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Does Dave Ramsey have it wrong?

Does Dave Ramsey have it wrong?

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  • 1. Changing the Way America Saves Money and Builds Wealth.
  • 2. Dave Ramsey • Opposes cash value life products • Gives Bad Money Advice • Lies to the consumer on what is reality Lets analyze his so-called “expert advice.”
  • 3. 32 Year - Old • Save 15% of $40,000 = $ 6,000/year • Mutual Funds – Inside a 401k • Die at 52 – no life insurance • According to Dave Ramsey has saved $500,000 - $700,000 in a mutual fund. This has Nothing to do with Life Insurance Turning $6,000/year into $500,000 - $700,000 in 20 years Is this really possible? Lets take a look! Based on Dave Ramsey’s Assumptions
  • 4. Turning $6,000/year into $700,000 in 20 years? Presto $700,000 Seems a little pie in the sky don’t you think? You need to Save $6,000 a year Growing at 15% Compounded Annually Zero Fees and Commissions - $0.00 Zero Tax Rate – 0.0% Dave Ramsey Absolutely Pie in the Sky
  • 5. Back Here on Earth lets be more realistic • $ 6,000 savings • 10% Compound Return • 1.5% Fees & Commissions • 25% Tax Rate • $232,000 After-Tax Cash • Far Cry From His $500k to $700k He Promised in his Video. Dave’s Ramsey Optimistic Plan lets Cut by 5% Based on Dave Ramsey’s Assumptions
  • 6. • $ 6,000 savings • 8% Compound Return • 2.5% Fees & Commissions • 30% Tax Rate • $150,000 After-Tax Cash • To Wife • Total investment $120,000 Realistic Plan Dave’s Wish Plan • $ 6,000 savings • 10% Compound Return • 1.5% Fees & Commissions • 25% Tax Rate • $232,000 After-Tax Cash • To Wife • Total Investment $120,000 But According To Dave Ramsey’s Bull---- PLAN Presto! $500,000 to $700,000! Is this Reality? • Based on Dave Ramsey’s Assumptions!
  • 7. The Ultimate! Real Life Plan! IUL Cash Value Life Insurance Saving Plan with Living Benefits Continue to Save $6k/Year Dies at 52 years old $593,199 TAX FREE Guaranteed To Wife No Pie In The Sky! Guaranteed • Based on current Assumptions
  • 8. But What If He Lives? Life Insurance Savings Plan with Living Benefits and Tax Free Income • Continue to Save $6k/Year • Stop @52 – Benefits • Chronic Illness $5,603 per Month Tax Free • Critical Illness Living Benefit $475,426 Tax Free • Terminal Illness $449,999 Tax Free • Income Benefits • $35,209/Year Tax-Free to age 100 • Total Benefits to Him and Family • $1,760,540 by age 100 • Dies at 100 - $556,512 Tax-Free to Family • Total Value: $2,317,052 • His Investment: $120,000 Based on current Assumptions
  • 9. But What IF He Continues To Save ? Life Insurance Savings Plan with Living Benefits and Tax Free Income • Continue to Save $6k/Year • Stop @70 – Benefits • Chronic Illness $25,106 per Month • Critical Illness Living Benefits $1,000,000 • Terminal Illness $1,165,909 • Death Benefit over $1,300,000 • Income Benefits • $185,843/Year Tax-Free to Age 100 • Total Benefits to Him and Family • $5,575,290 by Age 100 • Dies at 100 - $1,342,641 Tax-Free to Family • Total Value: $6,918,231 • His Investment: $180,000 Based on current Assumptions
  • 10. Dave’s Ramsey’s Famous Quote? “Live Like No One Else” Because Your Not Living!