawal rate) is too much risk for most people.
I watched the show and my heart cringed for George Kamel! All I can say is, Mr. Ramsey what happened to... "we should allow space for grace?" God bless both and I pray this misunderstanding can be cleared up because this is exactly what it is, a misunderstanding.
I dont trust an entertainer with questionable referrals (one quote 5.95% in fees, taking half your alleged 12%), and no fiduciary responsibility for financial advice. It's wild he keeps saying this considering all the major research says the opposite. The 4% rule accounts for risk, the retrospective example pulled from the market at the best times. If You pulled 8% when your portfolio is 20% down and that would destroy some people's retirement. This advice is dangerous. Based off this alone, I'm surprised there hasn't been any class actions related to this. I'm sure he'd have enough plausible deniability to weasel out, since he's not a fiduciary. But still. You have to sleep at night.
@@Trustbutverify2651 Except for the part implying a fund with 5.95% annual fees, which there is no way in heck is the case, the more likely scenario being that it's a front-loaded fund which will take out a 5.95% bite of your money _once_ - and then probably still have a high annual fee, like 2% - which still sucks and will absorb $1M over 40 years, but is not unheard of like 5.95% every year. But except for that still a good post, Dave is totally wrong. (And totally pushing crappy high-fees actively managed loaded funds that most likely won't outperform the market in the long run.)
I’m appalled by Dave’s response at George without even knowing the context of what he was trying to say. George is 100% right and backed it up with his researched backed studies. Instead of slamming the great GK actually do some of your own research Dave! Next time please put your ego aside and actually be humble enough to learn or even let your daughter talk who was trying to interject!
I am not sure where your assumptions are coming from. Dave had an issue with the idea of 4% low withdrawl rate. Dave never said anything directly about George except he hoped that is not what he is telling people. You forget, the caller might have misunderstood and then misrepresented what George said. Dave has the issue with 4% because the math doesn't add up. People need to get over themselves and stop being so sensitive that you can't use simple addition and subtraction to disagree with an opinion. This is getting stupid.
that's funny that you defend George when he isn't being attacked and then bothered to mention "research" and "studies" and "George is 100% right" ...and it turns out the caller misunderstood George....now what do you think that makes you look like? I'll give you one guess.
oh ya, and the whole daughter thing you mentioned...well Dave is dad and Dave is bossman...he can pretty much say what he wants when he wants. you don't speak over your parents. that is disrespectful. you don't do it to your boss. that is disrespectful. and none of that was going on. they were conversating as if they have discussions like that all the time. prolly because they are family and have conversations like that all the time. it's how they operate. you don't like how they operate that's too bad. you aren't in that family and you don't work there.
Thanks for taking my call, today! I really hope George doesn't get too much grief - I did not expect that... I liked George's video, and I think he made a really good point in it. I was hoping that the conversation could bring some nuance to baby step #4 and help establish some less confusing backing to coasting financial independence.
It appears George was specifically discussing the FIRE and its parameters. He then talks about the issues he has with that movement one being the withdrawal rate suggested if someone follows FIRE. Seems like that caller on today's show missed the context.
I felt like Dave could have handled your call way better. You were asking about coast-FI, and if you plan to coast to your retirement number, it’s way better to pick a more conservative withdrawal rate in that specific case. It’s a completely different discussion to what people are normally planning for that call in. Personally, I do think 3% is kind of unnecessary, but 4% is what I’m aiming for. As far as Dave’s 8%, I mostly like his other advice, but I just flat out wouldn’t take the advice to rely on an 8% withdrawal rate from a guy who will never need the income from his portfolio that he “gets 12% easily” from. Dave is great at factoring in risk from debt to an extreme level, but factors zero risk for sequence of returns.
@@nodsibCould have definitely handled it better. Surely you should be giving your employees (a Personality at that) the benefit of the doubt until you’ve spoken to them personally. Very awkward.
@@nodsib I agree with you completely. The 3% thing from George's video was interesting because he didn't use a study talking about retiring at 35, he used a study that covered a "30 year time horizon." If I coast-FI to 60, I could easily live 30 more years. George even said as much in his video. His study dunked 4% for retirements exceeding 20 years, and that is what shockingly contradicted the article on Dave's website that cited Fidelity and recommended 4-5%. I was thinking, to ease up on Baby Step #4 to put more on the house, I would want to be as conservative as possible without being ridiculous in establishing coasting-FI. I won't apply the 8% SWR advice as that is solidly outside reasoning on the numbers I have been running. Like you said, it has to do with sequence and volatility risk. For others reading the comment section who haven't dug into it, that is why the simplified 12-4=8 formula falls apart.
I wonder if Dave and the RamseyShow understand the concept of "sequence of returns" when it comes to investing and retirement, because listening to that rant and his numbers, I don't think he does....oh, and he owes George Kamel a public apology as vehement as his criticism.
I love George! He’s so smart and speaks English better than John and Dave! He’s smarter than the two of them!!! George, you’re wonderful and amazing! ❤
It's absolutely ridiculous what happened there. 3-5%, if you actually watch George's video, and specifies that its conservative, is a very reasonable starting point. You can always draw more later. But my god to dig in like that, bury your head in the sand and throw your employee under the bus like that was simply sad to watch.
THINGS TO DO WHILE TRYIN TO "STACK CASH'...Besides working! Read books.- whatever interests you. Join a church -socializing helps break the monotony of having little expendable income.
Does Dave not know about the trinity study? actual real life data that tells you the chances of running out of money before you die based on withdraw rates.
He would say you are being too nerdy or a Gobber. If you want to take out 8%, go for it, but you should understand the risks of doing that. Dave did 3rd grade math and didn't talk about risk at all. Dave is out of touch. I wouldn't take out 8%, if there was a greater than 50% chance that I'll be out of money in 10 to 15 years.
7% is like a minimally acceptable return. Look at the S&P500 and see the year over year returns. Then look at some funds that try to mirror the index. It’s not that crazy at all. It’s standard really.
A simple "No that's incorrect, let me check the video. Most likely you misunderstood. If you didnt, I apologize and will have the video removed" would've been a great response. Other than that, Dave your awesome.
On the withdrawal thing, say you started retirement at the beginning of 2022 planning to take $80k off of $1 million. You take it out in cash in January 2022, leaving you with $920k invested. The stock market fell by 20% during 2022 and at the start of 2023 your account is $736k. Again, you pull out your $80k as cash, leaving the account at $656k. Today you would have $744k invested, equating your $80k withdrawal to a 10.76% rate. Imagine if you started in 2007 and had health events requiring outsized withdrawals over the next five years.
OOps, I can't believe Dave slammed George like that, especially while the show was promoting the pre-sale of George's new book. Now, who wouldn't think twice about purchasing George's book if Dave is kind of slamming him. I don't think Dave was thinking too well on his feet this time. Rachel was trying so hard to walk back Dave's reaction but really couldn't save it. It is cool, though, that Dave will correct his own people if he thinks they are wrong about something. I just wish he would do the same with Jade. I think Jade has so many faux pas. I still love Dave and all of the great work and assistance he has given to so many through the years. I am a big fan.
I'm sure Dave said he read the books with the people he works with to see if it should be on shelves so it wouldn't give people misinformation which was on the previous Dave Ramsey's show and Dave gave it a green light but it was on one of George's video they were talking about where George made an error
I was referring to the caller, Jay from Kansas City, at 1:13:50 who said George Kamel gave a rate of 3% regarding what to draw from one's investments at retirement. Dave's reaction starts at 1:15:15 and at 1:15:45 is where Dave has some "choice words" for George Kamel. Just saying. Again, I am a big fan of Dave of course.
I just reread your comment strawboi1. I just meant Dave's reaction to the listener relaying information on George's video segment entry lends itself to a overall "credibility" issue of George Kamel. This seems especially true when it comes from the one and only Dave Ramsey. That is what I was implying.
I actually think this one was a failing of pre screening. Dave didn't watch George's video and the caller misrepresented the video. George was probably right about how low he indicated you needed to be withdrawing money to make it to actual retirement age. Pre screening should have told that caller to call back in when George was on air.
The average household income may have doubled over the last 40 years but the cost of living has far out stripped that. College health care long-term care housing you name it.
To determine the amount you need to withdrawal from your retirement is Total expenses (incl) taxes / amount saved This will give you a more accurate amount and not impact your taxable income dramatically as 8% might.
Awesome premise for these times. So glad that Rachel has written for kids. I wish I’d had it for mine because as a struggling single mom during those early years, I’m afraid I overcompensated for what they lacked (as I saw it), and probably skewed their concepts of “how much is Enough?”
i'm a overcompensating mom. feel like i have to overdo where i feel like i lack. im trying to work on it. at least i am aware that i'm doing it and can admit it. first steps to fixing it!
Yall do realize dave is talking based of his personal experience and his investments and returns..... so those of u that keep saying hes wrong and no idea blah blah blah.... hes actually living his proof.... its one thing to talk about what ifs and project and its another to talk from actual experience
I think that is exactly part of the problem. Dave said he isn't taking anything from his nest egg now. Why should he? He is still working. However, the question and excitement is over his opinion on how much is safe to withdrawal from retirement (I know it is partially from his experience of returns, but the accumulation phase results do not translate to distribution phase results - that is mathematically justifiable). Because he hasn't engaged in the lived experience of pulling an income from his retirement accounts, I would expect that he would lean on the research and well-established distribution strategies utilized by the bulk of the financial advising community. To the contrary, what he is doing is denying established work and substituting an oversimplified formula that ignores sequence of returns risk. He hasn't had to solve the problem in his own life, and he likely won't as he is worth so much.
why are people still listening to this guy after hearing you have to withdraw 8% of your investments and leave 3-4% for inflation and to growth and get mad at people if you want to take less than 8%
To the 25 yo going thru the divorce...2 words: food pantries. I live in ohio and idk how it is where you are but here you can make a decent wage and still qualify for the food pantry income guide lines. Im not physically able to work like a dog ( i do work 40 hrs a week) but im not ab to go hungry. Please swallow your pride and get help if youre struggling to put food on the table❤
First time they were on together again, a caller called asking if he could retire. Dave said he had enough to live off of 8% of his nest egg a year comfortably and George quietly sat there.
Hey. I would watch Tiger King 100 times again. To Jacob, I was engaged at 19 purchased a home with my fiance. He ended it and I was left alone in a home with a mortgage payment making 35k a year in 1997. I did not have enough money for food. I remember I didn’t have any fight in me. I know that the guests on the show say, get another job. I was so heartbroken and was so depressed. I had no one to guide me. It was horrible. I sold the house and made $250 dollars. All I had in the house was a twin sized bed because my ex took all my furniture also without informing me. I had a restraining order and the day he took all the furniture I could not be present. The hurt reminded me never to buy a home without being married.
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
Not at all, having monitor edge my portfolio performance which has made a jaw dropping $473k from just the past two quarters alone, I have learned why experienced traders make enormous returns from the seemingly unknown market. I must say it's the boldest decision I've taken since recently.
@@hasede-lg9hj I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?
The adviser I'm in touch with is Vivian Carol Gioia. You can use something else, for me her strategy works hence my result. she provides entry and exit point for the securities I focus on.
Thanks for clearing that up, I curiously searched for Vivian Carol Gioia on the internet and thankfully, I came across her my goal is to retire in 5years time.
The longer i watch this Dave slamming George portion, this was purely a failing of the pre screeners. They should not have let the guy ask his question on this show, it needed to wait for George because the guy very clearly misunderstood the video and his question set dave off on a rant that was completely unnecessary. I do hope they address this the next time George and Dave are on at the same time.
@shannonpolice9365 alot of that show I felt like Dave should have just stepped back for the show. He seemed grumpy and it wasn't helping people out to have a grumpy Dave.
It certainly was a screening problem, but Dave holds the majority of the responsibility here. His reaction and quickness to throw GK under the bus was totally justified professional and unbecoming of a leader.
up to now ramsey still gives advice with the assumption that market returns are linear. he used to give 10% as his withdrawal rate. i guess if you say it often enough it becomes true.
I'd hate to be someone out there that takes that 8 to 10%, lives great for 10 to 15 years and then at age 85 or 90, be super broke and have to start working again.
why is he pushing a car so hard on the first caller? The caller has access to free transportation- he does not need a car. He should sell it and put it towards his expenses
Dave hates socialism in any form and free transport sounds like something horrible countries like Finland, Denmark, and Sweden have. Hahaha only kidding!
His thought process is not having a car is going to limit his ability to work multiple jobs, which it does, but nothing this young man says makes any sense. $5000k a month income (probably gross) but still only $800 for rent and utilities? Where did the rest of his money go? And he's $40k in the hole?
My absolute favourite combination is Rachel and Dave such a great team and love how Rachel is happy to push for her part 😂 such a lovely Father Daughter relationship and brilliant knowledge and advice. Makes me miss my dad as I worked with him for 25 years until we lost him in 2021.
For instance if you have lets say $1M and you take out 8% but in that same year the market took a beating and was down 22%. You now after one year have only $700K. $300K gone in one year
My wife and I owe so much to Dave - because of his teachings we have been debt free including mortgage for over 5 years and have a healthy investment portfolio. BUT - Dave is 100% wrong here - never put 100% into equities, particularly as you approach and enter retirement - you need a much more balanced portfolio - taking that much risk is not good advice..Dave got this one WAY wrong!
My only shock was that Dave jumped to “George is wrong/stupid” and not that the caller had misunderstood George’s response on prior call. He normally assumes the reverse.
Every study and calculator you find shows that if you withdrawal 8% year over year you will more than likely run out of money and be screwed. 4% gives the best odds and in the years when the market is hot and you want to take out an extra percent or two then you should be fine. But 8% is insane. He is good at getting people out of debt, but listening to his advice on investing will most likely end up with you going broke.
It boggles my mind that Dave can talk about needing to factor in risk with real estate and use betas but doesn't recognize the volitility in annual market returns for the retirement withdrawal conversation.
Dave is way off on this one. No one is earning 12% every year. He's going to get a lot of retirees in trouble with his stupid 8% BS. He wasn't even listening to anything his daughter said. Just talked over her with his tunnel vision. Bill Bengen actually had the number close to 5% if I'm not mistaken. I have read a couple articles on 3%. I'll stick with my plan of 4% and adjust as we go.
4% is like a saving account interest rate now. The S&P500 was up 13% from where it was today a year ago There are lots of mutual funds that try to mirror the index it’s not crazy
Dave explaining fixing up a house 😂 he’s right! Hubs and I bought a short sale for our first home and was always doing things the whole 8 years living there. When sold, made a chunk and was beautiful though but dang. Then Dave and Rachel just crack me up. Gosh I love these folks. Can’t wait to get to the headquarters to visit ❤ God willing.
What if one year you lose money on investments intead of having earnings? Exactly, that is why you withdraw 4 percent, so that you never lose your investments.
An 8 percent withdrawal rate does not account for volatility in the markets. An investor has a 70 percent chance of running out of money in 12 years at 8% WR according to Schwab.
I am a huge fan of George Kamel and Rachel Cruz - Smart Money Happy Hour and their individual videos. This is so unfortunate that Dave throws George under the bus, repeatedly calling him stupid and fearmongering, instead of finding out more about the video in question and that George was talking to FIRE investors who want to retire in their mid-30s and live 50-70yrs on investments. BIG DIFFERENCE than a "traditional" retiree in their 60s+. But he couldn't shut up enough to listen to his daughter to try to understand the context of the video in question. That is arrogance - he should apologize privately to his employees (including his daughter who was put in a very awkward situation publically) and public apology for support of his "Ramsey Personalities."
4% inflation is not realistic given the amount of quantitative easing the fed is compelled to do with a national debt of 138% of GDP, and ongoing budget deficits
If any of the ramsay team are reading these comments you should pull dave aside. He behaviour towards george was a diagrace and you all should be ashamed of yourselves.
If Mr. Ramsey is really earning 12% in a mutual fund I'd sure like to know the name of it. My returns are nowhere near that. False assumptions lead to false conclusions.
