Don’t put money in any investment product you can’t explain to a seventh grader! Never put money in anything you don’t understand!”
Dave Ramsey practically screams this advice on the new version of the Financial Peace University lesson on investing. There is no uncertainty in his words or his voice. Critics of Dave Ramsey, and even quite a few of his fans over at My Total Money Makeover message boards, say Dave’s investing advice is either “too simplistic” or just wrong.
To people who are much more investment savvy, Dave’s investing advice probably does sound wrong or oversimplified. But for folks like me, who just don’t have much learning or background in investing, that is a start, as long as we follow his basic advice quoted above. Perhaps Dave Ramsey’s critics would be mollified by the next quote: