Dave Ramsey's New Iphone App

[Newby]

Dave Ramsey has a new free app for the iphone.

You look up his advice on different topics. It's well laid out.

I listened to what he had to say about whole-life and it was his normal tainted info BUT he ROASTED on Northwestern Mutual by name and said they were the LAST insurance company he would ever buy a policy from. He said Northwestern Mutual had some of the worst policies he had ever seen.

Seems he bought a policy from them when he was 23 and dropped it the same year when a term salesman got ahold of him and made him feel stupid.

Dave seems to have a bone to pick.

You can rate the app and leave feedback if you are so inclined.

 

[HealthGuy]

I thought NWML was the best and ONLY and most ethical life company on the planet? I have no bones to pick with them as everyone knows.

 

[VolAgent]

Seems he bought a policy from them when he was 23 and dropped it the same year when a term salesman got ahold of him and made him feel stupid.

That explains a lot. Dave got embarassed and got someone's spiel at 23, now he is going to take it out on the world.

 

[catowned]

He slams Amex because of a collection agency..he slams banks all the time because of their fees. Banks revenue from non-interest income increases each year but he really picks on the weirdest stuff for his examples - saying they are snakes. The older I get the more I see how distorted things get sometimes when presented by a radio/tv/blog.

 

[HealthGuy]

Poor NWML. Wahh, wahh, wahhh..... :(

 

[g-squared]

Heard an interesting call on Dave's show the other day....woman had a $400,000 cash-value policy (not sure if whole life or universal) in which she had built up about $50,000 of cash surrender value. The policy had been purchased for this woman, who was now in her 20s, by her grandmother back in the day. I'm guessing that maybe it was a single premium policy because the woman, who said she was making about $40k a year, didn't mention that she was paying premiums.

The woman had already borrowed $30,000 from the policy to payoff student loans. Dave, of course, told her to "drop the whole life" and buy term. I don't think he realized that she wasn't paying premium!

Then he talked about how "cool" it was that if she dropped the whole life, she would have $50,000 left over to build her emergency fund and do some other things financially.

Amazing what this "crappy" whole life policy did for this woman.....bailed her out of $30,000 of debt and gave her $50,000 to spend as she pleased. Again, just an educated guess here, but it did all of that for a single premium of approximately $25,000. And, if the policy was a participating whole life, for example, that was accomplished risk-free!

I just started laughing, because here's Dave Ramsey, who's always trashing whole life, talking about how "cool" the benefits of having a whole life policy are!

 

[VolAgent]

I hope she does it and then sues him when she gets hit with the tax bill. Sounds like the cash value got up to $80,000. If we go with your assumption of $25,000 in basis, that is $55,000 in taxable gains. Wonder what that will do to her tax situation this year?

 

[briko3]

Can't sue him for advice because he's not licensed and has the disclaimers. To the law he's like a journalist and is just giving opinions.

 

[VolAgent]

Can't sue him for advice because he's not licensed and has the disclaimers. To the law he's like a journalist and is just giving opinions.

Negative, you can always sue. Now, getting an attorney to take the case and win is a different story. I'd just like to see the bad publicity for him, he'd probably settle just to make it go away.

 

[Newby]

In order for his theory to work out they must buy term and invest the difference.
But in order to do that they must first find out what that difference is and then invest it each month.
We know he sends listeners to his preferred provider (Zander) who won't quote whole life. So they won't find out how much to invest there.
How many listeners do you think actually take the extra step of hunting down whole life quotes, subtracting the term cost and then investing that amount each month?
Yet Dave continually spouts out the numbers daily of how many hundreds of thousands of dollars you will have in the bank at the end of the term like it is a fact.