I'm LOVING that dividend!

[Jackburton]

There is certainly much worse advice out there but Dave Ramsey isn't perfect. The problem lies in when u actually need a loan and you have lived debt free forever. I prefer to mix a little dad Ramsey with a little Clark Howard.

Explaining compounding interest to the wife last night was very frustrating. I explained how if everything follows historical averages we should have 5-7 million in retirement accounts when we retire. Her reply that's it? God love her she will likely work forever because she wouldn't feel comfortable until we win powerball. Lol

Dave Ramsey's plan works for those who have no control over their finances and aren't disciplined. His "take a hammer to everything" approach works for a lot of people, except those with willpower and self control. Clark Howard teaches managing credit as a tool in life. Both philosophies can be argued on depending on each individuals circumstance. Much like in life, it's wise to take all the information available and make a plan with it. Just because it doesn't have one of their faces on the plan doesn't make it wrong.

 

[anonymous6]

There have been a few members on this board that have insinuated that Dave Ramsey's advice is poor advice. One even suggested that taking on more high risk debt as a way to make money to pay off their debt is better than following Ramsey's Baby Step Program to get out of debt. And people wonder why the average American is in such financial distress.

I don't follow Ramseys advice to the letter. however, a good portion of it is just good ol fashioned advice. it's the way our parents and grandparents were raised too.

 

[Brownslave688]

I can totally understand wanting to pay for kids school. My wife is dead set on it. I think mostly because her father has money and has made her pay for it all. She has 6 figure school loans and can't stand the thought of her kids going thru the same.

We will likely be able to pay for our kids school. I however would like to wait until they FINISH school with a real degree. Not one in ancient alien societies. Then I will pay off what they owe.

 

[728ups]

I can totally understand wanting to pay for kids school. My wife is dead set on it. I think mostly because her father has money and has made her pay for it all. She has 6 figure school loans and can't stand the thought of her kids going thru the same.

We will likely be able to pay for our kids school. I however would like to wait until they FINISH school with a real degree. Not one in ancient alien societies. Then I will pay off what they owe.

we had the same discussion: Get a degree that prints Money! He is majoring in Business and the standards to maintain that major are very high. I'm really glad I'm not in college now,jeez I wouldn't last 10 minutes

 

[Brownslave688]

The thing that makes me mad about college is I would say at least 75% of degrees could be just as easily taught with a few years internship or apprenticeship. Most go through 4,5,6 or more years of school and feel like they know nothing the first 6 months or so at work.

 

[Dracula]

UPS average div yield over 5 years is 3%. fair. not great. I only have less than 1% of my portfolio in UPS stock. 60% I have in stocks is mostly S&P 500. some in Blue chips. about 30% Cash and the rest in real estate. no one , even the experts can not pick stock winners consistently. John Bogle, the guy who started and managed the worlds 2nd largest mutual fund co. preached INDEX funds, INDEX funds , INDEX funds ! and he's absolutely right. put your money in Vanguard S and P 500 Index fund ( very low expense ratio, almost free) and watch the power of compound interest work it's magic.

you can also use Index funds for International companies, gold and precious metals and other sectors.

I'm similiar to you. $50 a week for UPS stock, 15% 401k divided 13% normal 401k, 2% Roth, with about 60% blue chips, 25% balanced stuff and 15% real estate.

 

[Overpaid Union Thug]

There is certainly much worse advice out there but Dave Ramsey isn't perfect. The problem lies in when u actually need a loan and you have lived debt free forever. I prefer to mix a little dad Ramsey with a little Clark Howard.

Explaining compounding interest to the wife last night was very frustrating. I explained how if everything follows historical averages we should have 5-7 million in retirement accounts when we retire. Her reply that's it? God love her she will likely work forever because she wouldn't feel comfortable until we win powerball. Lol

Dave Ramsey's plan works for those who have no control over their finances and aren't disciplined. His "take a hammer to everything" approach works for a lot of people, except those with willpower and self control. Clark Howard teaches managing credit as a tool in life. Both philosophies can be argued on depending on each individuals circumstance. Much like in life, it's wise to take all the information available and make a plan with it. Just because it doesn't have one of their faces on the plan doesn't make it wrong.

Yeah that would be a rather frightening percentage of Americans and or government.

 

[thessalonian13]

couldn't agree more!
$150 a week stock deduction
3.5% deduction into teamster/UPS 401k
$100 a week into a ROTH IRA

switch the $150 stock deduction into your 401k. The S&P fund is up almost 15 percent. UPS dividend is 3 percent. You are losing at least 10 percent on your money

 

[badpal]

switch the $150 stock deduction into your 401k. The S&P fund is up almost 15 percent. UPS dividend is 3 percent. You are losing at least 10 percent on your money

Well there is one minor flaw in your calculation I believe.

 

[anonymous6]

Well there is one minor flaw in your calculation I believe.

actually UPS stock is up over 19% this year according to stockwatcher. i'm not sure what the 5 and 10 year average is which would be a much better indicator. I agree, 150 a week is too much to put in that basket. it would be better in the 401k. first of all the savings on taxes on 75 hundred would be over a grand( that is the 15 percent tax bracket for AGI adjusted gross income ). 15 % return would be a little over a grand. that's over 2000 dollars right. there ( and that 2k also compounds over the years ). the UPS stock price swings too far either way for me.

 

[brostalss]

Fun money every few months. It just shows up in my checking. Woohoo!!!

 

[Babagounj]

more money for beer

 

[scratch]

I have my UPS stock in an IRA, I just roll the dividends over into a mutual fund.

 

[brownmonster]

I have my UPS stock in an IRA, I just roll the dividends over into a mutual fund.

From the old thrift plan?

 

[scratch]

From the old thrift plan?

​Yes, I have a fortune with the 144 shares I bought at the time, I also opened four other mutual fund accounts. I don't consider the stock to be a good investment.

 

[brownmonster]

​Yes, I have a fortune with the 144 shares I bought at the time, I also opened four other mutual fund accounts. I don't consider the stock to be a good investment.

At 90.97 a share I consider it a pretty solid investment considering all 1100 shares I've purchased up to this point have been acquired for less then that.

 

[Benben]

DESPP is a 5% discount on a stock with a 3% average yield. You have to hold the stock for 2 years so the discount becomes 2.5% annual yeild. 2.5% + 3% equals 5.5% yield. Just food for thought!

 

[pretender]

​Yes, I have a fortune with the 144 shares I bought at the time, I also opened four other mutual fund accounts. I don't consider the stock to be a good investment.

I also purchased UPS stock with my Thrift Plan funds. At the same time, I purchased more stock in my IRA. When the stock split I made a nice profit. However, from that point on, for a long time, the performance was just okay. I think a lot of people fell in love with UPS stock after the split, and perhaps held on to it longer than they ordinarily would have. I eventually sold all of mine.

 

[pretender]

There have been a few members on this board that have insinuated that Dave Ramsey's advice is poor advice. One even suggested that taking on more high risk debt as a way to make money to pay off their debt is better than following Ramsey's Baby Step Program to get out of debt. And people wonder why the average American is in such financial distress.

I like Dave Ramsey, but I look at him more as preaching a lifestyle than giving financial advice--which is not insignificant. I can't believe the number of smart people I know, who don't handle their money well.

In my case, I have the discipline to pay my credit card in full every month, with absolutely no exceptions. However, being recently retired, I have been more aware of my spending habits, and have gotten in the habit of paying cash. We put all of our money we make from odd jobs into an envelope, and we use it as our entertainment account. It is amazing how after a significant amount of money is accumulated, you do not want to spend it. So, even though I would pay the card in full after going out to dinner or taking a trip, paying with cash make you think twice before spending money. That is the lifestyle that Ramsey teaches.

 

[Overpaid Union Thug]

There have been a few members on this board that have insinuated that Dave Ramsey's advice is poor advice. One even suggested that taking on more high risk debt as a way to make money to pay off their debt is better than following Ramsey's Baby Step Program to get out of debt. And people wonder why the average American is in such financial distress.

I like Dave Ramsey, but I look at him more as preaching a lifestyle than giving financial advice--which is not insignificant. I can't believe the number of smart people I know, who don't handle their money well.

In my case, I have the discipline to pay my credit card in full every month, with absolutely no exceptions. However, being recently retired, I have been more aware of my spending habits, and have gotten in the habit of paying cash. We put all of our money we make from odd jobs into an envelope, and we use it as our entertainment account. It is amazing how after a significant amount of money is accumulated, you do not want to spend it. So, even though I would pay the card in full after going out to dinner or taking a trip, paying with cash make you think twice before spending money. That is the lifestyle that Ramsey teaches.

I'm a huge fan of his baby steps program. Its a sure way to get out of debt and the methods involved are proven to have more of a positive psychological affect than many other programs. That means people are more likely to stick with it. Saving $1000 as the first step and paying off the lowest balance bills first to start the "debt snowball" instead of attacking higher interest bills is the key.

The initial $1000 is there if someone hits a snag financially during the program and are less likely to be demoralized by it and will likely recover quickly and continue the program. And seeing smaller bills disappear and compound into more and more money to pay off the bills with higher balances more quickly is a huge moral boost. I actually had fun with the program. Its not necessary to live on rice and beans but that definitely speeds up the process.

His investing advice is definitely debatable and tends to be more generic or playing it safe advice. And his stance on buying cars is doable but not practical for everyone. His advice on credit cards is sound but many people use credit cards to take advantage of the points. I quit doing that because I hated waiting for credit card payments (which I was paying off as soon as they would appear) to clear. Its strictly debit card for me now. For investing advice I search the internet.