Dave Ramsey’s 4 mutual fund types explained

Image of Dave Ramsey laughing.

Image of Dave Ramsey laughing.

Dave Ramsey is a genius when it comes to inspiring people with common sense to get out of debt and to live within their means. He gets a fair bit of criticism on his investing advice though. Dave recommends people spread their investments across four types of mutual funds:

  1. Growth (25%)
  2. Growth and Income (25%)
  3. Aggressive Growth (25%)
  4. International. (25%)

Enthusiastic readers and listeners probably run off to Google to find these 4 mutual fund investments to invest like Dave and build wealth. But the answers are hidden – and followers end up having to contact an investing ELP (or endorsed local provider) that follows Dave’s rules (and pays for his endorsement).

Dave purposely shies away from giving specific investment advice to his listeners. Part of it probably has to do with the rules and regulations around giving investment advice, and part of it is probably because he’s honed his message for simplicity and maximum effect. The problem is: many debt-free followers are left wondering where to invest their retirement or extra money. I’m no ELP, but let me help fill-in where Dave has left off when it comes to investing in mutual funds for maximum efficiency.

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Open an investing account with Wisebanyan

Title image for article that reads 'Open an investing account with WiseBanyan'.

Title image for article that reads 'Open an investing account with WiseBanyan'.

If you’re a friend of mine and you don’t have a retirement account setup yet, I want you to open one today. Yes today. Right now. Hopefully you have $5,500 sitting in a savings account or CD earning you nothing right now. Why $5,500? Because that’s the maximum you can contribute to a ROTH IRA which is the retirement account you want to open (if you earn less than $183,000, which I’m pretty sure you do).

I’m going to help you put that money to work for you by opening an investment account with WiseBanyan. There are tons of investing brokerages, but I’m going to highlight one of the easiest places to open an investing account today. You’re going to open it, answer some questions, send your savings there, and let it sit for a year. If you’re not happy with it after a year, you can take it back it and put it back where you have you now. But I’m confident you’ll be so happy with the result after a year, you’ll not only keep your money there but you’ll add more to it.

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