Dave Ramsey flames financial advisers on Twitter

A tit-for-tat escalated after radio host promotes commission-based brokers

Jun 3, 2013 @ 3:24 pm

By Liz Skinner

dave ramsey, twitter, fee-only
+ Zoom

A Twitter war that began late last week escalated over the weekend between radio host Dave Ramsey and fee-only financial advisers who criticized the author of financial advice books for telling Americans to expect a 12% return on investments and for promoting commission-based brokers.

Adviser Carl Richards said Mr. Ramsey's advice was “dangerous” and “crap” in one exchange, while planner Carolyn McClanahan said she “despised his investment advice” in a tweet on Saturday.

Mr. Ramsey responded to their comments, and others, with this: “I help more people in 10 min. than all of you combined in your ENTIRE lives #stophating.”

(What to read: The tweets between Dave Ramsey and advisers.)

That response really got the Twitter feed buzzing and other fee-only advisers jumped in to defend their colleagues.

Adviser David Grant tweeted that Mr. Ramsey had been a role model of his until he “lashed out” at Ms. McClanahan.

“Guess you have to have to change your hero at some point,” Mr. Grant wrote.

Mr. Ramsey, who now has taken down certain exchanges from his Twitter feed, told Mr. Grant that Ms. McClanahan had “attacked me continually” and that he was just responding.

“Don't want to get bit by the big dog, stay off the porch,” Mr. Ramsey tweeted.

But Ms. McClanahan said that Saturday was the first time she had ever mentioned Mr. Ramsey in a tweet.

Mr. Grant also asked whether the investment professionals that Mr. Ramsey recommends on his websites pay for that endorsement, but Mr. Ramsey didn't respond.

The host of the self-syndicated “The Dave Ramsey Show” radio program did not respond today to a request for comment about the Twitter exchange and his adviser recommendation program. But the website FAQ section does say that endorsed local providers pay a fee to be included in the program, calling it a “form of local advertising.”

In addition to paying a fee, the professionals must be registered with the Financial Industry Regulatory Authority Inc., the brokerage industry self-regulator.

“Every adviser's main problem with Ramsey is him telling people they can expect 12% returns on investments. That is unconscionable,” Ms. McClanahan said today in an interview. “If someone is near retirement and they are 100% in stocks so they can reach for that 12%, that's scary.”

One supporter of Mr. Ramsey, Brandon Montes, tweeted on Sunday that the 12% is not Mr. Ramsey's core message. Trying to live debt-free and living on less than earnings are the central messages of his program, he wrote.

“The Dave Ramsey Show” is a popular three-hour radio program about life and money. He has more than 385,000 followers on Twitter.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Consuelo Mack WealthTrack

How to maximize the effectiveness of your charitable giving

Donor-advised funds let you take the tax deduction for charitable donations now, while postponing when you give the money away. Pamela Norley, president of Fidelity Charitable, and Elda Di Re, partner at Ernst & Young, discuss the strategy.

Latest news & opinion

Fidelity wins arb case against wine mogul but earns a rebuke from Finra

In the case of investor Peter Deutsch, Fidelity doesn't have to pay any compensation, but regulator said firm put its interests ahead of his.

Plaintiffs win in Tibble vs. Edison 401(k) fee case

After a decade of activity around the lawsuit, including a hearing before the U.S. Supreme Court, judge rules a prudent fiduciary would have invested in institutional shares.

Advisers get more breathing room to make Form ADV changes

RIAs can enter '0' in some new parts of the document before their annual filing next year.

Since banking scandal, Wells Fargo advisers with more than $19.2 billion leave firm

Despite a trying year, the firm has said it will sweeten signing bonuses for veteran advisers.

Is LPL's deal sweet enough for NPH's 3,200 reps and advisers?

They will have to decide if the signing package they are being offered by LPL makes sense. A lot is hanging in the balance.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print