RBS 019: The Dave Ramsey Portfolio vs Low Cost Index Funds

Dave Ramsey is perhaps best known for his baby steps and helping countless people get out of debt. Among low cost index fund investors, he's also known as recommending expensive mutual funds with front loaded sales charges. While fees are important, what matters even more is after-fee returns. And that raises an important question--Does Dave Ramsey's approach to investing outperform a portfolio of low cost index funds?In this episode, we'll look at American Funds, which appear to be Dave's fund family of choice. We'll compare their returns with low cost index funds over the past several decades to see which one comes out on top.