Thursday, March 8, 2012
A Response to LEAP Advisers. RE:Dave Ramsey
Dave Ramsey, Suze Orman both are mountebanks of the highest order. He has a poor grasp of Economic fundamentals, thus making his disdain towards Insurance and investing flawed and irrational. His appeal to emotion makes him a wonderful charlatan. People cite that he should continue his "get out of debt" message. But, what is so unique about that message? Is there something special about his methodology of getting out of debt that differentiates from other methods? Is that a complicated message that requires spending $200+ dollars to figure out? Really?
I eschew every aspect of his message including his debt message. Getting out of debt is a wonderful deal, but integrated with maxing out qualified plans does not provide people with a capital base. Investing in mutual funds viz a viz a qualified plan in the hopes to be self insured in 20 years, is the most ridiculous concept of his sophistry style message. And, it is highly risky. If your home was paid off, would you remove the homeowner's insurance? Answer: No. Why recommend to be "Self insured" when you do not have economies of scale over your life? Transfer the risk to the Insurance company and have a built in growing capital base. One can invest in equities, Real Estate, etc once a sufficient capital base is built.
If Mr. Ramsey understood economics, Capital reserves is the starting point of production. You save to invest, not invest to save. With using perm life, that gives the client the secured foundation, along with debt freedom if the client seeks to get out of debt.
In short, Ramsey is a quack. Nothing in his message is solid simply because its all integrated into a one size fit all scam.
Here is a video mix with Peter Schiff and Dave Ramsey: (DISCLAIMER I am not a Gold Bug, but nothing is wrong with looking at commodities)