Dave Ramsey free for 14 days

[Keith]

I've heard him suggest "good growth mutual fund with a long track record" numerous times. Do you agree with that, for someone 55 years old?

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[whitetailtrail]

I have heard him on the radio telling retired/older folks to put 100% into mutual funds because they will earn 10-12% a year (as though it is guaranteed).

He totally disregards the fact that retired folks who are drawing their income off of their savings may never recover if they continue drawing income in a bear market (aka our current situation or the 2008-2009 debacle).

He does not have a securities license to give investment advice but does so anyway -

More specifically, he tells them they could withdraw that return (10-12%) from their nest egg each year. I.e, invest your 800K in “good growth stock mutual funds” and you have an 80K income. More realistic withdrawal rate that is sustainable will be somewhere between 3-4% depending on expenses.


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[Huntingfool]

I've heard him suggest "good growth mutual fund with a long track record" numerous times. Do you agree with that, for someone 55 years old?

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yes but not 100% of your money in a growth mutual fund. A 70-80% stock mutual fund and 20-30% bond and money market at your age is the normal portfolio. As you near retirement (within 5 years) and having to actually live off of your savings you should scale back to 60-40% or lower.

When you actually retire where you invest your money is determined by how much money you have saved and how much income you need. If your savings can produced enough income for you to live comfortably by earning 3-4 % then you can invest conservatively - if you need a 6-10% return on your savings to produce the income you need then you have to be invested in the market - pretty basic

[Keith]

We've got just under 30 minutes until it starts.

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[Laketex]

Thanks for posting this. I thought I had the DVD's somewhere, but who knows what happened to them. I did it once with great success, but fell off the rails when I got divorced. Needing to get back on that train with my girlfriend now...get both our debts under control (we don't owe a whole lot) before marriage. We can binge watch that in 14 days!