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A Life-Changing Ah-ha Moment: What I learned from Dave Ramsey

  • Writer: Joe Mains
    Joe Mains
  • 2 hours ago
  • 2 min read

Tammi (my wife) and I have been avid fans of Dave Ramsey and Ramsey Solutions for more than 30 years. We were married at age 20 and found ourselves in a challenging financial situation. Fortunately, we discovered Dave Ramsey, in fact, on a clearance rack cassette tape in an Indianapolis bookstore! We listened to his advice and were captivated; it changed our lives forever. This journey transformed our finances and our marriage and directed my professional career.

 

Today, I work as a Financial Advisor at Whitaker-Myers Wealth Managers and hold the additional designation of Certified Ramsey Solutions Master Financial Coach. Over the past 15+ years, I have had the privilege of helping hundreds of clients with money management and financial planning.

 

A Life-Changing Ah-ha Moment

Today, I want to share an “ah-ha moment” that I learned from Dave Ramsey about 15 years ago during Financial Peace University.  

 

If you have attended Financial Peace University (FPU), you likely remember the Insurance lesson.  It is taught that we should purchase 10 times our income in term life insurance.  For example, if we earn $50,000 annually, we need $500,000 in term life insurance.  Why?  Because we can wisely invest $500,000 and generate a $50,000 annual income.  BAM!  This was a powerful message for me.  But why?

 

Think more about this for a moment.  Dave is speaking in the context of term life insurance; however, this equally applies to wealth management and building your retirement portfolio.  If we save and invest $500,000 with 10% returns, we can generate $50,000 in annual income without touching the principal amount – a powerful, life-changing realization. 

 

And, of course, Dave talks about leaving a legacy and changing your family tree.  We live on the 10% returns that the portfolio generates and do not have to touch the principal.  What might this mean for your estate planning and for your family tree?

 

Of course, the “10% returns” are historical results, and there is no guarantee; however, the concept remains the same whether your returns average 7% or 8%, etc. 

 

So, I started thinking deeper about the principles of successful money management.

 

Principles of Successful Money Management

Let’s review these money management principles.

 

We start with the baby steps and add the “ah-ha” retirement portfolio moment. 

 

·       Live on a monthly zero-based budget; now and in retirement. 

·       Save your 6-month emergency fund.

·       Invest 15% of your income in your retirement accounts. 

·       Pay off your home mortgage.  

·       Create financial peace by “living and giving like no one else.”   

·       Create the income to “live and give like no one else” from your portfolio returns.

 

If you do not draw down the core portfolio, you can change your family tree.   

 

Would You Like to Learn More about Financial Planning?

My primary objective as a Financial Advisor is to help clients plan and manage their finances to create financial peace. If you’d like to explore more, please use my calendar link to schedule an introductory planning session.

Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.

​

Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

​

Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

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Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.

​

Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

​

Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

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