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Dave Ramsey warns on crypto, stick to 401(k)s and Roth IRA
Financial guru Dave Ramsey isn’t buying the crypto hype.
In a blog post in September, he likened crypto investing to gambling, warning that it’s too unpredictable to build long-term wealth.
“At this point, betting on a specific type of crypto feels more like gambling away your life savings at a craps table in Atlantic City than actual investing,” Ramsey wrote. “It’s just too unpredictable for building long-term wealth.”
Ramsey, known for his conservative approach to personal finance, advised investors to stick to mutual funds and retirement accounts instead of crypto. “There are no shortcuts, people!” he said.
Trump’s wild market move
On March 2, Trump said the U.S. would establish a reserve that includes Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA). The news sent crypto prices soaring, with Bitcoin briefly hitting $95,000. But by Monday, gains had started reversing.
“Nothing new here,” said former BitMEX CEO Arthur Hayes, downplaying Trump’s announcement. “Just words. Let me know when they get congressional approval to borrow money and or revalue the gold price higher. Without that they have no money to buy bitcoins and shitcoins.”
Bitcoin has already fallen 5% since the initial pump, dropping to around $89,500. Other cryptos named by Trump — ETH, SOL, XRP, and ADA — have also pulled back from their highs.
Are stocks any better?
Ramsey’s core argument is that crypto is too unstable for serious investing. Instead, he recommends growth stock mutual funds, which have historically delivered an average annual return of 10–12%.
However, crypto-related stocks have also been struggling. Coinbase (COIN), Strategy (MSTR), and mining companies like Hut 8 (HUT) all saw big early gains on Monday, only to give back most of them as the market corrected.
Even Strategy (MSTR) — which owns nearly 500,000 BTC — popped 15% in early trading but is still down 51% from its 2024 peak.
Social security isn’t enough
With Social Security payments averaging around $1,900 per month, it’s clear that relying solely on these checks won’t provide enough to retire comfortably. In fact, the annual payout barely clears the 2025 federal poverty level of $21,150 for a two-person household.
That’s why Ramsey urges investors to focus on long-term, diversified retirement strategies instead of hoping for quick gains in crypto. His recommendation? Max out your 401(k) contributions, invest in Roth IRAs, and put money into growth stock mutual funds.
Ramsey argues that 401(k)s and Roth IRAs offer predictable growth. Historically, the stock market has delivered average annual returns of 10–12%, making it a much safer bet for those looking to retire with a sizable nest egg.
Instead of chasing speculative assets, Ramsey advises a diversified investment approach, allocating funds across four types of mutual funds.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research before making any investment decisions.