Confronting Dave Ramsey About Bitcoin, Dividends, and Real Estate

Confronting Dave Ramsey About Bitcoin, Dividends, and Real Estate

I can’t believe it it finally happened I got to meet Uncle Dave Dave Ramsey is the man who tells you to live below your means to eat your rice and beans you are on beans and rice rice and beans no vacation you will not see the light of day you will work like an animal and after years and years of pretending to talk to him on my videos I was invited to come meet him in Nashville and when I say I was invited I mean I invited myself and while I was there I also tried to give him some Bitcoin what if I gave you a Bitcoin um he also took me behind the scenes of his several hundred million Empire I got to ask him your most popular questions about investing real estate credit cards and the current state of the market and why he is the way he is I also asked him to look at my portfolio to give me some advice and here’s how it went I feel like uh it’s more than I deserve do you think back when you were in your 20s was it easier to buy a house than it is today mathematically wages have not kept up with house prices so mathematically it wouldn’t have been easier but it but it has always been a strain it’s always been um you know you go back pre1 1960 pre 1955 before fhava conventional before standardized mortgages when you just had to go to your local banker and talk him into it uh the down payments were massive and usually couples didn’t buy a home uh back in those days until they were in their 30s or 40s um um and but the Advent of s stuff like FHA or VA with nothing down or almost nothing down and you know 5% down on if anime even then it became normalized in the’ 60s 7s 80s that everyone ought to get a house you got to get a house got to get a house got to get a house got to get a house got to get a house and you know we had first time home buyer programs that have evolved over the decades and all that because it’s always been difficult with your first job out of school to afford a house um but it is it’s it’s hard right now it’s really legitim hard and what you’ve got to do though is I think um and and I know folks have a Dave Ramsey stereotype or whatever but doesn’t matter what what they think but the the reality is that just because you are uh frustrated you don’t get a pass on math just because you feel like the whole thing’s rigged against you you don’t get a pass on math you don’t want to sign yourself up and punish yourself as a way of uh showing the man I mean come on you know you buy a house you can’t afford that’s punishing yourself you’re going to set yourself back a decade and so what we tell folks is just there’s a couple of variables here that you got to look at uh where you live I mean firsttime home buyers in Los Angeles in Manhattan uh in their 20s have never been a thing you’ve never been able to afford those markets you also can’t afford to live in Tokyo or London some of the most expensive cities in the world Paris the most expensive cities in the world and uh some of them are in the unit States you know so you you just you can’t just go well I’m going to live in LA and I should be able to ABY a no you didn’t never have been able to ever in the history of housing so um so you have to look at where you’re living because you don’t get a pass on math because you want to live in a certain place and then you’ve got to look at uh give yourself a little bit of patience breathe a little bit I mean have a 36-month plan instead of a three-month plan and and then as a part of that do look at your income but uh I was being interviewed by a lady the other day on NPR and she said she’ talked to a guy whose daughter was um uh working in a coffee shop and she was a dancer in a show in downtown Nashville one of the country shows and um and he she couldn’t afford a house and I’m like well in the history of man working in a coffee shop and being a dancer in a country music band has never been able to afford a house what about the people that say back in the 70s you could get a you know job out of high school and back than the prices price to income ratio was closer to three and maybe nowadays the average is 5 to six yeah that’s true that’s true out of high school uh and but also then you you know the other opportunities weren’t there uh we’ve got the wonderful opportunities in the marketplace today that digital everything affords you and so you’ve just got to choose a career path you know you can’t say I’m going to be a starving artist I’m going to be a barista and buy a house it doesn’t work mathematically so you’ve got to choose and you know I’m meeting uh lots and lots and lots of JZ ear that are making serious money and they’re very serious about their lives and they’ve done a great job and many of them even paid off their home in their mid-20s but it’s just but what are they doing well they’re buying a home in an affordable area they’re buying an affordable home not a mcmansion um and they’re working their tails off and and they picked a career field that enables them to make some money and so that’s the that’s how they won it wasn’t I didn’t dictate this I didn’t make the rules but you still have to be able to pay the freaking payment M Dame’s grandmother there’s a great place to go when you’re broke to work that’s a great you can tell they’re cut from the same clock man I mean this is a very Dave quote if you do poor people’s stuff you’ll be poor if you do rich people’s stuff you’ll be rich right it’s so simple and Powerful at the same time if you aim at nothing you’ll hit it every time so uh this is as you enter we kind of made this a fan experience we wanted people to walk in and for it to be about them not us yeah and so as you walk in we’ve got the lobby you’re greeted by you know Janelle who’s one of my favorite people in the world you see the whole stage here you get the debt free stage this is the Pinnacle that chandelier is cool the chandelier if you notice has tiny microphones so when we started doing the show years ago Dave started doing this Deb free screen call in the show they they share their Deb free journey and they were just standing in the hallway and so when we built this new building he was like I want a stage where people can stand and we celebrate them as they talk through the the glass so there’s Dave getting ready for the show right there and so people stand right here with the headsets on you’ve probably seen it on YouTube and they’ll talk about yeah you know and at the same time we come out here twice an hour whoever’s hosting the show and we’ll do pictures and sign books with whoever is visiting right here yeah that’s cool is it fair to say you absolutely hate credit cards I hate what they do to people so then I end up hating them you know I I hate car loans and car leases too you have no credit cards I don’t I have four pieces of plastic in my pocket my debit card on my business my debit card on my personal my driver’s license and my handgun carry permit that is the only plastic I have in my pocket wow okay but would you ever make a case for responsible use of a credit card no a debit card will do everything credit card will do like consumer protections and what about building your credit score why do you need a credit score to buy a house you can buy one without a without without a credit score most people can’t you can’t yeah they can’t anybody can if you have zero credit score you can do manual under writing wouldn’t that interest rate be much higher though NOP same exact okay George camel Ramsey personality bought one four years ago manual underwriting with with Churchill Mortgage one of our advertisers they do it all the time because we tell people not and but you can’t have a low credit score you got to have a no credit score oh okay I have to ask this question I know you got this recently but people are asking to clarify the 10% return assumptions cuz my assumption was it was 6 to 8% or 4% safe withdrawal rate you’re talking about a withdrawal rate or you talking about rates of return well both right so so the S&P the S&P is averag 11.2 since it’s Inception so what what what is a safe uh withdrawal rate so if if it’s averaged 11.2 since its Inception why would tend be a problem do you think it’ll continue being that way though sure yeah sure okay yeah I mean I own one mutual fund that’s got a uh 12.1 and it’s 80 years old right average annual for 80 years and the last 20 years it’s done excellent why were people giving you grief about the 8% withdrawal rate uh because the standard crap in the world of e economics mhm uh the stuff we’re taught in college is 4% 4% 4% the stuff they teach you when you’re working on your cfp 4% 4% 4% 4% which if you pull 4% and you you can live on that that’s fine I don’t care you don’t have to but and it’s the whole point is this it never ends up you never end up exactly where you were planning to end up anyway okay you say okay I need a million dollars because at 8% that’s $80,000 a year and I can live on that in the future okay or I need $2 million because at % that’s $160,000 but you never end up with 2 million you always end up with less or more MH and so you actually you end up dealing with reality and and here’s the thing though you’re never going to make 12 you’re going to make 16 or you’re going to make six right okay and so that’s how the reality is so none of the this is all theory that somebody’s sitting with their calculator in their mother’s basement trying to figure this out screw it start saving money and use whatever assumptions you want to use that cause you to get off your butt and cause you to save money the people that invest are the ones that end up with money that’s the math and so you know if you don’t like Dave Ramsey’s assumptions who cares right you know go do your own but for God’s sakes do it yeah I like that so 3% is probably too conservative okay well I mean not if you’re making seven right you know and and the inflation’s four okay but so so you know what have you got it invested in are you know I’ve got mine my mutual fund portfolio averages averages not every year a has average for decades more than 12% and I’m not a rocket surgeon what do you think of dividend stocks cuz I’m I’m a huge dividend investor I love dividends I love blue chick Blue Chip is a great certainly to have in the portfolio I mean we teach growth growth and income aggressive growth and Internationals the four to split it across and that’s what I personally do but you know if you want to sit heavy in that growth and income you’re going to get those blue chips and there’ll be a bunch of dividends in there and that’s a sweet play it’s a very uh predictable uh uh risk averse play and uh and because the companies are very solid old dinosaur they don’t move fast they’re they’re not going to spike up but they’re also not going to spike down most of the time I mean so it’s a good play this is this is where it all started this is the actual copy of the document I’m day was bankruptcy David Lawrence Ramsey III did in fact go through bankruptcy back in the 8 and here we are years later and it’s you know we don’t uh we don’t celebrate the pain and suffering but we celebrate the fact that there was so much transformation that happened because of that moment so and a lot of people have that moment you know the turnaround moment the I’ve had it moment um and it shows people that it doesn’t matter where you start that you can still change and there’s hope for you yet so I think that’s why people relate to Dave so out of all of Dave’s advice my favorite one is baby step number four which is to invest 15% of your household income toward retirement that was at this point in the video I showed him my portfolio but before I share that with you I want to quickly mention the sponsor of today’s video Mumu Mumu is a One-Stop trading app available for users in the United States Canada and Australia so if you’re just starting out and you don’t have a lot of money Mumu offers fractional shares making investing more 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they’re also offering cash sweep which is 5.1% apy on uninvested cash but rates are subject to change so please check out the disclosures for the latest data don’t forget to use the link down below thank you Mumu for sponsoring this segment of the video and now let’s get back to it assuming that you were in your 20s how would you start all over again what job would you get you know I’ve always I’ve I’ve worked for myself my whole life just about I think I’ve had a real job just a short period of time in my early like I got out of college I worked for a guy for six months I worked for another one for a year and then I sold real estate for a company I guess I wor I guess that but I was straight commission um so um I’ve either been straight commission or self-employed my whole life virtually um and I would do something like that for sure I’d find something in the marketplace that that I enjoyed the process and the model and that I could scale and I think today the beautiful thing about the digital world that you and I live in uh you know with all this stuff is that uh you can do stuff fast mhm it’s pretty quick you can hockey stick some stuff man up and to the right man and um you’re proof of that I mean you’re a big star it’s pretty amazing so I wish but no you are you got serious numbers man I’m proud of you well done thank you thank you I actually do want to ask you to rate my my portfolio if you’re okay with that I don’t have like all the individual stocks okay I just want to give you a breakdown of my situation so you can kind of look at it all right I I don’t know why you need me to rate it I think you’re probably the guy that should be rating it but no yeah I’d love for you to criticize it you could I’m not going to well I know you’re going to criticize at least one part okay and I’d love to talk to you about it what’s miscellaneous uh Collectibles things like uh most of this that number in crypto though yes okay specifically one’s my financial adviser right now he’s auditing me wow you have done amazing congratulations dude thank you very well done man you I knew you were killing it but this is great thank you way to go man you’re in great shape and the stocks are single stocks uh mostly S&P okay all right so you’re sitting like I was talking about them yeah half S&P half blue chips yeah because you’re holding to those dividends you were talking about I mean you amazing what what do I need to do differently should I sell my crypto oh sure you know I don’t you know that I mean that’s Dave’s not ever going to tell you to do crypto and the reason is not because I’m stupid Boomer that doesn’t understand crypto that’s not it at all um where I think people get confused uh and they have in on this subject for sure the subject of gold also is um we confuse our terms and and uh uh use the wrong word MH okay there is speculation and speculation is for short-term gain okay I’m day trading stock I’m buying a currency I’m buying gold because if you were buying gold for the long term you would look at its you know 100-year track record of 2% and you would never buy it so you’re speculating flip this house you’re speculating specom you’re buying it’s called a spec home so you’re speculating that is not investing investing is always by definition longterm and you would never invest longterm in something that has a crummy or non-existent longterm track record mhm because by definition if it doesn’t have a long-term track record you are speculating you’re guessing and so when you say my Investment Portfolio it should not include speculation you could say I’ve got my Investment Portfolio and then I’m doing this thing on the side I’m flipping houses but flipping houses is not a portfolio well I guess when I look at investing I look at it on Spectrum like if if Bitcoin was here right or rather if if scams were on this end of the spectrum and treasury Bonds were on this side of the spectrum all investing is a form of speculation so you have the S&P somewhere closer to speculation by definition is short term but couldn’t you hold on to bitcoin for the long term like there have been people that have had you could hold on to it for the long term but you have no reason to believe based on his history because it doesn’t have one right that you’re going to win except just your assumption that because it’s digital and it’s cool and the cool kids are doing it but the people that are getting in it are getting in it based on Greed they’re not based they’re not basing it on LA longterm I have analyzed this investment with my calculator and I am looking into the future and I can see you know that’s that’s known as a guess right have you ever studied the technicals of Bitcoin at all like have you read the white paper or understood like how it works anyway I mean I’ve not gone into nowhere near like you have I’m sure you you’re probably much more of an expert on it than I but it just falls into a category the technicals won’t change it for me okay so if you had it be the same thing of um new tech stock a new tech company blows up they’re they they go from Venture Capital they’re going to take it public they’re going to do an IPO am I putting money in that no when Facebook went public did I put money in it no not a dime because that’s betting on the short term now you look back 10 years has Facebook done okay I don’t know I don’t follow their stock but you know probably probably could have been okay I may have missed out but I didn’t have I don’t play short game I play long ball that’s investing and so once you put it in that category I just don’t do it I don’t have to go into the technicals cuz I’m not going to play I’m just trying to find the missing link between who you are as a person because I I agree with everything you say and I’m like how do I still agree and believe in Bitcoin is because I’m not a short-term investor I I’m holding it for the longterm how do you explain that that’s a long-term investment because it’s governed by code right there’s nothing you can change about it it’s not some mystery of of speculation everything that it is a currency a commodity it is a currency it’s not a currency okay a commodity so commodity prices are driven by one thing Supply Demand right that’s all yes you can’t write the technical white paper on that no you can’t but the so if everybody suddenly abandons Bitcoin your Bitcoin is going to be worth air sure if everybody comes after Bitcoin like a Baptist after a casserole your Bitcoin is going to go through the roof that’s fair okay you are not in control of that you cannot predict that with a white paper or technical true but I feel like you can say that about anything whether it’s a particular stock or the stock market bonds people can abandon that for in Li of something else they could but they don’t have a history the difference here is you don’t have a history the technicals are based on what they hope wish think but so so’s the IPO this year actually in April Bitcoin became uh more scarce by Supply than than gold in terms of the uh yeah but last year in April it wasn’t so but you’re you I think I think you’re genius I think you’ve done a great job with the portfolio would I do that you I think we have the question answered I would not do that and that’s why to be fair I’m not here to convince anyone I just I just I just love to get Dave’s perspective because to be honest I think a trillion dollar asset like Bitcoin will do its thing regardless of whether I speak about it or not it’s I I have no influence over it and I same here yeah I don’t think it’s I don’t think bitcoin’s going to fail because Dave Ramsey said don’t do it right what I’m worried about is that guy you know who should be putting money in his 401 okay he should have paid off his car he should have gotten rid of his student loan he should be thinking longterm he should be getting his house paid off and instead he’s freaking putting money in this stuff that’s absurd right that’s a fair point I would agree with that there’s other priorities he’s who I worry about yeah I don’t worry about you and me if you lost in that portfolio if you lost 100% of your Bitcoin you’re okay right you’re still a multi-millionaire you’re still incredible portfolio so you know this has becomes a theoretical argument at that point right what if I gave you a Bitcoin would you take it or would you not accept it well it would be pretty hypocritical as as much as I have trashed the idea publicly for since since it became a thing how could you say no huh I I could easily say no what if you gave me a free credit card I could say no you know but would it kill me no it wouldn’t kill me but I’m no I you you wouldn’t accept it even if I offered one no wow it would be hypocritical I mean how how could I do that with Integrity tell everybody not to do it me but for me I could take it no no you you can donate it okay I’ll donate back to you we’re good okay that’s fair I tried okay so this is the car that is the replica of the one Dave started this place from like he started selling copies of his book financial piece out of the trunk of this exact model car and so because of Dave’s humble beginnings we wanted to have this as sort of a spot in the L so we actually cut the car in half we got all the electrical parts working on it and now we use it to display books for fun so we have an outside uh staff they don’t work for us they’re corporate Chef employees that run the entire cafeteria so those aren’t ramsy employees but we see them like our tee you know we interface with these people every day the people work in the cafeteria and so we know them by name so we have all the all the books that we’ve released and there’s probably many more uh on here and some of the you know Awards and YouTube stuff and Relics from the past the shows that we launched and so now we have a whole network of shows on top of the Ramsay show uh and including my show Ken Coleman show and then we have a tell your story Booth which is fun cuz we realize like we want to make the people the hero not us the guide so if they want to share their story there on camera they can be like hey here’s my deal like I was in debt and I paid off my debt here’s how you guys impacted us and it’s cool and this is just like photos of you know Dave and Snoop Dogg and like just random hilarity D You Know Thee presidents and just fun moments I wanted to take you to one of the darker times in your life uh when you declared bankruptcy mhm um did you feel like you failed personally I knew I failed I just feel like it I did it destroyed me uh because I grew up um in a uh hard driving entrepreneurial household and um I had a toxic view of success at that time as a young guy I was an arrogant little twerp and um so being successful financially being being successful in business was my identity and so I didn’t just lose the money I lost me in the process I lost my identity and so I didn’t just simply go broke it wasn’t just a Monopoly game I lost it was an internal existential crisis and so um I not only went broke I was broken and um I I was overly confident before and after that I didn’t have it shattered confidence I didn’t have uh I didn’t have any Swagger left at all uh you know it’s two and a half years of hell we went through losing property after property and getting forecloses on getting sued so many times and they were all right it was all default judgments you know now if you’d like to see the rest of this video it’s actually over an hour long you can find it on my podcast Channel with my co-host Dylan it’s already uploaded so go check it out subscribe or not it’s a really cool video that I think is way more interesting than this one because you really get to know Dave as a person and you see his vulnerable side but as always I hope you have a wonderful rest of your day smash the like button subscribe if you haven’t already don’t forget to grab your free stocks links are down below go track them autom magically with the spreadsheet link Down Below in my patreon thank you so much for watching I’d love to see you back here on Monday and Friday sometimes a Wednesday see you soon bye-bye

Confronting Dave Ramsey About Bitcoin, Dividends, and Real Estate
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