Why Suze Orman and Dave Ramsey Might Be Wrong (for Your Retirement Planning)

Why one size-fits-all advice might not work...

One size-fits-all financial advice may be a bit like wearing skinny jeans in a world of stretch pants—somewhat outdated (depending who you ask) and not super comfortable for most (LOL!)

I recently shared some thoughts in a the Yahoo Finance article “12 Reasons Retirement Advice From Dave Ramsey and Suze Orman May Not Work for You” that tackled what’s wrong with a lot of mainstream retirement advice (think: debt-obsessed, one-size-fits-all rules). While I love the intention behind “simplify and save,” the reality for many women in transition — whether from divorce, corporate life, or caregiving — is far more nuanced.

Let’s be honest — retirement today doesn’t look like it did 20 years ago for so many reason. So why are we still giving advice that’s stuck in the past?

So let’s unpack why advice like a retirement ” 8% withdrawal rate" or “just invest 100% in stocks and you’ll be fine” might not hold up… and what you can do instead.

🚩 The Problem With Blanket Advice

Rules like the 4% withdrawal rate or holding 100% equities into your 70s sound neat and tidy—but real life is messier. Here’s why those rules can actually hurt more than help:

⚠️ Problem #1: The “Set It and Forget It” Withdrawal Rate

A rigid 4% withdrawal rule assumes:

• Steady market returns (spoiler: nope, not a guarantee)

• Consistent inflation (no, we’ve all seen recent prices on groceries alone, never mind healthcare)

• No unexpected costs (like healthcare or helping a family member – like those never happen)

And Dave doesn’t just suggest the 4% withdrawal rate, he suggests an 8% retirement withdrawal rate.

Ramsey shares that due to historical stock market performance, we can actually withdraw 8% each year and “live a richer life without sacrificing security”. He suggested that we stay 100% invested in stocks so that our cash continues to grow enough to keep pace with our spending.

I’m originally from tech and whenever I hear “always” and “never,” I cringe. Best practice; there are very few absolutes in life, and that goes for investing and planning as well. I believe if our plan doesn’t flex as costs rise, we risk pulling too much from our portfolio early on — and that can do serious damage over time.

Here's an article by GoBankingRates "Can you Realistically Follow Dave Ramsey's 8% Retirement Rule"

🔄 Problem #2: Sequence-of-Returns Risk and Retirement

This is one of the most overlooked threats to retirees — especially early retirees or those forced out of work unexpectedly.

Here’s the short version: If the market tanks early in your retirement and you’re withdrawing from your portfolio, the timing can devastate your nest egg — even if average returns recover later.

It’s not just about what the market earns over time — it’s when the losses happen that really counts. Learn more about sequence-of-returns-risk.

📉 Problem #3: A 100% Equity Portfolio Isn’t for Everyone

Look, who doesn’t love the idea of long-term growth? But when things sound too good to be true, they usually are.  “Just stay in the market” is not a comforting mantra when you’re living off that portfolio and watching it drop 20–30% (or maybe even more, like in 2008, where losses were greater for some).

For clients who need income, predictability, or sleep, an all-stock portfolio can be a recipe for anxiety and poor decision-making. Diversification isn’t just about asset classes. It’s about behavioral protection, too.

💡 So What Does Works in Retirement Planning?

✅ Flexible Planning

Your plan needs to adapt to the markets, inflation, and your lifestyle shifts. A flexible withdrawal strategy, that also addresses from what accounts we will make withdrawals and a dynamic spending plan can make all the difference.

✅ Tax-Smart Strategy

Converting to a Roth, filling lower tax brackets in early retirement, and planning for future RMDs are a few ways to help stretch your portfolio (and protect it from tax shocks later).

✅ Cash Flow Clarity

Stop guessing. A detailed spending plan that accounts for both fixed and flexible costs gives you confidence — especially in uncertain markets.

✅ Right-Sized Risk

Risk tolerance changes when you’re drawing from your savings. And what assets you own, as well as lifestyle, impact your risk capacity. A well-balanced, goals-based portfolio helps you stay invested without panicking when volatility hits. Learn more about the differences between risk capacity and risk tolerance.

✨ The Real Goal of Retirement Planning?

... Peace of Mind

You’re not planning to win a retirement competition. You’re building a life that feels aligned, intentional, and secure — on your terms. P.S. This is called personal financial sovereignty (we’’ll address that in my next blog in 2 weeks)

If you’ve been fed advice that no longer fits — or never really did — you’re not alone. Retirement isn’t just about outliving your money. It’s about living well with the money you have.

If you’re ready for a plan that actually reflects your life and not someone else's spreadsheet — I’m here to help.

📩 Schedule a Financial Next Steps Call

💬 What’s the most unhelpful piece of financial advice you’ve ever heard?

Let’s start a new conversation in the comments.

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