A Conversation With A Dave Ramsey Fan
Note: I have read and reviewed most, if not all of the material Dave Ramsey promotes on his radio show, I am not speaking badly of his advice, however (In my opinion) he does not have the best advice for EVERYONE, especially seniors.
Here is the conversation from "Colin"
There are a lot of people that use payday lenders as well because they've mismanaged their finances and are between a rock and a hard place. That doesn't make a payday lender a good deal. No. It's still garbage. Literally nobody disagrees on this. Whole life is literally the same thing. You're using the example of people that have mismanaged their finances as they're at retirement age with "no savings" as you say. That doesn't mean Whole Life is suddenly a good policy. It's still absolute trash. But their failure to manage their finances may mean there are no good options left for them.
Here is my reply...
So just forget about these people and let their kids put a "Go-Fund-Me" up to cover their final expenses... Here is an illustration.
Sure, payday loans are not a great financial tool if used incorrectly, but if it helps you cover the mortgage to prevent a foreclosure it might be a great option. Neither is term insurance a "perfect option" If you have a 15 year term and decide to renew it at 60, your premiums go SKY HIGH.
If you are 70 and a senior with Diabetes living on Social Security, little to no savings --a $40 per month whole life policy for $10k in death benefits is a good option if you have no savings. (I'm sure you thought the premiums were going to be hundreds per month.)
Ask Dave about getting term life if you are 40 and disabled for some reason, guess what, it's not going to happen... Your not thinking for yourself, you have adopted Dave's daily radio sales pitch as your own beliefs and ideas, with no other perspective on financial tools except those he talks about. Newsflash, term life insurance by Zander pays their phone agents just as much commissions as whole life. Term policies are BIG commissions (100-145%) of first year premiums. So do his back-end loaded mutual funds.
ANY financial tool, used incorrectly, is a bad idea. That is the point of my reply. To put everyone in the same group, and to promote that advice as "the only thing you should do" seems dangerous and foolish.
My approach is to make sure I get a comprehensive, and complete profile of every client I meet with, BEFORE making recommendations. This takes time, effort and usually more than just one visit.
In the end, this will help you find the best financial tool to fit your personal situation.