Do your own research

Discussion in 'Fixed Income' started by mikeriley, May 5, 2022.

  1. mikeriley


    There are two reasons why Dave Ramsey is not always
    the best option for financial advice.

    First reason, he constantly tells people there is no benefit
    to holding CREDIT. That's just plain dumb in the face of
    many who have benefited from using credit to purchase
    Real-estate or start a business. My son in law is a Real-estate
    investor and is using credit with great results.

    Second reason, sometimes Mr Ramsey gets it completely
    wrong. His opinion concerning Whole Life Insurance is
    one of those times he got it wrong.

    Concerning life insurance, in the video above,
    Mr Ramsey advises a caller on his program not
    to use the Infinite Banking concept via whole life insurance.

    He claims the insurance agent which advised his caller of the
    Infinite Banking concept is not a financial advisor.
    I can just imagine Insurance agents who hold the
    series 6, 7 and 63 were probably baffled by his comment.

    Clearly Mr Ramsey is clueless about the benefits of Whole Life.
    Structured correctly, using non-direct recognition clause and a paid-up
    rider, a client can borrow from their OWN whole life policy,
    with their payments of principle & interest returning to increase THEIR POLICY.

    Essentially in time this stops the need to borrow from a bank to purchase
    high ticket items (home, car, boats, vacations, wedding ring, college tuition)
    The process is set up, so that you borrow from your own policy, and
    all payments will Pay Yourself Back! Not to mention interest payments
    will be much lower than anything a bank offers.

    Funding your own future loans while building an inheritance for
    your beneficiaries is a wonderful financial strategy. A savvy Insurance
    agent would add a grantor retained annuity trust that would give
    the principal to family members estate tax free.

    Moral of this story is that it's prudent to do your own research
    instead of relying on so-called experts.

    Hopefully the caller listened to his Insurance Agent, and
    not Mr Ramsey.
    SimpleMeLike likes this.
  2. SunTrader


    Old Warren B and Charlie M know a thing or two about investing money from insurance policies.
    murray t turtle and mikeriley like this.
  3. Hello mikeriley,

    An old man in the neighborhood I grew up in use to tell me all the time "If a man talk too much he trying to fool you and take your money".

    Dave Ramsey just pimping the system and selling dreams.
    beginner66 likes this.
  4. maxinger


  5. mikeriley


    Hi there SimpleLikeMe,

    When I use to be a trucker over the road, I would listen
    to Mr Ramsey's radio program religiously. His teachings
    do have some merits. He teaches the importance of
    achieving a debt-free lifestyle.

    But after you've paid off all your
    debt..then what? This is just my
    opinion, but I started to get the
    impression his program is geared
    towards people who plan on being
    a working stiff the rest of their life.

    I realized to get ahead financially credit can
    be a useful tool for leverage. So I stopped
    listening to Mr Ramsey, and started listening
    to entrepreneurs who teach how to get the
    hell out of the rat race.
  6. M.W.


    You apparently know even less. Anyone who studied insurance policies and finance for just a few hours understands that life insurance policies of all stripes are bad investments unless only used for the original intent, which is to insure against the death of the insured. Anyone who uses credit in normal life is a person of average or below average income/earnings and probably does not have much say in this. Or have you heard of someone who makes plenty and borrows to buy a car or house? I have not. Most are get rich quick schemes that attract certain people of questionable work ethics.

    murray t turtle likes this.
  7. M.W.


    Got ahead because of credit? You were a trucker for heavens sake. What are you now? A retired trucker?

    murray t turtle likes this.
  8. SunTrader


    Leave it to angry man lol.
  9. newwurldmn


    this is not true, especially as a Canadian.

    there’s all sorts of things you can do with a life insurance policy to arb taxes and circumvent estate laws.

    Even in the US (which has the strictest tax code) there was a loophole by which you could overfund a life insurance policy and that value would grow tax free. That loophole has since been closed.
    murray t turtle likes this.
  10. Dave Ramsey is fine for getting yourself out of debt and cost cutting but his advice on how to use money to make more of it often fall wide of the mark for me
    #10     May 6, 2022
    ET180 likes this.