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re: Dave Ramsey's advice to pay off a car loan, rather than invest
Posted on 1/4/20 at 9:33 pm to sacrathetic
Posted on 1/4/20 at 9:33 pm to sacrathetic
quote:We are done here. You are either completely oblivious to how math works or just stringing me a long in a troll.
sacrathetic
Argue that Dave Ramsey is good for people who are in financial trouble, want to prevent being in financial trouble, or have zero clue how finances work and I will agree with you. Don't argue that it is good for anyone wanting to maximize returns or that the Ramsey model is better at achieving higher ROI. Given our discussion on this page, it is obvious you are a perfect candidate to follow Ramsey's teachings.
This post was edited on 1/4/20 at 9:35 pm
2
Posted on 1/4/20 at 10:14 pm to TigerTatorTots
quote:
TigerTatorTots
These threads can become infuriating but appreciate you laying out the case.
Posted on 1/4/20 at 11:10 pm to RidiculousHype
Listening to Dave Ramsey’s financial advise would be equivalent to going to a chiropractor to get cancer treatment...just a bad idea and has no basis in actual real world mathematical analysis.
Posted on 1/4/20 at 11:16 pm to lsu13lsu
quote:
I don't know about Dave Ramsey but I also base it on you having a highly depreciating asset. So in an emergency there is no guarantee you could sell your vehicle for what you owe on it. Also, you will always need a vehicle so you wouldn't even want to lose it in an emergency.
You also have to insure the vehicle instead of just carrying liability.
Posted on 1/4/20 at 11:30 pm to TigerTatorTots
quote:
Given our discussion on this page, it is obvious you are a perfect candidate to follow Ramsey's teachings.
Posted on 1/5/20 at 12:11 am to iAmBatman
A Chiropractor has never cured anyone of cancer, Dave Ramsey’s financial advise has helped a whole lot of people escape their financial burdens. Changing a person’s financial decision making has everything to do with psychology and very little to do with mathematics. Mathematical analysis may show the fastest way to reduce personal debt, or achieve he greatest ROI on investments, but if a person lacks the discipline to budget money for investing or debt service it is pretty much pointless.
This post was edited on 1/5/20 at 12:17 am
Posted on 1/5/20 at 6:40 am to iAmBatman
Dave Ramsey is good for probably 70% of Americans since our citizens suck at basic financial management.
Just like 70% of Americans would benefit from not drinking sodas and fast food and being fat drains on our society.
Doesn't mean his advice is good if you have some discipline and know the basics of personal finance. Just like a fit person wouldn't benefit from being told quit eating like shite and being fat.
Just like 70% of Americans would benefit from not drinking sodas and fast food and being fat drains on our society.
Doesn't mean his advice is good if you have some discipline and know the basics of personal finance. Just like a fit person wouldn't benefit from being told quit eating like shite and being fat.
Posted on 1/6/20 at 11:39 am to RidiculousHype
quote:
So basically the idea is that, sure, you can beat the 4% interest on the loan with 8-10% investing in the market, but you have to account for the risk that your market investments could return less than 4%, or even go down.
Is that basically the gist of it? And if so, wouldn't a high-yielding dividend fund (or basket of high-yielding dividend stocks) drastically reduce that risk while still returning 6-10%?
IMO, there is a little bit more to it than that. eliminating the loan provides financial freedom and flexibility which has a value that you have to provide. Getting rid of the loan protects your minimum income requirements which of course is directly related to your stress levels and personal freedom.
Posted on 1/6/20 at 11:48 am to iAmBatman
quote:
Listening to Dave Ramsey’s financial advise would be equivalent to going to a chiropractor to get cancer treatment...just a bad idea and has no basis in actual real world mathematical analysis.
Surely you don't believe this. Ramsey's advice is very helpful to those who are poor financial managers to begin with. It's not for the MT 1%ers, but is quite relevant and helpful to everyday people who really don't understand financial markets.
Posted on 1/6/20 at 1:13 pm to kywildcatfanone
quote:
Surely you don't believe this. Ramsey's advice is very helpful to those who are poor financial managers to begin with. It's not for the MT 1%ers, but is quite relevant and helpful to everyday people who really don't understand financial markets.
If someone tells me that Dave Ramsey's advice solved their financial woes, then I consider that person a moron.
This post was edited on 1/6/20 at 2:02 pm
Posted on 1/6/20 at 1:37 pm to iAmBatman
quote:
Listening to Dave Ramsey’s financial advise would be equivalent to going to a chiropractor to get cancer treatment...just a bad idea and has no basis in actual real world mathematical analysis.
It's not for everyone, but this kind of hot take is absurd.
Not being in debt for consumer items is a good thing for pretty much everyone. Math or no math. 0 debt is generally a good thing, especially when it comes to depreciating assets.
Posted on 1/6/20 at 2:03 pm to LSUFanHouston
quote:
It's not for everyone, but this kind of hot take is absurd.
agree to disagree...Dave Ramsey is as big a quack as Dr. Oz.
Posted on 1/6/20 at 2:30 pm to iAmBatman
quote:Oh man don't even get me started on this fraud
Dr. Oz
Posted on 1/6/20 at 5:51 pm to iAmBatman
quote:
gree to disagree...Dave Ramsey is as big a quack as Dr. Oz.
We get it you dont like Ramsey. But he helps people get out of debt and i cant fault him for helping people.
Posted on 1/6/20 at 7:02 pm to iAmBatman
quote:
If someone tells me that Dave Ramsey's advice solved their financial woes, then I consider that person a moron.
It is clear you have never had to help someone with poor money habits try to improve their financial life. Personal finance issues are psychological problems, not mathematical ones, Dave Ramsey figured this out when trying to deal with his own financial problems. You might have a MBA from Harvard Business School, and manage a multi-billion dollar hedge fund, but nothing in that education, or job experience will be of any value when teaching a person with average income, and minimal to zero financial literacy how to live within their means, get out of debt, and achieve financial stability.
This post was edited on 1/6/20 at 7:29 pm
Posted on 1/6/20 at 7:46 pm to EA6B
I get it. Some people are stupider than others and he can help those that didn’t pass freshman algebra.
Different strokes for different folks.
Different strokes for different folks.
Posted on 1/6/20 at 7:56 pm to iAmBatman
There's a lot of people in this country who have horrible to no financial management skills. A LOT.
He helps those people.
I don't get where that makes him a quack.
Yes, but different doesn't mean wrong, or bad, or incorrect.
He helps those people.
I don't get where that makes him a quack.
quote:
Different strokes for different folks.
Yes, but different doesn't mean wrong, or bad, or incorrect.
Posted on 1/6/20 at 8:52 pm to LSUFanHouston
quote:
Yes, but different doesn't mean wrong, or bad, or incorrect.
When different can be mathematically proven to be misguided, then it does mean wrong.
Posted on 1/6/20 at 9:34 pm to RidiculousHype
quote:
But for most Americans living paycheck-to-paycheck, it is brilliant, life changing advice.
This
Posted on 1/7/20 at 1:35 pm to iAmBatman
quote:
I get it. Some people are stupider than others and he can help those that didn’t pass freshman algebra
Impulse control is not an intelligence issue. Much of this is documented in behavioral economics and hedonistic psychology. If you’re curious to explore this area further, Daniel Kahneman and Richard Thaler (both won Nobels in Economics) are prominent authors in the field.
Plenty of intelligent people who passed freshman algebra still make very impulsive and irrational decisions.
This post was edited on 1/7/20 at 1:36 pm
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