I. Overview of Dave Ramsey’s Advice on Acorns Investing
Dave Ramsey is a popular financial advisor and radio host who has been giving advice on personal finance for decades. Recently, he has been vocal about his opinion on Acorns Investing, a micro-investing app that allows users to invest small amounts of money into a portfolio of stocks and bonds. Ramsey has been critical of Acorns Investing, claiming that it is a “dumb” way to invest and that it is not a good way to build wealth.
Ramsey’s main argument against Acorns Investing is that it charges a fee for its services, which he believes is too high. He also believes that the app does not provide enough guidance or education to users, and that it is not a good way to build wealth. He has also argued that Acorns Investing is not a good way to save for retirement, as it does not provide the same level of returns as other investments.
Furthermore he basically says that nickels and dimes ain’t going to build any wealth. Well here’s my take: firstly I’m always skeptical of someone who got rich in a decade that was decades long before the decade I’m trying to build wealth in. Fact is 20 years ago when apartments was $700/month that same apartment complex is charging $2,000/month now. Meanwhile I’m a skilled journeyman craftsman and our wages have maybe gone up 20-25% in those 20 years.
But back to Acorns, twice in my life I’ve withdrawn my nickels and dimes from acorns and both times I was up over 24% on my investment. Twice in my life I’ve also taken money out of my 401k and I was only up 19% once and and 16% the other time. Right now, my Acorns is doing better than my 401k thats sitting at 6.5% and is even outperforming my Stash simply because I’m down 60% on my biggest holding at.
II. Reasons Why Dave Ramsey’s Advice is Misguided and Dumb
Don’t get me wrong, Dave is a very likable guy and gives hard truths for people to really get out of debt and change their financial picture. He truly does give sound advice from what I’ve seen. But I also don’t know his story of any sort of struggle. But when it comes to Acorns it really is a good way for people who are starting from absolutely nowhere to start investing and growing there money. Especially when they have little money to begin with. Having a years worth of income in a savings is a great goal but how practical is for the average middle class American right now in this economy.
Dave Ramsey’s advice on Acorns Investing is misguided and dumb for several reasons. First, Ramsey fails to recognize the value of Acorns Investing for those who are just starting out with investing. Acorns Investing is a great way for beginners to get started with investing, as it allows them to invest small amounts of money without having to worry about the complexities of the stock market. It also provides users with a portfolio of stocks and bonds, which can help them diversify their investments and reduce their risk.
Second, Ramsey fails to recognize the value of Acorns Investing for those who are looking to save for retirement. Acorns Investing offers a retirement account option, which allows users to save for retirement without having to worry about the complexities of the stock market. The app also provides users with a portfolio of stocks and bonds, which can help them diversify their investments and reduce their risk.
Third, Ramsey fails to recognize the value of Acorns Investing for those who are looking to save money. Acorns Investing offers a “round-up” feature, which allows users to automatically invest their spare change from purchases. This can be a great way for users to save money without having to think about it.
Finally, Ramsey fails to recognize the value of Acorns Investing for those who are looking for a low-cost way to invest. Acorns Investing charges a fee for its services, but this fee is much lower than the fees charged by other investment services. In addition, Acorns Investing offers a variety of investment options, which can help users diversify their investments and reduce their risk.
In conclusion, Dave Ramsey’s advice on Acorns Investing is misguided and dumb and he had no idea what he was talking about. Acorns Investing is a great way for beginners to get started with investing, as well as for those who are looking to save for retirement or save money. The app also offers a variety of investment options and a low-cost fee structure, which can help users diversify their investments and reduce their risk.
