How Dave Ramsey’s Mutual Funds Have Performed Since 1973.
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How Dave Ramsey’s Mutual Funds Have Performed Since 1973
Dave Ramsey is a well-known financial guru and author who has helped countless individuals and families gain control of their finances and improve their financial well-being. One of the strategies he advocates for building wealth is investing in mutual funds. But how have Dave Ramsey’s mutual funds performed since 1973?
Firstly, it’s important to note that Dave Ramsey himself does not manage mutual funds. He recommends a group of four mutual funds known as the “Dave Ramsey Mutual Funds” or the “SmartVestor Pro” funds. These funds are managed by professional investment firms and are designed to align with Ramsey’s investment philosophy of long-term, diversified investing.
The Dave Ramsey Mutual Funds include:
1. Growth Stock Mutual Fund: This fund focuses on investing in companies with strong growth potential. It aims to generate higher returns over the long term.
2. Growth and Income Mutual Fund: This fund seeks a balance between income generation and capital appreciation. It includes a mix of dividend-paying stocks and growth stocks.
3. Aggressive Growth Mutual Fund: As the name suggests, this fund targets higher returns by investing in riskier growth stocks. It is suitable for investors with a higher risk tolerance.
4. International Mutual Fund: This fund provides exposure to international stocks, allowing investors to diversify their portfolios beyond U.S. markets.
Since these funds were established in 1973, their performance has varied year after year, in line with market conditions and economic cycles. It’s important to note that past performance is not indicative of future results, and individual investors’ experiences may differ. However, we can assess their general performance over the long term.
Over the past 40+ years, these mutual funds have generally performed well and delivered satisfactory returns for investors. They have demonstrated resilience during market downturns and demonstrated steady growth during market upturns. While specific performance figures are difficult to ascertain, it’s widely acknowledged that these funds have provided solid long-term returns.
It’s worth mentioning that Dave Ramsey’s investment strategy places a strong emphasis on long-term investing, staying the course during market fluctuations, and avoiding unnecessary risks. He promotes a diversified portfolio of mutual funds as a way to mitigate investment risks and achieve consistent growth over time.
It’s also important to consider that investing in mutual funds involves some degree of risk, as with any investment. Past performance is not a guarantee of future success. Therefore, investors should carefully research and evaluate the performance, reliability, and fees associated with any investments they choose.
In conclusion, since their establishment in 1973, Dave Ramsey’s recommended mutual funds have generally performed well and delivered solid returns for investors who followed his advice for long-term investing strategies. However, it’s essential to remember that these funds are managed by professional investment firms, and individual investors’ experiences may differ. As with any investment, it’s crucial to do thorough research and seek professional advice before making any financial decisions.
Love Dave Ramsey, but an index fund still looks good to me, as a complete novice and wanting something as easy, cheap, and hands off, as possible.
Okay, so let’s say Dave convinces you to go to one of his “endorsed local providers” (ELPs) and then let’s say you’re lucky enough to pick from among the 1/3 (skeptical of that fraction, but let’s stipulate that it’s accurate) that he says beat the market… and let’s say that your fund gets that 11 or 12 percent average that he is claiming, as opposed to the 10% average or approximate amount that he says the S & P 500 index earns… if you’re coughing up the average amount of money in fees that all of those active funds charge, that’s completely countering whatever gain you had coming from beating the market. And of course if the law of averages catches up with you and at some point the fund(s) that you picked are in (or become among) the 2/3 of funds that DON’T beat the market, you’re screwed, because you still have to pay those high yearly fees. Jack Bogle was right: why on earth would you give so much of your hard earned wealth to the croupier? With a good quality index fund you pay PEANUTS in maintenance fees compared to what a group like American Funds would charge you.
So why take that chance? By promoting high fee active investment funds at the expense of low cost index funds, Dave is, in effect, encouraging his clients to go to the casino. It is irresponsible and goes TOTALLY against the stated philosophy / mission of his show, which is to show listeners ways in which they can increase their wealth. And of course Dave has done well with the funds he has… he supplements them with the money he receives from the ELPS that he promotes and endorses and gets his followers to choose from. It’s sly and subtle salesman-style tactics and it feels dishonest and sleazy.
The Growth Fund of America and The Investment Co of America. Those are the Funds he is taking about and yes that’s with the sales charge included and annual expense ratios.
Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $680k savings vanish after putting in so much effort to accumulate them.
Dave has a lot of great advice. I'm not exactly sure on this one though. I would be curious to see what his expense ratios are and what percentage he really makes in the end. I'm curious to know if they beat index funds at that point.
But he didnt say what the mutal funds where?
Does someone know what mutual funds he invests in specifically?
This whole speech is either a story of gross incompetence or a blatant lie.
The percentage of mutual funds out performing the S&P 500 that he quotes here IS NOT correcting for survivorship bias.
He only calculates the ratio of successful funds compared to non successful funds out of those who have survived the 25 years.
The simple reality is that most funds that fail don’t last 25 years before they are closed.
You’re right Dave it’s not rocket science – it’s basic finance that you’re getting wrong and your insulting your audience by thinking you can fool them with biased numbers.
I looked up two of the the exact funds he's talking about and compared them to the s&p500, over a 10y span the s&p out performed both of them.
13.04% would not include fees
Is this net of fees?
How come you don’t specify what mitral funds you’re investing in?
AAA
The part that he doesn’t factor in is the 0.85% expense ratio with those 12% mutual funds plus there’s a 1%+ dividend with S&P 500 indexes. Why risk 2/3 underperforming when you can nearly guarantee the consistent 10% with basically no expense ratio and a small dividend
Look at M2 money supply since 1971. Coincidence that stocks have performed?
But which mutual funds are they!
Pure BS, that he invest in mutual funds that outperform the S&P500 every single year!
What four growth stock mutual funds do you have?
Dave, you are failing to mention survivorship bias. When you factor that in, yes the figure is closer to 90% as you move past the 10 year benchmarks
So what funds should we invest in what are the names
Growth, growth and income, aggressive growth and international
What are these magical mutual funds? Jesus would want you to tell us !! lol
Dave ,please let us know the mutual funds you actually have !
Please share your great knowledge with us .
I love you Dave but you didn’t factor in their %1 – %2 percent in fees in those mutual funds.
Hey Dave You fail to
Mention all the fees you have to pay
I've gone individual companies. I didn't stop at one I built a portfolio out.
Fees Fees Fees Fees. Compounded over a lifetime. Fees.
Licensed financial professional here; everyone please do your own due diligence, always be skeptical with information you do not have a source to.
Does he ever say which ones specifically?
Wonder why he doesn’t name these funds
So where do you find a list of those funds and their performance records over that time?Should be pretty clear-cut and easy to prove. If anyone knows let me know as well.
you lose a large chunk of money in mutual funds in commission
Give a specific example of a mutual fund. Each of all four categories.
I'm curious on how he owns a mutual fund from the 1930s? Is that fund something that was passed down to him?
What about the fee’s Dave.