ScaredyCatGuide thinks Dave Ramsey Gave This Kid Bad Advice on Crypto
Stumbled across this Dave Ramsey radio call and will say I completely disagree with the advice he gave this 17 year old kid.
If you are not familiar with who he is, Dave Ramsey is known for his no debt financial lifestyle. It's what he preaches and I don't disagree with that at all. Well, with exception of mortgages used for rental properties.
But I digress...
Invest in Crypto?
This kid called in and asked what he should do with the roughly $2k he had saved up working part-time. Should he buy stocks, maybe crypto.
You can listen to the call yourself, but he basically told the kid to avoid crypto at all costs and invest in mutual funds, really?
Why I Disagree
When you are 17 years old you are in a position to take on risk and swing for the fences. Especially considering most 17 year olds normally blow that money on a brand new Xbox and Nikes.
This kid is actually smart enough to invest. So even if one considers crypto 100% gambling (which I do not) then it would still be okay for this kid to invest in crypto.
Or Maybe This Scenario
Fine Dave, you don't want him to risk all his money in crypto. Then half crypto, half mutual funds. But he basically told him to avoid crypto like the plague.
Best Regards,
Totally agree with you scaredycat...too bad he called in to an old timer that has no clue about the crypto world..hopefully he will seek other counsel as well..thanks for the post
Yeah, I've read Dave Ramsey. Yes, not having debt is a good thing.
But his info on investing in stocks and mutual funds is so incorrect, it's a 30 second Google search away.
So no, I'm not surprised to see this.
Yeah, it's like anything else. Rarely is one method or practice the 100% right way to do something in every environment of scenario.
Dave doesn't believe in unnecessary risk. With that in mind, why would he recommend a kid at 17 years old take a risk on crypto when he could be investing in a 401(k), a Roth 401(k) and mutual funds that have a history of long-term financial gain and steady return. I'm sure you don't disagree with this either and would advise him to diversify his portfolio with a small percentage on "riskier" items such as crypto. However Dave doesn't condone that kind of behavior and with that behavior could lead to.
The practice of prudence is great and there is a place for that. There is also a place for taking risk. Risk is a scale that should be higher when you are younger and level down as you age. If one is going to take a calculated risk on crypto, 17 yrs old is about as good as it gets. Putting 1k into an IRA an then the other 1k in crypto would be more than ok, but that's just my opinion.
Sound advice my man @scaredycatguide.
good
the question is still which mutual fund, same goes for cryptos.
it is important to know where markets will have more value the next years ... you might laugh now .. but for example the building/construction industry in Greece... based on that investors from outside (a lot of chinese) buy infrastructure, like harbors... so all goods need to go to and from there ....