The Best and Worst Cars for Financial Mutants (And Which Brands They Avoid)

[00:08] mutants. >> Yeah, Brent, I am so excited to talk about this because for a lot of people, an automobile may be one of the most expensive things that you ever spend money on. And for most people, you don't

[00:22] just do it one time in your life, you do it over and over and over. And it's not right way. We talk about that all the time. We want you to do it right, but we

[00:34] even thought we want you to buy the right car cuz in our opinion, when it comes to automobiles, especially when you say that they're like napalm for you say that they're like napalm for your finances, not all cars are created

[00:46] >> Well, I I think it's crazy cuz we all see this trend. We even we've reacted to it in some of our react videos where a lot of dealerships and others were posting their car payments. And and As a point of pride. And it was a over a

[01:00] thousand dollars. I was like, who is doing thousand-dollar car payments? Well, we come to find out one in five people now it's come it's just way too payments. >> And I thought it was interesting. Um I

[01:15] I've never went and financed a car even even when I was younger and I was making know, I was one of those people that graduated or graduated and I got my

[01:27] bought the car that was way nicer than I should have bought. But even that payment was not a thousand bucks. Once you have a comma in the car payment, it's just sort of a different realm. And far too many people have gotten have

[01:39] comfortable with that. Uh but there's also sort of this this caveat, right? So, I think people are spending too much on cars, but buying too cheap of a car say this, "Oh, I'm going to I'm going to go out there and buy a

[01:54] about having a thousand-dollar payment. I'm going to spend $1,000 in total. And necessarily correct. >> Well, I mean, and look, we're we're money. We actually backed into to even afford a $1,000 car payment, you realize

[02:08] that puts you in a situation if you use 23/8, you have to make over $150,000. >> happening. So, we were we were thinking do people who are good with money do?"

[02:21] perfect resource. We have our millionaire clients." We went and asked them. We said, "Hey, your current car, how did you pay for it? Did you finance it? Did you pay cash for it?" And you can quickly see that the majority

[02:33] actually paid for it. 60% paid straight up cash for it, but there was 40% that financed. But then we modified the question. We asked another one to follow car?" Cuz we know you to get to that JOB, that first wealth-building

[02:46] opportunity, a lot of us need reliable transportation. Exactly what you said. We don't want the $1,000 beater or the $5,000 beater. And we found that 72% of our clients actually financed their first car. They weren't able to pay

[03:00] cash. So, that's why I do love the thoughts of following something like thoughts of following something like 23/8. 20% down, don't go longer than 3 you you conservative on that and don't exceed 8% of your gross income. Now,

[03:13] to deviate a little bit from some other creators. Cuz you hear us say all the time that automobiles can be financial napalm. They can blow up your financial life. But here's what I want you to hear us

[03:25] say, and maybe this is the first time you've ever heard us say it here. We're also not anti-luxury car. We're not anti-buying a car that you like or not even anti-you quote-unquote being a car person, so

[03:38] long as it's done at the right time, at the right stage. I think far too often people jump into it way too early, not recognizing the opportunity cost of that decision to buy that nicer, more expensive car today is huge when you

[03:53] actually see what that cost you over the long term. If only there was a better way to do money. And this is what we talk about all the time. Step eight is your friend when it comes to making these big lifestyle decisions. So, we

[04:05] about this stuff and and Reeby said, "All right. Well, guys, I think in true game." So, you came up with an idea. You want to play a game and me and Brian are always open to your wild and wacky ideas.

[04:19] >> game. But Brian, do we have on-air hands that are going to come on and pinch you? >> Why? Oh, cuz I'm not wearing green. >> Yes, come on, Reeby. I didn't We noticed this right before we went live. We're like, I I stared at my closet going, "I

[04:32] >> Honestly, Brian, you barely have any green on. So, I'm not went out of business, I think. So, I mean, this is how old this shirt is, how little green. But somehow I honestly

[04:44] I forget. Sorry. Is that You have to be Irish to you know. Top of the morning to you. Nailed it. This is everything to me, okay? Well, we do have a really fun game uh

[05:01] queued up for you. It's called cruise or snooze. So, I'm going to name a car brand to you guys and you give me a thumbs up it for cruise, a thumbs down for snooze. Basically, is it worth the money to you? So, some opinion is going

[05:15] to come into play here. And then you're welcome to give me a quick reason why you would would not buy Any context? Is this like, hey, for a For someone who's like what step of the foo are these cars at?

[05:28] >> Or is this like in general? Okay. In general. In general, broadly speaking, this, would you be like, oh, okay, or you would you be like, ooh, they should consider this, okay? Cruise or snooze. All right. Brand number one, BMW.

[05:43] For my I mean, look. sentence why. Every single repair is so unbelievably

[05:55] expensive. Like you take it in for like a thing and you're one comma in every Yep. Uh I mean, I think this is the car that people who are in their 30s who are trying to impress people, I mean, use a BMW and truthfully, in my neighborhood,

[06:12] BMW and truthfully, in my neighborhood, like if you drive a a black BMW X5, you in my neighborhood. I mean, there is there's at least 26 of them I feel like in my neighborhood. Exactly. Brian, what I love that we used the

[06:26] Jurassic Park version, too. Well done, Caleb. Caleb had to. New Jeep or old Jeep? And daily driver or just owning a Jeep? >> this is this is going to Look, I would never ever ever ever ever buy a new

[06:42] Jeep, but I love used Jeeps. Uh I do love used Jeeps. I had one for many years and if I wasn't blessed with just daughters and a wife that don't like the hair blown, I would still own my Jeep. I sold my Jeep a few years ago. The only

[06:55] reason I say snooze is it's fairly impractical for a family vehicle. Like this is like an extra recreational vehicle for like for a daily driver, I'm vehicle for like for a daily driver, I'm a snooze on a Jeep being a daily driver

[07:08] family stuff. >> Hey, look on the used Jeep side, I owned that car for like 12 years and I think I made a thousand dollars. Like profited a dollars cuz if you think about it, I put like three or four thousand dollar rims

[07:20] on there. I put a subwoofer in the back. Anything a 16-year-old wanted, I put on pretty kicking. Every time I went through like a Burger King drive-thru, they were like, "I like your ride." And I'm like, "This is the affirmation I

[07:34] so wanted when I was 16 and I was driving around in that beater of a car. This is what I wanted to feel like." So, I did it as an older man. All right, next brand. Another personal one, Tesla. Cruise or

[07:47] Come on, you know I love me some Tesla. >> said cruise. No surprise to me. you voted a cruise. >> I think he He may just be like, "Hey, you know what? I want to be I want to be true and

[08:00] I want to be truthful. I do think Teslas are are wonderful automobiles for people that it makes sense at the stage and the kids and all that kind of stuff. They're a really, really fun car to drive. I do not personally own a Tesla, but I'm

[08:13] going to say cruise on the Tesla. >> will tell you there is a always look for >> will tell you there is a always look for crazy arbitrage moments um because Teslas uh depreciate a lot. Save it. Don't talk

[08:25] We're playing a game. Sorry. Uh the educator in me just has a hard time going to sleep. Next brand is Land Cruise or snooze?

[08:37] You have to decide that for yourself, Bo. I mean I I think these things are horrible. >> but I got to be honest, they're so cool I mean yes, I I am I in in in my

[08:50] financial mutant mind, I'm a snooze. But man, some of them are so cool >> read a Consumer Reports? But man, they look cool, right? >> If If I was ever going to have one of these things, by God, we would rent that

[09:02] thing because there is no way I would want to own something that costs this much money to to maintain. >> to maintain. Not wrong. >> to maintain. Not wrong. All right, next brand is Kia.

[09:18] rent cars and Hyundai's and I've had Kias and and I've had Mazdas. I I mean I I I don't know how I don't know how good they are in the long term. know how good they are in the long term. >> Telluride a Kia? That's a Kia.

[09:32] family members. It was nice like we went and looked at but the Telluride was a nice I've gone on a few trips in them. I mean, I'm kind how reliable they are. I I I haven't renewed my subscription to

[09:46] Consumer Reports to keep up with how well how well Kia's do. All right, next well how well Kia's do. All right, next brand is Nissan. backyard. Like this is where Nissan headquarters is. A little close to home.

[10:03] Brian, what do you think? Come on. I don't think I think I think I think of my neighbors work there, unfortunately. reliability. >> Yeah, I've gone We've We went and looked

[10:16] there just some other brands I'm sure that we'll talk about that just didn't beat them out. And so for that I think that the way I'm doing this is Would Bo probably would buy this car. >> we're kicking them while they're down,

[10:28] though. A little mean. Well, I Sorry. This is just for fun opinion, okay? It's all right. It's okay. You guys are so nice. see how many Nissan people we just offended. I I doubt it. Um Now, if it

[10:42] was a Maxima, I'm just kidding. in like high school. >> We all did. That was the cool car. >> We all did. That was the cool car. Next car brand is Rivian.

[10:59] >> you both Okay, you both said snooze. Brian fooled me there for a second. But could see it. I remember Oh no, we're broadcasting. If you're going If you're going expensive electric and you're Why would you go Rivian over Tesla? Is my

[11:12] opinion. Well, I mean, There you go. reasonable on the truck design. I mean, cuz I will say I have a friend who has a Rivian and it's pretty cool. Like he stores his golf clubs right behind the

[11:24] the door, which is pretty cool for golf clubs and stuff. But I just worried that I I do think from an from an electrical some of that stuff. Especially full

[11:37] awesome. All right, great. We've got just a few more. So keep us posted in to fight with Brian and Bo. I want to know. The next uh brand is Volkswagen.

[11:49] Cruise or snooze? Wow, we we dug deep. We dug deep. I mean I I'm just never I mean I'm just not a I'm not a fan German engineering. I you know, I have a friend who only

[12:02] that's not me. I think this falls into the high cost Volkswagens hard to work on? Like isn't it hard to find someone who works on >> Easy. Well, Brian this isn't back in the day.

[12:17] How about today? What I mean Germans are known for over-engineering everything. Mercedes. >> Fantastic branding back when I was in when they had all the branding? >> Marzipan nougat?

[12:31] back when you were in high school? >> know. It was like all the like That was the thing. >> Somebody somebody in the comments be like holy cow Brian goes deep. All right, next brand is Mercedes. No.

[12:46] That one's easy. That was easy. They both immediately said snooze. Why do you well? >> even think you know, they've had they know, it became part of Chrysler and so forth. I think that

[12:58] some reliability and I don't even know if I mean I guess if you're a Formula 1 do, but it's it's just not a brand that I'm super into. I'm super into. Fair enough. As a former Mercedes owner,

[13:12] let you reveal that. My wife did have the Mercedes SUV. It was fine, but just like if you're going to buy a luxury automobile, if you're make that bad decision on some different brands than Mercedes in my opinion. Just

[13:26] >> hit the easy button on the By the way, if y'all want to know how much control Bo and I have on this These would not be I would have been like, "Where's Lexus? those type of things?" >> on. This is fun. All right. Two more.

[13:39] >> on. This is fun. All right. Two more. Two more. The next one is Volvo. We're like, "Let's see how many people we can upset." You know what? I Aren't they like the safest? >> Well, okay. Bo says Prius, Brian says

[13:53] firing some people up in this room on our content team. >> Look, Volvos are not not my favorite. I've never I've never owned a Volvo, but I feel like I've heard that they're pretty reliable and they're super safe.

[14:06] I don't Are they expensive still? They used to be expensive. while since my Consumer Reports was all updated, but weren't they trying to something? They were doing crazy stuff with their cars that was just crazy

[14:19] weird reliability. Um when they were trying to go for more efficiency, so I I whatever, but I'm also probably jaded cuz my wife, you know, cuz back in the day you wanted like the the Volvo station

[14:34] wagon, and I remember my wife was so anti-that from the get-go that it's probably jaded me over the years. Mhm. All right. Last, but certainly not least. And now, I'm I'm hoping I'm saying this correct. Winnebago?

[14:47] Winnebago. Winnebago. I was like, "Oh, I don't remember. I've only EVER READ THIS." WASN'T PREPARED. Get out of here, Bo. I thought I thought all home-schooled kids knew how to say

[14:59] camping and knew stuff like that. I think that I I actually I mean, clearly, you've only read things and you realize you haven't heard them pronounced cuz in a Winnebago, obviously. I've never been in a camper like that. Have you

[15:12] heard the term unschooling? the state park this weekend. >> That's something different. unschooling? >> I'll save it for later on in the show. But, there's Remind me. What

[15:24] >> think of this camper van? Cruise or snooze? They both said snooze. Look, if RVs are your thing, that's great. They are not my thing. remember we went to like a Jeep Fest back when I had a Jeep and we rented

[15:38] like a a camper, Winnebago. Everything's made out of plywood. So, I Look, I'm to be light cuz it this thing moves every night. Um I break everything. >> We're too big. >> Yeah, I mean, I felt like Shrek. You

[15:53] like, "Oh, I just broke the latch." You know, it's just like, "Oh, damn it." camper van. I don't think I'm made to be a an RV type of person. Plus, look, I will say I tried to rent an RV. I had this idea, this is probably 6 years ago.

[16:09] I had this great idea that we were going to rent an RV, drive across country, >> Like you and your family. You and your family. And then we were going to fly and then fly home. I thought I was a genius. My my daughter, who's, like I

[16:21] said, already graduated college, but she was in high school at the time and she's like, "Dad, I'd blow through your data plan before we got out of the driveway." obviously, you know, these were our thoughts, right? These were the thoughts

[16:34] you know, there are some other authorities out there and just some like were worth bringing up and bringing your your attention. Um here were some superlatives that were given out. Uh in terms of automobiles that depreciate the

[16:49] Report, this is We're not playing the game anymore. You just disagree with us. They said that Tesla is the car that depreciates the fastest. As someone who's a big advocate for Tesla, what

[17:03] would you say to that? >> I would say this this glass half empty problem actually creates a glass half full opportunity. Go buy a used Tesla. I mean, obviously, pay do your due diligence research on um batteries and

[17:16] so forth and knowing. I also would tell people if you go buy used Tesla, go make sure you understand what hardware package is on that car, because full self-driving has gotten so legit, but you probably want to get the the you

[17:29] know, that four and beyond on the hardware package, features. >> Love it. All right, the next one was what car brand in general holds the value holds its value the best? Toyota.

[17:42] according to Kelley Blue Book. I am currently a Toyota owner. And it's true. >> well, I mean, you know, I'm good at this. I'm good with this thing called appreciates the fastest. I own the one that holds the value the best. It makes

[17:57] total sense. Toyota not surprising. One of the best long-term holders of value. If you're someone who drives your car for a long period of time. Uh safety and reliability, Subaru actually came

[18:09] a ton of Someone in the comments said, "Hey, why didn't y'all mention Subaru?" I don't I don't have a ton of like They just weren't super common. Down here. whenever me and my my boys back in high school used to drive or even college, go

[18:24] hike up in the Appalachian Mountains up around the the Blue Ridge Mountains. And you know, they would only let you drive and this is back in the '90s, Quattro I mean, a four-wheel cars or all-wheel drive cars was not as common as it is

[18:38] Subarus were the ones that >> cuz they wouldn't let you over a certain part in the road unless you had you could show that you had four-wheel >> Um and I that's why I think a Subaru is that they're just supposedly great for

[18:52] South, so we that's why you probably don't have exposure to it. Uh and then the last surprise was what is the best brand to buy used? Now, you may think that Tesla's coming up, cuz that's what Brian just said that he would recommend

[19:05] best brand according to Consumer Reports to buy used is Lexus. And I don't hate going to go luxury and you don't want to go Mercedes or BMW one of those, I'm actually a huge fan of Lexus. I think that's a great luxury if you're in that

[19:20] stage. Now, it does still count as luxury so no 23:8 on that one. I think Lexus is fantastic, but it's say don't buy it new, don't pay for all that front end depreciation, buy one a few years old. I think that makes tons of sense.

[19:33] you know, the car that kind of made me I feel like was my I bought an ES 350 in 2000 five cuz it no it was 2006 cuz it was a 2007 that I was bought in 2006 cuz I loved that I got a free year essentially

[19:48] cuz they redesigned the body style that year. And I drove that car for 12 plus and I had not a lick of trouble. I don't even think I had a warranty claim on it whatsoever until they like replaced the airbags if you remember when Lexus went

[20:02] through all that crazy stuff. But it was it was a great great car. So I can I about that. And this too by the way uh you know they're related Lexus and Toyota. I'm surprised that Honda

[20:15] superlative either cuz again I've always had wonderful experience with that. And from this. Obviously we talk all the time about buying a car the right way. We want you to do 23:8, 20% down, don't finance for any more than 3 years or 36

[20:30] months and we don't want your car payment to be more than 8% but also the payment to be more than 8% but also the kind of car you buy matters. Don't go out contrary to some other opinions going out and buying a thousand dollar

[20:43] car may not be the best financial decision. There has to be likely to make the car purchase, don't make sure don't just make sure you're doing it the right way. Make sure you're buying the right thing cuz the better

[20:56] decision you can make the more impact it's going to have in your financial life over the long term. I think this made me feel a little loved because >> No, we didn't do that. Also, here while I was on vacation, y'all came out and

[21:08] you decided, "You know what? Marvel's got this whole multiverse. Why >> Absolutely. >> Love it. It sounds like, you know, and I just came back from vacation, so I haven't caught up on everything. I was

[21:24] trying to get myself in this thing um before the show. I ran out of time, cow, I've got like, you know, my mother's maiden name, you know, and and my pet names and everything else." >> up on. All the all the things you don't

[21:39] want the public to see I had in my original Discord setup, so I didn't have enough time to get it all set up before I was able to wade into the waters. Uh I have, you know, we've been This is what, a week old now. It's been incredible.

[21:51] quick poll for our audience right now, been in the have you been in the moneyverse, right? out there. It's awesome. If you're not familiar with what it is, it's the

[22:04] ecosystem where we get to hang out 24/7. We can ask questions, we can celebrate kinds of amazing stuff that we're able to do, and we're able to stay connected. are are Brian and Bo and Reeby and the team

[22:19] Absolutely. It's turned into my new little guilty pleasure that when I'm just like on my phone, I'm not scrolling through social, I'm scrolling through the moneyverse. And so >> in the finance questions channel, I

[22:31] mean, there's no guarantee Bo will be in there answering you, but going to be in there. >> So, definitely take advantage. Bo Bo Bo, you spoke big words this morning. You

[22:43] said cuz Bo knows I I I I'm out there on X getting ticked off at the world just craziness in the world these days. Bo says, "I predict that you're this moneyverse is going to take the place of how much time you spend reading news and

[22:58] you know, a lot of times like on YouTube in the comments and stuff, you don't people or not your people, right? Like people kind of come in or whatever. What mutant and you're going to be hanging out with financial mutants. And so it's

[23:11] an awesome, awesome spot. So if someone wants to go get in that Discord, be on to moneyguy.com/moneyverse. You guys have blown me away with how posting weekly surveys and discussion points. And honestly, you guys are

[23:27] other's questions. You are discussing what's going on in your financial lives. would happen. So it's really cool to see all of the connections being made and just get to chat with you uh whenever we want to, honestly.

[23:41] >> of cool. We I mean, I literally just have seen a a sliver of this cuz you you in the content meeting. And people posting wedding like the anniversary this is a really cool way to connect." And um

[23:55] >> had one uh fellow financial mutant this morning post in milestones that he crossed milestones, so it's cool to see it in real life and be able to, you the chat. >> And look, I'm not saying that we're

[24:08] always going to like tell secrets and give away stuff a little bit early. But uh it's just a little bit more comfortable. We get to share some stuff. So there's some stuff out there that we get to talk about uh that I think you

[24:21] >> Bo Bo was basically channeling his Brian Preston last week. like, "What am I supposed to do?" I was like, He uh messaged me separately and was like, "Can I post this?" And he didn't give anything away, but he like

[24:35] hinted at something. And I'm not telling you where it is or what it is, but he probably going to get that in this Money Verse for sure. So I love I love that we good financial decisions?" I love that we get to have this Money Verse where we

[24:48] also love that we get to show up here, Brian, every single Tuesday at 10:00 a.m. and answer your questions and load you up with the things that you care question you want us to weigh in on, we have the team out in the wings

[25:02] collecting those questions. Make sure you get them in the chat, because we believe that there is a better way to do money, and we want to answer the things that you care about. So, with that, creative director Rebie, I'm going to

[25:16] kick it off with Hector's question. It says, "Hi Money Guys, my wife and I, says, "Hi Money Guys, my wife and I, both 34, just bought a 500k home with both 34, just bought a 500k home with 20% down, 6.4% 30-year mortgage. She

[25:29] wants to pay it off early. I would rather invest the extra cash. What are your thoughts?" 34? I'd love to know how much they had information here on >> Hector, if you're out there, let us know

[25:43] >> And And then, I would really encourage Hector, you need to know are you ahead where you're supposed to be? I'd go to moneyguy.com. Um actually, it's learn.moneyguy.com, so you can know your number course, because

[25:56] you got to figure out where you are, cuz it's really a It's more of a so you can figure out cuz what I would hate um is for you guys to to be debt-free, but then not have ever built

[26:10] going to realize you have a very unique opportunity in your 20s and 30s especially to really let that wealth multiplier do the heavy lift for you. And really, you make wealth building easy when time is is is a strong element

[26:24] um in your arsenal of tools. And And I just worry if you if you focus on all the debt prepayment while you're in your 30s, instead of waiting until you're in your late 40s or 50s, there's going to be some huge opportunity cost. Yeah, one

[26:38] of the questions that I Hector, that I'd I'd want to ask your wife is, "Hey, um why do you want to pay this off? Like, what's the goal Cuz like, let's say that want to pay it off quickly. Well, it's still going to take years,

[26:51] likely decades to do that. And the question be okay, well, do have the lowest mortgage balance possible at all times, or is our goal to ultimately be debt free one day, to own our home and be financially independent? Cuz I would

[27:05] argue there might actually be a better way to pursue that goal and be debt free sooner than aggressively paying off that mortgage. Cuz right now, 6.4% in the context of interest rates over the last 5 6 7 8 years seems high, but it's not

[27:21] it's not that high. Well, it's not like super super high, but there even might be a chance that as rates continue to fall and we get down to 6.1 6% maybe into the fives, you might even have an opportunity to refinance. And all of a

[27:34] opportunity to refinance. And all of a sudden now, a 5 and 1/2 6% mortgage for a 34-year-old just is not going to be that egregious. So, I want to know what Zachary Brian said, are you ahead behind on the curve? And then, why do you want

[27:49] off the mortgage? What's the like underlying thing behind that? And might there be a better way for you to accomplish that goal without increasing >> And if her answer is that it it just feels good, make her feel safe, it takes

[28:03] some risk off the table, always remind people is that you really only take that risk off the table when the mortgage is completely paid off. Because what banks are not good at is that once that money's put into you prepay this stuff

[28:16] so fast, if you hit a rains that pours moment. When I mean rains that pours, it market's getting beaten up, the real estate market's getting beaten up, you lose your job, you're going to want access to capital. Now, hopefully you

[28:30] obviously step four is financial, you know, having your cash reserves, but even beyond that, if you get into a really dire situation, I like being able to have assets that I can have access to easily. And I think that you might

[28:45] actually have less risk if you're building up other investable assets in the background that will also be your future retirement. It's a multi-faceted, structure there versus just loading it up being a debt

[29:00] You might find yourself in a pickle of a situation if you haven't paid it off to remind people is that it's really only gets good after it's fully paid off and

[29:12] years and probably years. Meanwhile, in the background, you could be building it and building up assets and then even being able to pay off that debt even being able to pay off that debt even faster if your army of dollar bills, you

[29:25] exceeds the performance of what your mortgage rate is. Hector, hope that helps. Thank you for asking the question. It is your lucky day because today is Tumbler Day. So, if you would like a tumbler, just email

[29:38] [email protected]. >> see what's going to happen for Hector? coffee. He's already His wife is going to be like, "Those are the guys that told you not to pay off the mortgage." And you're going, "Hopefully Hopefully

[29:50] you turn that that frown upside down with your wife so she also is a >> That's hilarious. All right, next one is from Dan 4224. It says, "Hey Money Guys, I know that

[30:03] despite market turbulence, you recommend always be buying or ABB as Brian likes to say." ABB! There it is. "If I have extra money to invest, do you still recommend index funds or can I invest in individual stock?" Well, wait a minute.

[30:18] We We covered a lot of ground there. Mhm. I've got some excess money. I've got some powder money. I Look, always be Should I buy if this is like above and beyond my like normal standard savings?

[30:33] Should I buy individual stocks or index funds? What say you? Well, I mean, I I mean, that's why we created a system called the financial order of operations. And I feel like for young people especially, I don't Dan didn't

[30:46] give us his age in here. A lot of people are trying to cut off the corner of And they'll they'll you know, get into crypto, they'll do other things when I always say, "Look, until you get to step

[30:59] eight, let's stick to the plan." So, if you as long as now look Dan, if you're in step eight and you actually cuz that's where you get to unlock get to unlock if you want to start using cash as a as a you know, as a being your

[31:13] mini Warren Buffett. And it's also when you can maybe get into residential rental property, or you could start playing around with individual stocks. But I wouldn't I wouldn't try to push it before that that point.

[31:25] stage. And then even if you are at that stage, one of the questions I'd ask is investor, generally speaking, there's a few decisions you have to make. What company do I want to buy? What do I deem as the appropriate stock price to enter

[31:41] realistically, you ought to be thinking about it, what stock price would I think you're going to be like a good stock investor, that's the way that you would When it comes to index funds, when it comes to just buying the market, when it

[31:54] just comes to participating in the general market movement, you really only much can I invest? Right? I mean, I guess you got to pick, you know, what just say we're looking at large company stocks versus just buying the S&P 500,

[32:08] it's really easy and has no mental calories at all. Just buy the index. Buy the index. Buy the index. Buy the index. So, that way if Apple does good, you make money. If fill in the blank does good, you make money. You're not having

[32:21] to worry about, "Okay, how's my individual position doing?" And "Oh man, that something's happened with the company and there's been a fundamental shift and I need to exit?" It just removes the decisions that you have to

[32:33] make. Again, nothing necessarily wrong with individual stock investing at that stage, but for me, what I do with my money, where I'm buying every single >> That's right. So, that's why I say follow the financial order of operations

[32:48] until you get to step eight. Dan 4224, thanks for your question and tumbler as a thank you. Um, so [email protected] Um, if you would like to be part of our rapid-fire segment, go ahead and get

[33:03] now. >> it. Then I forget I I I did I figured not doing rapid-fire today. Look at that. We decided to do it. Put RF at the know that that is for the rapid-fire segment. We'll do another long-form

[33:17] question or two and then we'll dive into that. So, get those questions in the >> Did you know that last week Reeby did a rapid-fire segment? Oh, no. We let awesome. She did great. >> fun.

[33:30] you about that later. All right. Connor E has a question. It "Hi, Money Guy team. I was asking to teach I was asked to teach a local youth group of 17-year-olds about finances.

[33:44] significant thing I could tell them to help them start their financial journey? begin? >> first and I'll try to think of something >> the the thing that I always, you know, highlight, you know, we talk about the

[33:58] three ingredients to wealth is, you know, the the discipline, creating you make and then maximizing the time. Those are the kind of the three components. So, I always kind of highlight that thing when

[34:11] I when I talk to to young people, the the wealth multiplier. And then I have a great illustration that we even put in Millionaire Mission cuz it's the thing is I showed somebody who started investing and you could talk about for

[34:23] 17-year-olds and use our wealth multiplier for 17-year-olds, but I think in the book I used like a 20-year-old who saved and invest every month for only for 10 years. So, just during their 20s and then they stopped versus the

[34:36] person who started saving and investing with even more money in their 30s all the way to 65 and the person who started in their 30s could never catch the person who just started in their 20s for for 10 years. So, it's it's just early

[34:50] and often for young people is the easy button to if you want to be wealthy cuz I was in my junior year of of high school was if I could just save $100 a month, I would be a millionaire and with that thing it just

[35:05] I was like, I can do this. Just just do something. Just start doing something and never ever ever ever stop. Um I have a I have some dear clients. It's a multi-generational family that I work with. Um and the parents, they had you

[35:20] first began working with it. They were like around the age of like 10 or 11 and you know, there was some annual gifting that was happening and the grandparents So, like, "Hey, will you meet me?" So, I would sit down with them at like 13 and

[35:35] I think one was like 11, one was 13, one was 15, something like that. interest how the money can multiply. We're talking about what stocks are and how as she got a little bit older, she got her very first job and she got one you

[35:49] "Hey, we can invest this money. This is great." But one of the really keys to investing is not like investing like big, you know, chunks of money, big lump sums. It's just starting to do a little bit very very consistently. Do that for

[36:02] got this job. What if I just started saving 20 bucks a month?" I was like, "Oh, that that sounds incredible. Let's do that, right?" And so, when she was 15 Started at 20 bucks a month. Today, now she is a client in her own

[36:16] right. She's in her mid-20s and the other day we were talking. She still has that same $20 like we never changed. She still has that same even though now money like she's She's all the And it And I'm like, you realize that

[36:29] one decision you made back then is probably one of the most valuable you can just get the 17-year-olds to grab onto that, you realistically can Conner, let me go ahead and prime the pump on this wealth multiplier

[36:44] moneyguy.com/resources if you want to know specifically what your wealth multiplier is. But, for a 17-year-old, every dollar that comes into the control of these 17-year-olds has the potential become 119

[36:58] dollars. So, that's that's amazing by the time they retire. If you want to become a millionaire, all have your own Mr. Morrow moment, they only need to save and invest 71 dollars a month, and they will be a millionaire. If they

[37:12] wanted to know how to be a multi-millionaire, 2 million dollars, it's 141. It's amazing how math works. Just cool stuff. Good luck on planting those seeds of success, and hopefully you're

[37:26] Maybe you can do that in the money verse. We'd love to hear We can get in there. going to tell people what my screen name is, cuz I want people to kind of figure

[37:39] out who I am once I get in there. I've got all kinds of crazy things in guess, though. I bet it's quack quack quack. You think that I bet that's his >> Is that it? No, that's not Oh, that would have been a good one, wouldn't it?

[37:52] thought somebody was impersonating him. They didn't believe it was really him. that was like, this is the real Bo. >> Did he then just tell them what his bench press was, and then they Oh, that has to be Bo. The only people that can

[38:04] lift that much weight is is Bo. That's funny. guy tumbler, since we answered your question, just email All right, one more long form, then we'll move into rapid fire. This

[38:17] question's from Messy Middle WP. It says, "What are the pros and cons of applying for an extension on my taxes? All my family put an extension for multiple years, then seem to play catch-up. Is there an arbitrage that I

[38:32] question cuz like >> I was down on spring break last week and one of the couples we were down there with, they also own a business. he actually Bo, it shocked me. He cuz they own multiple businesses and he

[38:45] filed his accountant was filing their business returns and their personal show me the way. >> It sounds amazing. >> Um I I look, the part I always share with

[38:57] people is that um keep your life simple. If you If your file your taxes, of course you can file your taxes. I think that's the thing. I cuz we you know, with all these profit sharing calculations, all these other

[39:12] business ownerships, life gets success creates complications. So I now have to file extensions out of necessity. I we crave to file it on on file on time. >> I will tell you I don't know if this is even true anymore. I mean cuz I I used

[39:26] to tell this this this I I'll tell you the antidote, but I I'll also put the true. But years ago when I was in the tax game we would share that

[39:40] the word on the street was is that if you filed your taxes on turn on time, you had a likely more likelihood of being audited faster because they met their numbers. Now, the the odds of you're getting audited anyway is so slim

[39:53] to none that I I think that that doesn't really move the needle. Um but for me, it was more about you know, when can I get the tax return organized and filed with all the appropriate information because

[40:06] all the businesses, it just doesn't happen by April 15th. So a few a few thoughts. Uh there in my opinion, Messy Middle, there's not really an arbitrage to be had because one of the things that's true is even though you can

[40:19] extend the filing of the return, you cannot extend the paying of the taxes. cannot extend the paying of the taxes. Your taxes are still due on April 15th. So, it's not like you can wait until later in the year to true up. If you do

[40:32] that, you're going to get hit with penalties and interest. So, what most people do is they file an extension, they make some sort of payment with the extension. Well, if you overpay, which is what you should do if you're filing

[40:45] and interest, what you're really doing is you're giving the government an that money back as a refund later when you receive it, you kind of lost out on arbitrage or benefit to doing that unless, and this is the one thing where

[40:59] you do have a little bit of caveat. A lot of a lot of retirement plans, right? If you need to fund profit sharing or you need to fund cash balance, but you don't quite have the capital to do that, but you know that

[41:12] receivables coming in, you can file an extension to push back your filing enough time to create the capital then be able to go fund the profit sharing or go fund the cash balance. So, it does extend your window just a little bit to

[41:27] really an arbitrage >> I love that. That's a that's a cuz it is true. Like Roth IRAs, your HSAs, all those things need to be funded by April um for last year's funding, but you do get a kind of a cool thing if you're,

[41:42] you know, doing SEP IRAs for solo 401ks. Anything with profit sharing or employer-funded that following that extension lets you make those contributions all the way up until those extended deadlines. Pretty

[41:54] cool stuff. Great question, Messy Middle WP. If you would like a tumbler, just email [email protected]. Messy Middle. You know, it's one of those things that we're very proud that

[42:06] we we hopefully give comfort to all those who are struggling with the Messy Middle. If you you're short on time, you're short on money, but don't worry, life is still awesome because those years are you know, the days are long

[42:19] >> That's right. True that. >> middle is messy. Amen, Remi? It is. >> What's going on? Every time my kid goes to dentist it's like it's just a ton of

[42:32] money. Like every they go for cleaning it's just my kids it's like they just But they all get in fillings and stuff? >> Yes, it drives me nuts. So So they have bad cuz like I I grew up as a I I have meticulous dental health now

[42:44] because of my childhood where cuz I felt like I had a mouthful of fillings. But I think I was just genetically flawed. >> a lot of yeah. >> It's genetic. I think my teeth design you know, was more susceptible to

[42:58] my wife's I shouldn't say this on air. Um she stuff but she doesn't she doesn't get She doesn't have that. >> get cavities because I think she's just genetically better than me. Um so it's

[43:12] it's not if if if your if your cavity exposure was by work ethic, I would be you know, cavity free. I just oh it drives me be fine. I just it's annoying cuz I'm like oh girls floss your teeth better. I

[43:28] know. But yeah, it is true. Brian's not wrong like maybe they do and they still are just have a you know. So go easy on towards those types of issues. >> Every time I say do better. I'm like hey

[43:41] telling my 8-year-old this yesterday. You know how long it takes for you to pay this dental bill? And she was like no dad, how long? I was like well it wasn't well thought out. It wasn't well thought out. That's hilarious.

[43:56] All right, it is time for our it does not depend rapid-fire segment where Bo and Brian answer your questions in 30 seconds or less. Yes, that is a new up today. >> For for cumulative? Cumulative.

[44:12] >> Okay. And so, yes, you have to answer it in 30 seconds or less, and you cannot say it depends. Now, to ease your anxiety about this, at the end of the rapid-fire segment, we will do a brief maybe air if necessary.

[44:26] don't bogart the 30 seconds. Okay, go ahead. I'm going to just see how you guys handle it. It's going to be a fun twist. Cuz you guys, honestly, y'all are well, so we have to change it up. >> Buckle up, Reebs. We're going to crush

[44:39] uh 30 seconds as well. >> I can name that in three tunes. Keep What? Okay. We're going to move forward. I will read the question, and then the 30-second timer will start. So, let's

[44:52] go. The first question is, first car, current car, and favorite car that you've owned. Go. First car is a 1984 regular Chevy

[45:06] Cavalier with the F41 package. The God But you do first cuz I can't remember what the second car was. Uh first car was 1995 Isuzu Rodeo. Uh current car is a 2019

[45:20] Tundra Platinum. Woo! Uh and favorite car is the Tundra right Okay, and then I have a I have a Tesla Model X And that's it. Okay. >> And we don't know which one is favorite

[45:33] >> We'll never know. You can make your guesses. Next question is, I'm retired at 52. Should I try to find a way to contribute to a Roth IRA? My wife is retired as well. If you're both retired, you don't have any earned income, you

[45:47] you should consider doing Roth conversions. start doing some side hustle stuff, of course, fund the Roth IRA, but I than likely, exactly like Bo said, you could do Roth conversions with your low

[46:03] investment portfolio, but you might have some tax arbitrage opportunities. Well done. Next question. Aside from Greatest Showman, what other movie dynamic duos would Bo and Brian be?

[46:17] would Bo and Brian be? Turner and Hooch? >> Tango and Cash? Uh I'm trying to think about some really good superheroes, but not the two that people want to say immediately.

[46:31] That's not the one that you said. That's not it. It's not it. >> Um other good dynamic >> Walt and Roy? I'll take Walt and Roy for Warren and Charlie? Right? Like there's some good duos out there. Yep. Um what

[46:46] guy? The guy who died in the helicopter. That's the other one at Disney. Um >> know. I don't know this person. Yeah, he's the quiet Most people don't remember how Was it Frank Wells? And he's super powerful. Oh, I think

[47:00] >> of us is the quiet one? All right, next question is what percentage of net worth should a retiree spend on a newer car? I don't think it's a percentage of net worth. I think it's a percentage of

[47:17] either liquidity or income. Like how much income do you have going in or how could just pay cash for it? Yeah, I just want you to pay cash and then make sure it's not It's more of backing into the math of not stressing

[47:30] out the system but by looking at your monthly cash flow compared to your your monthly cash flow compared to your your investable net worth. >> Did you? I didn't catch it. >> know if I like this, but someone just

[47:43] >> know if I like this, but someone just said Brian is Tony Stark and Bo is Peter Parker. Now like don't get me wrong. Spider-Man's cool, all right? >> bigger biceps than Peter Parker. >> But I don't know that I'm like a you

[47:55] were going to come to a counter if if he's Tony Stark and we're trying to about like Captain >> that might be I'm rich and nerdy. Can means I'm rich and nerdy. That means Bo, they look at you as young. Now, they

[48:09] bench press, but it's still comparable. >> of all of those Bo can bench press a >> like there's one or two that I would really lobby for inside of that >> pick on Bo's bench press. It's probably he'd want to probably some clean or jerk

[48:24] exercise he'd probably want us to to actually brag on any more. Maybe next time. He can let us know. All right, next rapid fire question couch flipping side hustle while studying accounting in college."

[48:40] Uh it says 60k a year, so I think he's making 60k a year. >> to a video on a couch flipper. That's why I'm laughing. Keep going. The question is, "Do I pursue a career in accounting or strive to my dream of

[48:53] accounting or strive to my dream of owning my own business?" would say is I think getting the degree in accounting will set you up later in an entrepreneur now, it's really hard to go back and get the accounting degree.

[49:08] If you get the accounting degree now, very easy to go become an entrepreneur me is because I have this accounting background. So, cuz you're always No, All through my life people when they come up with these ideas of starting a

[49:22] bookkeeping, I do the taxes, I know how a business works. business Think about I could go through stories. Clearly, Bo wanted to be in business with you. You can't argue.

[49:35] All right, as a young investor, should we consider double leveraged market index funds? Bo, why don't you tell them about the the time burn on that? What's that What's that that Time decay. The time

[49:48] it's not like people think, "Oh, if the S&P makes 10% on average and I go triple levered, that means I'm going to make 30% on average." That's not the way that levered funds work. There is a specific time decay that even though you might be

[50:02] thinking you're going to hold it for long-term, the way that they recalculate every single day, you will not get compounding growth unless you get a long stream of momentum ups. Momentum. That's what I was going to say. Momentum is the

[50:14] word I would use with levered funds. Man, that was not long enough. All right, next question is, "Currently engaged, do I follow my single FU or what our married FU will be?"

[50:27] follow your single, but as soon as y'all two become one, now it doesn't mean that whole 'nother question, but I definitely like looking at household for family members once they married. I think there's a glide path, right? You

[50:41] single FU today with an eye towards what's the married FU going to be. that that realm, so I completely agree. That's where the complexity happens. You know, life creates complexity. All right. Um next question, "If I max

[50:57] out my Roth IRA, can I still contribute to my Roth 401k?" Yes. Yes. I knew that was easy, but there you go. Rapid fire. >> way, if you wanted to since we had extra time there, I still like doing the Roth

[51:11] IRA because it lets you choose the the custodian. Um you get to a lot of control and then I you know, as long as but if you're just trying to get the free money, start with the Roth 401k cuz you can do you

[51:23] a Roth 401k. Love it. Brian, we'll take that 30 >> Financial order of operations is your friend. Last but not least, morning workouts or afternoon workouts? Oh gosh, we're split. You go first.

[51:37] I mean, I do an afternoon workout. Everybody who knows me is in the 3:15 Bo gets up at like >> early morning. Bo goes to bed at 6:00 Because I'm in the messy middle. If I don't get it done early in the morning,

[51:51] it will not get done. And it's important to me, it matters, so I make time. So, me and three other dudes, we wake up and we start going about 4:45. >> wake up? Yeah, 4:00 in the morning. >> at 4:13 and we're we're going at 4:45.

[52:04] to know cuz here's the thing. I wake up at 4:13. The I'm a hatch We should We should be. >> Hatch alarms not going to tell you what alarm I love. I'll tell you in the future if we ever

[52:19] >> Oh my goodness. But what's great is I wake up at 4:13, I immediately reach over, grab my phone, I snooze it till 4:22, 4:22, I get up, I take my vitamins, go make my pre-workout, out the door at 4:33, ready

[52:32] >> Every morning. Hatch emails me. Right, every morning. Well, that was great. You know, I think you guys crushed it because I didn't hear tons of fodder. >> 30 seconds was more appropriate because

[52:48] the experience. >> Right, you actually had to follow >> way, my favorite car Yeah, that's the one thing we didn't get to do. >> say, my Tesla Model 3 cuz I just Y'all Y'all Y'all have no idea.

[53:02] You know, I I've never driven cool cars my whole life. And then when I got the cuz I was one of the early adopters of that Tesla Model 3, I can I'll never forget because like there was a They used to do a coffee and cars like up in

[53:16] >> Yeah, in in Cool Springs. And when I remember my car came I got it so much turning, I was like, "This is must be >> Yeah. It's because I had so many people and I couldn't go to a gas station

[53:28] without people coming up to me and talking. And that was also the reason I even bought some Tesla stock back in that phase was that. So, that probably forever will be my favorite car just because it was such a unique moment in

[53:41] time that um everything just aligned perfectly with with that car. It was It was a cool car. >> Well, and you loved the Jeep, too, but I because when the Jeep had the same sort of experience, it was a big head-turner,

[53:53] too, but you loved the Tesla so much the Model 3 cuz it was just so different. >> And I thought it was so I remember when I first got it, I was like, "God, it headlight, you know, like high beam cut-off." Cuz my wife's car at that time

[54:07] had that. And then it was like 3 months later they added that feature, you know, I remember it didn't have the auto windshield wipers. They still struggle struggles with the auto windshield wipers worse than the European

[54:19] companies. But um they got I love how these things get updated. And I thought that was just that moment in time was a pretty unique time for that Tesla Model Love it. See, this is why I need more than 30

[54:32] Yeah, that's okay. I don't feel like I don't feel like there was any Were there extend expand expand upon? We hit the Roth IRA, Roth 401k. We I think even though it wasn't a a ton

[54:44] of time, these levered things, people think it's going to be a magic bullet. It's not. And what you often find is you begin playing with that got super popular a number of years ago where people want to go buy the

[54:56] yeah. Um that stuff only works if you get lucky, right? Like it's not those are not long-term investments. Those are and I don't want to say gambling cuz it's not

[55:08] >> It's It's like a kissin' cousin to gambling. And so, I just don't think that's the way that you ought to be using your dollars to build wealth over using your dollars to build wealth over the long term.

[55:20] prospect I had? He put Do you remember the numbers? I still remember the numbers. You remember the numbers. Give Give I mean In 2009, he bought a hundred He put $250,000. He didn't know what he was doing. But he bought $250,000

[55:33] in a um I think it was It was a triple lever. I >> lever. Triple levered ETF. And when he came to us, this is probably seven or eight years it had turned into nine million dollars. He had turned $250,000

[55:46] >> it cuz you know, look and when you're a financial advisor, um you have to worry about money laundering type stuff. You see there's always spec you know, you people cuz when I worked at another firm we we that we had a prospect that just

[55:59] little fishy. So you always have to be worried is somebody trying to clean money or do something. So you have to stay on stay on guard. So when he told And I I was like, can you send me some statements? And and he did.

[56:12] >> he did. He had the receipts. And I couldn't I was like, holy cow. So I mean there are there's always going to be some crazy story. But no who's crazy once you doubled or tripled your money,

[56:25] >> That's right. It's you're a wild man if all of a sudden you're like, you know million dollars. That that's those one of those oddball stories that's still so exceptions not the rules. I heard so many people say, oh this person did it,

[56:39] there's a ton of other things that have happened over the last ten years. Oh, this. Well, yeah, that you can't go and do that thing again. >> Well, I still you know, I tell I share

[56:51] I cuz I'm about to see him my one of my high school buddies um going to spring training with him next this weekend actually, but I remember three of us bought Apple stock in 2008-9 when every

[57:04] crap was really going bad. Um we and I remember looking at the balance sheet and the market cap on Apple was the same as just like what their assets were on their of like like their campus and those type of didn't even include all

[57:19] the software and all the so it was just the disconnection from the value. So we bought like $5,000 each of Apple stock. Um I sold mine when it turned to 15 cuz I was like, hot dog, I tripled my money. >> My buddy, I mean it's it's over I I

[57:34] talk about crazy stories I mentioned it It's worth over a half a million dollars now. He still owns it. It's wild. There are crazy weird stories out there that happen for for those wild people who who

[57:49] the rule though. That's good stuff. Well, thank you so questions today both long form and rapid fire alike. We'll be back here every more of your questions and hopefully making it fun. We have fun. And in the

[58:05] meantime, you don't have to stop the chat. Just go to moneyguy.com/moneyverse to join our Discord server where you can chat, ask personal finance questions, even celebrate milestones and maybe even see Brian and Bo make an appearance in

[58:20] throughout the week. So >> Yeah, my goal is in the next day or two. we're recording. I don't know if it's going to happen today, but I do plan on upon all the feedback Bo's given me. You heard it here first. Go join the

[58:34] moneyverse. Guys, I'm your host Brian joined by Mr. Bo. It's good to be back We'll see you next week same time same bat place. Money Guy out.