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Dave Ramsey said what??...
Old 10-22-2006, 02:55 PM   #1
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Dave Ramsey said what??...

I was listening to old Dave a couple of weeks back. He typically sticks with his pay off debt and then save routine but this tine he threw in a little investment advice....

"Sometimes I buy load funds - like American Funds - b/c the expense ratio is lower over time and I don't mind paying the load."

Without actually doing the math it seems absolutely wrong, not to mention he fails to account for the "cost" associated with turnover. Too bad so many of his die hard listeners would be willing to jump off a cliff if he said so. Anyone looking for work as an investment counselor under Dave? Or do you prefer Suze?

Hope everyone is doing well.
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Re: Dave Ramsey said what??...
Old 10-22-2006, 03:28 PM   #2
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Re: Dave Ramsey said what??...

Quote:
Anyone looking for work as an investment counselor under Dave?
I think that you are on the right track wildcat. I have heard him praise load funds as well as EIAs from time to time also. I don't listen to him on a regular basis so I do not know if this happens often but I bet that this is not uncommon. As he has mentioned, he has a string of "investment councelors" that are somehow linked to him, maybe they pay a fee to ole Dave, because he is not doing it for free. It's all good. Dave has a right to make as much $$$ as possible as long as the folks undestand what's going on.

I doubt that they do.

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Re: Dave Ramsey said what??...
Old 10-22-2006, 03:45 PM   #3
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Re: Dave Ramsey said what??...

At least he didn't mention any "buckets" schemes
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Re: Dave Ramsey said what??...
Old 10-22-2006, 04:31 PM   #4
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Re: Dave Ramsey said what??...

Quote:
Originally Posted by wildcat
At least he didn't mention any "buckets" schemes
No, he believes in the envelope system.

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Re: Dave Ramsey said what??...
Old 10-22-2006, 04:38 PM   #5
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Re: Dave Ramsey said what??...

hey w.c.

I have more of a problem with Dave saying stuff like this because he uses religion in his sell.... I can only guess that the Lord loves indexers...
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Re: Dave Ramsey said what??...
Old 10-22-2006, 04:39 PM   #6
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Re: Dave Ramsey said what??...

Actually, if you look at the American funds, they have one of the lowest turnover rates of all funds. Their strategy is deffinately long term hold. And if you do hold these stocks twenty years or so, he is very correct in his summation that the fees are lower.

If you are into jumping in and out of funds, of couse this is not the fund for you. Also, they have enjoyed one of the highest returns on a consistant bases of most long term funds out there. That is why they have the big bucks in their funds. (And no I don't own any-though I did consider at one time)
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Re: Dave Ramsey said what??...
Old 10-22-2006, 05:19 PM   #7
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Re: Dave Ramsey said what??...

Dave gets in wrong when it comes to investment advice. But it is possible that the average listener to his program may need an advisor such as the type that would sell American Funds.
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Re: Dave Ramsey said what??...
Old 10-22-2006, 05:42 PM   #8
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Re: Dave Ramsey said what??...

Quote:
Originally Posted by modhatter
Actually, if you look at the American funds, they have one of the lowest turnover rates of all funds. Their strategy is deffinately long term hold. And if you do hold these stocks twenty years or so, he is very correct in his summation that the fees are lower.

If you are into jumping in and out of funds, of couse this is not the fund for you. Also, they have enjoyed one of the highest returns on a consistant bases of most long term funds out there. That is why they have the big bucks in their funds. (And no I don't own any-though I did consider at one time)
Lower than what I doubt they are lower than Vanguard index funds over a 20 year period....
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Re: Dave Ramsey said what??...
Old 10-22-2006, 07:34 PM   #9
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Re: Dave Ramsey said what??...

I had three AFs, still have one. They are load funds and are, I believe, only sold by 'advisors'. They were/are pretty good. If I were interested in load funds I would look at them, only issue might be asset bloat as they have grown so much. I am a Vanguard fan but if advisors worked with AF i would have more regard for their recommendations.
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Re: Dave Ramsey said what??...
Old 10-22-2006, 09:17 PM   #10
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Re: Dave Ramsey said what??...

He gives good advice about getting out of debt.

I don't listen regularly but I heard him last week recommending a 10% SWR . . .
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Re: Dave Ramsey said what??...
Old 10-22-2006, 10:19 PM   #11
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Re: Dave Ramsey said what??...


Dog52
"No, he believes in the envelope system."

What is the envelope System?
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Re: Dave Ramsey said what??...
Old 10-22-2006, 10:23 PM   #12
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Re: Dave Ramsey said what??...

Quote:
Originally Posted by Texas Proud
Lower than what I doubt they are lower than Vanguard index funds over a 20 year period....
Several American funds would make a mockery of the performance of vanguard funds.

Dave's had some bad advise, but pointing someone towards american funds would not be one of them. It is very true that some load funds have a lower long term cost than some non-load, but high management fee funds, because the load is just paid once when the shares are purchased and an extra 0.5% management fee over time can add up to a serious amount of money.

But again, some of the American funds have outstanding performance. Look them up and see for yourself. I dont own them, but i'm aware that they're a top tier fund company.
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Re: Dave Ramsey said what??...
Old 10-22-2006, 10:45 PM   #13
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Re: Dave Ramsey said what??...

Quote:
Originally Posted by Azanon
Several American funds would make a mockery of the performance of vanguard funds.
Which ones and what time period? I've looked at a few and they don't match up to VFINX over the long-term. That's even excluding the up-front sales charge on Class A shares, which would make American funds look even worse.

ANCFX
CWGIX (the closest)
CAIBX
AMCPX
ABALX
AGTHX
??
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Re: Dave Ramsey said what??...
Old 10-23-2006, 06:33 AM   #14
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Re: Dave Ramsey said what??...

Quote:
Which ones and what time period? I've looked at a few and they don't match up to VFINX over the long-term. That's even excluding the up-front sales charge on Class A shares, which would make American funds look even worse.
So you found one Vanguard fund that the American funds dont add up to out of the probably hundreds of vanguard funds? Now that sounds like a fair comparison! * extreme sarcasm * That was a joke, right?

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Re: Dave Ramsey said what??...
Old 10-23-2006, 08:48 AM   #15
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Re: Dave Ramsey said what??...

Quote:
Originally Posted by doah001
Dog52
"No, he believes in the envelope system."

What is the envelope System?
Thats a system he recommends to help one stay on a budget. You literally put x amount in one envelope for clothes, another envelope for food, another for utilities, etc........ Not a bad system I guess for those that can't manage their money. But guess what? He will actually sell you the envelopes on his website at a premium price.
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Re: Dave Ramsey said what??...
Old 10-23-2006, 09:01 AM   #16
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Re: Dave Ramsey said what??...

Quote:
Originally Posted by DOG52
But guess what? He will actually sell you the envelopes on his website at a premium price.
Oh wow! It's really amazing to me that there are people who can't manage their money unless doing such basic things like this. Very child like.

But I guess there are a lot of these folks out there based on the calls to Suze Orman and Dave Ramsey.

Audrey
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Re: Dave Ramsey said what??...
Old 10-23-2006, 09:10 AM   #17
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Re: Dave Ramsey said what??...

MVelopes gives you a thirty day free trial.

Got a plug on Yahoo the other day.

May play with it(30 DAY FREE TRIAL) for kicks since I'm giving up frugal and never used a 'formal' budget.

Looks like the 'techie' version of what my Mom used from the Great Depression until I left home and who knows how long after - the computer version of the shoe box with envelopes.

heh heh heh heh heh

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Re: Dave Ramsey said what??...
Old 10-23-2006, 09:20 AM   #18
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Re: Dave Ramsey said what??...

Quote:
Originally Posted by audreyh1
Oh wow! It's really amazing to me that there are people who can't manage their money unless doing such basic things like this. Very child like.

But I guess there are a lot of these folks out there based on the calls to Suze Orman and Dave Ramsey.

Audrey
And Bob Brinker. Let's not forget him.

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Re: Dave Ramsey said what??...
Old 10-23-2006, 10:41 AM   #19
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Re: Dave Ramsey said what??...

Quote:
But guess what? He will actually sell you the envelopes on his website at a premium price.
LOL ...well ole Dave has to eat too, doesn't he? You gotta buy envelopes somewhere don't you?
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Re: Dave Ramsey said what??...
Old 10-23-2006, 10:58 AM   #20
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Re: Dave Ramsey said what??...

Quote:
Originally Posted by audreyh1
Oh wow! It's really amazing to me that there are people who can't manage their money unless doing such basic things like this. Very child like.
If you want to feel good about your savings habits, read the Dollar Stretcher newsletters. They also post the occasional "Fame & Fortune" investment profiles of celebrities, rock stars, authors, and other role models like this guy...
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