Dave Ramsey’s Terrible Retirement Advice

Without a doubt, Dave Ramsey is the OG of personal finance, blasting out advice to millions every week. But here’s the real deal – not every word from the wise, no matter how viral, is truth. In the latest podcast episode, we’re cranking up the volume and diving deep into Dave Ramsey’s latest terrible retirement advice with Paula Pant from Afford Anything and Joe Saul-Sehy from Stacking Benjamins.

Joe Saul-Sehy, Paula Pant and Shannah Game - Dave Ramsey's Terrible Financial Advice on Everyone's Talkin' Money podcast

Sketchy Retirement Advice?

So, here’s the deal: Dave Ramsey often throws out this idea on his show that it’s totally cool to withdraw 8% from your retirement stash each year, banking on a sweet 12% annual return on investments. Sounds great, right? Except for the potential snags. It’s a big gamble that your investments will consistently get a 12% return. Reality check: the stock market’s 30-year average return is 9.9% – and only 7.3% when you factor in inflation. Pushing for an 8% withdrawal rate, Ramsey might be leading his followers down a slippery financial slope.

The Lowdown on Money Experts

Here’s where it gets real: financial experts like Dave Ramsey have a major responsibility to their fans. In a world where financial rules are pretty relaxed, we need to keep each other in check. With Ramsey’s star power, it’s vital his advice is legit and not reckless. Bad advice can blow up, especially when it’s about retirement planning.

Personal Finance is Personal

The 8% withdrawal rate isn’t the only golden nugget Ramsey’s dished out. He suggests that a 12% return on investments and a 4% withdrawal rate are the one-size-fits-all answer, which just ain’t true. If you ask me, it’s dangerous advice to lead people to think that it is. Personal finance is personal, and I think that message needs to be echoed consistently.

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The Real Talk on Retirement Planning

Retirement planning isn’t just about cashing out a set percentage of your savings every year. It’s about staying flexible, understanding the risks of returns, and serious strategizing. Instead of obsessing over a specific percentage, Joe believes it’s smarter to create a lifestyle that matches your dreams. I can get behind that advice for sure!

Identifying Shaky Money Advice

Truth bomb: just because someone calls themselves a money expert it doesn’t mean that all their advice is what is right for you. You’ve gotta learn how to spot what works for you and what doesn’t. I get it, this is tricky to do when you’re trying to learn yourself. However, if any money expert says there’s only one way to do things, that’s when you should start to ask questions.

Podcast Peek

In our latest podcast episode, Paula, Joe, and I take a deep dive into this terrible retirement advice, dishing out insights and challenging Dave Ramsey’s advice. For example, we talk about how his 8% withdrawal rate based on a 12% annual return is on shaky ground and could potentially wreck his followers’ finances. We also underscore the importance of backing up financial advice with solid research and the ethical duty of experts to deliver accurate info.

We also hit on the laid-back compliance in the financial planning world and the need for people to stand up to sketchy advice. We stress the importance of staying sharp and savvy when it comes to financial advice.

Podcast Episode Highlights

(04:54 – 05:35) Withdrawal Strategies and Mutual Funds (41 Seconds)

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(07:53 – 09:08) Challenging Dave Ramsey’s Retirement Financial Advice (75 Seconds)

(12:38 – 14:30) Challenging Retirement Advice and Financial Professionals (112 Seconds)

(15:54 – 17:23) Debating the Credibility of Financial Advice (89 Seconds)

(35:28 – 37:05) Aspirations and Lifestyle in Financial Planning (97 Seconds)

(42:01 – 42:39) Understanding the Facts About Money (38 Seconds)

The Last Word

In the crazy, mixed-up world of “money experts,” it’s crucial to question everything and make sure the advice you follow is solid, responsible, and works for your unique situation. Let’s push back against advice like this and create a culture of financial literacy and empowerment.

Navigating the financial landscape is about more than just being money-smart; it’s about empowering yourself to make informed decisions about your financial future. Let’s keep challenging the norm, debunking financial myths, and working towards a financially secure and fulfilling life.

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Shannah Game

Shannah Game

Shannah Game is the host of Everyone's Talkin' Money podcast, a Certified Financial Planner, a money wellness expert, an entrepreneur, and the author of the Money Mindset Journal. She has over 18 years of experience as a money expert who has helped millions of people get in a better relationship with their money and take back control of their money and life.