Financial Advisors React: WILD Money Clips!

We're back with another edition of Financial Advisors React, this time with some of the Internet's WILDEST money clips! From mind-boggling financial decisions to flat-out wrong financial advice to hilarious skits, these clips left our jaws on the floor. We still find a way to lead you the right way even through all of these chaotic videos (and the hot temperature of our office). ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Jump start your journey with our FREE financial resources⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Reach your goals faster with our products⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Take the relationship to the next level: become a client⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Subscribe on YouTube for early access and go beyond the podcast⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Connect with us on social media for more content⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life. ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠DRINKAG1.com/MONEYGUY Learn more about your ad choices. Visit megaphone.fm/adchoices

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Speaker 00

  This episode is brought to you by Indeed. You're ready to level up your business, but the pressure to find the right person to make that happen is intense. Indeed sponsored jobs can help carry the load. It boosts your job post to help it reach quality talent fast. Cut through the chaos with Indeed sponsored jobs. Get a $75 sponsored job credit at indeed.com/podcast. Terms and conditions apply. Hiring now? Then this is a job for Indeed sponsored jobs.

• 0:31Speaker 01

  Low energy, unfocused, foggy? You might be dehydrated. Whether it's hot yoga, over 100 degree weather, or too much sun. Gator Light, with a specialized blend of five electrolytes, was scientifically designed to help move fluids into the body faster for rapid rehydration. Shop now at retailers nationwide. Gator Light, hydrates faster than water. Is it in you? Symptoms noted are signs of mild to moderate dehydration. Consult a healthcare professional if symptoms persist.

• 0:59Brian Preston?

  All right, the content team has done their part. They turned the studio heaters up. And now let's see if they're bringing the heat with these videos.

• 1:06Speaker 03

  Hey Brent, I am so excited about that because when it comes to the internet, we never know what we're gonna get. Let's dive right in.

• 1:13Speaker 04

  You decided to get a Porsche?

• 1:14Speaker 05

  Yeah.

• 1:15Speaker 04

  And you can't pay for groceries? What do you think this car is worth?

• 1:18Speaker 05

  I bought it for 89. Wow. And maybe I could get 90,000 for it. I don't think it depreciates as much as other cars.

• 1:25Speaker 04

  What kind of Porsche, by the way?

• 1:26Speaker 05

  A 21 Macan.

• 1:28Speaker 04

  Okay.

• 1:28Speaker 05

  Turbo.

• 1:29Speaker 04

  It depreciates. 65 on it, you could probably sell it for 64. So get rid of the Porsche today, dude.

• 1:34Speaker 05

  Then what do I drive? The car that I got is pre-owned. It's not a brand new one.

• 1:38Speaker 04

  So I'll spend $1,500 a month on a used car. Okay. And I bet maintenance is cheap, too.

• 1:43Speaker 05

  Customer service is excellent and it was only 20,000 more than what I paid for the Ford Edge.

• 1:50Speaker 04

  I've never paid $20,000 a month for customer service.

• 1:55Brian Preston?

  A Ford Edge was $60,000?

• 1:57Speaker 03

  Yeah, that's, I'm having a hard time. She said 89,000 is what she paid for that. And so the Ford Edge was 69. It's a nice Ford Edge, isn't it?

• 2:04Brian Preston?

  I didn't know Ford Edges were that expensive. I think she might be doing some creative math there.

• 2:08Speaker 03

  Obviously, if you have financial woes, where you can't afford groceries, you can't pay your bills, you're not saving for the future, and you're having to go finance a luxury automobile like that, you may be in too much car. The car that you're driving may be too far along in the financial journey. You are not there yet. And it certainly seems if she has a $1,500 a month payment, she's likely doing it.

• 2:29Brian Preston?

  Here's an idea. Look, we all need a vehicle. And I think sometimes the human condition is we say, well, since we have a need to get to our J O B so we can build some wealth, I can go crazy. Why not have some boundaries to know what you can and cannot afford? Look no further than 23.8. That's right, 20% down. Don't finance longer than three years and make sure it doesn't exceed 8% of your gross income. And here's a few more rules just to make sure you don't let your eyes exceed your wallet. Is make sure that you don't finance luxury cars and also that your Roth and your investment contributions are greater than that car payment. You do those things, you don't end up in Caleb's chair.

• 3:07Speaker 06

  Can astrology predict the stock market? Financial astrology, also called astro finance, is the belief that planetary movements, lunar cycles and cosmic events influence human behavior and by extension, the markets. If you've ever rage sold your portfolio during a full moon, maybe it wasn't just you. Maybe Mars was feeling spicy. Use your brain, check your charts, and hey, no harm in checking the stars too.

• 3:36Speaker 03

  It's a bull.

• 3:39Brian Preston?

  A Minotaur is a horse, right? With a man?

• 3:42Speaker 03

  I just think, I don't know there's any man.

• 3:43Brian Preston?

  Oh gosh, now we're, now we're going to just show how shallow the nerd goes.

• 3:47Speaker 03

  Well, so here's, here's what I think is what it's so often people will tell they have some, some trick.

• 3:52Brian Preston?

  He's got a towel. He's something.

• 3:53Speaker 03

  Or some system or something that they figured out. If someone figured that thing out, they'd be the wealthiest person on the planet. And you know what they would not do? Would not tell you. Their secrets. They would not need to sell you their course or sell you their system. They would go make money implementing that system. So if someone tells you they figured out the trick, the key, the hidden trap door into the stock market, I would run the other way because nobody knows what the stock market is going to do over the short term. But over the long term, if we have a well diversified basket of goods, it seems to be a high probability that we're going to be successful as investors. But I don't know that I'm looking at the stars in the sky.

• 4:34Brian Preston?

  I don't know. I think they deserve a lot with that good use of AI to create the

• 4:38Speaker 03

  That was AI?

• 4:39Brian Preston?

  Bullman. I don't know. I mean, I'm assuming the bull man may or may not be a minotaur. That could be their where's the beef moment that creates their crazy thing. Look, they got on the money guy show. It worked for them.

• 4:51Speaker 07

  The 401k is a trap. I'll prove it to you. We are right now sitting on the lowest tax rates we've ever had in the history of the United States. I'm not sure if you know that. That being said, because the tax rates are the lowest that they've ever been, I have a question for you. Do you think that taxes are going to go up in the future? I'm sure your answer is yes. So if you put money into a tax deferred 401k plan, you're essentially saying, I want to save money on taxes right now, but then I'm just going to let that money go get taxed at a higher tax rate later when I pull it out in retirement.

• 5:20Speaker 03

  False.

• 5:21Speaker 07

  When you pull that money out when you're 59 and a half, do you think your tax rates are going to be higher than where they are today in 2024? If your answer is yes, why are you stuffing so much money into your 401k without a plan?

• 5:30Speaker 03

  Because I understand how the tax system works. I recognize that right now, when in my highest income earning years, I'm going to defer those taxes. And at some point in the future, when I go to pull my money out, I'm going to be able to legally manipulate the tax code. I'm going to pull out ordinary income assets at lower tax brackets. I'm going to pull out taxable assets and then Roth assets and not pay any tax on those. I recognize that, yes, tax rates could likely go up in the future in terms of tax brackets, but that doesn't mean that I have to participate in those higher tax brackets. Yeah, I got an album. I mean, but I'm not a rapper.

• 6:03Brian Preston?

  He is right about one thing. You do need to have a plan. That's why if you listen to any of our content, you'll notice we talk about people who are young and have income taxes, effective tax rates. And 25% take advantage of the Roth that way your money grows completely tax free. If you're you know effective tax rate if you take the federal and state it's somewhere between 25 and 30%. You're kind of in that gray zone. You need probably pay attention to what your age is, what your goals, when you want to leave the workforce. If you're over 30%, you probably do want to consider the traditional and here's why. Is because what we have found is that especially if you leave the workforce before you have to do required minimum distributions. As soon as your earned income, your wages or your, you know, your business income falls off of your tax return.

• 6:48Brian Preston?

  Your tax rates fall to the basement in a lot of cases and that creates exactly what you're talking about. An arbitrage situation where maybe you're at the tippity top tax rate. But then when you're in retirement, you can legally do conversions and other tax planning strategies. It puts you at the lowest tax rates and turn that money into Roth. It's it's a beautiful scenario. So he does. He is right. You do need a plan. But the 401k is not a trap. It's actually a very beautiful tool that can maximize and help you build wealth.

• 7:18Speaker 08

  Always extra meat. It's just going on the credit card. My name is Dan Carney and I haven't checked my credit card statement in three months. You've got to be able to enjoy the life you want to live. Of course, I would love some guac. The dream of owning a home is dead. I do digital marketing for a dentist's office in Brooklyn. If I'm never going to have a family, why deprive myself of daily impulses? I finally have a katana now. That is one of those words where if you say it enough times, it just stops bothering you. I will never make myself coffee. This was a nice little gift from Bank of America. If I want something, I just get it delivered. Vladimir, hey, it's so good to see you again. Thank you so much. How's how's the family? Why leave the house? You know, I'm I'm busy. Phone charger, laptop charger.

• 7:59Speaker 08

  Here's the thing, there is no future. There's nothing. I pay $200 a month to ChatGPT to give me financial advice. That big purchase that you've won, you can just get that. Drinks on me. I used to be stressed out all the time. Grey goose martini. Now I'm never stressed. Five beers, please. We're all gonna die. It's a great. I'm just gonna die with a little bit more credit card debt. I can live with that. I have another one. Who cares? Sorry, who is this? Collecting what?

• 8:27Brian Preston?

  Look, the banks don't start calling you a month, one or two. They call you maybe a month four. It is the same way for people who don't pay your income taxes also. Just because the government doesn't start sending you letters immediately, doesn't mean you're making good financial decisions. I know that was a complete joke, but there is a lot of reality for what I see with the general public and the typical American is that they would rather just ignore and pretend everything's okay than taking an active role in being the star of their action adventure financial film.

• 8:57Speaker 03

  There is a behavioral thing that when we get so used to just swiping for all kinds of consumption purchases, it does start to feel really, really easy. And it does become those things that he mentioned, oh, I'm paying $200 a month on ChatGPT. It's not just that subscription. It's I can afford anything in the world, $100 at a time, $100 at a time. I can even swipe my credit card. And so long as I make my minimum payment, the bank's not going to begin calling me. But that is a hole that the more you do it, the deeper it gets and the harder it is to get out of.

• 9:27Speaker 00

  Anything that you regret buying?

• 9:29Speaker 09

  Just the stewardship that I had with my money. I got to a point where I enabled the people around me just to like $500,000 a month. Yeah. Like it was on a month, bro, like on clothes, on trying to do stuff on eBay. Like, bro, it was a lot.

• 9:49Speaker 03

  I think we see this a lot, a lot of folks, especially those that are first generation. Maybe they didn't come from a household where there was a lot of wealth and they hadn't been taught how to make financial decisions. A lot of time, the people with whom they surround themselves tend to take advantage of them. Oh, you have this huge, you make $100,000 a year. You make five, you make a million dollars a year. Surely you can afford to help me with this or buy these clothes or do this thing. And Brian, you taught me about this concept of go-kart math. I think a lot of those people do go-kart math thinking it'll never run out. And for the person that's had this success, it is very, very difficult to say no.

• 10:23Brian Preston?

  When I was doing lifeguard training back in high school and college, because I lifeguarded, that was one of my crazy jobs. They teach you, don't swim near the person that's struggling because they'll drown you too. You have to sneak up behind them to kind of put the whole, you know, grip under their chest to pull them into safety. You have to do that same thing for your personal finances. Look, we love our family members, but if you are sinking because of the pressure of them, are they better for that too? That's that's just not sustainable.

• 10:53Speaker 00

  That's right. This episode is brought to you by Indeed. You're ready to level up your business, but the pressure to find the right person to make that happen is intense. Indeed sponsored jobs can help carry the load. It boosts your job post to help it reach quality talent fast. Cut through the chaos with Indeed sponsored jobs. Get a $75 sponsored job credit at indeed.com/podcast. Terms and conditions apply. Hiring now? Then this is a job for Indeed sponsored jobs.

• 11:24Speaker 10

  Low energy, unfocused, foggy? You might be dehydrated. Gatorade Zero powders have been scientifically designed to help improve hydration balance in the body. With a clinically proven electrolyte blend and no artificial colors or flavors. Great tasting hydration, no matter where you're going. Shop now online or at retailers nationwide. Gatorade hydrates better than water. Is it in you? Symptoms noted are signs of mild to moderate dehydration. Consult a healthcare professional if symptoms persist.

• 11:53Speaker 11

  You've sacrificed your whole life to get here. I'll be jacked. Yeah, I played 10 years in the league. And I always explain this to people like, bro, you give somebody a five-year, $100 million contract, right? What is it really? It's five years for 60. You're getting taxed. Do the math. That's 12 a year. You know, that you have to spend, use. Save. Save, invest, flaunt, whatever, however. Just being real. I'm gonna buy a car. I'm getting my momma a house. I'm gonna do... Everything costs money. So if you're spending $4 million a year, that's really 40 million over five years. Eight a year, you know? And now you start breaking down the numbers. It's like, that's a five-year span of where you're getting 8 million. Can you make that last forever?

• 12:36Speaker 11

  And you always hear the people who ain't us and ain't been in the position like, oh, well, that would last a lifetime. Yeah, this job that I sacrificed my whole life for, they are giving me that. I didn't ask for the certain dollar amount or whatever. But we weren't taught about no financial literacy and all the way... There's the preacher right there. They weren't taught this skill.

• 12:56Speaker 03

  After taxes, after all that, 12 million a year, that's not gonna be enough to provide, generally speaking. I disagree with that premise. I think that most folks... ought to be able to, even if they only make $12 million for a five-year period, that ought to be enough wealth to be able to last you for a lifetime. Agree, disagree, want to fight?

• 13:13Brian Preston?

  When I was in my twenties and early thirties and, and working with professional football players, basketball players and golfers, it was the football players that gave me the most trouble. Because I had the hardest time trying to explain to them that their contracts were the worst out of all the, the, the sports that we represented. Their longevity was the least amount. So essentially what he was describing, that's all the money you're going to earn in the, in your entire career. That's what you need to act like. Now, maybe you'll be fortunate, you turn out to be Tom Brady and play into your 40s. But that's not the reality for most.

• 13:47Speaker 03

  But he said something so wonderful there, right at the end. He said, man, I was never taught about this, never learned about this, never had the education. So no matter where you are, whether you're making $12 million a year or $12,000 a year, it's never too late to begin increasing your financial education. It's why we even do the show. It's why we have the Money Guy Show. It's why you can go out to moneyguide.com/resources. Check out all of our free resources. Check out all of our free content out there. And when you find yourself in that place where you just don't know what you don't know, it's a great time to maybe consider taking the relationship to the next level and getting some professional help.

• 14:22Speaker 12

  I didn't realize that if the average year, the money printer goes, call it eight to 10%, even in the Western countries, even in the OECD nations, and the average return on the S and P 500 is, call it nine-ish percent, including dividends, maybe 9.7, maybe a little less, that it means that all of the work of the S and P 500, all of the value created there is actually the money printer. That to me was startling. That's oversimplified. That, the fundamental notion that in a closed system or even an open system, when you're printing money at the rate of eight to 10% a year, everything is losing value. And the things that appear to be gaining value are not gaining value. They're just keeping you even.

• 15:05Speaker 12

  So you can put all your money in the S and P 500 and you're not gaining any relative wealth at all.

• 15:11Speaker 12

  That's a startling insight.

• 15:15Speaker 12

  When you really think about the entire value of the S and P 500, on average, over a long period of time, not even a long period of time, is equivalent to the money printer. That was a shock to me. I just didn't get it. I didn't understand it, even though I I agree with that. talked finance for 20 plus years. I'm still a professor at NYU Stern, at Stern Business School. I have almost, actually more than 1,000 former students, and I still didn't get it until I'm age 58.

• 15:39Brian Preston?

  Where I feel like he's disconnected there is that, yes, there is a problem with the printers. That's why you have to get on the right side of what you're doing with your money. But to say that there is zero value and there's not economic expansion because it's all just the printer, just feels very shallow in his understanding.

• 15:57Speaker 03

  Yeah, monetary policy is a very complicated thing to try to unravel. But I think what most people, the average American can understand is that, man, I went and bought a gallon of milk last year, and that gallon of milk costs more this year than it did last year. I went and bought a loaf of bread. That loaf of bread costs more today than it did this time last year. That's what inflation is. Inflation is the rising cost of the goods that we consume. And so, we know that in a long enough timeline, the average rate of inflation that we see in this country is around 3 to 4%. Even though there are periods where, yes, we could see 8% inflation, 9% inflation, that has been true. But on average, reversion to the mean is a real thing, and inflation is somewhere around 3 to 4%. Now, when you look at the

• 16:38Speaker 03

  actual return of the S and P 500, I take $100 of my dollars and I put it in the S and P 500, or I put my, part of my paycheck into my 401k and invest in that. Over the long term, that's made somewhere between 9 to 11%, depending on the time period that you're looking at. So, if my dollars can grow at 9 to 11%, but the things that I consume are growing at 3 to 4%, I am going to create wealth. I'm going to be able to outpace that inflation and keep up with the rising cost of goods. I think that's what the average American ought to focus on, and that's why we do things like, save for the future, invest, let our army of dollar bills work for us, so that it can pay for our future selves.

• 17:20Brian Preston?

  I think what he did, if, based upon what I'm just putting together in my head, is if you look at crazy years like 2008... During the pandemic of 2020 and even the beginning of parts of 2021, the government does crank up the printing press to crazy degrees and they flood the economy with these things. And that's where you do see these periods of inflation and other things. But it is exactly what you said, reversion to the mean is that why do you think real estate almost doubled? Is because the market quickly adapts and adjusts? So yes, in the meantime, you could do it cherry pick the data and say, the market was up only 9% and the money supply increased 9% in that one year. But when you actually spread it out, when in doubt, zoom out. And I think you see exactly what you just laid out.

• 18:03Brian Preston?

  And that's why you have to be careful where you get your data from.

• 18:06Speaker 13

  Yeah, I'm Greg. I'm a 26 year old software engineer and I've got about 10 grand in a high yield savings.

• 18:11Speaker 14

  Greg, I'm gonna stop you right there. You have your money in a where?

• 18:15Speaker 13

  A high yield savings.

• 18:16Speaker 14

  Greg, can you give me one good reason why you were saving all that money instead of using it to buy a professional sports team in 1995?

• 18:22Speaker 13

  Sorry?

• 18:23Speaker 14

  Professional sports team, St. Louis Rams, Seattle Supersonics. You know how easy it is to make $5 billion buying one of those babies in 1995?

• 18:30Speaker 13

  I wasn't alive.

• 18:32Speaker 14

  I was. Was your excuse.

• 18:33Speaker 13

  You'd have to ask my parents.

• 18:34Speaker 14

  Can't rely on mommy and daddy, Greg. You walk in there with a checkbook and a good attitude, sit on that for 30 years and I guarantee that investment grows 4,000% every time. My friends and I do it all the time.

• 18:44Speaker 13

  You do it all the time in 1995?

• 18:47Speaker 14

  It's the perfect time to buy, Greg. It was then and always will be. The dawn of a new millennium.

• 18:51Speaker 13

  Do you own a sports team?

• 18:52Speaker 14

  I do. Houston Oilers.

• 18:54Speaker 13

  They're not a team anymore.

• 18:55Speaker 14

  Paul?

• 18:57Speaker 14

  Next caller.

• 18:58Brian Preston?

  If anybody's in debt, especially with consumer debt, credit cards, nobody is better at getting you out of debt than Dave Ramsey. So I feel like before we start picking on and creating farce videos that, you know, you go buy a sports team because Dave yells at his people. Um, I, I will give him his roses. Nobody gets you out of debt as well as Dave does.

• 19:18Speaker 03

  I do agree with you, Brian, that, uh, when it comes to getting out of debt and making wise and sound financial decisions for those starting out. I think Dave is a fantastic resource there, but there are other fantastic resources out there as well, like the Money Guy Show.

• 19:31Brian Preston?

  Would you say Bo, there's a better way to do money?

• 19:33Speaker 03

  I would say there's a better way to do money. If you want to know about that better way, we'd encourage you. Go to moneyguy.com, check out all of our archive, all of our articles, all of our videos, all of our resources, all of our tools that you can use to do money better.

• 19:47Brian Preston?

  Well, well done, content team. Thank you for putting these together. Thank you, thank you, thank you for tuning in. I'm your host, Brian. Guys, thanks so much for tuning in. Money Guy team, out.