“The biggest mistake people make is putting too much emphasis on expenses as a criterion.” – Financial Peace Revisited
Yeah, I couldn’t believe it either, but there it was in black and white.
Here, he was speaking about mutual funds. Mutual funds where he still believes a 12% plus average annualized return is possible, even using that number today to calculate a caller’s return on their investment. Even though the true historic average is about 6 to 7 percent per year above the rate of inflation with total returns of about 9 to 10 percent per year, he still advocates that listeners put 100% of their investments into stock mutual funds and irresponsibly uses that number to dole out investment advice or refer people to his Extorted Endorsed Local Providers.
Believe it or not, Dave Ramsey doesn’t advocate using index funds. Considering his general audience, THAT’S irresponsible in my opinion. But it also keeps ELP’s paying those referral fees.