Financial expert Dave Ramsey is cautioning retirees that generosity without research could undermine decades of disciplined saving.
Retirees Ask Dave Ramsey How To Give Back Wisely
In a letter exchange, a couple nearing retirement with a $2.7 million net worth asked Ramsey how to ensure their charitable donations would be used responsibly, according to The News Courier on Saturday.
Ramsey praised their financial accomplishments and their desire to give, but stressed the importance of due diligence.
"It's hard to be 100% sure about these kinds of things," Ramsey wrote.
"About the best you can do is to put in serious time digging beneath the surface of the organizations you have in mind."
Dave Ramsey's Red Flags For Spotting Mismanaged Charities
Ramsey recommended visiting charities in person, meeting staff, and watching for "red flags" such as evasive leadership or signs of financial mismanagement.
He also urged donors to evaluate administrative costs and determine what percentage of contributions go directly to the mission.
"People who work for charitable organizations have as much of a right to make a decent living as anyone else," Ramsey said.
"But if they appear to be a little too well off, it could be a sign they're not being responsible with their donations."
Dave Ramsey Told Americans: Stop Making Excuses, Start Building Wealth
Back in March, Ramsey warned that anyone under 40 who failed to retire a millionaire had "no one's fault but yours."
He stressed that steady investing, not lottery tickets or shortcuts, was the proven path, noting that $100 a month invested from age 25 to 65 could grow to more than $1.1 million. For households investing 15% of the average U.S. income, he calculated retirement savings of over $11 million.
Ramsey also challenged older Americans, saying it was "not too late" after 40, but only if they got serious about saving and investing.
In August, his focus turned to overspending. He urged people to stop trying to impress others with cars, clothes, and luxury items, warning that "trying to impress your broke friends will keep you broke, too."
According to him, many Americans lived paycheck to paycheck because they prioritized appearances over financial health.
“Most millionaires don't drive flashy cars,” Ramsey reminded followers. "When people don't waste money to LOOK wealthy, they have money to actually BECOME wealthy.”
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