---
title: 'Financial Advisors Correct the Internet'
source: 'https://youtube.com/watch?v=uhlyjyeAOmE'
video_id: 'uhlyjyeAOmE'
date: 2026-08-04
duration_sec: 1090
---

# Financial Advisors Correct the Internet

> Source: [Financial Advisors Correct the Internet](https://youtube.com/watch?v=uhlyjyeAOmE)

## Summary

In this video, financial advisors Brian and Bo react to and correct viral internet financial advice, debunking myths about S&P 500 returns, FICO scores, buying businesses, and passive income. They emphasize the importance of following a 'financial order of operations' and disciplined index investing over get-rich-quick schemes.

### Key Points

- **Debunking the 12% S&P 500 Myth** [00:02] — The internet often cites a 12% annualized return for the S&P 500, but the real return is closer to 7%. At current high multiples (around 21x), forward returns may be only 2-3% real, possibly 0% or negative.
- **Ferrari Anecdote** [00:53] — A Ferrari 458 appreciated 14% last year, but transaction costs are astronomical, so it's not a viable investment. The point is that lazy buy-and-hold in a high-multiple environment won't make you rich.
- **Market Corrections and Long-Term Investing** [02:08] — Even with market downturns (like a 10% shift), if you keep buying consistently, annualized returns can still be close to 11% over long periods, as seen during the Great Depression.
- **FICO Score Misconception** [03:14] — A high FICO score is not a measure of how much you've been 'screwed' by interest. It indicates responsible credit use, which is beneficial for utilities, insurance, and other financial products.
- **Saving vs. Investing in Yourself** [04:50] — Saving $5 a day, canceling subscriptions, and skipping takeout can accumulate to over $1.85 million in 45 years at 8% returns. However, the 'pro move' of buying a business with creative financing is oversimplified and not easy.
- **Rethink Your 20s** [07:32] — Instead of focusing solely on salary or an MBA, consider arbitrage opportunities like game shows, but the real arbitrage is understanding the value of your time and investing early and often.
- **What to Do with $50,000** [09:11] — Grant Cardone suggests using $50k to buy a business, but the advisors argue this is unrealistic. They recommend building emergency reserves, funding Roth IRA and 401k first.
- **Index Funds vs. Active Management** [12:05] — While index funds are great, real financial planning involves more: emergency reserves, taxes, retirement, estate, insurance. The closer to retirement, the more complex it gets.
- **Sports Betting vs. Investing** [13:55] — Sports betting is gambling, not investing. You are the 'fish' or the 'mark'. Casinos restrict card counters because they want to keep the upper hand.
- **Real Estate is Not Passive** [15:30] — Kiyosaki's advice to own 100 rental properties is not passive. Real estate involves toilets, HVAC, tenants, and calls at all hours. Index investing is the easiest way for most people.
- **The Better Way: Financial Order of Operations** [17:26] — There is a simple, proven path: follow the financial order of operations, build a foundation, and then consider 'cherries on top' like real estate or entrepreneurship at the right time.

### Conclusion

The video concludes that while flashy advice from internet personalities may be entertaining, the real path to wealth is through disciplined, consistent investing in low-cost index funds and following a structured financial plan.

## Transcript

the internet needs to be set straight. But I am so excited about this. But I don't understand, if something is on the internet, it has to be right. True, >> Let's see what we have today. >> If you want to get rich, don't buy the
>> Buy a Ferrari. Let me explain. [laughter] Every time a supercar drives by, there is a cranky buy-and-hold investor saying, "If they S&P 500 for 10 years, it would be worth millions." This investor, while he
thinks he sounds smart, is using the internet's most favorite piece of fake data, the 12% annualized return in the S&P 500. The problem with this, and even if we cherry-picked, the real return is more like 7%,
environment that looks nothing like the one we're in right now. Right now, multiples are trading around 21x. At high multiples, the forward return is high multiples, the forward return is more like 2 to 3% in real terms. That's
0% or even negative. That means that the biggest myth of getting rich from might as well just buy a Ferrari because the 458 returned 14% last year alone, according to Hagerty. In this scenario, at least
All right, I have to admit something. Am I really telling you to buy a Ferrari and assuming that the Ferrari price will appreciate into infinity? Of course not. expect to get rich from lazy buy-and-hold investing in an environment
with high multiples and enormous chaos in the market, you are going to be sorely disappointed. You will never have Ferrari money. And I dare you, go ask the guy in the Ferrari how he got rich. I can assure you he's not going to say
buy-and-hold investing. >> [snorts] >> to read. I couldn't wait to say, "I can't wait to sell you some whole life insurance or I've got a strategy or I've got a system." I was waiting for what?
it. >> First of all, let's the Ferrari, which really telling you to buy a Ferrari." Of course not. The Ferraris are never, even if they appreciated the 14%, the transaction cost of going through the
broker houses and other things to process or sell that type of vehicle is astronomical. So, we can go ahead and cut off the 14%. He assumed, if you buy in whenever he recorded this, he said that the I guess the forward-looking
price-to-earnings ratio was like 21. >> Sure. Things don't stay that way. It's recording this, the market has now had a 10% shift down. >> Yep. And if you're always buying, you're buying in throughout the process. We
period during the Great Depression that the market was down during that entire month, your annualized rate of return would still be close to 11%. Set it and
forget it. Yes, this is the path. So, believe me, if you go do research on they making their money? We ask our millionaire clients how they did it. It is through slow, steady to build wealth through things like the S&P 500. Even if
you want to take He said, "Oh, I don't use 12% use 7%," which I think is a low. A 7% annualized rate of return over an entire lifetime, over an entire working entire lifetime, over an entire working cycle, is going to build a lot of wealth
your money to work. He's just flat-out high FICO score. >> I have a high FICO score. All it means interest. >> given the bank a bunch of interest.
>> That's all a FICO score say. I have an 800 FICO score. And when someone tells 800 FICO score. And when someone tells me that, I always say, "I'm so sorry." pressure and bragging about it. No, thank you. Your FICO score
health. It's a measure of how much you've been screwed. Oh, come on, Dave. Look, I consider Dave he would say that I'm his friend, but I consider him a friend of mine. And I
is one of the ones that drives me the most nuts cuz I just think he could not be more wrong about that. Assuming that you have a high credit score, assume that you exhibited the fact that you can use credit responsibly does not suggest
that you thrown away tons of interest that it's the I love debt score. It just shows that you were a reasonable and responsible financial decision-maker. We're successful. We have high credit scores. We've not given tons of interest
>> Dave just flew too close to the sun. I mean, if you think about earlier in his career, he he ate debt like a Cookie Monster. And then, you know, all of a sudden realized, "Oh my gosh, this makes my belly hurt and I have bad things
happen to me." So, then he was like, "Oh no, because I was the Cookie Monster of debt, I nobody should have debt." It would be a false thing to say that rich people or wealthy people don't use debt, don't have FICO scores that are high.
Because, by the way, you use this now for your utilities, your insurance. There's all kind of things that go into having a good FICO score. It just All it money and responsible with it. Dave wants you to go kind of treat debt like
it's it's lurking around the corner going to attack you every street corner. And that's just not the reality of the world or life that we live in. >> This is your reminder that saving $5 a day is $1,825
a year. Canceling your $20 Netflix subscription, well, that saves you 220 bucks a year. And skipping your weekly takeout, that saves you $2,000 a year. Then, if you invest that $4,045 each year at 8% average annual return,
then in 45 years, you'll have over 1.85 million dollars. But the real pro move is investing in you. If you take that $4,045 and you you figure out how to do creative financing. You buy a business that makes
$100,000 a year in profit. You buy it for 200k. I know you don't have the money to do that, but you only put down 10 to 20%, which means you're able to buy it for 10 to 20k down and you just replaced a six-figure job to do it.
Then, you grow it to 200k in profit and you are able to then sell it for 400 to 600k because the more money you make, the higher the price. So yes, save, but >> Look, she's not wrong, but she could have also said this. Hey look, I can
how to how to have hundreds of millions of dollars. All I got to do you just pick the right lottery numbers. You go buy the ticket before the numbers right ticket with the right numbers on the boom, you're worth hundreds of
is like yeah, go buy a business that has a hundred thousand dollars of profit. business and two, someone has to be willing to sell it. And then you have to to find that business and you got to be able to buy it. Then you got to be able
keep it. Then you got to be able to scale it and double it. It's just not quite that It does work that way, but it's not that easy to find. businesses for a hundred thousand, two hundred thousand dollars, these are not
big businesses. These are These are some of those businesses you see on social >> It wasn't top line revenue, just profit. So that that's even another thing, business it's a razor thin margin. So you have to
>> Yeah, so I just I I I don't think that this is the easiest thing. I think there's there's always a a kernel of truth in these things, but this is not going to be how you build your first million dollars. I'm just being honest
there's a better way to do money, the financial order of operations. If you about between step seven and eight that I'm all for it. But let's make sure we're funding the Roth IRA. Let's make
sure we have an emergency reserves before we start swinging for the fences. It's kind of like if you look at the hierarchy of investing, entrepreneurship turn over.
because she was spot on and I was like yeah, yeah, yeah, no. Oh, no, no. Okay, this is this this went a little sideways. You need to completely rethink your personal financial strategies in your 20s. I know so many people who are
salary. They're going to get an MBA to boost their salary. You should not be doing this. You should be focusing all of your assets and time and money to get on as many game shows as possible [laughter] to win money. We all watched
growing up. None of us actually go and do it. I called my friend yesterday, very successful guy. I was like, "Have he was like, "No." And I was like, "What are you doing? What are you doing with
instead of having a million dollar a year revenue business, you could just selecting the right suitcase." Well, we're definitely tongue in cheek. There there was there was a documentary that's fascinating. You have to go find
it on The Price Is Right. And there was this very eccentric person that had noticed that The Price Is Right was getting lazy with the they were using the same things over and over. So, he started tracking a spreadsheet of all
the the the sponsored products that they were having. He got to the point where within like a hundred bucks, which means you get two of them. That is far from >> No. To sit around and figure out if there's an inefficiency in the game show
circuit. Um I would tell you if you're looking for an arbitrage situation, it's understanding the value of your time when you're young. So, if you can invest early and often, that's the way you're going to easily build wealth. 50 grand.
What would I do with 50 grand? I would uh probably use 50 grand to go buy a business. What kind of business? Um some existing business that's probably been around 5 to 7 years or longer. Give me an example of one like
an example of one like >> Um would use the 50 in a bank account to show the guy that I'm legit. Mhm. And then to figure out a deal where he actually gives me money to take over the
the income. So, I'd find some businesses net profit of 50 grand a month. I'd use the 50 in an account just to make me look like something. 50 grand a month with $50,000 net profit. Show up here and see what see what we say,
>> And I'd be like, "Your business is doing 50 grand a month. I'm going to Let's say he's making 50 grand a month has been for years. You keep the first 50, I get the keys, I get the business, we keep the name on it. You go home, you keep
getting 50, I get everything above that." What's an example of a business >> Laundromat. Okay. Part Could be an apartment building. I did >> get any of those deals with 50 grand.
>> Maybe not, but it could be any any kind of cosmetologist business, uh tattoo you need somewhere where some guy's tired. Okay. He's tired of being in the >> [laughter] >> So, you can go be tired. Let's trade
your tired for my tired. Yeah, go find a business that's profiting $600,000 a year. Find someone who's ready to be out of that business, show them a bank I'll take over this business that's netting you 50 grand a year, but you pay
me to take it over and I'll take the business and we'll just lock you in growth that I do." That's just not the way that it works. That's not the way It's not the way business disposition works. Grant is good at rage bait. He He
says these things. He knows if if we sat down, I bet if we sat down and broke you got you, didn't I? Got you Got you Got you all fired up because you know that that is disconnected from reality." But, there's a lot of aspirational
people that watch content to get motivated more so that to to just for the motivation than the actual create the action. And I think that Grant, he sells systems to do that and that's why it He's very effective at it and has
made himself just completely filthy rich off of selling what could be to people who who want to think that they could be a part of this. If you're looking for your first thing, if you have your first $50,000,
emergency reserves. It's going to help you out on that Roth IRA. It's going to help you out with your employer 401k. Let's get you to your first financial stuff at the top of the investing pyramid. Love it.
>> I've seen this. putting your money in an index fund. index fund. >> [laughter]
I I even told a client about this. I think the content team put this in what the guys will do?" cuz we they know we love index funds. The reality is, if doing, they're not really financial advising. I mean, cuz where is the
looking at your emergency reserves, your taxes, your retirement plan, your estate plan, your insurance and risk management? All these things come into play. And by the way, the closer you get to retirement, the more complicated it
all gets. Um I wish it was a matter of just putting people into an asset allocation and then go no no mess no fuss. Send me the money. >> Yeah, it's not That's not the way that real financials operate. Although, there
are a number of financial advisors There are even a number of fund companies that actually do do that. They say, "Hey, I'm going to repackage this S&P 500 index else. I'm going to put growth on it. I'll put some other name on it, and I'm
When realistically, all you're actually getting is S&P. So, you ought to be aware of what you're buying, what you're spending on it, and what you are getting your money's worth. Do you realize what a position of power it is
to create one of the largest financial platforms, openly tell everybody, "Hey, do what I do with my money and go invest in index funds just like we do," and still have a phenomenally growing financial planning
the way every one of our clients can vote with their feet and leave tomorrow if they wanted to, but yet they keep showing back up and we keep growing at these double digit rates. You have to ask yourself There must be something
>> something to that for people to just willingly give their money and stay when multiple seven figure people. financial planners do is put you in an index fund and then count their money.
test. Financial services is threatened by sports bettors cuz we're not getting young people to do IRAs, mutual funds, they're doing sports betting. 55% of all stocks ever on the S&P 500 has lost money since inception. That's why I
strategy. But you got to know the game just like if anybody hopped in the stock day one, they don't have to short stock. Like they'll get burned. And so with the paycheck into that and setting discipline, it's no different than
stocks, than crypto, than real estate. Yeah, it actually is. It's exactly estate. >> Financial services is threatened When you sports bet, you're you're betting on an outcome, you're not investing on a
walk into a casino and say, "You know, I'm going to work. I understand how this system. I understand how to do it." It's gambling. It's not investing. Gambling, sports betting, you're the fish. You're the mark. If you don't believe that
because maybe you found out, "Hey, you know what? I can count cards." You realize casinos, if they realize you have figured out how to count cards, they restrict your ability to do that in their casino cuz they want to have the
upper hand, they want to keep you the fish. This is complete BS. If you don't realize that you're the product or the fish of the situation that's waiting to get hooked and pulled in, then you are on the wrong side of this. You're not
the house, so act accordingly. I never invest in stocks. I don't trust the stock I don't trust the stock market. You can, I'm not saying don't do it. I just don't trust them. Yeah. So, I like real estate because I'm
the investor. I don't need to trust anybody else. we love real estate. We have real estate, too, but it's just not where you start. Kiyosaki also, I mean, he wants you to have 100 rental properties. Yeah.
I mean, this is a full-time position. If you're looking for the purest form of passive investing where you actually get to enjoy your retirement and, you know, account, it's not going to be in a portfolio of doing active real estate. I
can as us owning multiple commercial properties, it is far from passive. Cuz you have toilets that overload, you have HVAC units that go back doors that all and the you know, your tenants freaking
out about that. You get all kind of calls at all hours. I appreciate what he's saying, but if you're trying to figure out how do people build wealth in the easiest fashion and when they don't know anything about how money works,
it's index investing. It's following the financial order of operations. This is the way. We have an entire business built off of wealth management for highly successful people and the more majority of the lion's share of them
have said they built their first seven figures not through real estate or all consistent and disciplined with their investing. said I don't trust the stock market. I don't trust the market. I don't
understand that because there's so many stories, so many case studies of people that consistently save and invest in low-cost index funds over a career, over time and end up in a much better position. I'm not suggesting that's not
true of real estate, also, and that's why we don't think it's neither or. You not going to I'm not going to do traditional stock investing or traditional market investing because I don't trust anybody. Instead, I'm going
have to trust the appraiser, I have to trust the bank, I have to trust the provider. It doesn't It doesn't make any sense. It's still the same exact thing. sniff test. >> Look, there is a better way to do money.
like we got on the mountaintop and like there's so much noise and haze down the way to build wealth. We tell you it's very simple. There's a better way operations that if you will do this to build your financial foundation, you'll
Kiyosakis, all the Grant Cardones, all the other things in there later. They The cherries on top of your sundae, but just do it at the right time, right place, and respect the value of your
most important resource, especially when you're young, and that is your time and your discipline. I'm your host Brian, joined by Mr. Bow. Money Guy team. Out.