Dave Ramsey Answers FiscalGeek on Retiree Investing Advice

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in Retirement

I’m co facilitating a Financial Peace University class and the topic has come up of what to do with your 401k’s, IRA’s, pensions and investments once you actually retire. Should you move them to a more conservative option. I’m well aware of the various recommendations of other financial advisers most advocating the move to more conservative Bond focused options as you approach retirement. Dave Ramsey disagrees. He answered my question from Twitter. If you have access to his podcast it was about 20 minutes into the hour 3 show on 6/5/09.

Question: What does Dave recommend retirees do with their IRA/401k once they retire change to more conservative or still the 4 groups?

Dave Ramsey’s Answer:

I’d stay in the four groups with rare exceptions. If you are freaking out and you are risk adverse and all those things then there are some things you can do there. You could move out of Aggressive Growth into a balanced in the midst of it that would be a possibility. So there are other things you could do there but generally speaking the deal is when you retire at age 65 you are not going to pull all your money out. You’re going to start living off the money. You might not even touch the principal at all you may just live off the income created by “The Money.” And if that’s the case you are probably leaving that’s in there alone for the next generation even. You’re never even going to touch it you’re just going to live on the income so it doesn’t matter then see?

4 Groups of Mutual Funds Explained

Dave Ramsey recommends that you invest your retirement in 4 types of mutual funds and that you invest 25% in each one of them.  The 4 being:

  1. Growth Stock Mutual Funds
  2. Growth and Income Stock Mutual Funds
  3. Aggressive Growth Stock Mutual Funds
  4. International Stock Mutual Funds (Mutual Funds that invest in stocks from Non-US Companies)

Have a feeling one way or the other chime in at the comments section.

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Dave Ramsey Answers FiscalGeek on Retiree Investing Advice · MutualFunds.ExplainedOnline.Net
2009/06/10 at 2:40 pm
Dave Ramsey Answers FiscalGeek on Retiree Investing Advice · Mutual-Fund-Investing.ExplainedOnline.Net
2009/06/10 at 3:12 pm
Dave Ramsey Answers FiscalGeek on Retiree Investing Advice · Mutual-Funds101.ExplainedOnline.Net
2009/06/10 at 3:58 pm

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KrystalFinch 2010/06/26 at 7:58 pm

If you’re in not good state and have got no money to go out from that point, you will require to take the home loans. Just because it would help you for sure. I get financial loan every single year and feel myself fine just because of it.

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