Financial Advisors React to Insane Money Clips

[00:01] insane money clips. >> Brent, I am so excited cuz whenever the be good. >> I'm 27 and I have no savings. >> Do you know what a 401k is?

[00:14] >> Not a clue. >> Day 60 out of 60 of making 10k in 60 >> Between me and my wife, we make about $150,000 [music] >> I hire a private chef to cook the meals. >> Lord have mercy.

[00:27] in savings? >> I'm 27 and I have no savings. saving right now? >> Uh I think that money is uh an idea um

[00:39] that allows people to do what they want with their time. And I think most people stress about the value that they have at a specific time in their life. Um but I like to think about myself as less of a member of society, but more of a member

[00:53] >> Okay, so that's a perspective. You might have a different perspective, different yourself as a member of nature and the universe, money for most people is still that we value. Maybe one of the things you value is being in nature or spending

[01:08] memories in the universe. And to do those things, most often you have to that. If you want to be able to do those things in the future, you probably ought to be saving some sort of money today so that you can have in the future.

[01:21] >> I know you're going to say that. >> that is a very small inseam on those shorts. >> short shorts. a person that grew up with everybody wearing cut-off jean shorts cuz that's

[01:36] the way all my uncles when they used to come over to go in the swimming hole. cuz they can mess up your pumps and stuff. So, you just got to you just got things going on there. But, the other thing I was going to say is look, for

[01:48] somebody who loves nature and wants to be part of the universe and is in his 20s, this is the ideal time to just take a little bit of today to build that great big beautiful tomorrow, to utilize that most powerful resource he has,

[02:01] which is time. Put that money to work. Your future self will thank you, and >> Only broke people would disagree with me on this, but I have a carefree spending people will try to criticize my spending habits, and they'll be like, "Dude, you

[02:14] could save this much a day, or if you cut this out, you could save this much don't care. I got motion and movement. I'm not looking to penny pinch, because controlled by money, and I am controlled by dollars. I am going to live my life

[02:29] the way that I want to, and I'm going to earn the money to exceed the spending. earning issue, and honestly, adopting this mindset 10x my income. >> It works. It works. And and look, he's actually laying out something fairly

[02:42] noble, that money itself should not be the goal. The goal should not be to stack money, to have money, but rather than to use your money to do the things goals that you have, and focus on the experiences you want to be able to take

[02:55] advantage of. Now, where that falls apart is yes, so long as you earn more than you spend, you're going to be okay. But if you never save, and you've never means for the rest of your life, well into your old age, you were going to

[03:08] have to always be able to earn more than you spend. And most people, as they age, as they get into the twilight years, they want to work less and have more free time, and not be controlled by having to show up to earn a wage. If you

[03:22] never break that cycle. >> There is a case to be made that you can live this buck wild life, and the algorithms will reward you, and you'll make millions of dollars. And we we know a few of those people, and it can work.

[03:37] the outliers. They're the the statistical this shouldn't be happening, but it is. And and he might very well be one, cuz I can tell you sitting in some stitching of the leather. And then you can tell, so he's building this life off

[03:51] of his crazy lifestyle, his opulent lifestyle, and it might be working for him, but to try to replicate this in your life and not expect it or expect dividends or for your life to turn out to be the best version of itself is a

[04:06] >> If you have one penny and melt it down, [music] the copper is worth 4 cents of metal. That means with just $1, you can trade it for 100 pennies. Melt those and you've got $4 worth of copper. Take that $4, [music] swap it for $400, and now

[04:22] you've got $16. Every time you repeat it, your money multiplies by four until finally, on the 10th trade, you end up with $1 million >> [laughter] >> Uh there there is truth in this that the

[04:38] cost of creating a penny was more than 1 cent, so they've said they're not going done. They're done producing that. The idea here is that oh, this might be a get-rich-quick scheme, a way to beat and break the system. I don't know that you

[04:53] into millions and millions and millions of dollars, and they are true. If you destroy money, that I think is against the law, and it could likely the law, and it could likely maybe end you up in jail. Maybe.

[05:07] >> Do you know how to build credit? >> Mhm. >> Not a clue. >> No. >> Do you know what the powerhouse of the

[05:19] >> The what? >> The Pythagorean theorem. squared. >> Do you know what moon phase this is? >> Do you know the underlying theme for Of Mice and Men?

[05:32] >> The impossibility of the American dream. >> You know, this makes a solid point. >> I'm I can't You know what? All these other videos have been insane. This one We do have a problem, I believe, in our education system. A lot of people do not

[05:46] [music] have the basic fundamental financial skills when they graduate, when they come out. And yet, there are a lot of things that we do know, like the powerhouse of a cell, the mitochondrion. >> We were talking about this the other

[05:59] day. Do you think the system is rigged against people? >> Do we think that people you the system wants people to stay uneducated cuz it's more profitable for that to be the case? >> Day 60 out of 60 of making 10K in 60

[06:12] days. So, the 60 days have now finished and my final total is $8,380. [laughter]

[06:25] So, and that's from January 1st. So, not exactly 60 days, about 4 months. That's 2.7K lost in trading and about 5.6K >> much time? >> lost in e-com. But, I also spent 5K on

[06:40] courses. So, without the course fees, in total, I only lost about 3.4. But, yeah. I did not make 10K in 60 days. So, now we're going to continue and see how long it takes me to make

[06:54] I would love to know what the S&P did during the same month. Now, look, it's it's three it's 2 months. So, I'm not I would my expectations wouldn't be very >> he said starting in January, so first quarter the actual market was down. But,

[07:08] people want to tell you the system, oh, here's how you can beat the system and work that way. If something sounds too good to be true, if there's some automatic money to be made based on some trading strategy, some option strategy,

[07:22] some e-commerce platform that you're going to subscribe to, that's just not actually love that this I mean, I feel bad for this guy, but I love that he made this video saying, oh, you know what? I did what the internet told me,

[07:35] and man, it didn't work out. But, what I am nervous about is now he said, I'm not Let me just see I can keep doing this. Oh. >> Hey, you know what? Put the shovel down. Sometimes it's better to just quit

[07:48] what That's what I would do. Instead of trying to beat the market, let's be the market. Understand the power of index funds and also this concept of the law of accelerating returns, meaning that

[08:02] things are actually speeding up. Innovation is making where you can make even more money. So, don't try to waste your effort. Don't waste your resources and your money or your time, the most powerful of all three of these. I want

[08:14] you to focus on being the market by being an index investor. >> Between me and my wife, we make about $150,000 per year. >> And how much do you have in debt? >> Uh we have about 90K in student loan

[08:29] >> Didn't have to react like that. >> Uh yes, so it's just that's just a lot >> Um okay, and your credit score? >> 700. >> Great. Okay, so good news. Looks like we're going to be able to approve you

[08:42] we're going to be able to approve you for a loan of 210,000 dollars. multiple bedrooms. I don't even think that amount of money would get us >> Yeah, we can look into alternative options. Might I suggest divorcing and

[08:58] >> No, I'm not going to do that. >> All right, well good luck renting the currently have? >> $0. I'm 17. >> $0. I'm 17. >> Okay, how about uh liquidatable assets?

[09:11] >> $0. I'm 17. >> Okay, how about this? How much money do you think you'll probably make someday? >> Oh, I'd say a mil, a mil and a half per year, easily.

[09:23] that. Um what do you think you're going to do for a career? ahead. >> Awesome. Uh so, I have some pretty good We are going to be able to approve you for a loan of $250,000.

[09:36] financially ruin the next 20 years of my life. loans. >> It's unbeli- Yeah, he's talking about get a mortgage and to prove income, to substantiate income in order to be able

[09:49] substantiate income in order to be able to buy a home versus how easy it has been for the last 20, 25 years >> for students at a young age, 17, 18, 19 years old, to rack up tens, if not hundreds of thousands of debt that I

[10:04] would argue is unjustifiable debt. >> They're spot on. It's a problem. >> I feel like next time I go on Netflix under the thriller category, we ought to there? I thought I was like, "Wow, that

[10:16] concept." And it's true. I You look, y'all know, education, if you read any of the content that we Bo and I create, if you read my book, Millionaire Mission, you know that I think that education is noble. Yet somehow all that

[10:31] goodwill has been squandered by a lot of these institutions and the banks to really just put people and take the goodwill of what education can do for you and just make it where now all it is is a trap in a lot of ways. Bo, how many

[10:46] people care when they see your diploma how many years you spent at that school? many years you say. It only says how long you spent the last semester. So so school, doesn't matter if you did community college, doesn't matter if you

[11:00] you did AP, it just matters where you finish. So you could You should consider that in your equation. >> Don't let the colleges sell you a product that's not going to actually have a return on investment. Be an

[11:13] have a return on investment. Be an active education student. You're not an who knows how your education's going to pay it forward. was a twist. Did you not see at the very beginning it said the difference in

[11:26] student loans? It kind of led with that. >> Oh, did it lead with that? It was the very first thing. So, you really were surprised when it almost >> what? My my elementary teachers are

[11:40] right now watching this go there it is. There's that that reading comprehension that I told I put on his report card back in the third grade. Watch that reading comprehension. I fell right into the trap. He foreshadowed.

[11:53] >> Your 20s. S, you may not generate a ton you need to be taking the biggest risks, taking the most shots. You have nothing >> Okay, I don't disagree. >> B, you can really start to generate

[12:06] wealth in your 30s, but if you slacked off in your 20s, it's going to be very difficult. Your 30s are reliant on your 20s. Your 40s. A, you have a lot of knowledge and relationships and experience and your 40s are the

[12:18] beginning of your highest income potential years. Your 50s. A, just like your 40s, your 50s are also your prime earning years, but in your 50s, you're really start thinking about taking your chips off the table. Your 60s. D, you do

[12:33] not want to be building wealth in your 60s, you want to be preserving and >> Here's the only thing I think I don't know what S stands for. I got like A B C D E F. I want to know what S stands for, but I'm assuming it's

[12:46] >> Uh so superior. >> If if that's what that means, then I would argue that 20s is is that, but >> Supercalifragilisticexpialidocious.

[12:59] >> I think that's what it is. Uh and I would argue that in your 20s, it's not about taking the biggest risks and being the most aggressive. Although, if you're would say your 20s is most important to just start doing something cuz if you

[13:12] something crazy, if you can just start saving a little bit in your 20s, I would argue that is even more important than trying to catch fire in your 30s, 40s, or 50s. So, I think that's the way he laid it out, but I'm not exactly sure

[13:28] supercalifragilistic category. >> See, but man man oh man. And by the way, 20s cuz you said it, if you just do something, you don't have to swing for index funds in your 20s, man oh man is your future self going to be just sloppy

[13:46] >> To be in the top 50% of your retirement savings, you'd need to have $13,000 saved up. [music] To be in the top 25%, you'd need to have $122,000 in that nest [music] egg. And to be in the top 10% $460,000

[14:01] in retirement [music] savings. And to be in the top 1% if we're really reaching for the stars, you'd need to have a total nest egg of [music] $2,290,000. Now, if you've been investing but you're still nowhere near those numbers, don't

[14:14] time for compound growth to do its thing. You don't need to invest need time to let compound growth work its magic. interesting. >> It's insane on how much growth it

[14:27] >> Well, all the numbers were right, you know, to be in the top 50%, 25%, 10%, know, to be in the top 50%, 25%, 10%, 1%, but does it matter if you are in any of those percentages? No. What matters for you is how much do you need to be

[14:40] live on your terms, the way you want to live it. That number for you may put you in the top 1% of net worth or you may be someone who has that 500,000, 600,000.

[14:52] You're not in the top 1%, but because of the lifestyle that you want to leave and live and the resources that you have and the sources of income you have, that might be enough for you. So, be careful just chasing the scoreboard or

[15:04] leaderboard cuz that may not be what matters for your financial situation. >> Guys, don't sleep on the fact that your money can work harder than you can with your back, your brain, and your hands, but you got to do something and make it

[15:16] >> I can't write off a private chef, but if I invite somebody over every single and I hire a private chef to cook the meals. I can write off the private chef meal. This is how I'm able to afford having that private chef every single

[15:29] year, every single month, every single day inside of my house making me and my members, and my business clients who also some of my family members sit on my >> Oh man, you know, we we have covered this before. Look, niece,

[15:44] you need to be more deductible. Pass that lettuce on over here so I can slap some ranch dressing on it. That's how Hey, by the way, did you fund your Roth happen. See? That's how it works. Hey, uncle, uncle. Hey,

[15:58] doing with your next dollar? All right, now pass those potatoes over here. That made that deductible, deductible. All right. Wife, wife, what How about how about how about cut that roast? Cut that roast. Okay. Hey, what

[16:14] know about an employee stock purchase plan? All right, you answered. Okay, rolling. >> Everything is deductible until you get >> That's right. >> And I would argue Carlton is taking some

[16:28] aggressive stances here. I >> liberties. >> I just don't know that having your friends and your family and your spouse and in your home with a private chef, I would have a hard time if I were sitting

[16:40] across from a IRS agent explaining to the IRS agent that this is legitimate business purposes, and these should legitimately be deductible. >> I think if you are going to try to take this advice and make it your own and

[16:54] be ready and prepared to defend that to the IRS, and I don't know that you want >> If you've ever represented clients before the IRS, it is scary. I've literally seen grown men cry because they were too cheap to to to pay me to

[17:09] represent them, and that's what I'm telling you. Be careful what you think you can get away with because the IRS, they have the guns. They can take your stuff. You need to be on stable [snorts] ground when you take

[17:24] deductions. Look, there's nothing wrong with our government. Highly encourages you to maximize your deductions, but they don't want you to crook it out. You Al Capone? They They found him crooking out on his taxes. So, don't be Al

[17:38] >> We believe that there is a better way to do money. You don't have to follow this insane advice. You don't have to carry out these crazy strategies. If you can understand the three ingredients of wealth creation, discipline, margin or

[17:50] money, and time, and you can put those to work, then you can build a great big >> As I've already shared, there is a better way to do money, and we are abundance cycle. Go check it out yourself. moneyguy.com/resources.

[18:07] We give you all the love in the world with all the tools you need, all the calculators, and then when you reach success, you'll remember who planted that little apple seed that has turned into the huge tree that's generating so

[18:19] life. I'm your host Brian, joined by Mr. Bo. Money Guy team.