Couple of things...
Both of you are right. There are funds with a 12%+ return. I have a couple in my 401k. However, you can never assume that rate of return will be valid for the long haul. You also can't expect them to have that value when you'd like to pull them out. And Mich is completely right about management fees. Also, Ramsey's numbers don't take capital gains into account, taxes on dividends, etc. It's a nice big, fat number that grabs your attention, but it's not the 'real' number.
Also, to put the stupid car issue to bed once and for all, if Dave Ramsey says that you can invest your entire car payment, can someone please explain to me how people are supposed to buy cars? Are we all supposed to ride the bus or bike to work? It doesn't matter if you pay for it all in cash up front, or if you pay for it in 48 payments, the only difference is what you pay in interest. And a lot of times, if you have good credit and get a good promotional deal, you're talking about $2000 or less during the life of the loan. Spread out over 48 payments, you're looking at a whopping $41 dollars a month that you could be investing. That isn't going to amount to millions over 30-40 years.
This is NOT about some political leaning. This is about Ramsey's extremist views about debt avoidance, and how they're illogical, sometimes factually inaccurate, and how he uses religion to give validity to opinions that are potentially preventing people from actually using debt to obtain financial security.
