![]() ![]() Big conflict of interest in his advice thereĮDIT: Just did some math. He also coincidentally owns a vast fortune of rental properties and I'm sure he doesn't want his tenants doing the math on the fact that they could buy a house and pay less for their mortgage than they're paying him in rent. He says you shouldn't buy a house until you can put 20% down, take the rest out in a 15 year mortgage, and have that amount be less than 25% of your take home pay. His threshold for homeownership is insane is many parts of america though. He prefers property, but he’s told people that if it is in their budget… not as part of their retirement 15% but as an additional amount, they can do what they want with their spending money (actually, he says they can do what they want ANYWAY, because it’s their money. People get into trouble when they pick one, but “don’t like” certain parts of it because they want what they want when they want it, and can mindwrestle things around to “logic” what they want NOW.ĭave’s investment advice isn’t dumb if you are looking at your 15% investments as your conservative, hands off investing, and then choose to budget a different category in your budget for “playing around” investing. While I wouldn’t say his investment advice is atrocious (depends on what your needs/goals/ and willingness to devote time to it are), it isn’t a plan for everyone. somehow it's horrible for Ramsey to repeat it but not horrible for Fidelity or Vanguard to list this data on their prospectus. looking for ideally 12% average returns is just repeating data from investing company websites. it won't make the Boglehead purists happy, but there are many model portfolios out there from various professors and professionals that disagree with the 3-fund model. Ramsey's recommended allocation is almost exactly what finance professor Jeremy Wharton recommends in his books Stocks for the Long Run.invest 15% of income is exactly what this sub recommends, so no reason for hate here.I can see both sides on this topic, but Ramsey has a point. 'don't invest until you're debt free' is ok, his reasoning is (a) you wouldn't borrow money to invest, but that's what you're doing by keeping debt while simultaneously investing (b) people who invest without an emergency fund often tap the retirement accounts.the rest of his investment advice is decent, he's just become a whipping boy. The only questionable part is his preference for active management (and even then, there's a lot of academic research on 'momentum' investing). ![]() Here, please treat others with respect, stay on-topic, and avoid self-promotion.Īlways do your own research before acting on any information or advice that you read on Reddit. Get your financial house in order, learn how to better manage your money, and invest for your future. Banking Megathread: FDIC, NCUA, and your cash.Private communication is not safe on Reddit. Scam alert: Ignore any private messages or chat requests. ![]()
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