Bad advice from Dave Ramsey

I occasionally watch both Dave Ramsey and Susie Orman on the various cable channels to see if they dish out any advice that I could out to use. Susie was the one that turned me on to ROTH IRA’s and although I don’t have one I might be looking into one in the near future. Dave on the other hand has dished out some weird if not down right bad advice to some people calling into his show.

Last night I watched the last half of his show when this woman called in. She had taken $70K out of her 401K and giving it to her boyfriend. That was bad new enough since the boyfriend was at one time promising to pay her back and backed out of that promise. She then found out form the IRS that she owed $50K on the $70K she took out. Now I know that the IRS penalties are bad but I don’t think they are that bad. Right there Dave should have told her to get a tax attorney but instead he told her to go ahead with the sale of her house (which she had planned to do to pay the IRS back) and lower the price of it since she now feared that she was almost to the point of going into foreclosure (which she also said the lender had not notified her yet of any foreclosure action or any threat of). My biggest gripe is that this woman needed help badly and he failed to send her to the right person that could help her – an attorney with tax and financial experience. I don’t think that a person should lose their home because of what she did. I know the IRS is very happy with monthly payments of what can be arraigned.

You blew it Dave. What you need is a good colon cleanse to get the bull s*** out of your system and quit giving people bad advice.

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