CD Ladder,Dave Ramsey's Retirement Step, FPU

[STLDisney_Freak]

I'm clearly not even close to do either one of these things, but I am researching stuff so thought I'd ask...

Anyone have any experience with CD laddering?? Pros or Cons?

Second question, Dave Ramsey's baby step with th 15% retirement...Is that 15% for the family budget or is that 15% for each check?

Third question, With the Financial Peace University...How is that exactly conducted...I guess I don't wanna spew my finances in this class to everyone and my husband will not talk in front people so is this class something where we can just sit there and learn?

 

[KristinU]

I don't have an answer for laddering, but you may get some answers on a Dave Ramsey follower forum: www.llnoe.com

I'm not sure if I understand your 15% question...Dave's plan recommends 15% of your gross when you get to that baby step.

We're about to start coordinating FPU this fall, and it will also be our first time through, so I don't have a lot of insight on your third question, but I believe you can be as discreet or as open as you are comfortable with.

Hop on over to LLNOE - there is a very friendly and helpful bunch of folks over there

 

[Stein]

CD ladders are relatively low risk, low return investments, which would work well if that is what you are looking for.

15% retirement savings is suggested on your gross income and is recommended after you are debt free except the house and have an emergency fund of 3-6 months of expenses. Here are the baby steps Dave suggests:

http://www.daveramsey.com/media/pdf/tmmo_babysteps.pdf

I believe FPU is designed to mimic the benefits of a 12 step program like AA. If you need more motivation and accountability than you can get from reading a book, the class may help you. You can read the book and/or watch the videos in the privacy of your own home and have the same knowledge without the accountability and public forum. For us, we don't need the public forum, but others may do better in FPU, it really depends on your personal approach.

I would contact the FPU coordinator and explain that you are considering attending, but are uncomfortable with talking much about your personal situation and see what they recommend.

 

[Chicago526]

Dave is great for getting out of debt, but his investment advice isn't so hot (in my opinion). 15% is a good starting place for retirement investments, but you may need to save more or less depending on what your goals are and how long you have until retirement. If you're 25, it's fine, if you're 55, it's not nearly enough, you get the idea. Assuming you're debt free and have your 3-6 months expenses in the bank already, you next step should be to seek out an independent certified financial planner, they can help you figure out how much you need to save to meet your goals, and help you invest your money properly.

Basicly, once you reach having all debt (except the house) paid off, and the 3-6 month expenses safetly tucked away, I feel it's okay to dump Dave in favor of better financial advice.