Dave Ramsey Says You Can Take an 8% Withdrawal Rate in Retirement! (Is He Right?)

Today’s episode revolves around whether Dave Ramsey is right – or wrong – in saying that people can take an 8% withdrawal rate in retirement.

A group of fiduciary advisors recently confronted Dave Ramsey on Twitter. 

Just like David, they too thought that Dave Ramsey is living in a fantasy world because of the advice he shares with people.

David points out a big flaw in Dave Ramsey’s recommendation of staying 100% invested in stocks your entire lifetime: the approach doesn’t account for investment volatility.

Remember that just because you average 11.8% per year, it doesn’t mean that you’ll be getting precisely that result each and every year.

That’s because the order in which you experience returns in retirement is one of the biggest keys in determining whether your retirement assets will last through life expectancy.

David emphasizes the fact that most people who retire at age 65 need their money to last a full 30 years.

Ramsey’s “one-size-fits-all” approach is the reason why, David believes, he takes positions even if they aren’t supported by the data.



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)

@mcknightandco on Twitter 

@davidcmcknight on Instagram

David McKnight on YouTube

Get David’s Tax-free Tool Kit at taxfreetoolkit.com

Dave Ramsey


Ibbotson Associates

Debunking the Myth of the 8% Return by Wade Pfau

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