Dave Ramsey is WRONG About The 4% Rule

Dave Ramsey is wrong about the 4% rule. In fact, he is DANGEROUSLY WRONG, assuming you can pull out 8% per year and still GROW your portfolio assuming a 12% annual rate of return.

Dave Ramsey went on a rant stating that the 4% safe withdrawal rate for retirement is wrong. In this video, I show you why he simply isn't correct.

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If we haven’t met before - Hey 👋 I’m Marko, and I’ve been investing since 2006, and I got my finance degree in 2010. My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos reflect my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.

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[missy]

I love that his daughter is questioning him

[cloudstrife]

Dave's 12% return on undisclosed mutual funds makes him the youtube finance equivalent of a fake natty

[jeroldstokes]

THANKS. Just what I needed to watch. My wife and I got a 400k HELOC from our 780k primary home which we are still paying a mortgage for. I want to only use 200k for this new duplex down payment. I realized that the secret to making millions is making better investments and staying out of debt.
I'm grateful to GOD for the internet space, we were able to join the credit repair program, we payed up our debt and now we are back to being the administrators of our farming business and our own properties, as well as small pensions.
I am almost 50, my wife is 48. We have started saving for retirement from the farm and maybe live off rental income, I would really appreciate it if you would do a video on how to earn using Airbnb and retire comfortably.

[aaronbrown]

Ah Dave Ramsey, the Dr. Phil of finance.

[PatriciaMary]

*I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.*

[quietearthMT]

Dave Ramsey is good for people who are terrible with basic finances and are lost in debt.... that said, he knows next to nothing about investing.

[MSBJJ]

We did some of the Ramsey plan to get out of debt and everything, but we def made logical adjustments. It's great for those who are financially illiterate, but as you learn you can do better.

[AnnaFed]

Building steady income is quite difficult for newbies... <<thanks to John Desmond Heppolette for improving my portfolio.

[matthewsemenuk]

12% Average every year. Ya, okay Ramsey. Last I checked, we aren't 12% higher, each year, than the top of the market. And if we were, we'd be in a lot of trouble with a worthless currency.

[felipeoliveira]

Even his daughter question his stupidity but he completely cut and ignore her

[j.borchard]

You’re right, Ramsey is incredible at Debt reduction and cutting the fat out of any budget, but when it comes investments, he’s wrong mostly!

[blaquopaque]

5% annual return is easily thrown out there for illustrative purposes, but not so easy to achieve! Where do i put £500k cash holding in to keep cash safe for next 4 years? My concern is insolvency

[brussell]

I think most level headed investors regard Dave as the bloviating kid in the room who speaks the loudest while having little to actually say. Thank you for being a rational and level-headed source of investment advice as always, Marko.

[JohnHobitakis]

I'm with Dave on this one.. it's incredibly difficult to save $1mm, and for what.. to live on rice and beans on a 40k income.

6% withdrawal rate, collect social security and side gig for me.

[Dan-cmow]

Its sad that someone who'd listened to as widely as Dave Ramsey is such an easy punching bag for youtubers. So many people listen to him... I used to until I starting actually having money to invest and realized his return claims were lies and the products he shills are awful. Even non-finance guys like Joshua Fluke regularly expose him for the insane stuff he tells people about the workplace.

[deanmaxbrooks]

Thanks for making this video.

What I could never understand with Ramsey is he's always saying his mutual funds make 12-14% or so. Yet we know most of the stock returns are coming from the Big 7 (Apple, Tesla, etc), without which stock returns would only bev3-4% .

So if SPY and VOO are only giving 11% like avg, what are these magical other funds Dave is talking about? Maybe he has access toi accredited investor stiff most people don't, but 12-14% seems unrealistic, unless you're maybe investing in those Big 7 directly.

[Varnzy]

Also, if you think inflation is only 4%…

[geraldt]

After a massive rally in stocks came and yields collapsed, bond yields and the major averages are higher on Wednesday. How do we deal with such market conditions? Typically my $2m worth of holdings go up 8% then lose 20% right after and the cycle continues.

[DadinWA]

I wonder how much longer is George going to be employed under Dave Ramsey. Dave has old school values. Thanks for breaking down the graphs. for most of us, we need to be conservative when withdrawing during retirement. 8% is ridiculous. I can see 4-5% depending on how much you have saved during retirement but 3-4% is reality for most of us. thanks for sharing.

[christopherbaumgardner]

When I saw Dave's video, I wondered if he was in an initial cognitive decline. He knows there is no way that math is mathing.