7 Reasons Suze Orman and Dave Ramsey’s Retirement Advice Won’t Work for You
Dave Ramsey and Suze Orman have helped millions with their finances, and there’s no denying their tremendous impact. But retirement isn’t one-size-fits-all, and sticking too closely to their playbooks can cause more harm than good. Here are a few reasons why their advice might not be right for your retirement strategy.
Blanket Rules Don’t Work For Everyone
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These two love rules: save this percent, avoid that kind of debt, never do this. It makes for easy soundbites, but your financial life isn’t a template. What works for a 30-year-old with no kids won’t work for a 62-year-old single parent. Financial planning needs context, not a checklist.
Debt Isn’t Always Evil
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Ramsey’s no-debt mindset sounds noble, but lumping all debt together is shortsighted. A 3% mortgage or car loan might free up money to invest in something growing at 8%. Not all debt deserves the villain treatment Ramsey gives it.
Skipping Joy for Savings Is a Bummer
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Orman says skip the latte. Ramsey suggests suffering now to live well later. But what if later never comes? Financial planner Lawrence Sprung lost his mom before she retired—she never got her reward. Planning should make room for happiness today. That cup of coffee might be worth every penny.
One-Size Investing Doesn’t Fit All
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Going all-in on stocks might work for some, but it’s not a universal move. That kind of aggressive investing strategy—like what Ramsey often recommends—ignores the emotional and financial impact of market dips. A smart portfolio should match your comfort with risk and the number of years until retirement.
The 15% Savings Rule Isn’t Custom-Fit
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Ramsey’s rule to save 15% of your income sounds like a good goal. But if you’re 55 and just started saving, that number won’t cut it. On the flip side, if you’re 25 and juggling loans, 15% might be impossible.
Early Mortgage Payoffs Aren’t Always Smart
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The idea of owning your home free and clear is attractive. Ramsey pushes for it hard. But if you’re redirecting money from higher-growth investments to kill a low-interest mortgage, you could be shortchanging your future. Sometimes that final mortgage payment isn’t the best financial win.
Long-Term Care Advice Isn’t Universal
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Buying long-term care insurance at 60 is not the right answer for everyone. While Ramsey encourages this approach, the real cost and benefit depend on your personal situation—your health, your family support system, and other financial tools you already have in place.
ETFs vs. Mutual Funds Isn’t Black and White
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Orman prefers ETFs, and Ramsey leans toward mutual funds. However, picking investments based on someone else’s favorite is risky. Costs and even tax advantages, as well as performance, all depend on your unique portfolio. Sometimes, mutual funds win. Other times, ETFs make more sense. Don’t marry a method—understand the mechanics.
Pushing Off Social Security Could Cost You
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Delaying Social Security makes sense—until it doesn’t. Ramsey says wait for the bigger payout, but that assumes you’ll live long enough to benefit. If you have health issues or need the income earlier, taking benefits at 62 might be smarter. There’s no gold star for holding out.
Minimalist Spending Isn’t Always the Answer
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Orman tends to highlight how small daily expenses add up, but for many people, that $5 coffee or weekend hobby brings joy that can be budgeted for without jeopardizing future retirement goals. Cutting out every small indulgence might look good on paper, but it’s not always necessary—or healthy.
Extreme Withdrawal Rates Are Risky
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There’s a big difference between spending too much and being overly cautious. Ramsey pushes for 8% withdrawals while Orman advises 3%, but most financial planners suggest sticking near 4%. Retirement isn’t a time for extremes—overspending drains your nest egg, while underspending can lead to missed opportunities while you’re still active.
Roth IRA vs. Reality Check
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Roth IRAs have their advantages, and Orman is quick to champion them. But they aren’t the only retirement tool worth considering. Depending on your income, tax bracket, and employer match opportunities, a traditional IRA or 401(k) might actually leave you with more in retirement.
Retirement Isn’t Always About Stopping Work
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These two famous American financial gurus frame retirement as a full stop. However, there are many people who prefer to do part-time work or passion projects. Flexibility, not just savings, matters. Easing into retirement can provide income, purpose, and delay portfolio withdrawals—without needing millions in the bank.
Emergency Funds Can Be Too Big
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A massive emergency fund sounds safe, but parking too much in cash means missing out on long-term growth and compounding. While Ramsey touts big cash cushions for peace of mind, investing a portion wisely can offer better overall security without compromising liquidity for real emergencies.
Kids Aren’t Always Financial Deadweight
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Helping kids wisely can boost generational wealth and family stability—if done with firm boundaries and clear planning. Orman often warns against financially supporting adult children, viewing it as a drain on retirement savings. However, shared housing, business ventures, or educational help can be investments, not burdens.