Dave ramsey

[JHT]

IMO, that proves Dave is right with his philosophy. For anybody that follows his plan, whole life doesn't make sense. Why do we have life insurance? I have it now as income replacement, to pay for a funeral, to pay off my mortgage and other debts, cover education for my kids, so that my wife doesn't have to remarry until she WANTS TO (as opposed to HAS TO to provide for the family), in the event of my death.

As I grow older, if I follow Dave's plan, debt is reduced, mortgage is paid off, kids graduate from college and savings/wealth is built so that there is little or no need for income replacement. The longer I live, the less life insurance my family REQUIRES.

Therefore, for those that follow Dave's plan, he is absolutely right in suggesting that they "buy term and save". His ENTIRE philosophy is built on discipline. You and I both know that not everybody has the discipline to buy term and save, and I'm sure Dave knows that, too, but also realizes that those people also lack the discipline to follow the rest of his plan. I contend he ain't talking to those people!

Michael

Does Dave take into account your kids still may need financial assistance after college? Not a few hundred here and there but a situation/accident/health issue that a loving parent would feel the need to help out. Is there a fund for something like this or does it fall into an established category?

Something like this could put a serious dent into everything you saved and worked for. Why wouldn't a little $$ at the end of your life be beneficial to your family?

My co worker is bringing some of his books to work tomorrow. There are some interesting ideas here.

[CaddoAggie96]

I like Dave and listen to him as often as possible. My wife and I did a modified "snowball" plan and wound up with zero short term debt in about two years. Having the trucks and CC's paid off was great!
Mutual funds/Annuities= usually a great way to save money, not so great for transfering money to your family.
Whole Life insurance = usually not a great way to save money (i.e. savings/cash value), but always a GREAT way to transfer money to your family after you die.
Get as much term as you can from work, it's usually the cheapest you can get.

[Mike D]

Does Dave take into account your kids still may need financial assistance after college? Not a few hundred here and there but a situation/accident/health issue that a loving parent would feel the need to help out. Is there a fund for something like this or does it fall into an established category?

Something like this could put a serious dent into everything you saved and worked for. Why wouldn't a little $$ at the end of your life be beneficial to your family?

My co worker is bringing some of his books to work tomorrow. There are some interesting ideas here.

Well at that age he recommends that you carry a term life policy. His stance is that by the time you get to the age that you don't need life insurance any longer, if you are following his principles you should be debt free and have a very nice nest egg accumulated.

If you are still young enough to leave behind a young widow and children that are not self sufficient, and you are not debt free, then you should have a term policy in place.

Really most term policies that I have seen are offered in 10 year and 20 year terms. So if a young man of 20 years old buys a 20 year term policy and renews it for another 20 he should be covered at a reasonable cost until the age of 60 at which time he should be debt free and have a very nice amount of wealth.