Does Dave Ramsey Have a Securities Registration? (2024)

I turned on the radio the other day, only to hear Dave Ramsey speaking about how all financial guys and permanent or cash value insurance sales guys are ripping people off. He said the only thing anyone needs is 10 or 20 year level term, and to use the money they would have wasted on a cash value rip off policy, to buy a Roth IRA. I had only heard his show once, and thought he was pretty good, until I heard that.

(I am preparing for the onslaught of negativity from the Ramsey die hards who read this, but still, I believe I have a valid point to make)

Does anyone know if Mr. Ramsey has any securities registration or financial certification, or any legal authority to give financial advice?

The reason I ask is because as an SEC registered rep. I have to follow strict ethics and compliance regulations and would find myself in severe trouble, particularly with regards to my E&O insurance if I were to tell everybody that all financial guys were ripping people off with cash value life insurance, and that the only insurance anyone need is 10 or 20 year level term and an IRA. It simply isn't true.

As a rep I cannot simply spurt off unsubstantiated opinions. I have to ASK my clients what they want, and what their financial objectives are. I answer questions based on their needs, not my own. I would not presume to think that 10 year term insurance was in the best interest of my client unless I had all of the facts in front of me, weighed the pros and cons, and offered alternatives based on my client's needs and objectives, risk tolerance, and time horizon. If my client wants term, they will get term, but it is my job to do what's in the best interest of my clients.

IRA's are a great vehicle, but certainly not the only one. Sure, the cost of permanent insurance is higher than level term, but it also takes money to make money. If the client has a long time horizon and wants to fund his retirement and defer his tax burden, with an added death benefit, then perhaps a VUL would work in that case.

Regardless, it would be irresponsible to suggest Term and an IRA are the only solutions. What happens to the client when his 10 or 20 year term insurance runs out and he is in poor health, and no longer insurable?

I guess he could keep the term in force, paying ridiculously high premiums that increase dramatically every year, which would eventually end up being what a permanent policy would have cost him anyways, but with absolutely no cash value. Maybe his IRA could fund the term until he dies, along with leaving the remaining IRA value, if any to his estate.

Sure, if a client was terminally ill, and only had a few years to live, he could pay the additional term premiums and still leave a death benefit to his family, but what if he was a child who developed an uninsurable illness?

What if the child's parents had an opportunity to buy a small cash value permanent policy when the child was born, to help fund college? What if there was a guaranteed insurability rider added to the policy, so that if the child developed an illness he was insured for life, and was able to still fund college, fund retirement, and leave a death benefit to his own family when he married and had children?

Conversely, what if the child's parents listened to the Dave Ramsey show and heard this nonsense, and decided to take his advice?
Could they go back and sue Dave Ramsey?

The point I am trying to make is that most financial reps are honest, hard working people who offer countless hours of free advice to prospects and earn a commission off the products they sell, whether it's term, permanent or anything else. Our job is to protect our clients, not rip them off.

If Dave Ramsey is not a registered rep, (I don't know if he is or isn't) that may be why he only pushes term. He can't legally offer advice on securities products. Technically, if he doesn't have a life license, he can't offer any legal advice on that either. He can only offer his unregistered, and unlicensed opinion.

Does Dave Ramsey Have a Securities Registration? (2024)

FAQs

Does Dave Ramsey Have a Securities Registration? ›

For example, Dave Ramsey and Suze Orman provide financial advice (many times involving securities) to specific people. Neither is currently registered; Ramsey has no history of registration and Orman hasn't been registered since 1991.

Does Dave Ramsey's plan really work? ›

Do Dave Ramsey's Baby Steps Work? They can, but they might not be for everyone. Ramsey's steps are sound and logical, but they rely on some best-case scenarios. Not everyone makes enough money to save 15% for retirement while also saving for college and paying the mortgage early.

Is Dave Ramsey a registered investment advisor? ›

Ramsey has no professional credentials. He isn't a licensed investment advisor, nor does he possess any professional credential like the Certified Financial Planner (CFP) designation. Ramsey isn't accountable for the advice he gives.

What credentials does Dave Ramsey have? ›

Ramsey graduated from the University of Tennessee at Knoxville with a degree in finance and real estate. After selling some real estate for a builder, he started buying and selling real estate in his very early 20s.

Does Dave Ramsey endorse Thrivent? ›

SmartVestor Pros take a client-first mentality and treat you like a teammate, with a commitment to educating and empowering you. Neither Dave Ramsey nor the SmartVestor program are affiliated with or endorsed by Thrivent.

Who is the most trustworthy financial advisor? ›

The Bankrate promise
  • Vanguard.
  • Charles Schwab.
  • Fidelity Investments.
  • Facet.
  • J.P. Morgan Private Client Advisor.
  • Edward Jones.
  • Alternative option: Robo-advisors.
  • Financial advisor FAQs.

What is the 80 20 rule Dave Ramsey? ›

There's an 80-20 rule for money Dave Ramsey teaches which says managing your finances is 80 percent behavior and 20 percent knowledge. This 80-20 rule also applies to constructing a healthy life. Personal wellness is 80 percent behavior and 20 percent knowledge.

What are the 4 funds Dave Ramsey invests in? ›

investing in four types of mutual funds growth, growth and income, aggressive growth, and international.

How much do Ramsey financial coaches make? ›

The estimated total pay range for a Senior Financial Coach at Ramsey Solutions is $86K–$148K per year, which includes base salary and additional pay. The average Senior Financial Coach base salary at Ramsey Solutions is $96K per year.

How much does Dave Ramsey say you should invest? ›

Ramsey's recommendation, which he shared on his website Ramsey Solutions, is to invest 15% of your gross income into your 401(k) and IRA every month. There's a good reason you should invest 15% of your income. The math breaks down as follows. According to Ramsey, the median U.S. household income is about $70,800.

Is Dave Ramsey a billionaire? ›

Is Dave Ramsey a Billionaire? No. Recent estimates show that Dave Ramsey has a net worth of around $200 million.

What was Dave Ramsey's GPA? ›

There is no college degree that will make you a millionaire. Did you know Dave Ramsey got a 2.93 GPA in college and he is one of the most successful people in the world financially. We focus on School, College, and degrees.

How many millionaires did Dave Ramsey study? ›

For the ten thousand millionaires we surveyed, it was the point in time when the person woke up and realized they could become wealthy and could set out on a sacrificial plan to get there. They may have been coasting along, investing and living frugally, but then they became very intensely goal-focused.

What insurance company does Dave Ramsey recommend? ›

Zander Insurance | Endorsed By Dave Ramsey | Official Site.

Where does Dave Ramsey say to invest your money? ›

What Is Ramsey Solutions' Investing Philosophy?
  • Get out of debt and save up a fully funded emergency fund first.
  • Invest 15% of your income in tax-advantaged retirement accounts.
  • Invest in good growth stock mutual funds.
  • Keep a long-term perspective and invest consistently.
  • Work with a financial advisor.
Mar 18, 2024

What is the Thrivent Financial controversy? ›

ORDER. JOAN N. ERICKSEN, District Judge. Fran Neben brought this action against her employer, Thrivent Financial for Lutherans (Thrivent), alleging that Thrivent discriminated against her on the basis of her gender in violation of Title VII of the Civil Rights Act of 1964 (Title VII), 42 U.S.C.

How much does Dave Ramsey say you should spend on a car? ›

According to a Ramsey Solutions article, if you wonder what type of car you can afford, the answer is simple: “The car you can afford is the car you can pay for in cash.” “And as a general rule, the total value of all your vehicles combined shouldn't be more than half your annual income,” according to the article.

What is the 70 20 10 Rule money? ›

The 70-20-10 budget formula divides your after-tax income into three buckets: 70% for living expenses, 20% for savings and debt, and 10% for additional savings and donations. By allocating your available income into these three distinct categories, you can better manage your money on a daily basis.

What is Dave Ramsey's advice on buying life insurance? ›

Buying Too Little to Replace Income

Always buy ten to twelve times your income in life insurance coverage. That small policy you're getting through work, which might be one year's worth of coverage, isn't near enough.

What is the 50 20 30 budget rule? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

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