I heard Dave Ramsey tell a caller today to not participate in their employee

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Mar 31, 2015
10:48:46pm

cheezedawg

I heard Dave Ramsey tell a caller today to not participate in their employee

stock purchase plan because any gains from the program are an "illusion" because the stock can easily go down at any time, and these programs make people do stupid things like take out car loans. So instead of participating in an ESPP, people should pay extra on their mortgage every month.

From my limited experience with Dave Ramsey, he likes to throw in a predictable amount of crazy along with his advice.

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cheezedawg

Bio page: cheezedawg
Joined: Oct 4, 2007
Last login: Jun 19, 2024
Total posts: 66,918 (16,916 FO)

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Messages

Author

Time

I heard Dave Ramsey tell a caller today to not participate in their employee

cheezedawg

3/31/15 10:48pm

Thats nuts

wapiti

3/31/15 10:51pm

His advice is geared towards those in debtors prison. His tactics are extreme

TrueAndBlue

3/31/15 10:55pm

Yes. Ramsey to get out of debt. Then Clark Howard for living frugally/well

runnincoug

3/31/15 11:11pm

Yeah - all the mutual funds he tells people to buy *never* go down

Jersey hunter

4/1/15 9:13am

Ramsey's advice is targeted for financial incompetents and poor decision makers

3/31/15 11:00pm

But this advice is a poor decision

workindev

4/1/15 6:11am

Comment is spot on, but I think 98.5% of the population fits this bill

AzCoug1

4/1/15 7:16am

His advice should be to sell right away when you actually get the shares

cougarnerd

3/31/15 11:14pm

I think you need to hold for 12 months to avoid capital gains

Downtown

3/31/15 11:15pm

You don't avoid capital gains, but you do get the lower long-term rate

Mikey

3/31/15 11:18pm

Not capital gains - you avoid paying income tax on the gains

TrueAndBlue

3/31/15 11:20pm

Right, that's what I meant...thanks

Downtown

3/31/15 11:21pm

Only if you use the stocks to pay tithing.

grosven

4/1/15 2:49am

This discount you receive when you purchase the shares is taxable income even if

workindev

4/1/15 6:12am

^^^^^^^this. ESPP shares are a GREAT deal. Generally speaking your money is at

Acorn

4/1/15 7:25am

Well, the amount of income vs gain/loss depends on if its a qualifying or

cheezedawg

4/1/15 9:06am

The advice about paying extra for your mortgage is foolish

thecelloguy

4/1/15 6:01am

Huh? Paying one months extra a year on a $250k home at 4% on a 30 year loan

Bert609

4/1/15 6:57am

I don't think you read my post

thecelloguy

4/1/15 7:01am

You are missing a key part of the analysis

workindev

4/1/15 7:16am

Paying off your mortgage is only wise if you can't find something that gets

Jersey hunter

4/1/15 9:20am

That's right in line with what Dave Ramsey suggests.

db59840

4/30/15 1:09pm

I totally disagree. His advice (in context) is sound

AzCoug1

4/1/15 7:29am

Under those circumstances I agree.

thecelloguy

4/1/15 8:34am

Dave Ramsey's advice plays on emotions

Acorn

4/1/15 7:39am

more like dave scamsey...ammiright???

thebruce

4/1/15 8:09am

I just can't get into his show at all.

neopolitech

4/1/15 1:21pm

I don't have any experience with stock purchase plans. What are they? I've

db59840

4/30/15 1:07pm

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