The Prepaid Funeral Myth
Prepaying for a funeral is a bad investment
Prepaying for a funeral is a bad investment because it offers low returns and can be a waste of money. It's better to invest the money in a mutual fund instead.
- Prepaying for a funeral is a bad investment
- It offers low returns
- It's better to invest the money in a mutual fund instead
- Understand the risks of prepaid funeral plansLearn about the low returns and potential waste of moneyPro tipInvest the money in a mutual fund insteadWarningPrepaying for a funeral is a bad investment
- Invest the money in a mutual fund insteadInvest the money in a mutual fund instead of prepaying for a funeralPro tipDiversify your portfolioWarningPrepaying for a funeral is a bad investment
The $8,000 prepaid funeral example
Sara pays $8,000 for a prepaid funeral. If she had invested the money in a mutual fund instead, it would be worth $842,300 by the time she dies.
OutcomeSara realizes that she made a bad investment and wishes she had invested the money in a mutual fund instead.
The King Tut example
Dave Ramsey jokes that even King Tut could be buried for less than $842,300.
OutcomeDave Ramsey emphasizes the importance of avoiding bad investments and building wealth through smart financial decisions.
Investing in prepaid funeral plans
Prepaying for a funeral is a bad investment because it offers low returns and can be a waste of money.
Not understanding the returns
Many people don't understand the low returns of prepaid funeral plans and end up losing money.
Not investing in a mutual fund instead
It's better to invest the money in a mutual fund instead of prepaying for a funeral.
Dave Ramsey has seen many people get ripped off by prepaid funeral plans. He wants to warn others about the dangers of this investment.
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The Total Money Makeover Updated and Expanded