Last week Not The Jet Set took the time to post a rebuttal to my “Is Dave Ramsey a Financial Expert?” post. I think this is the first time someone has actually created a post based on one of my posts so I was quite flattered. NTJS is clearly a big Dave Ramsey fan so needless to say he wasn’t overly happy with my analysis – but that’s ok. I thought he made a lot of good points – especially his comment that investing while in debt is the same as borrowing to invest. I do however have to take issue with his claim to having mutual funds that have averaged 15%+ over the last 40 years. Unless Bernie Madoff was the fund manager, then I find that hard to believe. 🙂
Newsweek had a neat post about a journalist who covered a story on real estate investing and then bought a rental property of his own – unseen. When he finally went to visit the place it turns out he was an accidental slumlord.
Weakonomics has a question for Habitat for Humanity – Why are you still building houses?
PaidTwice unfortunately lost her father a few months ago – read this incredibly bizarre story about how her Mom and brother went to cancel a Verison phone contract. The store employees said the contract auto-renewed and couldn’t be cancelled by anyone but the deceased (that’s exactly what they said). After 3.5 hours…3.5 hours! the contract was cancelled. Those employees should all be fired.
The Rest of the Links
Million Dollar Journey tells us all he knows about the birds and the bees.
Preet has an idea for a great Father’s Day gift – yes, I wouldn’t mind something like this… 🙂
Want some ideas for (late) Father’s Day gifts? Look no further – Squawkfox tells a great story and has some ideas (which don’t cost any money).
Financial Blogger has 3 tricks to make you more productive.
The Dividend Guy bought some fixed income for his portfolio.
The Oblivious Investor talks about index funds and efficient markets.
Money Ning has some suggestions on saving money each month.
Good Financial Cents has 107 things that make good financial cents.
Canadian Capitalist says that professional investors follow the herd just like us amateurs.
The Intelligent Speculator has more on Microsoft going under.
Investing School says don’t listen to financial experts.
Carnivals
Bankruptcy and Debt Carnival
Carnival of Twenty Something Finances
6 replies on “Dave Ramsey Post Rebuttal and LinkStuff for June 29”
Thanks for the mention and congratulations on the Globe mention today.
NTJS is in the category of DR fanboy, if you ask me.
You object to Dave’s snowball method (as do I) but a better rebuttal at least acknowledges its flaws. One can look at the two methods, side by side, and quantify the net loss using his method. Someone once threw a set of numbers at me, 4 debts at different rates, and the combination of low total ($12K) and not a wide range of rates (6-12%) showed that over the proposed two year payback the method difference was a couple hundred dollars, if I recall. So, if the mental benefit is worth that sum, fine. But don’t tell me to advise paying a 4% student loan off first for the fact that it’s $12,000 when I have a Visa card with $15,000 of 24% debt. That’s where you and I can show a large difference. Note, I’ve been working on a post giving these examples, will appear in next few weeks, I’ll link back to yours.
A matched 401(k) deposit should never be lost. Regardless of the other debt. I can show, (and discuss in my draft copy) that even at 24% interest, one should still use the 401(k) deposit to the match.
The problem with any advice offered not one on one is that there’s always a situation that provides a contradiction. Is Dave’s advice better than doing nothing? Of course. Is it “one size fits all”? Yes. That’s where the advice fails.
Thanks Ram.
Joe – I completely agree. Look forward to reading your post.
Thanks for the mention guys and congrats on the globe nomination!
Thanks for the link – great blogging on the patio weather eh? 🙂
Glad you enjoyed the rebuttal.
Joe – That’s a “debt-free” DR fanboy to you 🙂
cheers!