Citizens bandy about worth of radio advice
Readers reacted quickly and sharply to Liz Skinner's article about a battle waged over Twitter between radio host Dave Ramsey and fee-only financial advisers. Advisers took issue with Mr. Ramsey's promotion of commission-based brokers and his advice that 12% returns should be expected. He shot back, claiming he's helped more people than all advisers combined. Readers took both sides, with some arguing that advisers, focusing on clients, bring more to the table than financial radio show hosts, and others saying that not only has Mr. Ramsey helped many people, 12% returns over the long-term are, in fact, possible.
“The obsession over minutiae in the financial planning industry often gets in the way of the objective. The goal should be helping people live the life they want — while we earn income to live the life we want. Instead we get distracted debating percentages. I had not read about Ramsey's 12% recommendations, but why should it matter? The beauty of the advice business is that we get to make recommendations we believe are best for our clients, based on our training and experience. Why does it matter what someone else does?” — Chuck Rylant
“This type of Twitter attack paints the advisory community in a very bad light. I respect many of these planners that were involved, but find this attack to have utterly lacked decorum and professionalism.” — Nathan Gehring
“I am not a fan of Mr. Ramsey, but think that his responses were more than reasonable.” — Ppotts
“I looked into the Ramsey program because I enjoy helping people resolve their problems. But I was no longer interested when I discovered that two of the endorsed providers in my area worked for national insurance companies. I also listened to his program a couple of times, and the way he talks down to people who are in debt is reprehensible. You and I would never talk to a client or potential client that way.” — keg
“Free advice off a radio show is worth exactly what you pay for it. Mr. Ramsey's advice on debt and financial responsibility is rock-solid. His advice on investing and potential market returns is dangerous and irresponsible.” — Tom Crow
“12% hahahahahahahahahahaha.” — David_Hazi
“Ramsey has some ideas that are good, but he is living in the past if he does not think ETFs are a good substitute for some clients with small accounts who don't want individual stocks.” — Interested Investor
“I am not a Dave fan, but I know that he's helped countless folks get out of debt, and overall is one of the good guys.” — JoeTaxpayer
“In my hand, I have a portfolio for a customer, and guess what the 10-year average return has been? 12.17%. Guess what else? I have several other friends who were able to find multiple mutual funds that average, over a long period of time, 12%+. Why, why, why is it so hard for people to find these mutual funds? This is not a myth or a campy sales pitch from Dave Ramsey.” — Justin
Go to InvestmentNews.com/twitterspat to read the article related to these comments.