Why Do Suzie Orman and Dave Ramsey Trash WL So Much?

[Tahoe Ray]

So they can't buy 50 to 100k of whole life and some level term to meet the current need and the future one?

I mean nothing wrong with what you're suggesting except whole life doesn't get any cheaper as time goes by. Holding off on the purchase of some whole life simply for the majority of people out there as they age prices it out of reach.

I run into this all the time. They had enough money to buy all sorts of crap during their earning years and then as they retire, they have no money and are stuck, or should I say their spouse is stuck with not much.

Nothing wrong with 500k term, but nothing wrong with 100k wl and 400 term either. Waiting later to make a whole life purchase usually isn't a good idea.

It's not an all or nothing scenario, it's a find a combination that works short and long term. Cheers.

That's why it's always nice to have convertible term or an RdPu option on an ROP policy.

Yes they pay more at conversion (or for the life of the policy in the case of the ROP) but it is all about having options.

Personally, I feel that Protective has solved this issue largely for most folks. Level term with a decreasing DB with the same premiums after the level premium.

I love writing a 55yo who still needs 300k to pay off his mortgage but a Protective policy bought today solves that problem for today's 35yo.

 

[Mash]

Ramsey is an ex-A Williams agent .. .failed. . .. .does that answer your question? He's also violating law with his advice. . .. he is not licensed.

 

[Gooner]

Ramsey is an ex-A Williams agent .. .failed. . .. .does that answer your question? He's also violating law with his advice. . .. he is not licensed.

Really? Violating the law? It's an entertainment program. Pretty funny the people who get most pissed of at Ramsey and Orman are insurance agents...hmmm..makes you wonder

 

[rousemark]

Ramsey is an ex-A Williams agent .. .failed. . .. .does that answer your question? He's also violating law with his advice. . .. he is not licensed.

How do you figure.. You don't have to have a license to discuss the in and outs of insurance.. You just have to have a license to sell it...... Believe he also went through a bankruptcy.. Is he violating the law by giving advice to other how to manage their finances since he failed to manage his own?

 

[walthamny]

Both Ramsey and Suzie are considered financial entertainers, they are not financial advisors, there is a small disclaimer at the end of the show which no one has been able to read except regulators. Their advice under suitability or fiduciary standards would not be allowed. You can't listen to a female client for 35 seconds and tell her divorce the husband and cash any life insurance policy. However, for entertainment purposes it is allowed. In any Broker/dealer environment calling people my girlfriend is sexist, they will fire you. Saying that everyone who invest with you gets 12% minimum regardless of age, risk tolerance will also land you out of this business quickly.

 

[DHK]

Ramsey and Orman are the WebMD of finance.

You might reference it, and after you determine that you're gonna die, then you go see a professional to get a real diagnosis.

 

[pcbinsurance]

I think they are more like Wikipedia.

 

[xrac]

Ramsey is an ex-A Williams agent .. .failed. . .. .does that answer your question? He's also violating law with his advice. . .. he is not licensed.

He would be violating the regulations if he was FINRA licensed but he is not.

 

[Newby]

This may have been posted before but here's a pretty good Dave Ramsey article http://time.com/money/2794698/save-like-dave-ramsey-just-dont-invest-like-him/

 

[rpm]

Their attitude is based on agents using IRAs and 401ks to fund high cash value life insurance. There have been several state legal actions against this practice which gives the industry a bad name