Will that be Cash or Credit?

[aja8888]

It was paid for by his followers, presumably not wealthy people in debt, with all those products and endorsements on his web site.

Isn't that his job?

 

[daylatedollarshort]

Isn't that his job?

To extract money from poor people?

 

[aja8888]

To extract money from poor people?

No, he owns his own business and may even be incorporated. He spends time giving free advice on the radio and maybe on TV. He writes books, gives seminars and probably does a lot of real work behind the public's view. I don't believe he is doing anything fraudulent in public.

I think I would call that a job or business, not a lot different than any other person who provides a service.

 

[daylatedollarshort]

No, he owns his own business and may even be incorporated. He spends time giving free advice on the radio and maybe on TV. He writes books, gives seminars and probably does a lot of real work behind the public's view. I don't believe he is doing anything fraudulent in public.

I think I would call that a job or business, not a lot different than any other person who provides a service.

I didn't say he was doing anything fraudulent. But I find his lifestyle rather interesting compared to the frugal advice on his site, which is loaded up with endorsements and products targeted at poor people.

 

[Quantum Sufficit]

Pass the popcorn please!

 

[aja8888]

I didn't say he was doing anything fraudulent. But I find his lifestyle rather interesting compared to the frugal advice on his site, which is loaded up with endorsements and products targeted at poor people.

Putting his personal lifestyle aside, as that's his and his wife's business, I don't believe his business is purely targeted at "poor" people like you say. And poor is a relative term.

His audience appears to be geared towards helping people who are hopelessly (or carelessly) in debt and that could include a lot of not-so-poor people. I bought several of his books years ago for family members who "didn't have a clue" and that information was timely and appreciated.

Now, I agree that he gives some bad advice on investments and their returns, and that may be viewed upon as unrealistic and probably not aligned with his typical message.

I don't believe he is filming a future show for CNBC's Scam Artist documentaries.

 

[aja8888]

Pass the popcorn please!

Here you go..

 

[meierlde]

This may be off topic, but a comment on interest, and rates. Not posted as an endorsement of the article, but one person's observations on the future.
Interest Rates Cannot Rise and Here’s Why… | First Rebuttal



Zugzwang= new word for me

Re negative interest rates: Until they put expiration dates on $100 bills (or 500 euro notes), you can always take the cash and put in an safe deposit box all be it that might cost $50/year. Anyway you can fit quite a few $100 bills in a safe deposit box.

 

[daylatedollarshort]

I think there are a lot of good blogs and forums out there that have much better critiques and dissection than I could ever do of Dave Ramsey's math and endorsements, like White Coat Investor, John Graeney, Bogleheads and Wade Pfau:

Wade Pfau's Retirement Researcher Blog: Dave Ramsey's 8% Withdrawal Rate

http://www.bogleheads.org/forum/viewtopic.php?t=49864

http://retireearlyhomepage.com/daveramsey.html

So with that I will bow out spewing any more of my own cynical observations and leave that subject to the experts.

 

[freebird5825]

No mortgage (paid off in 1999), no debt except monthly credit card (cashback 4-3-2-1% on different types purchases), no outstanding loans.

I have every bill except water and property/school taxes paid through my credit card. I pay the credit card off twice a month to coincide with my survivor pension and immediate fixed annuity income deposits. All done online.

I use cash only when I have to.

My income has increased recently due to applying for and receiving my deferred FERS pension. I doubt my spending habits will change. I live simply and cheaply and see no reason to change that habit.

If it ain't broken...

 

[pb4uski]

for those that carry a mortgage in retirement, Dave Ramsey likes to ask people if they had a paid off mortgage, would you go out and borrow to invest or place your money where ever it is you now have it?

That is exactly what I did. With mortgage rates near historical lows I believe that over the long run I can invest the proceeds and earn more than what I pay.

One thing to keep in mind though is that my mortgage is less than 10% of our net worth. If the mortgage would be much more of our net worth (say 50% or more) I would not be so comfortable using leverage the way I am.

 

[Sarah in SC]

I listened to Dave Ramsey for a number of years, and count him as the encourager for my somewhat reluctant spouse to really get on board with our finances. Because the radio show is quite entertaining, DH came to be more interested in our financial goals, and eventually the goal of paying off our house.

I can discern the good advice given from the stuff that isn't. Just like the good parts of YMOYL. And I think Ramsey does a good public service to counsel those living paycheck to paycheck to save and get out of debt. Those folks aren't like most of us on the forum, but I used to be one of them.

 

[martyp]

I've always paid off my credit cards in full each month. We paid off our mortgage this year. I do keep a fair amount of cash in a credit union account for emergencies. When I purchase a new car in the future we will probably do what we've always done and that is pay most of it in cash and take out a loan for some of it.

 

[jimbee]

As a side note, here is Dave Ramsey's house:

Dave Ramsey’s House: Living Like No One Else

Bette Davis - What A Dump! (Original) - YouTube

 

[Rickt]

No Mortgage or car pymts. Use cash back credit card for almost all purchases. Get over $1,000 cash back each year.

 

[Senator]

Any tips to maximize this tax free income?

1. Purchase Visa gift cards with your points credit card, preferably a new card that requires a high level of spend in the first few months, for a large number of points. A Visa gift card can be purchased for as little as $2 for a $500 card.

Or, Amazon has a way to transfer money from your credit card to send to a friend, like PayPal. There is no service charge.

The idea is to get as much 'charged' on the credit card to get points, and the bonus points that the new card offers.

2. Transfer the Visa gift card balances to an Amex BlueBird account, at a Walmart terminal.

3. Pay the balance on the points credit card with the balance in the BlueBird account. Or you can pay a mortgage or rent from this online checking account. Or any bill.

4. Then, you have lots of points on your credit card you can use to travel and save money. Some cards may allow you to redeem for a statement credit, which is like cash.

5. Look for a new credit card that gives another high-point reward bonus, and start at step 1.

It’s that easy...

 

[daylatedollarshort]

One light bulb moment we had this year on the credit card game was that it doesn't work to pay the property tax with a 2% back card because of the fees charged, but it did net out to a tidy profit to pay the property tax on a card with 50k in sign up bonus points.

Also, for those interested in the little bonus games, look out for Sharebuilder / Capital One Black Friday sign up bonus specials if you are still eligible. Last year I made around $1K between us and the kids.

 

[Sarah in SC]

DLDS, I'll be paying our prop taxes in January with the card that has a 70,000 point bonus.

 

[RonBoyd]

DLDS, I'll be paying our prop taxes in January with the card that has a 70,000 point bonus.

What's a Point worth these days?

 

[aja8888]

What's a Point worth these days?

I have 300,000 points with Marriott Club. At 10,000 points for a one night room stay in a $100/night hotel, the points are worth about one cent per point.

 

[Mulligan]

1. Purchase Visa gift cards with your points credit card, preferably a new card that requires a high level of spend in the first few months, for a large number of points. A Visa gift card can be purchased for as little as $2 for a $500 card.

Concerning purchasing Visa gift cards... I could do this in my 5% category say at Lowes or such when offered... I'm assuming sales tax is not charged on buying these? If there is, it negates any advantage for me in buying them.


Sent from my iPad using Tapatalk

 

[Sarah in SC]

What's a Point worth these days?

It depends on whose they are. These are Chase Sapphire Ultimate Rewards, which are pretty darned good for my modes of travel. I swap them 1:1 for United miles, SW Air, or Marriott, or IHG, or use them on the reward website to book hotels or rental cars, depending.

Now Delta miles are a whole different story. Not as valuable, at least to me.

I keep my credit card stuff simpler than most, only juggling one initial spend at a time, and (of course) paying them off at the first of each month. I go for the middle ground on travel hacking, not like the masters who spend lots of energy getting the really big bonanzas.

 

[Senator]

1. Purchase Visa gift cards with your points credit card, preferably a new card that requires a high level of spend in the first few months, for a large number of points. A Visa gift card can be purchased for as little as $2 for a $500 card.

Concerning purchasing Visa gift cards... I could do this in my 5% category say at Lowes or such when offered... I'm assuming sales tax is not charged on buying these? If there is, it negates any advantage for me in buying them.

No sales tax charged, only a service fee. The service fee is only ~$5.00 per $500. A penny a mile. But you get the bonus points, if any.

 

[Car-Guy]

Speaking of credit cards, I just got a "invitation" to apply for an American Express Platinum card in the mail a few days ago. I thought the mailer said there was a $495 annual fee (but the web site said $450.) It listed about a page of "potential benefits", none of which I would probably ever use. It doesn't matter, it's in the trash now, but I got a good laugh.

I've had credit cards all my adult life and I have never paid any fees. (no annual fees or interest) Sorry but fee based credit cards are not for me. Guess I'm spoiled.

 

[davemartin88]

Retired debt free about 6 years ago, we pay cash or use a card I pay off each month. Having said that, last week I took out a line of credit on our brokerage account that I plan to use to buy a piece of property we'll close on in the next few days. Didn't plan to do this but will turn 59 1/2 in a few months and will use some funds from an IRA to pay it off. Found a river property only a few miles from here so we can fish and boat. Will post about it once we close.