Today’s episode revolves around whether Dave Ramsey is right – or wrong – in saying that people can take an 8% withdrawal rate in retirement.
A group of fiduciary advisors recently confronted Dave Ramsey on Twitter.
Just like David, they too thought that Dave Ramsey is living in a fantasy world because of the advice he shares with people.
David points out a big flaw in Dave Ramsey’s recommendation of staying 100% invested in stocks your entire lifetime: the approach doesn’t account for investment volatility.
Remember that just because you average 11.8% per year, it doesn’t mean that you’ll be getting precisely that result each and every year.
That’s because the order in which you experience returns in retirement is one of the biggest keys in determining whether your retirement assets will last through life expectancy.
David emphasizes the fact that most people who retire at age 65 need their money to last a full 30 years.
Ramsey’s “one-size-fits-all” approach is the reason why, David believes, he takes positions even if they aren’t supported by the data.
Mentioned in this episode:
David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code
DavidMcKnight.com
DavidMcKnightBooks.com
PowerOfZero.com (free 3-part video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram
David McKnight on YouTube
Get David's Tax-free Tool Kit at taxfreetoolkit.com
Dave Ramsey
Morningstar
Ibbotson Associates
Debunking the Myth of the 8% Return by Wade Pfau
The Fatal Flaw in Suze Orman and Dave Ramsey's Retirement Planning Advice
Here’s What Happens When You Put 30% of Your Retirement Savings into Cash Value Life Insurance
What Dave Ramsey DOESN’T Want You to Know About Indexed Universal Life
First Glimpse at Your Tax Bracket in 2026 (And What It Will Cost You)
How Gen Z Should Save for Retirement
Why Ken Fisher Does NOT Want You to Do a Roth Conversion
How Much of Your Social Security is REALLY Getting Taxed? (and At What Rate?)
Why Don't More Financial Advisors Recommend Indexed Universal Life?
Your Roth Conversion Roadmap for the Next 10 Years and Beyond
Clark Howard Says Fixed Indexed Annuities Stink! (My Response)
Is IUL the Dream Investment that Doug Andrew Claims?
The Two 5-Year Roth Rules Explained
Warren Buffet Says AVOID Financial Advisors Like the Plague (Is He Right?)
George Kamel Swings and Misses on Indexed Universal Life
Is Ken Fisher's Anti-Annuity Stance Illegal?
Suze Orman vs. Dave Ramsey on Sustainable Withdrawal Rates in Retirement
Is a 100% Tax-Free Retirement Really Possible?
A Recent Penn Wharton Study Says that the U.S. has 20 Years to Fix Debt or Face Cataclysm
How to Figure Out How Much Money to Save for Retirement
The Best Way to Make Sure Your Money Lasts as Long as You Do
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