Has he ever told his listeners that he get COMMISSION when his listeners invest in the funds he recommends? Yeah, you read that right. Most American financial advice is terrible, but Ramsey's takes the cake. Oh here is the link to the clip I came across. If I hadn't obtained 3 investing licenses I wouldn't have known any different. But I really hope that people do not take what he says and run with it. Before anyone recommends an investment product, they should know these things about you: At best they are considered “moderate to moderate aggressive”.ģ. A conservative fund would be something like the market losing 30% and your portfolio losing only 10%. That means if the market losses 30%, you lose 30%. These index funds have a Beta of “1.0” which means they are invested in the entire market and are exactly as risky as the market. It is not possible for a S&P Index fund to be conservative. S&P Index funds are moderate risk not conservative. He said S&P Index Funds are Conservative. You can do a simple Google search to find that out.Ģ. There is a huge difference between the two. Insurance agents can only sell Fixed Annuities.
#DAVE RAMSEY HOME AND BUSINESS SOFTWARE LICENSE#
I could not sell variable annuities until I got my Series 7 license (The mother of all securities licenses). They are considered securities like a stock or bond and require an investing license. Insurance agents CANNOT sell variable annuities. I'm not sure if he understands how they work. He said Insurance Agents Sell Variable Annuities.Here are 3 VERY disturbing things about what he said in the audio clip. If I would have placed the trade for this client the compliance department would have given me a call asking if I was trying to get fired or if I just enjoyed being sued. He also said to be careful because the insurance agent probably cannot sell mutual funds and can only sell variable annuities. In the clip, he told a 59 year old woman who inherited $500k that he thinks she should put half in a variable annuity and the rest in an S&P Index fund. Out of curiosity I listen to a clip online. Recently though, I have heard people commenting about investing advice he's given. I don't listen to him but I did read a book of his on credit and savings many years ago and thought it was pretty good. I have no desire to return to finance but I really thought those who listen to Dave Ramsey's investing advice should be careful.Ī few friends have asked me about Dave Ramsey's advice. Now that I'm out of the industry, I have a lot of my friends still asking me for investing advice which I try not to give (I try to leave but they keep pulling me back in). My startup has nothing to do with finance. I worked in money and finance for 12 years before I left to run my business. I left my job to run my digital media startup full-time. So, first off, I am a former Financial Advisor.
0 kommentar(er)
