45 thoughts on “Financial Advisor Told Me To Invest Instead Of Paying Debt

  1. It’s amazing the tremendous amount of people who are fooled into not paying off debt first, while embarking in additional financial stress and liabilities instead.

  2. I just looked at my rogue I paid 8k for (2013) like …..I wouldn't buy you for 20k if you had no clothes on.

  3. It’s a shame that such sound advice to such a wide audience can’t be shared without chastising everyone who disagrees with him or just asks a question. You don’t have to break down everyone else as ignorant, stupid, idiots, in order to build yourself up. Logical advice like Dave’s doesn’t need childish name calling.

  4. If there was no risk factor it's not a crazy idea that debt can be used to earn a higher return than the interest

  5. Nobody can measure personal risk except the person taking on the debt. Employment stability and health are huge factors. But a financial advisor doesn’t know that per se. putting a number on risk is also hard. I suppose Dave will give the caveat of 3-6 months of expenses.

  6. Dave's advise is blunt and stupid. He does n't care what interest rate are those loans, He does n't talk about conservative opportunities available in the market and returns possible. He does n't even how to measure risk just sharing some information he knows about Beta. But SPY itself could be risky. Totally I would n't even think of him as a financial advisor. He wants debt to be paid off before investing in 401k. America is listening to him seriously ?

  7. I personally disagree with Dave here as you don't have to do everything one at a time. If he makes enough money, who says he cant invest AND pay off debt at the same time? I dont believe in the "15% towards retirement" as you should just invest whatever percentage you are most comfortable with. Additionally you can technically build up your emergency fund with a Roth IRA, but my main point is he doesn't have to do things one at a time like Dave says.

  8. Honestly just glad to see that my studying of CAPM for the past 4 years in college is actually relevant and they aren't going to hit me with "this model is more relevant but you have to come back for your master's to learn about it" (fama french 3 factor model excluded)

  9. When I got my inheritance I paid off all our 20% credit card debt. I doubt many investments would have a 20% plus return.

  10. Yeah, the 6% would have been adjusted for risk.
    If you hire a professional financial planner listen to the professional instead of this salesman. The professional takes all of your information and mentality into account. Dave here has a one size fits none plan he makes money selling to people.
    I'm not going to meet firing my doctors until I find one that agrees with what I think the answer is, and it's the same thing here. Talk about moronic.

  11. One thing is certain, if you can't cut back when you are in debt, you won't cut back if you do make money on the stock market – you will enter into more debt and go for more risk and invest more on the stock market.

  12. San Diego in 2005, the average home price is $600k+. By 2009, home owners lost 30-40% of their home equity. They spent all there saved money on continuing to pay the mortgage, property taxes, maintenance, utilities, late fees, ect and in the end lost it anyway. Lost all the down payment, lost all their savings, ruined their credit and now will be renters the next 10+ years. Having no payments is great but your equity can fluctuate.

  13. I have no idea how I ended up here, I have watched several of this videos and basically they are all the same, I am not following his steps and I'm doing really well, at the age of 14 I was earning
    Money on the weekend and vacations, to support myself so at an early age I learned how to manage my money, I couldn't even graduate from high school and I'm doing better than most people with University degrees

  14. I have had long debates with a friend who like this guy pay the minimum on debt and invest in mutual funds. I had a pickup truck I owed 38k at 1.7% int payment was like $600 something for 5 years my wife and I wanted to pay it off sooner so we made double payments. It wasn't easy some months our savings went down but we paid it off in 3 years. He said I was stupid because I should have taken the extra $600 a month save it in a mutual fund after 3 years I would end up with 6% more then I put into the truck debt. He does this seems to be doing okay that's when the markets are going up I remember in 2009 he was crying how he lost 1/2 his wealth he was really worried. Now he says it all recovered and then some so he is now completely convinced that the markets are invincible you will eventually recover. I can't stand putting money into a bankers pocket for doing nothing rather pay things off have no debt. One thing you want to do is get a "Paid" financial adviser anyone who isn't charging for their work will try to sell you a product that's how they are making money. I remember another friend who had 20k in credit card debt at 16% INT he had gotten money from a trust fund about 20k he wanted to invest it asking me what was the best return. I said I know a fund that pays 16% INT that credit card debt you have LOL.

  15. I've seen too many people struggle in their later years to choose not to invest as well as pay down debt. Most debt can be forgiven if the worst comes to the worst.

  16. Wow this guy is so wrong! Simple math. In my situation… Save $150 a month for 20yrs 7.75% interest and earingings over $50,000 about $85,000 in total 🙂 put it toward my 30yr mortgage and i pay it off in 20yrs with interest savings of $24,000… who ever choses second option is an idiot !!

  17. Pay off the cars. Turn around after they are paid off and use that same money you were using to pay those cars off and invest.
    You will have the titles to your car and money to invest. I see where Dave is going with it. Everything is not for everybody. People have to do what is financially best for them. If you make a good amount of money, you can do both but if you don’t just simply pay the cars off first.

  18. Why not save up money, then make the purchase rather than having to pay down a debt.  Then, you don't have to pay interest and there's no pressure to keep up with payments.  Think, people.

  19. Sell the Truck and the Rogue. Buy two cheap cars and then actually be able to invest money. 45k is too much to be invested in cars that you can't afford.

  20. I think what Mr.Ramsey is saying is that borrowing money is riskier than actually investing in the market. I guess if ether scenario was to go bad the same thing would happen. You lose money.

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