The Ramsey Show

Podbit · The Ramsey Show

Change Your Mindset, Change Your Life

Explore episode Aug 7, 2026
Business
DIY Investing vs. Professional Management: The Honest Comparison

Change Your Mindset, Change Your Life · Aug 7, 2026 Business

Separately managed accounts sound sophisticated, but they're just individualized mutual funds with less diversification. Tax harvesting is not a bad thing to do — it's a bad thing to pursue as a goal, because harvesting losses means you're losing money. The research consistently shows staying in good active mutual funds with long track records beats most DIY approaches.

6m 43s

Where this was said

Nick in Detroit: Should We Do Separately Managed Accounts?

At 22:17 · chapter starts 19:50

Nick and his wife manage their own investments using index funds and broad mutual funds, but Fidelity has been calling to pitch separately managed accounts with tax-loss harvesting as a feature. Dave explains the mechanics clearly: an SMA is basically an individualized mutual fund with less diversification, and tax harvesting is smart as a minor tactic but a terrible primary goal — because harvesting losses means you first have to lose money. He concedes Fidelity is a legitimate firm (Magellan was the first fund over $1 billion), but recommends a SmartVestor Pro who is not brand-loyal and will compare performance against the index. The real point Dave makes: research shows staying in good actively managed funds with low expense ratios and long track records outperforms most tinkering. Rachel adds that outsourcing this to a pro saves mental energy. A Fairwinds Credit Union sponsorship read closes the segment.

Business
The $1,000 Baby Step — Why It Was Never Meant to Be Enough

Change Your Mindset, Change Your Life · Aug 7, 2026 Business

The Baby Step 1 $1,000 starter fund was never meant to replace a fully funded emergency fund — it's a tiny buffer designed to keep you on the debt snowball when small surprises hit. A fully funded emergency fund is 3–6 months of expenses; that hasn't changed since 1995. The only reason $1,000 works is because the average person on Baby Step 2 is out of debt in 18 months and barely needs it.

6m 16s

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