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Shares: Dave Ramsey’s Bad Math

Shares: Dave Ramsey’s Bad Math

March 25, 2024

I have been watching this debate go on back and forth within the industry for some time.  In this blog post I'm going to share a podcast from my alma mater that demonstrates what real retirement income planning looks like and how much getting it wrong can have devastating consequences.  Enjoy.

In a recent episode of his own podcast, financial guru Dave Ramsey touted an 8% withdrawal rate for assets as his advice to those at or near retirement – and decried those who might disagree as “goober supernerds.”

To assess the validity of Ramsey’s claims, our host Michael Finke, PhD, CFP® assembled The College’s resident retirement supernerds – adjunct professor of wealth management David Blanchett, PhD, MSFS, CFA, CLU®, ChFC®, CFP® and professor of practice Wade Pfau, PhD, CFA, RICP® – to discuss their printed response to Ramsey, optimal withdrawal rates, sequence of returns risk, and best-practice retirement planning in the inaugural episode of our Shares podcast.

Michael Finke, David Blanchett, Wade Pfau and The American College of Financial Services are not affiliated with or endorsed by LPL Financial and Compass Financial Strategies. The opinions voiced in this podcast are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.

Here's the link to the original podcast.