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Dave Ramsey Doesn't Understand Safe Withdrawal Rates in Retirement Planning?


In this episode of Financial Advisors Say the Darndest Things, host AB Ridgeway delves into the recent controversy surrounding Dave Ramsey's advice on safe withdrawal rates in retirement planning. He sheds light on the potential pitfalls of relying solely on surface-level financial advice and emphasizes the importance of understanding the intricacies of inflation-adjusted returns.

Key Topics:

  1. Dave Ramsey's 8% Withdrawal Rate: AB Ridgeway examines Dave Ramsey's assertion of an 8% withdrawal rate as "safe" and highlights the flaws in the calculation methodology.

  2. The Impact of Inflation: The episode explores the critical role of inflation in retirement planning and the necessity of accurately accounting for it in investment strategies.

  3. Sequence of Returns: AB Ridgeway discusses the significance of the sequence of returns, portfolio allocation, risk tolerance, and volatility in determining a truly safe withdrawal rate.

  4. Mathematical Precision: The importance of using precise mathematical formulas, such as the inflation adjustment rate calculation, to avoid potentially detrimental errors in retirement planning is emphasized.

  5. Financial Literacy: The episode underscores the need for financial literacy and the potential consequences of relying solely on generalizations or incomplete information from mainstream financial figures.


  1. "You cannot get to financial freedom without financial literacy."

  2. "We can't make good financial decisions if we're using bad numbers."

  3. "Even small discrepancies in calculations can have significant repercussions over the long term."

Episode Summary: AB Ridgeway urges listeners to critically evaluate financial advice, emphasizing the necessity of understanding the underlying principles behind retirement planning. By dissecting the flaws in Dave Ramsey's advice, he highlights the importance of precision and accuracy in financial calculations, particularly concerning inflation-adjusted returns. Ultimately, the episode serves as a call to action for individuals to seek comprehensive financial education and guidance to secure their financial future effectively.


  1. Safe withdrawal rates

  2. Retirement planning

  3. Dave Ramsey controversy

  4. Inflation-adjusted returns

  5. Financial literacy

  6. Sequence of returns

  7. Portfolio allocation

  8. Risk tolerance

  9. Volatility

  10. Financial education

retired couple reviewing their investments


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About Financial Advisors Say The Darndest Things Podcast:

As Christians, we were taught to be good stewards over our tithing and giving to the less fortunate. But when it came to our personal finances and investing we were left clueless on what the Bible says. What does the Bible say about managing debt, leaving a legacy, investing, and planning for your retirement? Mr. Christian Finance answers these and many other questions because we want to teach you how to become rich and righteous!

Meet A.B. Ridgeway:

A.B. Ridgeway with his hands up

A.B. Ridgeway, MBA ( is the owner and Christian Financial Advisor with A.B. Ridgeway Wealth Management. With a decade in the finance industry, his goal is to give believers clarity around the most confusing topic in the Bible, money, and tithing. A.B. Ridgeway helps tithing Christians become cheerful givers but unlocking their money-making potential, so they can prosper and be the great stewards of the wealth God has entrusted them with.

*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.

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