Broker Check

SmartVestor Pro Process

Understanding SmartVestor Pro's 7 Baby Steps

At the forefront of our agenda is assisting you in looking after yourself and your loved ones. We aim to gain a deeper understanding of your individual circumstances, pinpoint your aspirations and objectives, and assess your risk tolerance. A deeper dive into the SmartVestor Pro Baby Steps allows you look into the process and understanding of your financial journey.

1. Set Aside Funds for Emergencies

The initial objective of the first step is to swiftly accumulate $1,000 as an emergency fund. Such a fund will serve as a safeguard against unforeseeable life events, which can occur frequently. It's crucial to avoid worsening your debt situation while attempting to recover from it.

2. Utilize the Debt Snowball Technique

Now, focus on paying off your non-mortgage debts such as cars, credit cards, and student loans. Compile a list and rank them accordingly. This technique is known as the debt snowball method and helps to eliminate debts progressively. Use the Debt Snowball Calculator to determine your debt-free target date.

3. Build Your Emergency Fund

Congratulations on eliminating your debt! Now, utilize the money you were previously using to pay off your debt to establish an emergency fund that can cover 3-6 months of your expenses. Such a fund can help protect you from significant unexpected events and help prevent you from incurring new debts.

4. Allocate Household Income to Retirement

With debts out of the way, it's time to plan ahead and start investing 15% of your gross income towards retirement. You should aim to work to age 67 because you choose to, not because you must. A professional investor can help assist you in developing a robust investment strategy.

5. Set Funds Aside for Your Children's College Education

At this point, you have cleared all debts except for your mortgage and initiated retirement savings. The subsequent step involves saving for your children's college education expenses, provided they meet the academic requirements. We suggest utilizing 529 college savings plans or ESAs (Education Savings Accounts).

6. Clear Your Home Mortgage Ahead of Schedule

This is where you pay off your mortgage to help achieve freedom from debt. By utilizing our Mortgage Payoff Calculator, you can discover how extra payments towards your mortgage can save you a substantial amount of money in interest, possibly even in the tens or hundreds of thousands of dollars.

7. Create Growing Wealth and Begin Giving Back

This final step is the most enjoyable one. You can live extravagantly and give generously, leaving a legacy for your future generations. Begin by determining your present net worth and continue to accumulate wealth. This way, you can leave behind an inheritance, helping result in a lasting legacy.

Have a Question?

Thank you!

*Working with an advisor that is part of the SmartVestor network cannot guarantee investment success or that financial goals will be achieved. There can be no assurance that working with a Dave Ramsey SmartVestor Pro (SVP) will produce or achieve better results than working with an advisor not affiliated with the SmartVestor program. Advisors that participate in this program pay a fee to belong to the program for client leads that are provided. Dave Ramsey and the Dave Ramsey SmartVestor program is not affiliated with Cetera Advisors LLC and is not sponsored or endorsed by Cetera Advisors LLC. 

*Investors should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. This information is found in the issuer's official statement and should be read carefully before investing. Investors should also consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state’s 529 Plan. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. The investor should consult their financial or tax advisor before investment in any state's 529 Plan.