Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

Don’t Get Your Money Advice from Suze Orman, Dave Ramsey, Robert Kiyosaki and David Bach

Posted by on Jan. 14, 2013 at 3:04 PM
  • 34 Replies

Don’t Get Your Money Advice from Suze Orman, Dave Ramsey: Pound Foolish Author

Few people know how to manage their personal finances effectively. That’s why we spend millions of dollars every year on books and seminars that tell us how to get rich quick and get out of debt.

Suze Orman, Dave Ramsey, Robert Kiyosaki and David Bach are just some of the best-known personal finance experts advising and lecturing indebted Americans about their foolish and short-sighted money decisions. Yet these are exactly the individuals that the average person should not be listening to for financial solutions according to Helaine Olen, author of the new book "Pound Foolish: Exposing the Dark Side of the Personal Finance Industry" and former editor of the Money Makeover series in the Los Angeles Times.

In an interview with The Daily Ticker, Olen says these financial gurus offer either platitudes or “dreadful” advice that don’t apply to most people’s lives or situations.

“The idea that anyone can give specific advice to millions of people first of all doesn’t really work,” she says. “We’re not archetypes.”

Most Americans are under serious financial strain and the advice “parroted” by these so-called experts is “easier said than done,” Olen argues.

The stats Olen uses to paint the economic picture of a typical American are alarming: Americans have less than $100,000 saved in dedicated retirement accounts and 43% of Americans are living paycheck to paycheck. Salaries have stagnated and Americans’ net worth has fallen nearly 40% between 2007 and 2010.

Moreover, people don’t rack up thousands of dollars in credit card bills because they buy too much, she says. Unexpected and costly medical emergencies, divorce or long bouts of unemployment are the main reasons Americans find themselves drowning in debt.

Ending such indulgences as daily Starbucks lattes (recommended by David Bach) or buying one or two or three homes with zero down (promoted by Robert Kiyosaki) are exactly the admonitions that have steered Americans in the wrong direction and provided false hope to many desperate individuals.

Olen takes particular umbrage at the assertion that an individual can become a millionaire by putting all of one's savings in the stock market. Suze Orman has promoted this suggestion before on CNBC and in her numerous books, but Orman has admitted that she rarely invests in stocks and prefers the safety of municipal bonds, according to Olen. Equities are extremely volatile and rarely provide the 12% annual return that Orman and Dave Ramsey tout for people looking to quadruple their income, Olen adds.

Olen does agree with the overall message promoted by most personal finance experts that Americans should pay off high-interest credit cards and reduce their overall debt burdens. But she insists that there’s no one size fits all solution. Instead, she says, society needs to change its attitude toward money and encourage more frank, candid discussions about debt and saving.

Olen purposely avoids making her own personal finance recommendations in "Pound Foolish" but does proffer one tip she’s learned over the years as a personal finance journalist: invest in market index funds. They won’t make one rich but they offer the best return with the least amount of risk, she says.


by on Jan. 14, 2013 at 3:04 PM
Add your quick reply below:
You must be a member to reply to this post.
Replies (1-10):
FromAtoZ
by AllieCat on Jan. 14, 2013 at 3:05 PM
1 mom liked this

I was just reading this. lol


smalltowngal
by Platinum Member on Jan. 14, 2013 at 3:22 PM
3 moms liked this

I think Dave Ramsey's plan for getting out of debt is good but I've never cared for his investment advice. I have always found it ironic that Suze just invests in bonds. I believe both of them have filed for bankruptcy. Kiyosaki  is just bad. Bach is ok but I can see where he's out of touch, especially in today's economy. 

I have always enoyed the idea of Multiple Streams of Income and thought that was the best way to. That way if one income is lost, like a job, you have other incomes to help support you.


ethans_momma06
by on Jan. 14, 2013 at 3:37 PM
7 moms liked this

Oh I see.

Don't listen to them, LISTEN TO MEEEEEE!!!!


Bigmetalchicken
by Silver Member on Jan. 14, 2013 at 5:10 PM
1 mom liked this

Okay, that is her opinion. And mine is that we have been so much better off since we started listening to Dave Ramsey and following his program. Sure his advice is pretty common sense stuff, but his system, and the success stories gave us the motivation to stay on task.

I mean, my husband and I are 31 and 33. We have already owned one house that we paid off completely, we have enough in our savings to buy a house for as much as $350k in cash, we have no debt, and we are able to put over 50% of our monthly income in savings, thanks to the things we learned following his program. So it seems to be doing well for us.

Bigmetalchicken
by Silver Member on Jan. 14, 2013 at 5:13 PM
1 mom liked this

Dave Ramsey filed for bankruptcy before he realized that debt free was the way to go. He was one of those people that bought houses zero down to resale. He was swimming in debt.  After his bankruptcy he had a come to jesus meeting with himself.  Even his businesses are all debt free. It is pretty inspiring to know that he went from over a million in debt, homeless and out of work, and dug himself out of it to create this business that helps so many people.

Quoting smalltowngal:

I think Dave Ramsey's plan for getting out of debt is good but I've never cared for his investment advice. I have always found it ironic that Suze just invests in bonds. I believe both of them have filed for bankruptcy. Kiyosaki  is just bad. Bach is ok but I can see where he's out of touch, especially in today's economy. 

I have always enoyed the idea of Multiple Streams of Income and thought that was the best way to. That way if one income is lost, like a job, you have other incomes to help support you.



Woodbabe
by Woodie on Jan. 14, 2013 at 5:16 PM
4 moms liked this

Kind of hard to beat the theory of "Pay more down on one bill at a time, then roll that payment into another bill to pay it off faster. Continue the cycle, adding that money into the bigger bills after you pay off a smaller one"...Working for us!

smalltowngal
by Platinum Member on Jan. 14, 2013 at 5:16 PM
1 mom liked this

Like I said, I don't have a problem with his advice for getting out of debt but he basically just encourages investing in the stock market. Even after retirement age. I don't necessarily agree with that advice. He also hates gold and I don't think it's a bad idea, espcially with our country's debt levels, to hold 5-10% of your portfolio in gold and/or silver. 

Quoting Bigmetalchicken:

Dave Ramsey filed for bankruptcy before he realized that debt free was the way to go. He was one of those people that bought houses zero down to resale. He was swimming in debt.  After his bankruptcy he had a come to jesus meeting with himself.  Even his businesses are all debt free. It is pretty inspiring to know that he went from over a million in debt, homeless and out of work, and dug himself out of it to create this business that helps so many people.

Quoting smalltowngal:

I think Dave Ramsey's plan for getting out of debt is good but I've never cared for his investment advice. I have always found it ironic that Suze just invests in bonds. I believe both of them have filed for bankruptcy. Kiyosaki  is just bad. Bach is ok but I can see where he's out of touch, especially in today's economy. 

I have always enoyed the idea of Multiple Streams of Income and thought that was the best way to. That way if one income is lost, like a job, you have other incomes to help support you.




smalltowngal
by Platinum Member on Jan. 14, 2013 at 5:17 PM
1 mom liked this


Quoting Woodbabe:

Kind of hard to beat the theory of "Pay more down on one bill at a time, then roll that payment into another bill to pay it off faster. Continue the cycle, adding that money into the bigger bills after you pay off a smaller one"...Working for us!

His debt advice is good. Investment advice I don't like as much. 

louzannalady
by Bronze Member on Jan. 14, 2013 at 5:21 PM

I love Dave Ramsey and his advice is sound. He has lived it, so have many Americans. Buy living his advice, my husband and I are debt-free and about to own our house outright shortly. We are 29 and 31 years old. : ) 

Bigmetalchicken
by Silver Member on Jan. 14, 2013 at 5:21 PM

Oh, I totally agree, I was just relaying the bankruptcy thing.  And we do not follow his investment advice, because it seems like too big a gamble in this market. I prefer safer investments with a lower interest.

Quoting smalltowngal:

Like I said, I don't have a problem with his advice for getting out of debt but he basically just encourages investing in the stock market. Even after retirement age. I don't necessarily agree with that advice. He also hates gold and I don't think it's a bad idea, espcially with our country's debt levels, to hold 5-10% of your portfolio in gold and/or silver. 

Quoting Bigmetalchicken:

Dave Ramsey filed for bankruptcy before he realized that debt free was the way to go. He was one of those people that bought houses zero down to resale. He was swimming in debt.  After his bankruptcy he had a come to jesus meeting with himself.  Even his businesses are all debt free. It is pretty inspiring to know that he went from over a million in debt, homeless and out of work, and dug himself out of it to create this business that helps so many people.

Quoting smalltowngal:

I think Dave Ramsey's plan for getting out of debt is good but I've never cared for his investment advice. I have always found it ironic that Suze just invests in bonds. I believe both of them have filed for bankruptcy. Kiyosaki  is just bad. Bach is ok but I can see where he's out of touch, especially in today's economy. 

I have always enoyed the idea of Multiple Streams of Income and thought that was the best way to. That way if one income is lost, like a job, you have other incomes to help support you.





Add your quick reply below:
You must be a member to reply to this post.
Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)