GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’re free to read more about oureditorial guidelinesand our products and servicesreview methodology.
20 YearsHelping You Live Richer
Reviewedby Experts
Trusted byMillions of Readers
Preparing forretirementcan be complicated.
Its natural to seek expert guidance to feel confident youre on the right track.
However, some of their beliefs could be a total mismatch for your situation.
Their blanket approach might be fine for some, but could be flat-out wrong for you.
I started noticing that some of their advice just didnt hold up in real life.
Not because it was wrong, but because it was too rigid for the real world, she said.
Were not all running the same financial race, and were definitely not running at the same pace.
While doing so may be financially prudent, it saps the present of its joy.
His mom passed away relatively young, never getting to experience retirement.
Why cant we do both and plan for it?
Many of us are not that lucky.
Not All Debt Is Bad
Being anti-debt is the cornerstone of Ramseys financial platform.
However, his view can be extremely limiting.
[Ramsey] does not delineate between good or bad debt.
In his eyes, it is all bad, said Sprung.
However, prioritizing paying off your house over other financial goals could backfire.
you might reach a point where youre paying enough extra that youre actually hurting your financial plan.
At some point, the interest is mostly paid off on a mortgage, since mortgages front-load the interest.
So, additional payments are essentially reducing what can be invested, said Simerly.
However, that amount doesnt factor in your age, goals and other financial obligations.
For someone starting late, 15% might be too little.
Meanwhile, if youre in your 20s with limited income and student debt, it may not be realistic.
Retirement saving needs to be personalized, Davis added.
Generally, any investment can be good or bad depending on your risk tolerance, goals and other preferences.
And he is correct, said Simerly.
Doing so can help ensure that you dont outlive your money.
Michelle Petrowski, founder of Being In Abundance, said there are two big issues with this strategy.
Second, theres the concept of sequence risk something that doesnt get talked about enough.
Ramsey suggests buying the coverage a few years before retirement, at age 60.
Davis said, This isnt exactly bad advice, but its definitely not universal.
LTC insurance can be incredibly expensive and is not always the best solution.
Some clients are better off self-insuring, while others may benefit more from hybrid policies.
Like many of Ramseys rules, this is overly rigid for such a nuanced issue.
Orman believes you shouldskip them and invest the cash instead.
She encourages you to spend even less than the standard 4% rule.
However, both ETFs and mutual funds can be a great fit for your portfolio, he explained.
So, should you abandon Ramsey and Ormans teachings entirely?
Ramsey and Orman gave us a solid start.
Because at the end of the day, retirement isnt just about numbers.
Its about the kind of life you want to live.
More From GOBankingRates
Sources
Share This Article:
