Here is how and why you should buy TERM LIFE Insurance!
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25 Comments
Dave has turned into quite the bible thumper lately.
Well Coach You must be a real closed minded individual. I never said that you posted anything about insurance. Many agents that watch the posts of this video talk about the insurance part. I never made up facts. They are facts. Like I said before, you are the one that makes up facts because if you listen to “ALL” of Dave Ramseys information you would know what I am talking about.
@bond519 Dave Ramsey CLEARLY says investing in “good Mutual Funds” Not Mutual Fund TYPE investments in this video. My first post here wasn’t quoting you, nor did I imply that. It was a hypothetical letter to Mr. Ramsey debunking his advice. And why do you keep referring back to insurance? I haven’t posted anything about insurance. Typical of a Dave Ramsey supporter. When you can’t make a reasonable, legitimate arguement you make up facts, misquote and change the subject.
Well Coach if you would read my post again you would see that I said Mutual Fund Type investments. I didn’t say Mutual Funds. I also didn’t say insurance. My point is that maybe you should listen, watch and read all the available information from Dave Ramsey before you make statements like you have.
Well Bond, perhaps things are different where you are from, but where I’m from there are absolutely no gaurantees on Mutual Funds of any kind. There are some that are safer than others, but none with a gaurantee. I’d love to hear what Mutual Funds you are talking about. I know that Segregated Funds have a gurantee, but those are clearly defined and governed different from a Mutual Fund. My point is that many people by into Dave Ramsey’s advice as though it is the gospel and it clearly is not.
Hickory6: Are you calling yourself a moron?
Coach: It looks to me that you do like most people do and take only some advice and don’t listen to all the information. Dave also teaches that you need to learn for yourself and protect yourself with knowledge. Depending on your personal situation there have always been mutual fund type investments that can be locked in to protect your current balance. I am not talking about Cash Value insurance. Don’t blame Dave Ramsey for your situation if you didn’t follow all of his advice that fits you.
oops. Miscopied the rate of return. It was 9.09%, not 9.7%. Even worse.
Damned good fund, over the years. But you and Ramsey are wrong even about the very best funds.
There was a period around 1999 when the long-term return of the S&P 500 was close to 11.5%. But that was a long time ago. Ramsey kept using those numbers because he doesn’t know math and he doesn’t know market history and he doesn’t know investing, outside of Real Estate (and maybe not even then.)
You’re the MORON, doilyboid. You cherry-picked one of the best decades for stocks in investment history, cherry-picked your one best fund, and still can’t even reach a 10% hurdle, much less 11.5%. Your 88-08 example only gets you to 9.7%.
If you don’t know how to calculate the time value of money, then perhaps you shouldn’t be arguing with people who can.
The tax treatment of life insurance alone falsifies your statement. Plus you don’t seem to understand the difference between par and nonpar whole life. A number of large mutual carriers announced dividends in the six percent range this year. Tax free. What savings accounts are coming close to that on an after tax basis?
My son is only 15 and not able to support himself yet. My wife & I no longer work. To sum up, I am completely uninsurable, I have absolutely no assets and my family has no income. If I die tomorrow, my family will be starving on the streets. Thank you for your concern & advice Mr. Ramsey & for painting me with the same uninformed broad stroking brush as everyone else.
Signed,
Any person that followed this terrible advice & had to withdraw their “self insurance” plan in the last 12-16 months.
Mr. Ramsey,
15 years ago I followed your advice. I bought term, paid off my mortgage and invested in mutual funds. Today, my term expired but I was diagnosed with cancer a little while ago. I am not uninsurable. I paid off my mortgage, but becuase of the housing market tanking it is worth next to nothing. I invested in Mutual Funds as you recommended, but becuase there is absolutely no gaurantee on them, when the markets also tanked in 2008 my funds went from $500,000 to $100,000.
Right on Doilyboid and thanks for the support Bond519….
Do your research, Hickory6… Your “broker” would have you believe that 8% is good and some people will settle for that.
Look up the 30 year average of 2 funds I will name off of the top of my head, Legg Mason Appreciation Fund and American Funds Capital World Growth
and Income Fund.
Why limit the discussion to “over the last 30 years”? How about the last 50+? You only wanted one, so here’s one:
AWSHX — Washington Mutual Investors Fund A shares. Since inception in 1952 (57 years), it has averaged over 11.5% AFTER sales charges. With reinvestment of all distributions, in just the last 20 years (‘88-’08), a $10,000 NAV investment would have been worth over $57,000. ‘78 to ‘88 was a period of significant growth even after the events of 1987.
Who’s the MORON Hickory6.
And, finally, please, for the record, give us the exact section of the IRC that states anything that resembles your other blatant misrepresentation that “Life insurance is defined under IRS rules as a NON-QUALIFIED retirement plan”. Nothing could be farther from the truth. If you, indeed, have a securities registration, you should have learned that LIFE INSURANCE is never to be discussed as a RETIREMENT PLAN. The two tools are entirely separate.
Stop misrepresenting the truth.
Moving on to the subject of “tax-free”, what happens to a person who “withdraws” (real word: borrows) more money from a life policy than they paid in premiums if the policy dies before they do? A TAX BILL from the IRS, that’s what!
So please don’t go around telling people putting money in a life insurance policy is tax-free or that it is the same or better than a retirement account.
Are you an insurance salesman or an investment adviser? Are you FINRA registered? If so, your misrepresentations above should never have been made.
Life insurance dividends are a sham: the company overcharges its policyowners and then gives them a refund. CLUE: you pay taxes on stock dividends, but not on insurance dividends, because you already paid tax on that money once. So tell the truth, “6-7% div.” in life insurance is not the same as 6-7% growth in a stock mutual fund.
Name one diversified mutual fund that averages 10% or more over the last thirty years. One.
Moron.
What kind of rubbish is this? Mjed1983 has clients who probably pay him money for him to invest for their future, Mjed1983 does not perform anything worth paying for since he clearly uses the tips from Dave Ramsey to make the investments. Why should then Mjed1983s clients pay him? Are they informed that Mjed1983 doesnt do any real performance for the money they pay him?
If there ever was a fool to be found on youtube you would be this fool!
true that..this guys..is just a puppet, in which indirectly works for the big banks, who want to market us their products.
Couldnt AGREE MORE!!!
What are you serious? Mjed1983 above is without question correct, there is a massive difference between 500k and 2M when your planning for someones life goals. Your comment is ignorant and from my perspective everything Dave markets to…good luck, and when your wondering where your 1.5M difference went when you retire, hopefully you will remember you should have used someone’s “services.”
“My clients need to know that”
Do you take money from clients and invest them based on YouTube clips? Have you told your clients this? What do you charge them for this “service”?
Dave Ramsey is a FALSE PROPHET telling people what they want to hear in order to make a QUICK PROFIT
He knows nothing about life insurance. Term is a FAILED 16th. century plan that he is ramming down ignorant people throat. Read my book: LIFE INSURANCE – The Cause Of Economic Prosperity available at most online bookstores and see for yourself.
Dave, planning people’s future isn’t a game. 500,000, 1,000,000 or 2,000,000? Which is it? My clients need to know that, it’s their life. Also, I don’t want people to “struggle though.” What you are doing is dangerous. It isn’t financial planning. All you are doing is selling more of your books and pleasing your sponsors.