Sorry Dave Ramsey but one size doesn’t fit all

Hello, my name is Nick Har and I am an independent financial advisor for ING. After watching this clip from Dave Ramsey and his reason to get only term insurance, it really infuriates me how much a lazy, lethargic person this guy is. It’s amazing how many people listen to this garbage. Can you believe this guy?

His reason for getting only term insurance, he quotes, “let say I’m talking to a 32 year old who has a 4 year and a 2 year old. Let’s visit him 20 years from now, when he’s 20 year level term that I recommend expires. That would make him 52, he would have a 24 year old and a 22 year old. They should, hypothetically, both he out of college, both be grown, gone, out of the picture, no longer a liability.”

How many people out there do you know who are 24 years old, or even lets say 27 years old who are financially independent? Realistically I know quite a bit of people who are still dependent, trying to pursue grad school, and honestly the new trend for people is to stay dependent for a longer period of time..

He also mentions that when he is 52 years he should have about $700k in his 401k if they were to contribute 15% into their 401k!! Are you freaking kidding me! Mutual funds don’t always go up year after year Mr. Ramsey. We have something called recession that occurs every 8 to 10 years.

Dave Ramsey views and financial advice is a one size fits all mentality. What this means is that if you don’t have a 401k at your job, then sorry Dave Ramsey won’t help you out. If you have kids who are still staying at home and they are in their mid 20s then sorry Dave Ramsey won’t help you out. If you don’t have 15 year fixed mortgage then sorry Dave Ramsey won’t help you out! If I want to listen to a financial advisor, I would want someone who can give me advice based on my own personal situation rather than unrealistic hypothetical scenerios.

Just because your a great speaker Suze Orman, doesn’t mean your always right…

After watching Suze Orman and her stance on buying only term insurance and investing the difference, my question to her would be to invest in what? For those of you who listen to her religiously, let me ask you something, WHAT SHOULD WE INVEST IN??? WHAT HAVE YOU REALLY LEARNED FROM SUZE?

Well, if we were to focus on long term savings, the most popular types are 401k, 403b, IRA, and according to Suze, we should contribute the maximum in our 401k, 403b when we have extra cash and when we have 3 to 6 months of cash reserve funds. For those of you who are more specific in your financing and understands that one size don’t fit all, please read(listen) carefully.

            As you must know, 401k, 403b, IRA plans have the 59 and ½ rule. This means that anytime prior to that age, if you were to withdraw from your vehicle you will have to pay a 10% penalty plus pay taxes on it. Another thing is that 401k, 403, IRA is just the shell and inside of these shells are usually some sort of mutual funds. It is a myth that mutual funds will go up each year and unfortunately in 2008 when housing went through foreclosure, job opportunity were cut, and employees started calling 401k, 201k because some lost 50% of their value, we witnessed that. I took the liberty of showing you a graph of one of the mutual funds below and the problem with our society is that we make decisions based on our emotions.

Our society tends to buy high and sell low and my mom is a perfect example of that. Unfortunately when her 401k dropped 50% in 2008, she decided to sell off her mutual funds and invested in a money market account that offers less than 1% interest and as you can see in the graph, from 2008 to 2010 when the economy started improving, that improvement didn’t reflect her recovery of her 401k loss because of her emotional decision. The problem doesn’t end there, as you know history tends to repeat itself so we should expect a 8 to 10 year recession cycle.

Solution
Now I don’t want to just leave you with problems, I do want to give you solution and I do want you have the mindset of BE MY OWN BANK. If I can show you long term savings vehicle called Universal Life that Suze Orman despises would that be of interest to you? If I can show you how to 1) capture as much interest when the economy does well and there is no cap 2) if the economy is in recession, there is a guarantee 1% so you never lose 3) LUC (liquidity, use and control) access to your money freely 4) tax free income, would that be of interest to you?