[00:09] >> Brian, I am so excited to talk about this. Even though this book has been out for a while, I still feel like it's very much out there uh in the zeitgeist. Like it's out there, people are talking about it, and people are thinking, "Okay,
[00:23] Should I be using the things that are in this book and should I allow it to my personal finances? >> Yeah, like it's come up multiple times Millionaire. >> Um, it is and I I I want to go ahead. I
[00:39] want everybody to stay until we give the final word on this because I think I have the perfect bead that's going to bring this all together. And I think going to share with you. I like the book. I like the premise of the book. I
[00:53] book. I like the premise of the book. I just have a few asterisks of concern and I think once I share open the curtain and share with you what this book is great at and what the the the the issues with this book, you're going to start to
[01:05] books that I also because you know it's one of the things we live in the the Ramsey. >> Yeah. Dave wrote a great book in the 90s called The Total Money Makeover, but it has issues. And I'm gonna, like I said,
[01:19] I'm g, if you stick with me on, as we go on this journey, >> I'm going to put this all together and wrap it up with a nice bow where you can kind of see how you need to apply all of these great books to your financial
[01:32] life. So, for those of you who are unfamiliar, maybe this is the first time that you've heard of this. There's a book called Die with Zero written by released a number of years ago back in 2020 and it kind of set the financial
[01:45] world on fire. Not that there were any like really like new crazy concepts, but the way that he distilled the concepts and laid them out, I think caught a lot with a lot of people of, oh, I like that. I like the way that sounds. I like
[01:59] perhaps it'd be helpful to go through some of the key principles that he lays >> Well, think about every financial book is telling you lean in on discipline. fall into that that camp of things. And then you have this book come out when
[02:14] then you have this book come out when big bright letters says die with zero. can go spend more. That is appealing because instead of being brake pedal, it's definitely the gas pedal or
[02:26] excited. So here are some of the key principles. The number one that's in there is this idea around memory dividends. It's the fact that experiences that you have earlier in life or or even in the time of life that
[02:41] you're having them can keep paying emotional returns, emotional dividends >> Yeah. And we talk about I mean even in my book I've shared blossoming memories because what I love about memories is it's so much better than stuff is that
[02:54] even stuff that are bad memories or difficulties can blossom into key things that actually are good in the long term of the way you remember it. That's why we love creating memories with your family, your friends. We they definitely
[03:08] pay dividends. Another principle that Bill talks about is this idea around time buckets that there are certain experiences that are best done in certain seasons of life and not all seasons of life are equal. So the
[03:22] each of those seasons isn't exactly the same. >> Well, if you think about time, health, and then money as all your resources, it is it is kind of unfair in life is that when you're the most vibrant, when
[03:36] >> you're broke as a joke. >> Yep. And then when you're loaded, you're probably not healthy enough and you don't have the time to do everything you want to. So I actually love how how Bill was able to really draw attention to is
[03:50] that there is definitely a moment in time to maximize this resource of money. >> And then he walks through that even as we age and as the life transition takes place that retirement spending changes. Oftentimes there's a slow a go-go
[04:03] period, a slower go period than a no-go period. And then as our health and money changes. And so that ought to impact and affect the way that we make >> And then that leads to, and I like this one, is because now that I have adult
[04:18] children or adult child because my my second one is still in the household, but there is something about giving while you're living is that, you know, a going to because my daughter is still in her 20s. I don't want to give her too
[04:31] much too early, but I do think there is something about if you have children who show good responsibility, good management, and you are are are very fortunate and you've done well in your life to create success. There is
[04:43] something about seeing the fruits of what you've created while you're still alive versus waiting until you're dead and somebody inherits it or passes it on interesting is Brian, the last time we talked about this book, we c we actually
[04:56] caught a lot of like negative feedback as though we didn't like the book or we that's just not accurate. There are a lot of things that we really like about throughout he kind of talks about focusing on maximizing happiness. And
[05:13] it's not just about like deferred gratification, maximizing happiness in the future. He's talking about what we like to call maximizing lifetime happiness. How can I be happy both in the present today as well as happy in
[05:26] that concept. >> Well, because it hits on this next point tool. So, if you can't figure out >> hoarding it and becoming a miser is obviously not healthy. And so there's got to be a balance between how do you
[05:40] use this tool of money to not only be disciplined with it, but also to to live when you get into being in your 50s, 60s, and 70s and look back at your 20s and 30s and go, "Wow, you did a great job balancing both living your life but
[05:56] also saving for the future." And with money being a tool, what that means that money being a tool, what that means that there's likely not a ton of utility for leaving this earth and leaving behind as large of a pile of money as possible. We
[06:08] know the statistics would suggest that the second generation is going to burn through a big chunk of that wealth and the third generation will finish off what's left. There's no point in not enjoying your resources, enjoying the
[06:21] money while you have it and leaving this giant legacy behind that your children trouble spending. >> And and this is an echo of something we just said is why instead of leaving the legacy behind, emphasize actually making
[06:37] an impact while you're alive so you can enjoy that legacy and actually see the fruits of and the dividends of what you've created. now there. So, okay. So, think even in there, Bill had this quote. He says, "Hey, if you die with $1
[06:50] quote. He says, "Hey, if you die with $1 million left, that's $1 million of million left, that's $1 million of experiences you didn't have." Ah, I that that's where that's where I start my spidey senses go off just a little bit
[07:03] because uh while that can be true if you die with a big pile of money yes certainly you could have used that but there's other utility that having that excess that having those resources there could provide for I don't know that I
[07:17] agree that it's as binary as that statement would suggest. Well, what I actually going through this journey of starting off, both of us start with humble beginnings, but then figuring out how the tool of money works, is once
[07:31] I've reached this level of success, I've recognized that a lot of my success comes from a bunch of small, really good decisions, but definitely small that culminated and grew into this pot of money. It's hard for me to say that like
[07:47] being super disciplined in my 20s, I got I got I've gotten a lot out of it's squishy to try to figure out which decision is what led to your success. So yes, I we've often shared we're not going to leave this earth with our
[08:02] families being broke and other things. But I don't necessarily think that that means I shouldn't have started saving in my early 20s. that maybe I should have lived my best 20s and and gone hog wild and then really gotten disciplined in
[08:14] the 30s. I don't think that's the right answer either. And that's why in a all together and show why I think that there's some some issues if you go heavy especially a young person. >> Yeah. I think one of the questions that
[08:30] we would pose to someone who's like really like subscribing hardcore to the die with zero ideas, would you rather die with a million dollars left behind or would you rather in your retirement in your financial independence planning
[08:44] of unforeseen circumstances? Because there's tons of things to think about especially when you're counting on your resources to provide for you the remainder of the life. The number one variable that none of us know is we
[08:59] ask, "Oh, I want to die with zero. I want to die with zero. I want to die with zero." Great. If you can just tell me exactly when you're going to check out, exactly when you leave this planet, I can put together a plan for you to die
[09:11] with zero. Absent that variable, it's going to be very, very hard to do >> Well, you also don't know how long you can work or how long you'll make great money. That's the other part that is always a big question mark on that. when
[09:25] I have some people in my 20s and 30s and they're just crushing it and they're top, you know, 10% income, top 1% income, is that something you'll be able to repeat forever? >> We don't know. So, that's that's the
[09:37] your consideration. >> And then the the the I don't I don't frightening, but it is a reality is that we all go into financial go into retirement with these bestlaid plans. I want to do this. I want my life to look
[09:52] like this. I've got it all mapped out. But in reality, we don't know what's don't know what's going to happen with our long-term care. We don't know what's going to happen with our either physical or cognitive decline. And so, not
[10:05] project. Okay, well, how much do I need to leave in reserve to be able to account for those things? Again, these are variables that we just don't know. And the older we become, the longer we live, the more impactful those unknown
[10:19] variables can become. And that can be markets are unpredictable. It also can be, you know, a lot of people, we've found this as financial adviserss, they spend because those go-go years are legitimate. When you get out, you might
[10:33] >> those first few years, you're going to spend a lot more than you count on can be expensive. There's just a lot of things that I find that people underestimate how much you need versus
[10:46] situations. >> Okay. But what are what are our thoughts like when we when we step back because again it's it's a fantastic book and we there. But what are the thoughts that we have
[11:01] thought that immediately comes to mind is that a warning against oversaving is not the message that most people need. If you if you look at the average American in this country, the average American is not oversaving. The average
[11:16] American is not on a path or trajectory to leave behind a huge pot of money. So that the average American should grab on to. The average American actually needs some motivation to probably start saving more and start building more for the
[11:30] American doesn't start saving and investing until their 30s. But if you go moneyguy.com/resources and look at our wealth multiplier tools and you'll see there is something magical. That's why we are constantly
[11:44] talking about 88 times over that every dollar for a 20-year-old can be 88 times, but a dollar for a 30-year-old can only grow, you know, to really 23 times, you know, and you're like, how did all this stuff drop so fast? And
[11:58] that's why you don't sleep on the power of compounding growth, especially while >> Yeah. I I think about the decisions that I did not make in my 20s that I could have made. I could have gotten the nicer car, could have gone on the nicer
[12:12] clothes, could have bought the expensive watch. But in reality, if I go look at the cost of those things, the marginal cost from the vacation I did do versus the vacation I could have done, that marginal cost when applied to wealth
[12:26] multiplier becomes huge. Whereas now at this stage of life or Brian, even at your age, the marginal difference with a wealth multiplier is just not as significant. I think a lot of young people miss that idea. Oh, well, no, I'm
[12:39] going to go blow it out in my 20s, not recognizing how costly that can be to >> Yeah. And I do like the exercise of figuring out what makes brings you happiness. I think a lot of times you'll find out it's the the non-financial
[12:51] stuff. It's spending time with family, friends, spiritual stuff. That's really where happiness and fulfillment. But I want to kind of Bo, if you'll if you'll all together. >> Do it.
[13:04] Everybody's got a system, you know, and I I I kind of alluded to this in the beginning, and you have to be careful what system you're going to use for your financial decision-making. And and I'll give you two extreme examples. And and
[13:16] by the way, DA Zero fits into this category. Let's take Dave Ramsey and Total Money Makeover. You know, Dave has created a system to where if you think about the origin story for this young Dave in his early 20s found out about
[13:31] lever debt, went just hog wild with it and then got burned. I mean, it he was like had such a horrible experience with lever debt that he went t-total debt is so bad that I'm going to avoid it. So, it created an extreme that has kind of
[13:46] pushed him on this this level of being super uber conservative. You don't do any credit cards. You you you if you need to drive around in a clunky car that may or may not crank. There's there's just things. And look, we love
[13:59] Dave's system because here, let me tell give you an example to to a degree. When I have a friend or a relative who gets into credit card debt and I say, look, or you'll never build wealth. That goes
[14:12] in one ear and out the other, but I can go give them total money makeover. and Dave because he shares and he has a way of motivating people on the extreme of not having any discipline, he can straighten them out. Now take Bill
[14:27] Perkins with Die with Zero. This is a person that yes comes from humble beginnings, but he reached millionaire status before he was age 30 because he he figured out how to do high-risisk trading um and and and then got he was
[14:40] good at it. He had he had a vision and ability to where it wasn't his labor necessarily that created his wealth. It wasn't necessarily his discipline. It was his ability to take huge risk and then get rewarded for it at a super
[14:53] early age that he kind of now has a distorted vision just like Dave has the distorted vision of he got so burned with debt that he t totals avoids debt. Bill had such a huge experience with using the tool of money for, you know,
[15:07] with taking risk that he created money so easily that I think he he underestimates how hard it is for people in their 20s on normal career trajectories to come up with six figures to $200,000, $300,000 is because money
[15:23] was easy once he figured out how to use the the risk profile of risk. So where where Bill is really good is if you're hanging out with a bunch of rich people and you know and you you look at a rich person you say hey I notice you know
[15:37] like I think about there's this funny story of Dale Earnhard Jr. where he's getting into racing his sister's getting into racing and Dell Nhard you know the his kids any money because he was like hey I'm going to you need to go do it
[15:52] all on your own. And it wasn't until a wealthy friend of of Dell Nhard went to him and said, "Hey, why are you doing this? Why don't you help your kids out?" So, if you've got somebody who's more not financial mutant, but financial
[16:05] resource of money because they they're still doing vacation super cheap. They're not using I think die with zero is a great tool, but to give a 20some need to, you know, go live your best life now. there'll be time to make great
[16:21] money in the future and save for it. I think that that's also an extreme that's lose out on the wealth multiplier. You're going to lose out on compounding growth. And that's why I tell you I like both of these books.
[16:34] >> But there is a Goldilock solution and that's Millionaire Mission and it's our let me tell you why I say this is better. What I have tried to pour into and we've poured into our content is that it's always the chicken or egg.
[16:49] What created success out of a system? Was it the system that created the success or was the sales of the system? >> And that's the thing I can tell you my financial life, I never made great. Now look, I'm in a blessed situation now,
[17:04] but that where I think the income that I have coming in would create success no matter how bad or good I was with money. But that wasn't always the case. And that's what I love about my system is that I struggled with meaning I was had
[17:16] incomes all the way up until my early 40s. So I can honestly look you in the eye and say the system created the success. Meaning that if you follow the financial order of operations and go through our nine steps, even if you
[17:31] don't make worldclass income, you'll be okay. >> You know, as long as you follow this path, it will work. And that's the thing that I never had to fall into the debt trap that Dave did. I was always
[17:43] disciplined. I didn't have to realize, hey, I got to go make $300,000 or $400,000 a year to have the success that Die with Zero is talking about. I'm here to tell you there's a better way to do money. And we are the Goldilock system
[17:56] have to do that by trashing the other systems. We're just exposing to you Now, if you're in credit card debt, go follow Dave. If you've got a parent that's kind of being miserly, maybe die with zero. Or if you have a friend that
[18:11] training to make memories with you and your other buddies because they're just so tight, give them die with zero. But if you're trying to navigate how do you do this in a reasonable fashion that's the best of both worlds, live your best
[18:24] life, but also know how to be disciplined, Millionaire Mission. Millionaire Mission, you should go pick up your copy. or if you want a free copy for me. >> That's what I was looking for. It was on
[18:37] >> It was on the bottom of the stack. You can go to moneyguide.com/resources. It is a ninestep process to help you know exactly what you should do with your next dollar. Because we do believe that there's a better way to do money.
[18:49] We believe it so much that every single Tuesday at 10 a.m. we sit right here speak to the things that you are curious about. So, if you have a question, we have we have a big team out in the wings today. Do you see all these people?
[19:03] >> lot. If I if I could reach the camera, I'd pan it over. There's a ton of folks over here. They are collecting your questions. So, if you have a question, make sure you get it in the chat right now and we will load you up. So, with
[19:17] throw it over to you. >> Yes, I am excited to dive in. Are you >> We are indeed ready. >> By the way, I missed being here last together. >> I heard you did wonderful though. Did
[19:31] answer some questions? Like were you weighing in and answering some? >> I mean on some I feel like I do that. >> Hey, and and by the way, nobody You true. Bo showed up super tan. I showed up super tan. [laughter] We both have
[19:44] >> I did not show up super tan over the last few days. So [laughter] >> it's not a color distortion. It's just me and Bo have gotten way too much sun like this is super tan for us and people are like really
[19:56] >> they're like okay really that's >> no I think you look pretty tan I feel I feel like my face is definitely redder than it should be right now. [laughter] to the question from our friend PJ Dad Life.
[20:09] Life. >> Hey do you think it's [laughter] Monday's couple on making a millionaire wanted early flexibility but saved
[20:21] heavily in retirement accounts. When should taxable investing become the priority?" >> Oh man, this is a this is a great lot. And if you're not if you don't know what he's talking about, one, make sure
[20:35] Go ahead and click the subscribe button because every other Monday we have a where we sit across from an individual or couple and do a deep dive into their financial life so you can get a peak behind the curtain of what it actually
[20:49] looks like to apply all of this stuff that you learn on the Money Guy show. And so we were sitting down with the couple uh that released this past week and it was exactly that. They had a lot of retirement assets. They had a lot of
[21:01] wealth that they had built up there but they were trying to figure out okay well what if we do want to early retire? How do we get access to capital? We get that >> Yeah. And that's what, you know, when we were designing, and that's what I love
[21:14] is, you know, the first few steps are to keep you out of the financial ditch, you decisions. There's of course free money, there's high interest. A lot of these things are common sense. But when you get to step five and six, we love the
[21:29] tax incentives that the government has set up for you to start saving and investing. So, we want you to take advantage of those systems with funding out your Roth IRA, doing health savings accounts, and even maxing out your
[21:41] thinks they're going to leave the workplace early, this is step seven. Once you get beyond saving and investing 20 to 25% of your income, you have to start thinking about how am I actually going to use this money in the future.
[21:55] the workforce early, you know, before 55, especially before 55, man, you because those retirement accounts, you might be retirement rich, meaning you have a ton of IRA and 401k assets, but you're still financing cars. You don't
[22:11] have any money to to do all the things you want to do. That's where step seven actually start thinking about how you're going to use this money, live your best minute. If I'm going to get access to this money at 52, 53, that's not going
[22:26] to be an IRA. That's not going to be a 401k. I probably need to start doing a a portion of this into after tax brokerage accounts. Still investing the money. But now you can get creative and say, "Okay, well now what's the balance between how
[22:41] into my employer plan?" Well, we definitely want to get the match, but now maybe we want to go start loading up that after tax just so we build that bridge account for early access to the the money when you need it.
[22:54] you're going to have to help me with the name of this one. It was four ways to retire early that you may not know about. Is that right? Uh or it was a number of ways to retire. And in that show, we walk through uh rule of 55, we
[23:08] walk through 72T, we walk through Roth conversion ladders, and we walk through building up a taxable account. So there are PJ there are things you can do and will tell you this the earlier you figure it out the earlier you start
[23:20] thinking about it likely the better of a plan you're going to be able to build give yourself. So if you've not gone to listen to that show maybe put a link in the in the comments below. Three three ways. I just named four right there. So
[23:34] you just got an extra one. Three ways up that you may not know about. abrupt ending. But PJ Dadlife, thank you for your question.
[23:46] >> By by the way, so my my watch is blowing up over here is because we have a guest in the studio that's a neighbor of mine >> and my wife is like, "Make hello to So I just want you to know you're causing trouble for [laughter]
[24:00] you know, cuz my watch is blowing up because my wife is over here, I guess." >> Your mother must be talking to my wife and it's um it's causing issues.
[24:12] >> Well, shout out to the I think you did say his name, the mysterious guest, >> Lucas. >> All right. Next question is from Ben B. >> Good morning. I am fairly new to your content. Welcome.
[24:26] >> All right. >> The transmission began going out in my vehicle last week. Do I pause step four to save for 238?
[24:38] Well, you see what's really really interesting is if you're in step four, I would not say that you're pausing step four to save [laughter] up for the 20% aren't familiar, we have a car buying rule. When it's time to buy a new car,
[24:51] we want you to pay cash if you can, but if you can't, you have to finance 20% three years or 36 months, and your payment cannot exceed 8% of your monthly gross income. So, you got to come up with that 20% down payment. I would
[25:05] argue if you're in step four already, you just want to keep doing that. You want to keep piling money away in that emergency fund, recognizing that even part of your emergency fund is likely going to be a sinking fund to cover that
[25:19] 20%. Now, it's going to mean that you're probably going to be in step four for a little bit longer than you would have been otherwise, but that's okay. That's That's what you want to be able to use your emergency fund for. So, I don't
[25:31] continuation of >> Well, I it's not a pause. It's a use. You are saving into step four. So then you can use step four, your cash reserves to put that 20% down. So it's not a pause. It's a use of your cash
[25:46] reserves because your car is about to leave you stranded and you need the car to get you to your J O, which is the primary engine that's going to help you build wealth in the beginning of your your humble start to the journey. So
[25:58] that's why I I don't think you're you're not you're not separated from the part of it. That's why I love how these things interconnect is that you have the nine steps, but then you also have some of these guidelines we give you with 238
[26:15] as well as house purchasing guidelines because these things all intersect with to use the money and know where the limits are so you don't get yourself in of close it out with >> when you use your emergency reserves to
[26:30] >> You should feel a little scared that you're neck not having as much cash reserves as you should to keep you financially safe. Use that fear to keep either, you know, there's the two levers. You can make more money or you
[26:45] can spend less money, but let's get the cash reserves boosted up because that is your protection from desperate decisions. Let's get that built back up as fast as possible. I love that. Uh people sometimes don't think this is
[26:58] is live." >> Yeah. He was like, "What? They're really >> Yeah, this really is live. He said he was new to our stuff, so maybe he thinks fake land. >> And we really are taking questions live.
[27:12] We're picking them from the chat as we speak. Um, thank you for the question, Ben, and good luck on step four and all the potential car buying. Okay, next question. And you know, before I get to the next question, we're
[27:26] little bit. So, be sure to get your rapid fire questions into the chat. Just if you want to be a part of that. >> Did y'all Did you do rapid fire last >> No, we did waiting in the wings or something. I will tell you, Bo, because
[27:40] Bo I like to to to let everybody know how how smart Bo is. >> I did that. You know, me it was just me and Ree doing the show and if you go read the comments, we we had a great show. Reb and I crushed it. But there
[27:53] whiff on, I guess, because >> Oh, the Roth IRA question. The Roth IRA. >> So, I was I was sitting there thinking I was like, this is why Bo and I are such a great team is cuz I probably in reality I whiff on a lot of them, but Bo
[28:07] just comes. He's like the janitor who comes up behind me, cleans it up, make sure that it's all good. So, it's nice to have you back in to sweep up behind me so that nothing. That's what I heard. Brian just dubbed me the janitor
[28:20] man. >> You're the cleanup or a cleanup hitter. junior. >> I agree. It's nice to have It's an honor to sit at the big desk, but I prefer when we're all here doing
[28:34] our thing all together. So, all right. Get those rapid fire questions in and we're going to move on to Thomas's question. He says, "We recently purchased annuities that will provide a healthy paycheck in retirement. With
[28:49] that large sum spent, how should we think about our net worth now for continuity of tracking?" >> Oh man, this is a hard question to answer, Thomas, because annuities are fairly complicated because we don't know
[29:01] what kind of annuity you bought. Did you buy some sort of deferred fixed annuity? meaning like, okay, I paid $100,000 into this annuity and at some point in the future, it's going to pay me a fixed return to create that paycheck. Or is
[29:15] put into annuity product and it's still investing and so the future payouts are going to be dependent upon how the underlying assets perform. It's really really difficult to give you guidance on exactly how to account for that in your
[29:29] kind of like pensions pensions guaranteed future income stream and assets. They fluctuate with the market go up and down and so you don't know what that future income stream is going to be. So you have to you need to really
[29:43] understand what is the product that you bought and how would you market it or how would you market to market based on today's value if you were going to clear >> well but I don't mind speaking to if it's a fixed like an immediate annuity
[29:57] that's now going to provide like a pension to you so you could take the risk off of you and put it on the insurance company that's doing the annuity. I I think that if you did that now I will tell you that's a very small
[30:10] subsection of the marketplace and and in my opinion my opinion >> probably the most appropriate way to use annuities is because if you want to take some of the risk off of you providing in the future because then that frees you
[30:23] up to you can think about legacy you can think about other things on how you're using the money because you've essentially purchased your way out now you've created a promise from the insurance company to provide this income
[30:36] stream. So from a net worth standpoint, >> that money's off your net worth That's a promise of that you're going to be receiving this type of income flow for many years to come. No different than when your employer has a pension if
[30:50] there's not like a rollover opportunity. It's only a promise of future payments just like social security and other things. Those are those are essentially help you offset your cash flow in retirement, but now it's off of your net
[31:02] >> this says immediate payment for both of our entire lives guaranteed. the best use of it if you want to take that risk away. Thank god I saved it because lesser >> cat I'm like a cat is it landed on my
[31:18] feet but it's um but it is one of those things. So if if it was an immediate thinking about how you want to use the other resources both from an investment standpoint, from a legacy standpoint, it really opens up um you know, but realize
[31:33] the the catch with that when he made that decision, when Thomas made that >> the legacy of the portion that goes in the annuity is gone because you you were you wanted to take the risk off of you. But the problem is if you die quickly,
[31:46] >> that money doesn't get passed on to your relatives and others. But that for for a this with a lot of assisted living these assisted living communities are now is you can buy into essentially the
[31:59] house. You don't get to keep it. But now they they kind of promise you that all these things as you as you work through later life decisions. You can buy yourself out of some of those risk if if you structure it appropriately.
[32:13] >> That's right. >> Great question, Thomas. Thank you for before I knock it over. >> I know. That was a good save. table. >> It's always I think it's the same I
[32:27] think it's the same number of drinks we always have. I just think it's just a >> It is the same number of drinks you always have, but it's collectively a >> And I I wrote a comment last time somebody posted that and I have coffee,
[32:42] water. I don't know what B's doing over here. He's got coffee. >> Bourbon. I have [laughter] uh my beer. No, it's I have coffee, I water. >> So, when you go to a restaurant, they
[32:55] sparkling water?" You go both. >> I say tap. Because you know what they >> Why do we have both here then? If you want to know the financial mute, when sparkling or still?" Don't answer that question. It's a trick question. What
[33:10] bucks for a bottle of water. What they're really asking, "Sir, do you want would like tap water. >> There you go. >> It drives me nuts. Like you want to know what cooks my dessert? It's that right
[33:22] there. I >> when I when I get charged for water and it it gets me. >> Yeah. You know, a much younger version of myself. First time I ever went to LA, um I about got in a fight with a waiter
[33:35] exact equation. >> I believe that. [laughter] >> Are you serious? Mhm. >> what? >> It was it was an intense situation cuz I
[33:48] just I I I had wrote written a note on the receipt cuz I felt like he ripped me he charged us. >> Oh, so it was like and multiple like not >> Yeah. because you know and look you can't even tell if they're serving you
[34:02] tap water versus cuz they all use these fancy little you know in most places like look we go to we go to Disney all the time you know and Florida has >> sure >> but a somewhere in the last I don't know
[34:16] two years three years they filter everything now because now you can drink Disney water in the restaurants and it doesn't taste like eggs anymore really >> so you can do t well most restaurants I think are filtering their water so it's
[34:28] okay to to to do tap water just like B >> But it wasn't always that way because I will tell you Florida was the exception for me. I used to buy bottles of water at restaurants because of the sulfur
[34:41] >> Yeah. If they have like if they have like gross water, I would I'd get it. meal, I'm going to be okay. >> Florida, the state of Florida. Look, I I the things that egg water. It's something.
[34:55] the types of water. >> I got char this restaurant, you know, the I got charged for the ice cube. I got I got like I know I know exactly. All you have to tell me is the ice cube. It was a $3 ice cube.
[35:11] >> Yeah. >> At that restaurant, which is funny. We'll get back to answering questions. >> That restaurant, you can order a mixed cube and they don't charge you a premium. But if you do like a bourbon,
[35:25] >> they hit you not only with the charge for the expensive bourbon, >> they hit you for the ice cube, too. It's a crazy, you know, stick it to you. >> It's frustrating. >> I know exactly what you're talking about
[35:38] cube, too. [laughter] >> They hit me on water. They Oh, [gasps] hear you talk about it. >> Like, look, I don't I don't like when
[35:50] yes, I'd like some, but like I don't always want to pay for bread. You know fancy >> Can I tell you there's a great book you might want to read called Die with Zero. [laughter]
[36:06] you're you're getting into miser territory versus mutant territory. miser and mutant. So maybe you need to [laughter] consider. rich guys talking about how they don't want to do something, they might need a
[36:19] the memories made. >> I don't mind spending money. I just like what I mean? Like we we [laughter] went we went down we were just down to the got all the good stuff and >> and it was fine. But I knew what I was
[36:34] doing when I when I when it's done when it's done when it's done to me instead of me doing it. I don't like that. >> And that's why [laughter] I'm just kidding. That's not happening right now.
[36:46] app. >> Okay. I have like a on my Sanki diagram. the ice cubes on there. >> There's a specific category just for ice cubes. >> All right. Next question before rapid
[37:01] fire is from Casey. He says, "Hey, money guys. My husband and I are planning to >> Oh, congratulations. >> As parents yourselves, how can we anticipate and plan for this to affect our budget?
[37:16] Uh, you know, look, I'll say this part because I'm the I'm like the the grandpa here that, you know, I'm out of the child rearing ages and or having children ages. So now I'm in that sentimental phase. I just want you to
[37:29] yesterday. Bo, you weren't at that lunch, but we one of our key t key team lunch, but we one of our key t key team members any day now, his wife is is >> And we were we were talking about how that first week is when you come home
[37:43] could bring it back to the financial side, kids do have a cost. Don't don't Especially when you talk about daycare. I I want you to know that's the biggest thing is start thinking about how you're going to if you're going back to work or
[37:57] if somebody's staying at home. That's the biggest part. But all the other components of it with the diapers, the food, and that type of it's it's not as So figure out the child care side of it if you're going back to work. But once
[38:11] you get that part figured out, I want you to have be fruitful because I as a had more kids. You know, nobody tells you that part of it is you're going to get to an age and say, man, it's kind of sad once you're you're off of that that
[38:25] that child rearing it. It's hard in the beginning, but there is something about the the love that you have for your children that's just it's it's hard to you what I did and I think this is helpful for young folks having you know
[38:39] structure your life in such a way that you have a pretty decent savings rate early on meaning like you caught the bug of financial mutandom and you're you know you're saving 15 20 25% of your gross income before you have kids what
[38:54] in some really good margin and so the way that I would mentally prep mentally prepare for the financial impact of kids is I agree if one of you stays there, having to pay for like daycare, realistically the
[39:08] costs are not unbelievably burdensome. But what you might have to do, and I see wife and I may have even done this with our first kid, you may have to back down your savings rate a little bit. You may have been so good at saving 25% or you
[39:21] have been so good at saving 25% or you were at 23.2%, you were almost at 25, but that kid comes along and now all of a sudden, oh man, I need to go buy life sure I have this covered and that covered and diapers and bottles and all
[39:33] these things. Maybe your savings rate drops down to where you're saving 17%, drops down to where you're saving 17%, 18%. That's okay. That that's going to be something that you will get back on the path. It's okay if you take a step
[39:46] back. It doesn't have to be just a solid straight walk up the mountain one step at a time. I think a lot of parents are so hard on themselves that they say, "Oh, I I can't I can't back down my savage. I can't do this. I can't live
[39:59] life. I can't actually enjoy the moment that I'm in. And I just don't think people say, you know what? Well, I can't do that yet. So, I'm going to wait. I'm kids. Wait to have kids. Wait to have kids. And and you have to make that
[40:13] decision for yourself. I do not think that having kids and starting a family is a financial decision. I think that obviously the finances play into it, but it should be a life decision that you're making and you figure out how to make
[40:26] just heard from the wings that Casey has shared that she'll be staying at home with the kids. So So obviously take into account how that impacts and then embrace I mean I I will tell you some of my favorite memories.
[40:40] >> Um this is part of the blossoming of memories is those struggles is if you will embrace it as part of the adventure of this, you know, it can be fruitful in and know that, hey, yeah, we're going to have to maybe we don't get to do
[40:57] everything that we did, but we in the long term, this is going to be better. out is that I would go ahead, by the way, we always say when you make huge life decisions, put on your 3D glasses, go ahead and model out what the next
[41:11] look like and put it in three different scenarios. You got the dream of man, oh downto-earth plan and don't leave out the the old doodoo duke dookie plan about the doodoo plan. >> Yeah, the the dookie plan for sure with
[41:27] newborns. You need to take that into account from a financial standpoint so >> Love that. >> That got way too good of a laugh from >> I mean, let's face it, no matter what age you are, a good poop or [laughter]
[41:42] you know that type of jokes, they they they never miss. >> Okay. With that, it's time for our it does not depend rapid fire segment where Brian and Bo have a combined 30 seconds to
[41:55] answer your questions and they cannot say the word or words or phrase it depends. Now, at the end of the rapid fire segment, if there are some things that need to be said, we will revisit those at the end in our maybe it does
[42:07] depend segment. With that, let's get 30 seconds on the clock and let's dive into >> You want to go first or me go first? You can go first since you're fresh from >> No [snorts] rest for the weary. Here we go.
[42:22] >> Is it okay to put all or part of your emergency fund in a CD ladder? >> You can put your emergency fund a CD ladder, but you need to have access to happens today, you don't want to have to wait for that ladder 4 months, 5 months,
[42:38] 6 months to mature. It's okay if you have some portion of it in CDs, but you want to know more information on how much are you putting in CDs because there's a lot of chance your high yield savings accounts and other things are
[42:51] going to be very competitive and unless you locked in some CD years ago there >> Nicely done. disclosing. >> I don't have any CDs either.
[43:04] it. >> Next question. >> She sits in the big table one time. >> Gift giving. [laughter] When it comes to gift giving, do you get an item, a gift card, or cash?
[43:19] >> I mean, the ideal is item first. [music] Um, I like cash over gift cards second. And but but I'm I'm all about can you have a thoughtful idea, but but I will tell you probably more often than not, I give cash.
[43:34] the most. Often times I find myself giving cash giving gift cards, which is don't want to get back? But a gift is probably the best thing, but man, it's around the holidays. >> Question number three, are there reasons
[43:49] to see a financial advisor if you've accumulated a million but have several years left in the accumulation phase? >> We say that there are generally three to an adviser. One, the gravity of your decisions is bigger than you feel
[44:02] comfortable navigating alone. Two, the complexity of life has gotten to the don't know. Number three, you recognize that stuff in your financial life is you need to. >> More than likely, this is the first time
[44:15] you've ever had a million dollars, and you just don't know what you don't know. thousands of times is probably going to be more efficient and better use to have that CFO professionally help you. >> Moneygu.com/become
[44:30] talk with you. >> I'll allow that to [laughter] important. >> I thought we were about to go micro speeding up the way you got it. >> You really did nail that until you
[44:44] client. >> Well, I feel like that part's important. >> They said that a million dollars. You know how unique it is in this world to accomplishment. People are like poo poo. No, a million dollars isn't that much. A
[44:57] million dollars is still a lot of money. If you hit the two comma club, that is there in our Discord celebrating milestones when you hit that stuff, you should be because it's it's awesome and it is it is worth celebrating.
[45:11] >> Back to rapid fire. Does the money guy 3 to 5% down rule for first-time home to 5% down rule for first-time home buyers apply to someone who's 50? >> Have you ever owned a home? I mean, this is easy because I I give you this we
[45:24] give you this rule for your first home. home. Now, if you if this is an upgrade, because hopefully you'll have the equity from your first transaction. I >> I think that you can still use 3525.
[45:37] I want you to think about as you're aging is you ought to be thinking about delevering. So, if I'm 50 buying my first house, that's meant for 30-year mortgage. I might want to figure out, okay, is there a way to be in a 15 or
[45:49] down? >> That was close. Maybe we'll come back to it. Next question. Do you have many expat clients for abound wealth? >> We have some mini is a word but yeah I mean we have we have expat cl
[46:03] financial independence post work post life to go live in another country live somewhere else. Yes. >> Well we also have clients who are still in the active growing size that go live in Europe and other places too for a
[46:17] with the tax side of that as well. >> So yes they can help with that. Next question. Hey guys, I have a friend. It's me. I'm the friend who has a bit of a spending problem that really is a discipline problem. What tips do
[46:32] you typically give your clients who have the same struggle? >> I I do think using some sort of budgeting or tracking app can help because then you can't ignore it. If you make yourself every single morning, pull
[46:44] make sure they're coded, you will start to see and before you go swipe, man, I'm morning. It will likely change your behavior. automate as much of your life as possible. Meaning that you you actually make the good habits that much
[46:58] easier by doing your 401k, your Roth IRA, and then every time you get a pay raise, that's 60% of that go towards your savings. Only 40% lifestyle. >> Love it. And if you want that tracking app, use code money on monarch.com
[47:11] discount if you want. >> There it is. Look up there. >> I I wasn't even going to say it. We should not be scared to actually use >> I'm not scared. It is. >> Yeah. No, I'm just saying if you want to
[47:25] cheaper if you use the code money guy. So, why not? loves being able to see it now. She's never had like a mechanism where she what I mean? It's just it's helpful for her to have that
[47:39] >> a good communication tool. >> All right, last but not least, throw pillows or curtains? Which one to buy first? Thank you. [laughter] >> The easy answer is throw pillows cuz I
[47:53] know how much drapes cost. >> I'm ashamed at how late in my life it took me to buy blackout curtains in my bedroom. Do that tomorrow. Do that. Make that's step one of the financial. I'm just kidding. It's not. But blackout
[48:05] curtains so you can sleep better. Game changer for me and for all my kids. I younger kids. For for my baby boy. Blackout curtains. Game changer. Just go morning. It's not >> cuz I like waking up when the sun comes
[48:18] >> Yeah. I don't want my son waking up when the sun comes up. I want that sucker to >> It was wild. As soon as as soon as the light came in, my kids >> uh that was one of the my you know my kids at the beach. At the beach like 6 6
[48:32] a.m. wake up, right? Because there was no [laughter] because there was no uh >> Not at home. >> Heard it here first. That concludes our
[48:44] >> So, what time while y'all on this beach vacation, what time are we all going to >> I mean, we were probably going to bed around 9:30, 9. And with this party
[48:56] this. And look, I'm not even ashamed to admit it. I'm at this age now. We just time. Like, as soon as we put the kids down, we kind of just went to bed. That's kind of the way it that's the way that it went. And it worked out great.
[49:09] that it went. And it worked out great. >> There you go. Practically speaking, I do to buy curtains, right? >> Throw pillows are useless. There's no I don't I don't know why you would I don't know why you would spend your
[49:23] >> utility. Um I think >> No, there's no other than like looking >> I know at home. Hang on. I'm going to do the math. pillows. And I'm not even talking about we're we're not count shams. You know
[49:38] the the pillows that that just sit on? >> Oh, the the ones that look like sleeping pillows you're not supposed to sleep on. >> Yeah, those. We won't even count those. How many pillows do you have on your master bed if you don't count even the
[49:50] shams? >> Okay. Not counting those three. >> How many total pillows do you have? >> That's not counting the shams. That's
[50:05] not even counting the shakes. I've got seven total on my bed. >> Yeah, because I I think about now the bed looks beautiful, but we have three of these pillows that are one color. And then we have two little bit smaller
[50:18] then we have like two more. And then we >> I just Here's what I understand. >> It's glorious. It looks beautiful. And bed. And there's one on each of those, too. And I didn't even count those. My
[50:30] >> So, you know, we we we did this we did this back, right? We got this like back back porch area or whatever. Well, my wife bought these pillows and they look they're like >> they're like these little like rolled
[50:42] pillows that they just sit in the chair >> until you need to sit down. Then you got to move somewhere. And I'm like, what what all these pillows do is they get in other than just taking up room in the seat. We got one on every single one of
[50:56] >> That's a great way of putting a Tootsie Roll pillows cuz I knew exactly what purpose, >> dude. And and I they I bet they were convince? That must be a heck of a marketing campaign.
[51:09] that she buys all her stuff from that had like if you had a Netflix special, I but that's who she bought them from. So they're [laughter] pretty. They're >> marketing. >> They're pretty, but
[51:22] sit in that chair, but there's a pillow there. Guess I'll move. You guys are know how much that pillow cost? >> I know. Then it's I don't get it dirty. to put it in my lap? I don't. Now this pillow's causing me problems.
[51:36] on any chairs outside. >> That That might be it. That might be it. to go outside, I'm assuming it's getting dirty. [laughter] >> That makes a lot of item, right? >> You probably just assume everything.
[51:50] >> This is just This is just what this is all going to be. It's fine. >> Okay. Did you have anything else to say about that first-time home buyer >> For a 50-year-old, you know, I would really want them to think about maybe a
[52:04] to do some sort of extra principle. I just the idea of having a mortgage from age 50 to age 80. >> Yeah. Yeah. If you're going to like leave the workforce around 60, 65, something like I just I'd want to know
[52:19] that a little bit. >> Yeah. But it's also you don't you have to be care that's such a hard spot that I actually that that's where it's hard to give rule of thumb math on is because you actually need to get into the
[52:31] who've come in because I don't know if I would tell you in certain high cost of living areas that you ought to go if you have a 401k or you have savings of a million dollars going and paying for all of that house with that so you're
[52:45] debtree as you you know is a scary thing. That's why it's really >> you have to do the math on it to kind of assess the risk to figure out how do you rates and and what is your >> our guidelines are very widely
[53:00] to retirement it just gets too p like too nuancere financially independent until you have zero obligations behind you and and so
[53:12] but for some people the reality is is that you will have a mortgage in measure twice cut once before I'm willing to say, "Yeah, this is the best >> Mhm. >> Totally.
[53:25] question before we close it out. This one's from Kyle. >> Did we only have one? Did we answer every rapid fire so well that there was >> I keep track of what I think. >> I mean, some of them were questions like
[53:38] mean, because they were like, "Do you do you throw pillows or or curtains?" I thoughtprovoking crazy crazy answers that need follow.
[53:50] >> Hilarious. >> All right, next question is from Kyle. >> All right, next question is from Kyle. It says, "STs on paying off a 5.625% mortgage by 35, assuming all retirement
[54:02] accounts are fully funded and hitting milestones. I want to hit coastfi or fine to have more time with family. We are 30 and 28." [snorts] are 30 and 28." [snorts] Th this one this pains me a little bit,
[54:16] right? Um, so what are our thoughts? Our thoughts are if you're saving 25% of your gross income for the future, if you were doing that, you get to choose what you do with the money above and beyond that. So if
[54:28] your retirement accounts and doing that sort of stuff and you decide that one of nothing more than a tool that allows us to accomplish our goals is to be debtree by 35, then it's your prerogative you can do that. Now, what I'd want to do is
[54:42] I' I'd want to walk through some mathematics with you and say, "Man, mathematics with you and say, "Man, Kyle, uh, not having a mortgage at 35 is super cool. You know what's only slightly cooler? Having the ability to
[54:55] just write a check to pay off that mortgage because at your age, at 30 and 28, 5.625 on a primary residence home loan, it's just not that crazy. And I'm going to argue that your dollars could work a lot harder for you elsewhere and
[55:09] could even potentially have you be debtree sooner if you were to implement a different strategy. But once you save 25%, you get to pick and choose. >> Kyle, when you can make this decision, you are at step eight because and you've
[55:24] loaded up the retirement accounts. You even your question, you you kind of set how you're actually going to use this money, when you want to retire, you're probably require a savings rate that's higher than 25%. But I'm going to give
[55:38] you credit if you've done the math and you know that hey yeah with what we've saved up and what our current savings rate we're going to be a-ok okay and we still have extra resources that we want to be debtree then that's step eight and
[55:51] you've done the math on that your co-fire situation really is that frothy that you can go ahead and prepay a mortgage at 30 years of age then I I once you get to step eight just make sure you've measured twice cut once on
[56:07] step seven is is when you're thinking about how you're actually going to use this money. Now realize Bo is the extreme because he's forever he didn't >> Well, just cuz I'm good with math. >> I mean because Yeah, because my interest
[56:20] >> I mean because Yeah, because my interest rate was so low now. It wasn't a 5.625 >> is is a probably about where mortgage rates are right now. I had a 2 and a half% mortgage rate which did pain me to but I'd gotten down to where it was like
[56:35] talking about a few hundred bucks a year. Um it just didn't make sense anymore um to keep it. But it's one of those things where I understand the desire to be debtree. Just make sure you've done the math on the front end
[56:48] that the opportunity cost is not it feels good emotionally but it hurts you [snorts] >> Love it. Never forget. We've talked about a lot of things on this show, whether it was our rules for buying a
[57:03] house, guidance on buying a car, how to become a client, when to become a client, all of that lives on moneyguy.com the cameras off, you can go to moneyguy.com/resources
[57:15] to take advantage of all of our free calculators and downloads and learn more about on the show. So, be sure to check out moneyguy.com and thanks for joining >> guys. I just gl like having the team back together. I mean, it was really
[57:29] fun. I mean, it's one of those whenever I I I hope when I go on because I go on vacation more than anybody. I I reserve that right as the older guy. I hope that was just, you know, it was a shame that Brian wasn't here today.
[57:44] It felt when I when I when you guys I like us all being together because it just the lift is easier. It's more fun. We just have a blast doing this. And I hope that that comes through is that we really do love creating content for you
[57:56] guys so you can live your best life financially. And also your feedback. You know, you guys let us know when content hits and when it changes your life. And that is the fuel. You know, we we did a collab with Aaron Talks Money and it was
[58:10] on ABLE accounts and Aaron was able to reach out to us in the last few days and share with us some feedback she's gotten from some specific audience members. >> Guys, that stuff means the world to us. So, we appreciate y'all going on this
[58:22] there's a better way to do money. And that's why I love that we got to share that's why I love that we got to share the good of Total Money Makeover by Dave Ramsey. We also get to share the good of Die with Zero by Bill Perkins. But man
[58:36] oh man, do we think that we've created something that can help you on your financial order of operations and millionaire mission. I'm your host Brian joined by Mr. Bo Reby and the rest of the content team. Many out.