This Is A $1,000,000 Mistake!
HTML-код
- Опубликовано: 15 окт 2024
- 💵 Create Your Free Budget! Sign up for EveryDollar ⮕ ter.li/6h2c45
📱Download the Ramsey Network App ⮕ ter.li/ajeshj
🛒 Visit The Ramsey Store ⮕ ter.li/7vyom2
📞 Have a question for the show? Call 888-825-5225 weekdays from 2-5 pm ET or send us a message ter.li/n88ly5
Explore More Shows from Ramsey Network:
🎙️ The Ramsey Show ⮕ ter.li/ng9950
🍸 Smart Money Happy Hour ⮕ ter.li/9gcp3d
🧠 The Dr. John Delony Show ⮕ ter.li/2u3mc0
💰 George Kamel ⮕ ter.li/1elws8
💡 The Rachel Cruze Show ⮕ ter.li/n2u6jc
💼 The Ken Coleman Show - Highlights ⮕ ter.li/1rbjr2
📈 EntreLeadership ⮕ ter.li/ktxv2k
Ramsey Solutions Privacy Policy
www.ramseysolu...
After the FTX debacle I have so much more respect for Dave Ramsey. That situation made me realize how easy it is for an influencer with a large following or respected financial guru can easily sell his/ her audience out for a large monthly commission. If you don’t think Dave has been offered a large pay off commission to promote life insurance policies then you don’t understand how these things work. They know his audience has a lot of older people relying on his advice and could easily sell them on life insurance if he promoted it. Thanks Dave for not selling us out for money.
I saw MTR in the comments of an older Dave Ramsey video. Shout out to you guys.
Ams da goat
The issue isn't whether or not influencers sell out. They're all entertainers. If people take their word for it without verifying it independently people kinda deserve what they get from there. Whether or not some maybe have integrity is not the point. Ever heard the saying "In God we trust, all others must bring data"?
yeah everyones trying to get rich quick its just not something that happens often.
To be fair FTX had a veneer of legitimacy granted to it by some of the biggest VC firms in the world shelling billions of dollars at them. It would have been nearly impossible for someone to tell the difference between FTX which was stealing everyone's money under the hood and a legit brokerage like webull or robinhood which both relied heavily on influencer marketing at the time.
The fact this caller had a $1 Million dollars should give everyone hope
🤣 so true
He sounded so optimistic 😭
😆 🤣 😂 😹 😆 🤣 😂 😹 😆 🤣
If this guy can save a million, anyone can
You can’t
I was thinking the exact same thing. That guy is a millionaire. Let that sink in.
Not everyone can. I am disabled and can't. So no not everyone but it would be nice!
😂
No.
I'm glad he asked this question. He probably saved a lot of people a lot of money.
He is a salesman, not a consumer. He does not sound one bit like he has his money on the line.
Not a very smart one either 😂
Yeah he sounds more like he works for these scammers then he's considering making a deal with them.
He does. He’s defending the idea instead of being upset.
As a general rule, if a salesperson is approaching you and working REALLY hard to sell you something, it is not to your advantage. I've learned to not buy what the salesperson is pushing.
This guy sounds like he sells this product to people, and he wanted to see how Dave would respond to it. You can tell in the caller's voice how defensive he is about Dave's opinion on it. Caller's mind was already made up before the call.
Also he had to put his dog down, and his brother broke his arm as a kid.
Absolutely agree -- doesn't sound like he's looking for advice. Sounds like he's practicing his "pitch" that he's going to ply on some unsuspecting senior citizens.
I was thinking the exact same thing, matter of. fact I posted it before I read your comment
The fact that this caller had a $1 Million dollars should give everyone hope
Hmm. Good point.
This company takes the $1M and get 10%+ returns, pays you 4.8% and keep everything when you die. Geeezzz!!
And the guy isn't comprehending that lol.
10% average. Look at what the S&P 500 did between 2000 and 2010. Hint: ZERO.
@@MAMP they still would’ve been $520k ahead!
@@MAMP The 11.8% average includes that period. That’s why it’s an AVERAGE.
@@MAMP two years LOL!!!!
He's gonna do whatever he wants
He can literally just toss the 1M in dividend growth stocks if he wants a monthly income. Would still have his 1M and the growth on top of his dividend payments.
Who wants to be heavily in stocks in old age, though? Having a portion of your portfolio guaranteed isn't such a bad idea.
@@rickallen9099 bonds for old age
@@rickallen9099 someone with family/kids/grandkids. He worked to save this money, why give it away.
Dividends would be perfect for him, then his kids could keep living off that or just reinvest and let it compound more
@@rickallen9099 your missing the point. There are dividend ETF’s with 3.99-4% yield. To give your money away and if you die sooner than expected it’s gone is a very poor financial decision, especially considering his spouse.
Lol Dave laugh had me rollin....😂🤣he read it like they are doing him a favor.
Dude ain't gonna listen.
That was so funny 😂😂
@@derekribbeck9447 right
Idk what this guy doesn't understand, he kept coming back trying to say why it's a better idea to take the 4k a month, it's a FREAKING RIP OFF! Anyway you slice it!!
This guy is gonna blow a million really soon here.
I have a trust fund from my father who passed away in 2006. I live on the money distributed to me each year and the money that was put in the trust fund is still there. The money is managed well by a company who has a fiduciary responsibility for the account. They've done a great job. They are doing so well, I have several IRA's being managed by them as well. Follow Dave's advice on getting your money invested and you should be fine. Life is a crapshoot, be brave and ride the wave.
How did you father succeed with the money? Did he work+save+invest or sold a business?
What do you do all day?
@@d_all_in probably have more fun than you
If you don't want your money, I'll take it.
The key to this is that you lose the million when you pass away. What a terrible deal! A million bucks at ZERO interest will pay $4300 a month for TWENTY YEARS.
Edit: Not to mention inflation. $4300 will buy a lot less in the future than it does today.
This was a great call 😂
He could literally get a higher interest rate on a risk free US treasury note.
I’m surprised that he was even able to get the million in the first place.
Hey Dave. Could you do a show on how to draw down investments late into retirement? I suspect the appeal of annuities is the simplicity that the money shows up every month. I think there would be a lot of interest in strategies to manually (but easily) sell down mutual funds for monthly income. Thanks.
And if the company goes bust or he dies early nothing.
Anytime you respond to Dave with "yes but" "ok, see the thing is" you do not accept his advice you asked for.
The fact that this being a bad decision had to be explained to him just blows me away. How do people like this ever amass a million dollars in the first place.
"See, the thing is..." why do people call for advice if they're just going to argue with it? I'm a lawyer and clients do this with me too... sometimes you just want to slap them.
Poor dude "defending" this dumb plan
@the doge - I was expecting Dave to run out of patience each time the guy would say, “here’s the thing . . .”
That guys is so convinced by his financial advisor who works for the company and his about to mess up
I thought he was going to say "Getting married."
Marry a young woman
I wish the call was longer. Too funny how he went back and forth with Dave 🤣.
So funny how a lot of people in the comments easily sniffed out that this dude is an annuity salesman hahaha
That caller sums up the fiscal acumen of the entire State of California.
More like Texas and their fiscal mismanagement and stupid power grid haha.
I love how Americans pretend the rest of the country is any better!
@@amireallythatgrumpy6508 It’s better than whatever 3rd World hole you live
@@tanksherman9875Anywhere's better than the USA.
"Well but here's the thing, I'm an idiot who can't recognize when someone is trying to sell me something, so"
Uncle Dave: You know, the knife is gonna cut you because knives are sharp and they cut meat.
Caller: I know, I know.. but, this is a good quality knife 😂
Charities do this exact thing but it makes more sense because when you die the charity gets the donation of the million dollars. For a bank to be doing it is incredibly unscrupulous
The guy still doesn't understand they are stealing his million dollars ?????
He could literally buy an I bond 100% guaranteed and get as much money and still have the million dollars.
There are annual limits to iBonds.
@@eggsinsideme and the rate will adjust from time to time.
you can put a million in a CD or T Bill right now and get about the same (4.8%) and keep the principle
there are some relatively safe ways to get a 4 percent return on your investment when you retire. maybe not as safe as this insurance plan but its not really that safe because when you pass away they take that money and your family wont have it in case they need it.
Insurance companies want to sell a 65 year old, a 20 year annuity, that they can start collecting a monthly payment, at 85 years old. Most people don't live past 85.
Was this guy... serious? With such a question, I question how he has 1M. 😦
Maybe he won the lotto
Matthew still goes with the mistake. :))
First problem, Annuity.
Even if you don't calculate 10%, there's no way that I'm losing control over $1 million.
An investment company can sell whatever junk they can package together to willing buyers. That is the reason why banks and investment companies usually have the tallest buildings in cities.
Great, truthful advice
Truthful is so right - annuities are a raw deal.
First Sentence: " I have an annuity -slash- 401k plan worth about one million dollars." He is already buying insurance company products. I wonder what the actual value is. What is the cash out value ?
I love watching Dave, and the callers, as a high school dropout how can alleged smart people be so dumb.
First question I ask in any financial proposal...”why are you giving ME such a good deal?”
I don't trust insurance company when they give that kind of offer. Trust yourself is better. I like Ramsey advice on money.
A straight pull down of 1M is $4,167 a month for 20 years.
Depends on the annuity. A lifetime payout annuity would be guaranteed for life.
@@rickallen9099, do you deal annuities? Just wondering because your comments make no sense.
@@rickallen9099 "Straight pulldown" here is referring to just withdrawing from the million over 20 years without any earnings. That's $50K/year or $4166.67 per month and doesn't depend on anything except having somewhere to park the million safely for 20 years.
It's shocking how much this caller is missing the point. Wow.
Governments in Australia often do help. People don’t know and are suspicious of all the subsidies. And miss out, sadly
Sounds like he already did it and was calling to get some reassurance…..
It's sad that anyone would think that's a good idea. Ppl have to stop blindly trusting things instead of using their brain to reason.
This couldn’t be more of a bigger NO.
This sounds like he's already made the investment (or maybe works for the company). He was just hoping he could get a clip of Ramsey saying - on air - that this product is a good investment.
These disaster calls are the best, this guy was just not listening.
and Dave kept interrupting
Every single banking “product” is just that, a product that guarantees profit for the bank. It’s designed to benefit them, not you.
The same people that fall for this also fall for reverse mortgages and extended warranties
Definitely from LA.
Who ever he talked to was a great salesman
caller is gonna do this.....OMG. very sad.
If he gives them $1m, they will invest it and pay him some of the returns. 😀
Yes. That’s how it works.
This sounds like something my dad would do. 😂
This caller keeps agreeing with Dave but we all know he will go balls deep with the life insurance company on an annuity . Caveat emptor .
I hate life insurance policies, their worthless!!!
This guy sells this product. Why would you just give away a million dollars. And yet this guy defends it. But he's from California, so that explains the intelligence level.
Annuities are only worth it if they have 10% payments and transfer to a spouse or family member.
He sounds interesting. He can just pull that amount out each month himself and still be able to pass it on to his heirs…something is off
The biggest problem I see is 4k a month means nothing in hyperinflation.
America is nowhere near hyperinflation.
This is like Micheal Scott defending the pyramid scheme
How did this guy get a million in the first place?
Did this exact deal with someone like him and the person Died
@@kunalsab7805 You probably got a bonus lol.
If he wasn't actually working for the company selling these things, then yeah he probably inherited it.
Is New York Life Insurance Company a good Life Insurance company ?
Seems like he's not understanding.
I'm not sure why the big surprise about this? This is how annuities work, they are a rip off and always have been.
Where do you get these investments with these percentages?
Buy QYLD
Dave should have just cut this goober off....no amount of clear advise was going to help him. He puts the phone down and does it anyway.
I don't understand how somebody who can't even see through that can save that kind of money I notice some people are really good at making it but bad at handling it
I feel like this could be good though. What she would it start? If it starts at retirement many people live 15-20 years after that or longer. At $51k a year you will make your million back by then. Plus the added benefit that you don’t run the risk of running out of money in retirement. Only negative is that if you die young you leave nothing behind for your family
“Oh yeah Dave, I’m willing to give up a 4-8% yearly return on my money and also give my million dollars away when I die because CONVENIENCE” little does he know, it’s easier to not deal with companies like that, and just put it in a simple S&P 500 fund and withdraw the from the growth every year. On down years, just withdraw from the million and you’ll still be golden in 20-30 years.
That's insane.
How does someone like this save that much money and be this uh, yeah.
Did someone get fired? I keep seeing this new host on here
No, no, no, no this caller talks too much. Talks and never stops to listen
Do people seriously fall for these scams???
It sounded like some annuity salesman is about to go out and buy a bigger house.
Poor guy. Or, at least he will be.
Thank you Dave!
It might be a good deal around $400k. For $1M it’s trash.
He’s going to do it! What a bad deal.
Fear and Greed man. If you are operating out of either you will get taken advantage of.
This rip off would be like you giving me your house and I pay you 50% of the profits I make from renting it out, but I get to keep the house no matter what and when you die I no longer have to pay you and now I get all the money.
Wow that is so terrible.
This Dude forgot who Dave is….
Dave is the man 👍
Look at it this way. If they are going to pay you 4300/month, they have done the math. The math tells them that at the end they will almost for sure come out way ahead. They wouldn't be offering it to you if they would take a loss or break even.
@@jimmymcgill6778 didn’t he say the same thing you did?
Of course. That’s how it works lol.
Matthew is a life insurance salesman posing as a person with a fake question. Dude's voice sounds like a total salesman.
You already have an annuity. It is called social security. That’s the first leg of the three legged stool. If you also have a pension, then guess what. You have another annuity. That’s leg two. You don’t need another annuity. You need savings. That is leg three.
Hahahhaha did Dave just disconnect him ?!?
Yeah, even with no growth on that million, you could pay yourself $50k/yr for 20 years and own your own money.
start of the call i was like not that bad to get $4300 a month , then doing the math, you have to live 30 years to get that million dollar bac (little more than million), assuming this guy is 50-60, not great odds and assuming his spouse is similar in age also.
You could put it in a high yield savings account right now at 3.5% apr. Which is $35k per year, and zero risk
Wow dude, they say there are no dumb questions…
That was a terrible offer for all the reasons Dave explained. I got a chuckle from the caller persisting in his silly idea. But it begs the question though, at what rate of return would such an annuity be worth considering? if it paid $10k/mo (12% per annum) and was guaranteed (lol, they never are if you read the fine print of course) maybe then it's worth thinking about especially if it's the same benefit for surviving spouse, and especially if one or both spouses are relatively young or in good health.
The problem with insurance policies as investments though, is that it boils down to gambling - you are making a bet with them that you (and other beneficiaries) will survive longer than they want you to, and they are the oddsmakers. They rig it so they can never lose on average, for you to win means other individuals have to lose, it's a pretty immoral (and morbid) way to run a business.
It’s not immoral at all (assuming the insurance company pays valid claims, and doesn’t deny them like many did on pandemic policies in 2020). If an expensive tragedy was to befall you, how would you not prefer to have split the costs among all insurance holders (assuming the policies were priced actuarially fairly; e.g. $30/month for $100k of renter’s insurance as opposed to $10/month for $1k of cell phone insurance).
As for your question, yes, there is most definitely an interest rate that is actuarially fair to consume the $1M of principal for this man and/or his spouse, and it is surely much higher than 5.16%. The annuity can be structured to pay the monthly payment as long as at least one of the spouses is alive and also have a guaranteed certain period on top of that, that would have the payments go to a beneficiary should both spouses die within that period.
All of that said, it is such a no-brainer to simply put the $1M into an index fund, and use part of the relatively hefty returns while you retain control of the $1M that is growing each year. This caller was either an annuity salesman or just inconceivably incapable of understanding this painfully simple situation.
Dave, you just couldn't get through to him.
Because he wanted heard that the 4k a month was the smart choice and it just wasn't I feel bad for those people getting rip off by those companies life insurance
This guy sounds like he had already done the deed. I hope not.
How did this guy get $1 million to start with?
I never believed in annuities.