Does Dave Ramsey Have a Securities Registration?

[sman]

And bringing up the fact that they both have been bankrupt before helps too!

I'm no Ramsey or Orman fan, but I don't think this helps at all. First of all, what if the client you are talking to has filed bankruptcy before? Not sure they would care to hear that you think this makes them somehow less than. Secondly, some of the more wealthy folks have been bankrupt. People like Donald Trump, Tommy Hilfiger, Walt Disney, Henry Ford and probably a whole host of folks who had money invested with Bernie Madoff.

Many times the really wealthy have filed bankruptcy in the past because they were risk takers. They took a chance at something and it didn't work out. The beauty is that they learned from their prior mistakes and the next go around they didn't repeat them and were successful.

In today's economic environment, more and more people are having to file bankruptcy.

As I said, I would be VERY careful with using their prior bankruptcy to discredit them. It may do more damage than good.


Disclaimer: I have never filed bankruptcy. Heck, I've never been late on a bill. I worked too hard to get my credit where it is and I will do everything I can to keep it in good condition. Last time I checked, my credit score was 776.

 

[stormtracker]

Dave preaches from the perfect world, in which layoffs, employer bankruptcies, death or prolonged illness, etc... don't occur. He has the luxury of being self-wealthy which "shields" him from the effects of the common man. His aversion to term life insurance is surely skewed by that position. But, the clients you and I see every day aren't so blessed. Are you going to recommend whole life to the elderly client whom will never live to see cash value? Are you going to recommend a whole life policy to a twenty-something that could get twice the policy with term? A broad paintbrush covers everything, including the rust... Just because these "advisors" have a disclaimer relieving them of any culpability, doesn't mean that they are not advising. Thousands take their advice literally. And as far as the advice to "do what rich people do," is admirable. But I think he should say, rather, to be RESPONSIBLE as rich people do.

 

[sman]

storm,

I don't believe "aversion" is the proper word. His aversion is to whole life, not term.

 

[arnguy]

Why would he need a securities license? After all he is Dave Ramsey----God's gift to the financial world.

 

[LGilmore]

"Are you going to recommend whole life to the elderly client whom will never live to see cash value? Are you going to recommend a whole life policy to a twenty-something that could get twice the policy with term?"

Let's see, YES! here's a couple examples for ya.

20 years ago I sold a whole life to my mom. She hasn't had to pay a premium on it for seven years. It will be there when she dies. It has worked just fine.

20 years ago I bought whole life on myself. I was a super preferred and it was cheap, not as cheap as term, but still cheap. Now I am a type II, hypertensive diabetic... if I had bought term I would get my ass kicked at re-entry (tables anyone?) would term been as good a deal?

The thing is all we can do is guess what's best for the client. We can't see the future, we don't know. Ya can't be smug because you're always one client away from being dead assed wrong.

All you can do is show them their options, fairly explain the pro's and con's of each product and let them decide. It's when we start to talk in absolutes that we become no worse or better than Dave and Suzy. That is really what is wrong with them, the absolutes they preach about. Try not to be in the same boat. There is always an exception.

 

[stormtracker]

storm,

I don't believe "aversion" is the proper word. His aversion is to whole life, not term.

Yup-- got my poles reversed... Happens a lot these days.

 

[ikeman07]

I am a huge Dave Ramsey fan when it comes to getting people out of debt and making sure they know what their money is doing. When it comes to investments and insurance I don't agree with his blanket statements that he makes. I also find it interesting that Crown Financial minsitries which he sought advice from before he started his ministry lists both Whole Life Insurance and Annuities as a good investment. I like talking to people about Whole Life when they say Dave told them not to buy it. After I educate them on the pros and cons, I leave the choice up to them. Most people see the value in WL over term, it just comes down to budget at that point.

A lot of the people I am working with are buying mostly term, with a small portion of WL and then plan on slowly converting it as the budget allows.

 

[briko3]

The question is why would you put any of your nest egg at risk to self insure when generally life insurance is CHEAP when looking at what you're actually paying per dollar.

 

[rphillips]

What happens to the client when his 10 or 20 year term insurance runs out and he is in poor health, and no longer insurable?

Part of Dave's strategy for people is that the will not need any insurance if they realize his plan for them. You can make a reasonable argument that that is true, but you can make a stronger argument that their families would be better off with the infusion of tax-free cash. Then there's always the bugaboo about life not going according to plan....

 

[xrac]

I am a huge Dave Ramsey fan when it comes to getting people out of debt and making sure they know what their money is doing. When it comes to investments and insurance I don't agree with his blanket statements that he makes. I also find it interesting that Crown Financial minsitries which he sought advice from before he started his ministry lists both Whole Life Insurance and Annuities as a good investment. I like talking to people about Whole Life when they say Dave told them not to buy it. After I educate them on the pros and cons, I leave the choice up to them. Most people see the value in WL over term, it just comes down to budget at that point.

A lot of the people I am working with are buying mostly term, with a small portion of WL and then plan on slowly converting it as the budget allows.

Crown Financial is a much better option for people who want financial guidance and their material is every bit as good or better than Dave Ramsey's Financial Peace stuff and is cheaper to boot.