Dave Ramsey Eviscerates Co-Host George Kamel for Preaching the 4% Rule

Dave Ramsey recently eviscerated his co-host George Kamel for preaching the 4% rule.

According to George, withdrawing only 4% of your savings is the easiest way to guarantee your money lasts throughout retirement.

George further adds that the 4% rule is a math-based approach to sustainable withdrawals in retirement.

For Dave Ramsey, the 4% is senseless and only geared toward stealing people’s hope for a brighter retirement.

He believes an 8% withdrawal rate is more sustainable since your savings will be growing at a rate of 12%; factor in 4% for inflation, and you’re left with 8%. 

It’s clear Dave Ramsey is oblivious to the sequence of return risk, which could force you to run out of money 15 to 20 years early if you experience a series of negative returns in the first decade of retirement. 

The fact is, even if you average 12% rates of return throughout retirement, you won’t be getting 12% every single year. Some years, you’ll get 20%, and other years you’ll get -26%. 

David explains that the 4% rule gives you peace of mind that regardless of the swings in the market, you’ll have a reasonably high chance of not outliving your money.

Because Ramsey has millions of dollars, he has the license to utilize planning assumptions that are wildly at odds with history and academic research.

If you’d like a stress-free retirement, ignore Dave Ramsey’s advice and embrace strategies that are built on sustainable retirement planning principles like the 4% rule.



Mentioned in this episode:

David’s books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code



PowerOfZero.com (free 3-part video series)

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