Financial Advisors Weigh In: Whose Plan for Retirement Is Better, Dave Ramsey or Suze Orman?

Saving for retirement is one of the most important things you can do for your finances. Unfortunately, with so much information available, it’s difficult to know what to follow and what to ignore. That’s why so many people follow the advice from well known personal finance gurus Dave Ramsey and Suze Orman.

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Even though Ramsey and Orman have millions of loyal followers, their approaches to retirement planning don’t always align, and in some cases, they can differ significantly. So, which one has the better plan for retirement? GOBankingRates breaks things down to find out.

How Does Dave Ramsey Approach Retirement Planning?

Ramsey believes that becoming debt-free should be your top priority. Besides taking advantage of your employer’s 401(k) match, you should pay off all debt except your mortgage before thinking about investing for retirement. The idea is that eliminating monthly debt payments gives you more control over your income.

Once you’re debt-free, Ramsey suggests investing 15% of your gross income for retirement through an IRA. He thinks both Traditional and Roth IRAs are great options, but prefers a Roth IRA because it offers tax-free growth and withdrawals.

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Ramsey advises being more conservative with your investments. He wants people to avoid investing in individual stocks and complex investments, opting instead for a portfolio mostly composed of mutual funds.

However, one area where Ramsey differs from many is with his viewpoint on withdrawals. Because you have the ability to earn a significant return on your investments, he believes you can withdraw more than the customary 4%.

How Does Suze Orman Approach Retirement Planning?

Orman shares many similar beliefs with Ramsey. However, their approach to debt and investing for retirement differs slightly. She wants to see people start saving for retirement even if they have low-interest debt. This means things like student loans or even an auto loan.

Orman also advocates for a more diversified portfolio that aligns with your age and risk tolerance. Instead of only investing in mutual funds like Ramsey recommends, she encourages people to have a mix of stocks, bonds and index funds.

Orman also has a different opinion on how much you can safely withdraw during retirement. She believes the traditional 4% rule is too risky and instead advises that individuals retiring in their 60s should withdraw only 3%.

Whose Retirement Plan Is Better?

So, which of these two financial gurus has the better plan for retirement? Some aren’t sure either have a better plan and instead advise that it depends on your own financial needs.

“As a CFP [certified financial planner], I don’t believe retirement planning should be framed as ‘one size fits all,’ yet that’s often how advice from financial celebrities like Dave Ramsey and Suze Orman is delivered,” said Melissa Murphy Pavone, CFP, CDFA and founder of Mindful Financial Partners. “While both offer broad guidance that can be motivational or thought-provoking, neither is a fiduciary, and their recommendations are not tailored to individual circumstances. They’re selling books, courses and products, not custom advice.”

Murphy continued saying, “In my slightly biased opinion neither Ramsey nor Orman has the ‘better’ plan. Your retirement plan should be as unique as your fingerprint. A fiduciary advisor’s role is to build strategies around you, not around soundbites. That’s the key difference: Custom advice rooted in fiduciary responsibility, not mass-market financial entertainment.”

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This article originally appeared on GOBankingRates.com: Financial Advisors Weigh In: Whose Plan for Retirement Is Better, Dave Ramsey or Suze Orman?