Posted on 03/03/2011 5:52:49 AM PST by TheSentry
(Excerpt) Read more at badmoneyadvice.com ...
Gold can be a legitimate short term investment. I don’t see it as a long term investment, because it’s value fluctuates radically and in the long run it is never really worth more than you paid for it. And when you add in the broker fees and the commissions, you actually lose money when you finally cash it in.
Eventually you have to turn gold into cash. McDonalds won’t trade you hamburgers for your Gold. As intrinsically worthless as cash is, it can still get you a hamburger on Tuesday. And when you trade cash for a hamburger, you don’t have to pay a commission to a broker.
Which is why gold EFT’s are a good tool.
No storage fees, can be sold in an instant, and if you have an investment account you may be able to buy and sell it for a very low fixed dollar amount ($7 a trade is what I pay).
So, what benefit does this “financial tool” offer that outweighs the additional risk? How can a credit card allow for wealth building with less risk than the use of cash?
I can guarantee that I will not be impacted by any credit card legislation, change of interest rates, etc. Just like I know that 100% of all foreclosures are on homes with mortgages. In other words, Dave's plan is guaranteed to bring financial peace, what does using a credit card offer with the same certainty?
IIRC there was some Swiss companies in the 1980's that were selling these EFTs and then when the price of Gold fell from $800 to $200 an ounce, they all went belly up and there was no actual gold to back up the paper. Effectively the whole thing was nothing but paper. The companies selling the EFT's were buying paper themselves with everyone promising to produce the Gold on demand and nobody actually having the metal in their possession.
The problem with paper commodities is that you don't have to own the commodity in order to sell it and when you buy it, you don't own the commodity, you own the paper. While the paper is allegedly backed by Gold, if the price of Gold tumbles and there is a run on the company, then you will find yourself holding kindling for your fireplace rather than the metal you thought you were buying.
Again, Gold can be a great short term investment. But as a long term investment, at best it will retain it's value over the years. And unless you actually have the metal in your posession, all you own is a promise. And physical gold can be stolen.
Only 10? I figured out I’ve gotten at least 20 things wrong in my life, so David Ramsey is at least twice as reliable as I am. :-)
Good one.
I like Dave. You know I like Dave. I used ‘Financial Peace’ to get me out of debt completely and ahead of the curve. It worked for me!
I closed on my farm re-fi today! Dropped my rate 3%, no pre-payment penalty (because you know d@mn-skippy I’m not taking the full 30 years to pay this puppy OFF), my monthly payment went DOWN $150.00/month, I have no payments for 2 months and money coming back to me from escrow, so my Emergency Fund will be back up where it needs to be once again. All other debt is GONE (and NOT rolled into this re-fi, in case anyone was wondering!)
And since I live in the wonderful Community Property State of Wisconsinstan, I also got to give a big chunk of change to my loser, druggie Ex.
All the dope dealers in the area will be doing a booming business in the months to come as he p*sses all that money away and stares FIFTY in the face with absolutely NO ASSETS.
*SHRUG* I never could get through to him about money or anything else. I did my best and lived up to my end of the marriage even when it was harming me mentally and financially to do so.
I am at (Financial) Peace with my decision. :)
I love Dave. He has been an incredible help to us. I don’t care if it is common sense stuff. Obviously my husband and I needed a dose of it. I listen when I get the chance. You do NOT speak for this 710 listener.
Actually he does leave room for responsible use of credit cards.
He just maintains that it is very unlikely that one will use them responsibly.
What you have pointed out is an exception that does not prove anything.
Moreover, you have not proved that credit cards were the BEST means to handle your situation, only that you did use them.
But Dave's strategy is a poor choice for people who are financially responsible since it removes a useful tool from your financial toolbox.
He is not giving personal advice as a financial consultant, he is telling people how to get out of debt.
Your posts remind of someone who, when told of the health dangers of smoking, bring up their 90 year grandfather who smoked 2 packs of cigarettes a day for 80 years.
“But Dave’s strategy is a poor choice for people who are financially responsible since it removes a useful tool from your financial toolbox.”
It’s generally the people with financial trouble that are listening to Dave. His advice is very smart for those trying to dig themselves out of debt. Worrying about stupid points on a credit card is not the smart way to go. Maybe when you’re no longer in debt it could be something to look into but for the average person it is not worth the risk.
Also, I checked his website where you cited that comment on using credit cards responsibly, and it had a number of comments agreeing with you.
Congrats on the re-fi and congrats on dumping the debt and the loser!
;-)
Dude! Good God! You do realize listening to the guy ISN’T mandatory, right? Have you tried that approach? WITH Sanka?
Thank you! Every day is better than the last. :)
Thing is, if you’ve got a third grade audience it only takes a third grade teacher to keep them entertained.
How about being able to contest the charge if the vendor doesn't deliver the good or service you paid for? If you handed them a wad of cash or they've already cashed your check you're SOL. I suppose you could take them to small-claims court, but with one call to the credit card company you can have them fight on your behalf.
Look, I get it: you don't feel you can handle the use of a credit card, and that's fine for you and Dave. If you were uncomfortable with firearms I wouldn't insist you carry a pistol. All I'm saying is that Dave's blanket black-and-white statement regarding credit cards isn't good advice for everyone.
I agree. I have no problem with Dave, it’s common sense. But sometimes his absolutes don’t have any wiggle room.
Two years ago my drove-to-death car finally gave in. The repair was more than the value (get this - it was a 1998 Pontiac Grand Am that had a unique exhaust system no longer made by GM who should have been sent to bankruptcy).
So I bought a used car. The best interest rate I could get was 9%. Instead I paid a 3% fee and took the money from a zero balance credit card offering me zero interest for the life of the purchase. I paid it off in 18 months. I saved hundreds in interest.
I also don’t like his “never buy a new car or lease” advice. If no one bought new cars where are we going to get all the used cars he recommends? And he always suggest getting something in the $2-5K range. Good luck finding one that isn’t a clunker.
The ads are sold by the radio stations, not Dave.
I've heard him address this very issue, ads on his program for products he condemns, and he points out that those are commercials he's not running himself.
How do you reconcile that statement with his words:
Responsible use of a credit card does not exist....There is no positive side to credit card use.
Those don't read like the words of someone who "leave[s] room for responsible use of credit cards."
What you have pointed out is an exception that does not prove anything.
Actually, since Dave makes an absolute statement you only need to demonstrate that he's wrong in one instance to disprove his statement. If I said "moss always grows on the north side of a tree" you'd only have to show me one picture of a tree with moss on it's south side to disprove my statement. Do you see how that works?
Your posts remind of someone who, when told of the health dangers of smoking, bring up their 90 year grandfather who smoked 2 packs of cigarettes a day for 80 years.
And your statements and refusal to recognize Dave's own words for what they are remind me of cult members discussing their cult leader.
I don't care if you use credit cards or not. If you can't handle them then they're not the right thing for you. But just because you and Dave (and others on this thread) can't handle the tool doesn't mean other people can't. That's all I'm saying
Can't we just agree to disagree?
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