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if that's the way the call went, his advice is wrong anyways. if interest is $8K, the caller has the standard deduction...he's not saving $2700 even. If he's married, then the interest is irrelevant since it's less than the deduction for a married couple (unless he has other things to itemize as well).
Property taxes and in many states income taxes (sales taxes in those without income taxes). Usually but not always those take up a substantial part if not all of the standard deduction even before counting mortgage interest.
That said, you do make a good point which many people overlook, which is that the standard deduction should at least be considered in the equation.
It's funny that banks don't agree with Mr. Ramsey.
The following figures are directly from the "FDIC: Institution Directory" N.p.,n.d.Web 31 Dec. 2013
and represent the exact amount of money the following banks hold in life insurance
Bank of America $19,607,000,000
Wells Fargo $17,739,000,000
JPMorgan Chase Bank $10,327,000,000
U.S. Bank $5,451,892,000
It seems funny that Mr. Ramsey wants you to put your money in the bank, but never life insurance, and the banks but billions in life insurance.
It's funny that banks don't agree with Mr. Ramsey.
The following figures are directly from the "FDIC: Institution Directory" N.p.,n.d.Web 31 Dec. 2013
and represent the exact amount of money the following banks hold in life insurance
Bank of America $19,607,000,000
Wells Fargo $17,739,000,000
JPMorgan Chase Bank $10,327,000,000
U.S. Bank $5,451,892,000
It seems funny that Mr. Ramsey wants you to put your money in the bank, but never life insurance, and the banks but billions in life insurance.
It's funny that banks don't agree with Mr. Ramsey.
The following figures are directly from the "FDIC: Institution Directory" N.p.,n.d.Web 31 Dec. 2013
and represent the exact amount of money the following banks hold in life insurance
Bank of America $19,607,000,000
Wells Fargo $17,739,000,000
JPMorgan Chase Bank $10,327,000,000
U.S. Bank $5,451,892,000
It seems funny that Mr. Ramsey wants you to put your money in the bank, but never life insurance, and the banks but billions in life insurance.
He read a book called "Money. Wealth. Life Insurance" by a hack named Jake Thompson. The bill of goods he sells isn't necessarily wrong, but it really doesn't apply to the average working stiff trying to set a little aside for the future. Plus the guy makes a living brokering cash value life insurance deals which means that he's going to present all the stats that might make an uninformed investor believe that cash value life is the only way to go.
I'm honestly amazed that this thread is from January 2013, yet he still remains the most polarizing person in the financial advice category.
I'm against his philosophy in a lot of areas. I know better. But his advice isn't aimed at me.
You know what's a good idea if you cut your hand off? A tourniquet. Yeah, it completely cuts off circulation and there's a high chance you could lose whatever is left below the cut off, but it sure beats dying.
If I get a paper cut, do I need a tourniquet? Not at all, it's overkill. Should I avoid getting cuts entirely because it could kill me? Well, probably most of the time, but surgery is technically getting cut and that can be good.
Dave's advice is geared towards survival. You'll never get really rich by following his advice because you'll have spent all your money paying off your comparatively cheap debt when you could have been investing it instead and banking the spread. That said, you'll probably avoid being poor because 4% is better than the return in a savings account.
It's good for going from poor to middle class, but it won't help you get higher than that unless you have something else getting you there(a high income can overcome Dave's advice to get you to upper class for example).
To equate it to fitness, people on couches need someone to tell them to just take the stairs first before they start training for a marathon. The stairs alone will never be enough to get you to marathon status, but for some it gets the ball rolling.
I'm honestly amazed that this thread is from January 2013, yet he still remains the most polarizing person in the financial advice category.
I'm against his philosophy in a lot of areas. I know better. But his advice isn't aimed at me.
You know what's a good idea if you cut your hand off? A tourniquet. Yeah, it completely cuts off circulation and there's a high chance you could lose whatever is left below the cut off, but it sure beats dying.
If I get a paper cut, do I need a tourniquet? Not at all, it's overkill. Should I avoid getting cuts entirely because it could kill me? Well, probably most of the time, but surgery is technically getting cut and that can be good.
Dave's advice is geared towards survival. You'll never get really rich by following his advice because you'll have spent all your money paying off your comparatively cheap debt when you could have been investing it instead and banking the spread. That said, you'll probably avoid being poor because 4% is better than the return in a savings account.
It's good for going from poor to middle class, but it won't help you get higher than that unless you have something else getting you there(a high income can overcome Dave's advice to get you to upper class for example).
To equate it to fitness, people on couches need someone to tell them to just take the stairs first before they start training for a marathon. The stairs alone will never be enough to get you to marathon status, but for some it gets the ball rolling.
How many people end up leveraged out their rear-ends? A large percent of the population. Dave is good about getting those people back to at least level ground.
You know where Dave Ramsey made his money? He made it from people who have no knowledge about investments.
No, he made his money because he is a good entertainer.
Has a rapper ever made a rap about Dave Ramsey? If not, he is not cool.
I know, I know... my statement is about silly as someone defending an investment TV entertainer.
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