3 Ways to Make Your Kid a Multi-Millionaire

Want your kids to live like millionaires without sacrificing your own financial future? We break down three powerful ways to set up your children for long-term wealth, plus what parents must do (and avoid) to make sure the money lasts. Then stick around as the team gathers questions from out in the wings, including a spicy question on hiding money. 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. http://nordvpn.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

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• 0:31Speaker 01

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• 1:04Speaker 02

  Brian, I am so excited about this because as parents, we always want to think about, okay, what can I do to set my kid up? What can I do to influence my child so that they might be successful in this life? And today, we want to share with you guys three ways that you can do that for your kid.

• 1:24Brian Preston?

  Well, we talk about compounding interests is the eighth wonder of the world.

• 1:28Speaker 02

  I think Michael Scott said that.

• 1:29Brian Preston?

  If you want to know, see, concrete proof. This is so fun when you get to play with calculators and others to see if you just open up time, the powerful element of time, what does it do? And I think about like children, because there's so much content out there where people are saying, hey, I've got my newborn, you know, I'm going to pay him to be a baby model and all these other things. So I think it is important, if we could go through what are these three key elements? And I kind of gave a hint with what I just said. Let's talk about scenario number one, lump sum investing at the beginning.

• 2:04Speaker 02

  Yeah, this is pretty straightforward. If you say, okay, I want my child to be a multimillionaire. By the time that they get to retirement, you could make the choice that on the day that your child is born, you could make a lump sum investment. If your goal is for your child to be a millionaire, by the time they get to 65, all that you would need to invest on the day they're born is $1,544. Just a little over 1,500 bucks to become a millionaire.

• 2:34Brian Preston?

  What I think is really crazy about that is, is that your contribution is only .15%. Remember we're decimals. When we're talking about percents, you know, you get that as two, you have to move it over. So if you had thought about what that actually looked like on paper, that'd be .0015 of the total value is actually coming from your contributions. The other almost 100% is specifically coming from the growth.

• 2:59Speaker 02

  It's unbelievable. And so you may be saying, but oh, man, guys, I didn't, I didn't catch it right when my child was born. I've got a two-year-old, a three-year-old. Well, don't fret. We have a resource for you. If you go to moneyguide.com/resources, we have a resource called, "Are You On Track to Become a Millionaire?" And we actually show this for every age from zero all the way to 65. We show what lump sum would need to be invested at that age in order for it to turn into a million dollars by the time you get to 65. So if you have a two-year-old, three-year-old, five-year-old, eight-year-old, you can go see what lump sum would be required to do that. So that's option strategy number one for making your kid a millionaire.

• 3:39Brian Preston?

  Okay. What if you're one of these people who says, I want to, I want to spread this out a little bit. I don't want to do a lump sum. So we even did the calculation and said, hey, what if you were trying to figure out what do we need to save on a monthly basis between the, from the time your child was born all the way up to 18 to still kind of reach that millionaire status? What does that look like?

• 3:59Speaker 02

  Yeah. So we know that in order to become a millionaire at age 18, you would need $9,274 by the time that you get to 18. So the question becomes, how much do you need to save, starting at zero all the way till 18 to get to that $9,200 number? And the answer? $15.44 a month. So we're talking about maybe the cost of a coffee, maybe two coffees a month to get you, or to get your child to millionaire status by the time they retire. I don't think, you know, you said, Brian, when you were in, when you had your morrow moment and you heard about what it, what it would take to become a millionaire. I think it was a

• 4:40Brian Preston?

  $100 a month. That's what he just threw it off as a comment is, hey, I'm so jealous of every one of you guys because if you would just start saving a hundred dollars a month, you'd be a millionaire by the time you retire.

• 4:49Speaker 02

  And you thought in your mind, hey, I can do a hundred bucks. Well, now if you're a parent thinking this, you're thinking 15 bucks a month? That's all it was take? That it, it does not seem like that's an incredibly difficult hurdle to get over.

• 5:01Brian Preston?

  Well, and it's also one of those things, if you think about what is that meaning? It's back to my math again, that 0.33% or if you look at it in the true mathematical term, 0.0033 of that million is from the contributions.

• 5:16Speaker 02

  Absolutely.

• 5:16Brian Preston?

  Once again, rounding error, the rest of it is coming from the value of compounding growth. If you want to ask yourself, what small decision are you making to build your great, big, beautiful tomorrow? This is a pretty big one.

• 5:27Speaker 02

  And so if you want to get excited about this, or if you want to share this, maybe with a young person in your house, again, we have another resource you can use. You can go to moneyguy.com/resources and you can actually play with our wealth multiplier tool. We just showed you, okay, I need to have about $9,200 by the time that I get to age 18. And I know that because of the wealth multiplier, that $9,200 can turn into a million. But if you want to know, okay, if I'm 14, 15, 17 years old, what can the amount of money I have saved up turn into? Go use the wealth multiplier tool and let it be the thing that gets that young person in your life excited about building towards the future.

• 6:06Brian Preston?

  So I like the first two because they just showed you how valuable compounding growth is and starting early. But the reality is for most people, it's when that kid gets the first job, whether they're babysitting, whether they're cutting grass or doing something like that. And you guys know, we're big proponents of offering dollar for dollar matching or 50 cents on the dollar. You choose. You're the employer or you're the parental matcher because you're trying to prime that pump. I love the next case and we're talking about scenario three. What happens when you open up that custodial Roth IRA? Because that's one of the things, not only is it good that your child is out there showing some work ethic, but if you can then put it in the structure of a custodial Roth account, it could be tax-free millionaire status.

• 6:51Speaker 02

  So this is the assumption we went with. Okay, what if your child starts working, gets their first job at age 15? We've already established that what you need to do is by the time they get to 18, you need to have $9,274 saved up. So if you're going to do a dollar for dollar match from the time that your kid is 15 until the time that your kid turns 18, how much would they need to save and how much would you need to save? And the answer, $111 a month. So if you can get your 15-year-old, your 16-year-old saving $111 a month and you can match that and you just do that until they hit age 18, they will be well on their way to becoming a millionaire by the time that they retire.

• 7:33Brian Preston?

  So just kind of to bring it together, that's $222 a month cumulative. So like I said, you back into, remember when you do custodial Roths, you can't exceed what they earned in earned income. You have to, your contributions have to be less or equal to the earned income. But I still think it's amazing when you look at the mathematics of this. Only 1% of the million dollars is actually yours and your child's, working child's contribution. The other 99% is coming from the hard work of your army of dollar bills.

• 8:05Speaker 02

  And but now regardless of what strategy you employ, whether you do the lump sum at birth or whether you do the parent match, there are some things that we want you to think about in terms of, okay, if I'm going to set my kid up for financial success, what are the do's and what are the don'ts? What are the things that I should avoid and what are the things that I should encourage? And the very first thing that we think you should avoid is here's what's not to do. Don't just make your kid a millionaire. I think so often parents think to themselves, Oh, you know what I'm gonna do? I'm gonna set my kid up and I'm gonna do this and I'm gonna do all the work in order to get them to where they need to be. I think if you're doing that for

• 8:46Speaker 02

  your kid, you're missing a huge opportunity. You're just giving them a fish as opposed to teaching them how to fish.

• 8:52Brian Preston?

  Well, a lot of this is the behavioral and the good habits. And realize, this whole concept of turning like $1,500 into a million dollars by the time they reach retirement, there's a lot of life that happens between that. And if you're not teaching good behaviors, good discipline, the understanding and the component of deferred gratification, your child, as soon as they reach majority age, is probably gonna head for the exits as fast as they can. When they either get engaged, they'll want it for the engagement ring, or the first house down payment, they're gonna use it. So that's why there's a lot of things in life, but from an exercise, thought exercise, it's always so powerful. But that's why you've got to make sure you do the behavioral stuff and try to encourage discipline, work ethic, and other things. So that way, it's not just, hey, mom and dad put this money in this account

• 9:36Brian Preston?

  for me, let's actually turn it into a teachable concept.

• 9:39Speaker 02

  I love it. The other thing that we don't want you to do is we don't want you to try to cheat the system. I mean, you already kind of alluded to this. We see people all the time, oh, I've got this brand new newborn, I'm gonna pay them to be a model, and I'm gonna, you know, try to do custodial Ross. It's not worth it. When it comes to our tax code, there are tax avoidance strategies that are highly encouraged that you can take advantage of. But then, there are tax evasion strategies that are illegal. And when it comes to setting your kids up for financial success and teaching them sound financial lessons, you don't want to start with teaching them the lesson that, hey, it's okay to go hard in the gray. Don't try to get overcomplicated or over cute with it.

• 10:22Brian Preston?

  Well, but don't miss here. If you do have a child that, you know, because I think it's so cool. One of my friends in the community, they have a child probably starting at seventh grade, just love going on construction sites with their father, working. I mean, so if your child is at a young age, actually is doing something that shows work ethic, that's adding value to the business. Take advantage of the fact that you can fund these things and do it. We're just saying, don't have the separation from the mathematics without putting in the behavioral side of this because that's where I think that it turns into more of a scheme than not

• 11:02Brian Preston?

  only the true benefit, but also all the behavioral habits that can come from this and yield dividends many years in the future.

• 11:09Speaker 02

  And then the last thing that we don't want you to do is we don't want you to prioritize your kids' financial future over your own. And this kind of flies in the face of what we as parents naturally think. We think we'd do anything for our kids. We'd sacrifice for our kids. But when it comes to your finances, you want to make sure that you are on sound financial footing, that you've done the things that you were supposed to be doing before you try to start building their future financial independence or saving for their future financial goals. So make sure that you prioritize yourself and your well-being first before moving on to the kids.

• 11:44Brian Preston?

  And we'll echo that with the first point on what to do, which is make sure you secure your own oxygen mask.

• 11:50Speaker 02

  That's right.

• 11:50Brian Preston?

  First, just like they tell you on the airlines, it's the same way with your personal finances. That's why if you think about Financial Order of Operations, Millionaire Mission, the reason that the kids are step number eight typically is because we want to make sure your financial foundation is in place before we start loading them up.

• 12:08Speaker 02

  And then the other thing we want you to do is when it comes to your kids, we want you to teach them age-appropriate financial lessons. If you sit down a three or four-year-old and you start trying to talk to them about how advantageous backdoor Roth IRA contributions are, there's a chance you're going to lose them. But if you can walk them through maybe give, save, spend, and what we do with money, and then you can walk your middle schooler through diverted gratification and saving some for the future, then you can teach your high schooler how to balance a checkbook. I'm just kidding. We don't actually balance checkbooks anymore. But you can teach them how to operate a budget and know about debits and credits, then there's a really good chance you're going to set them up for success. And it should be a process. Don't wait until your kid is about to drive off to college

• 12:50Speaker 02

  and say, oh, by the way, I forgot to tell you all about money. Let me go ahead and run you through it real quick.

• 12:55Brian Preston?

  Well, now, give them the slack in the system. I love, we were talking about You know, if your kid goes to camp and you give them money for food and stuff, let's see how they do with actually allocating that over a few days.

• 13:08Speaker 02

  Yeah, let's see.

• 13:09Brian Preston?

  You know, if you, if you, if it's going back to school time for your middle schooler, and you've allocated that you're going to give, you know, 250 bucks to, to, to new clothes in the fall, actually let's work with them on how that works versus just being the unlimited checkbook. Because that's the part that, and, and I'll, and I'll say even for the older kids, I love fast food workers for, because if you get your high school kids working in fast food, or any of those that highly connected to the public, early jobs, they not only learn the value of, of work ethic, but they also realize how crazy the general public is. And if you can learn how to navigate that well, that will be a skill that will serve you for many, many, many years.

• 13:54Brian Preston?

  And you're just not insulated where you graduate from college or trade school or whatever, and then you finally get your first real job, but yet you never had any experience on how to, how to process this. It is a learning experience. It's back to, you said it great, Bo. You're not just feeding your children, you're teaching them to fish.

• 14:12Speaker 02

  That's right.

• 14:13Brian Preston?

  That is, that is the key element to everything we're doing here is we want to make sure that you're, you're, you're being supportive, but not that crutch.

• 14:20Speaker 02

  That's right. You want to teach them the things that they ought to do, not be the backstop that says, hey, no matter whatever happens, or no matter whether you figure this out or not, mom and dad are going to be there. It's okay if you are there and you create a comfortable environment where they know that you've got their back. But ultimately, you're trying to teach them independence in small ways at first, and then bigger and bigger and bigger as they get out of the house. And then another thing I think that you can teach them is that when it comes to money, it's just a tool. It allows us to accomplish the things that we want it to accomplish for us. And so make sure you teach your kids how to save with a purpose. Hey, the reason why we're saving is not to be rich, not to lord it over people,

• 15:05Speaker 02

  not to say, hey, look how much we have, but because money is just a tool that allows us to control the things in our life that we want to control. And if you start early and do a little bit of work, you can really set yourself up for the long term.

• 15:17Brian Preston?

  And, you know, and kind of just a few closing points on this is that, give them some slack in the fact that they're going to make mistakes. They are just kids.

• 15:26Speaker 02

  Like if they burned through the entire camp budget in day one of the camp?

• 15:31Brian Preston?

  But use it as a teachable moment. I even think about, you know, there's nothing wrong when your child gets their first job. If they go spend their money on designer jeans, or in my case, like I had a thousand dollar car with $2,000 worth of subwoofers and amps in it. I mean, those things are going to happen, but just make sure you're using these as teachable moments so they can learn the pattern recognition is, hey, I maybe went down the wrong path of this. How could I have improved it? Because it's that type of analytical skill or that critical thinking that is going to pay dividends well beyond once they leave your house. Now, we wanted to kind of leave you with a parting shot of, okay, we've given you kind of the power of compounding growth. We've given you the structure of how, you know, the things

• 16:14Brian Preston?

  to avoid and the things to do. What are the accounts that you're actually go the vehicles that will actually help you facilitate this?

• 16:21Speaker 02

  Yeah, there's a couple of different options. If you don't have a specific goal that you're saving for, but you just want your kid to begin building some assets, you could use an UTMA or an UGMA custodial account where you can serve as the owner, but they're the beneficiary and they can build money. And then, once they reach the age of majority, those become their dollars. If you specifically want them saving for college and that's a goal you want them working towards, then 529s are a great option. Or maybe like in today's show, you want to think about how do I set my kid up for retirement and I really want them to have that long-term focus, then maybe you even use something like a custodial Roth IRA that can grow tax-free for not just the remainder of their childhood, but even for their entire working career.

• 17:06Brian Preston?

  And then the last account we put on here was just if you have, and they keep expanding access and even expanding ages and so forth. But if you have a child that's got, you know, developmental struggles or special needs, ABLE accounts are something you can go look into. They were set up very similar to the way 529s is that they grow tax-deferred and if they use for the right purposes, they can even be tax-free. And they even have some provisions where as long as they stay below a certain size, right around $100,000, it still doesn't even blow up your access to even other government assistance. So it's just something you ought to do a little due diligence on. But we wanted these, all these accounts are very valuable and will help you on your journey to helping your children

• 17:51Brian Preston?

  learn the habits of how to build their great, big, beautiful tomorrow.

• 17:54Speaker 02

  We love that we get to speak to this kind of stuff. We hope that it's encouraging to you and that it empowers you to be able to build up the next generation of financial mutants. And we also love that every Tuesday at 10 a.m. we can sit right here and answer your questions and speak to the things that you care about. So if you have a question that you want to get our take on, or you want us to weigh in on, make sure you get it in the chat right now, because we have the team out in the wings collecting your questions, because we believe there's a better way to do money. So with that, Creative Director Rebe, I'm going to throw it over to you.

• 18:29Speaker 04

  Yeah, the first question is from Andrew Z. It says, "Hi, B&B. I'm 32, and my work does profit sharing instead of a match. For the last three years, it's been 10%. Should I be trying to match their contribution, or should I be skipping step two of the FOO altogether?"

• 18:49Speaker 02

  Well, you know, it's important, Andrew, to know the difference in what we talk about in step two versus what I think is going on here with your employer-sponsored account. So when we talk about step two, Brian, will you hold the thing up for me?

• 19:02Brian Preston?

  Oh, yeah.

• 19:03Speaker 02

  Uh, step two is so valuable. That is free money. That's get your employer match. So if your employer says, "Hey, if you put a dollar in, we're going to put a dollar in also," or "If you put $3 in, we're going to put in $1.50," depending on how your match is structured. So if it's a certainty that you're going to get that money, "If I put X in, then I will get Y back," then you absolutely have to take advantage of it. It's so important. We even put it before high-interest debt. What's interesting about what you mentioned is that, hey, my employer isn't doing a matching contribution. They're doing a profit-sharing contribution. Well, one of the unique things about profit-sharing contributions is that from year to year, they are discretionary. Your employer gets to choose, "Hey, are we

• 19:47Speaker 02

  going to fund this, or are we not going to fund this?" And oftentimes, it's not structured as a match. It's literally just profit-sharing the employer's going to put in there. So your question around, "Okay, if I'm getting 10% profit sharing, should I try to match that?" That has much less to do with the profit-sharing and much more to do with where you actually are in the financial order of operations.

• 20:10Brian Preston?

  And that's why this is, this is a pretty... Kind of nuts and bolts answer is that it doesn't count as step two. Because what I would hate for somebody to do, that 10% is going to happen no matter, where your involvement is, is how good an employee and how your labor and contribution goes to making the company more profitable, hence the name profit sharing. But assuming that you and everybody you're on the team with are all working the same way, whether you fund that or not, you're getting the 10%. So I would skip step two if there's no true employer match, because what if you had credit card debt? What if you've got some, or you know, some, some type of auto debt or credit card debt?

• 20:56Brian Preston?

  It would be ridiculous if you're trying to match your employer all the way up to 10% while you're still paying 20% credit card interest. It just mathematically doesn't work. So I love the thought, you know, because y'all have heard me tell stories that, you know, if you ever go try out for something, or you're going in the military, go pace yourself off the fastest person, even if it's going to make you throw up and get sick. But that doesn't mean in this situation, since the money's going to come either way, there's no reason to go stress yourself out trying to get to 10% when you might have other stuff. Now, look, by the time you get the Financial Order of Operations, because when you go to moneyguy.com/resources, play it on out, you pay off the credit card debt, now we want you to have the emergency reserves. What if you got laid out?

• 21:40Brian Preston?

  What if you lost this great job? That's why emergency reserves are going to kick in. So you have that three to six months. And then by all means, we get to step five, I want you to go hog wild and try to get into the Roth IRA and then get your held savings accounts and then even transition to step six, where we're even loading up those retirement accounts even more. So that's where you want to pace yourself, is when you get into those steps five and six. But in the beginning, we got to make sure your financial foundation is actually intact and go protect you from the things that you just don't know are coming.

• 22:11Speaker 04

  Yeah, good stuff. Moneyguy.com/resources, if you want to download your own copy of the Financial Order of Operations, or the FOO, as we lovingly call it around here. And thank you to Andrew Z for that question.

• 22:23Brian Preston?

  Rebe, is it weird to sit over there today?

• 22:26Speaker 02

  She said she liked it over here. She said, honestly, I think I'm, I think I'm just gonna stay. Okay.

• 22:32Brian Preston?

  There were some positive comments. I loved it. Um, but I, I still felt like we had the band back together.

• 22:38Speaker 02

  Oh, it feels, it feels good today.

• 22:40Speaker 04

  This morning on my way out the door, I said, I like it when Brian's back. I said that to my husband. So.

• 22:45Speaker 02

  It's a lot of fun.

• 22:45Brian Preston?

  You actually said that?

• 22:46Speaker 04

  I literally said it.

• 22:47Brian Preston?

  Pity pat.

• 22:50Speaker 02

  It's funny. I looked at Jen and I was like, oh gosh, Brian's back today. Ah.

• 22:54Brian Preston?

  Whatever. I always, you know, if y'all want to know kind of the things that we do around here behind the scenes. Whenever Bo's off, I try to be so productive so that I can claim that he's, keeps me from being productive. Everybody knows when I'm around, I take away all productivity. I am the vortex of, I take a lot. I take 75% of the productivity.

• 23:13Speaker 02

  He's fun Bobby over here. It's awesome.

• 23:14Brian Preston?

  But I love, that's why I never did good. You know, one of the hardest things when we went through the pandemic was that we did for a period of time, everybody worked from home. I, you know, and that's where a few of us were like, okay, we still have to come into the office. Cause I just like being around people. That's just part of my personality, I think.

• 23:29Speaker 04

  Well, we kept the show going, so it kind of forced us to get creative.

• 23:32Brian Preston?

  Yeah, we had to keep the show going. That's what it was. It wasn't that Brian had to be around people.

• 23:36Speaker 04

  We could just stop. This is our like job. Okay.

• 23:39Brian Preston?

  Show must go on.

• 23:40Speaker 04

  I digress. All right. Um, Leanda J has a question for you. It says, my husband and I are starting the know your number course, which is great. Any tips on how to figure out an accurate monthly burn rate when we don't know how it will change after leaving the messy middle? And I think this is an interesting question, right? Like when you're in retirement, are you going to be spending the same that you are now? How do you guys think about that?

• 24:07Speaker 02

  Yeah. So what, what often happens is, is when the kids are in the house and when they're young, we end up spending a lot of money on, on them, on the activities they have and all that kind of stuff. And then they kind of grow up and they get more expensive because you buy more expensive things for them. But then they ultimately leave the house and then in theory, your expenses might go down. One of the things that I ask you to think about, Leanne, is if you were to fast forward, you know, like what you're spending now in the messy middle. When you get to retirement, do you think that your expenses are actually going to drop? So I'm spending X dollars now and I'm going to spend X minus messy middle when I get to retirement or. Is it more likely that your expenses might stay the same, but you may replace that messy,

• 24:53Speaker 02

  messy middle spending with other types of spending? Maybe this is the travel, maybe this is the going to visit the kids, maybe this is the upgrading the car, upgrading the house, or whatever those things may be for you. I would think through realistically, okay, what do we think our lifestyle will look like? And now here's what we see a lot of times with clients. If someone is pretty accustomed to a lifestyle here, they often don't retire and reach financial independence and just jump their lifestyle way up. It's pretty much status quo, albeit they're doing other different things like traveling and spending money. And so if you have a good idea of what you spend now and how comfortable your spending

• 25:34Speaker 02

  is now, I would think through, okay, is that a realistic number I should use in the Know Your Number course for future expenses? Or should I increase it or should I decrease it based on the type of life that I want to live?

• 25:47Brian Preston?

  I'm going to answer this. First of all, I understand that she's asking for in future purposes, specifically when you're using the Know Your Number course. But I do want to tell people, when you're just trying to figure out what your monthly budget is, there's nothing wrong with tracking that through traditional means, you know, essentially keeping up with the receipts and other things, but you're using apps, like you need a budget. But then to get to her question, because I love that we have this now with the lens of this is the Know Your Number course. I like the thought of daydreaming and then modeling it. And we do this with clients all the time is that as they're trying to figure out what does retirement look like? Why not? Because you have the tool, you have the Know Your Number tool, which is going to be this,

• 26:32Brian Preston?

  formulas and calculations that you can pull the different levers and see how it impacts. And I love you could, you could, because that way, just like I have the 3D glasses when you're making big life decisions, you could do the exact same thing with your future retirement. Because we all know that retirement also is going to, in the early years, it's going to be those go-go years. You might actually spend more money in those first few years of retirement than you were making, just because you have so much free time, you're hot and heavy to go. Travel, you got some big purchases you might be making. So, but then we know as you get later years, you might not be spending as much. There's nothing wrong with you daydreaming a little bit, maybe even doing a date night, coming up with the scenarios of what you think

• 27:14Brian Preston?

  your retirement might look like. And then model each one of those scenarios within the Know Your Number tool, and you will figure out very quickly, kind of the different visions for what the future could be. You could have a bare bones minimal, you could have lavish, and then you could have what you think is going to happen. That's even better than, because normally in the 3D, I say, don't skip the do do plan. But in this one, since you're daydreaming, it can be much, much better than having to do, you know, an all hands on deck, everything didn't work out.

• 27:43Speaker 02

  I love it. Another thing I love hearing is I love hearing that you and your husband are doing it together. That y'all are making this an activity. We're actually going to dream and vision cast for your combined future. What an awesome way to make sure you stay on the same page, especially in the messy middle. Because I don't know about you, Ruby, in the messy middle, there's a thousand different things that can pull us in a thousand different directions. So if you can say grounded on, hey, here's the ultimate goal that we're working towards, here's why we're making the money decisions that we're making, and you do that collectively and you revisit that, it will help you stay calibrated and pointed towards those goals.

• 28:18Speaker 04

  Absolutely. Leander, great question. I hope that helps you guys as you go through the Know Your Number course. If anyone wants to join them or just see what that course is all about, go to learn.moneyguide.com and you can check out the Know Your Number course, along with our other products as well.

• 28:33Speaker 00

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• 29:04Speaker 05

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• 29:34Speaker 04

  All right. Ryan T. has a next question for you. "How can I leave a future inheritance to my daughter, who is eight years old, that inhibits my ex-wife from having access to it? Thanks."

• 29:51Speaker 02

  All right. So this is... It's spicy. This is a...

• 29:54Speaker 04

  I should have had a spicy warning on the beginning.

• 29:56Speaker 02

  This is a nuanced question because personal finance is personal and we don't know your unique circumstance, like where you live and what state laws you're subject to. So we can't give you specific advice. What we can tell you is that oftentimes, when it comes to estate planning, one of the things that you might say is, "Hey, I have a goal for my dollars," and this goal is very, very specific. "I want my dollars to be able to take care of this person and serve this person's needs, whether it be their health, education, maintenance, support, or any other type of expense I want to pay for. And I want to make sure that it happens over this certain timeline." So if I have an eight-year-old daughter, I want to make sure that this money provides

• 30:40Speaker 02

  for her while she's a child until she's 18. And then even after the age of 18, I might want her to get some access to this, and then I want her to get maybe more access to it at 25, and then more access to it at 30, or something along those lines. If that is the type of structure that you are looking for in terms of being able to control the dollars posthumously to make sure that they are used in the way that you intend, what you often see set up is some sort of trust structure where you have either a trust established that's funded today, or maybe even a testamentary trust, which means it's just established in your will, that says, hey, when I die, I want assets to go into this trust and I want the trust to operate in this way to serve this person.

• 31:25Speaker 02

  Now, that's not specific advice telling you to go do that. You probably, if you're trying to accomplish this goal, ought to meet with an estate attorney and lay out those specific goals and they will tell you in your state, what's the most likely way to be able to accomplish those goals.

• 31:38Brian Preston?

  Well, I think, because at first, when I read this, it was like, woo, that's kind of spicy. But this is not too different than, we have a lot of our clients have had this asked of me so much that it seems more commonplace where people have adult children and they'll say, hey, I want to make sure that this money I'm leaving behind, I don't like my in-law, meaning sister-in-law, I mean, daughter-in-law, son-in-law, you know, replace whatever version it is, but I want to make sure the grandkids, in case something happens to my son or daughter. I want to protect. That's exactly what Ryan T., because, look, also, when you first read this, like, oh, it sounds like they have a really complicated relationship. But you never know, drug addictions and other things, there could be other extenuating circumstances

• 32:23Brian Preston?

  that, you know, you want to have control or protections because ultimately, the beneficiary is your eight-year-old daughter. So I love the way you answered that, is I do think that an attorney, likely a trust structure, is going to be able to do everything you want. I would just tell you to do the research, do the homework before you go, just understand your whys. You don't have to speak like an attorney. You just have to kind of know what the intent was, what the purpose is, you can communicate that effectively with the attorney. Because remember, they get paid by the hour typically, or how complicated the project it is. So the more homework you do, you'll get the dividend in the bill by it being a little bit smaller. The other thing I was gonna say is, because just with what we do for a living, I see all types. And I sometimes, and that's why you have to be careful what

• 33:06Brian Preston?

  estate attorney you talk to, is I've seen estate attorneys. Who will be overly complex.

• 33:11Speaker 02

  Oh, yeah.

• 33:12Brian Preston?

  For the sake of being overly complex. It's like they're selling you your legal document by the pound. Instead of by what it does. So be careful and know the why of why you're creating these complicated estate structures. Cause what, one of the things that we've had to deal with is we have parents who should create these complicated trust structures. While their children were young and then the children turn out to be extremely successful. Didn't use these assets, but now they have to every year get this reminder of this grossly over complicated trust structure that the parents left behind, whereas that money would have been much better served. It's at 30, 35, it just went to the kids.

• 33:54Speaker 02

  Yep.

• 33:54Brian Preston?

  But they created these very complicated trust assets. And it just seems, sometimes seems like, were they thinking about what this is going to be like to administer? After they've left the earth. And that's what, so be kind. When you design your estate documents and remember you want this to be a legacy of a good. Not something that's a reminder of, oh my gosh. Can you believe so and so structured this thing so complicated? I think it takes away. So you just have to understand the why and find the right attorney that kind of will keep it as simple and as complicated as it needs to be to meet your wishes. But also be kind to your heirs in the future. So they're not creating a long-term legacy of complication.

• 34:38Speaker 02

  Yeah. Another thing just to remember, and oftentimes parents kind of forget this is your young children will not stay young children forever. So while you may put together a plan in place for your daughter right now, while she's eight. When she's 22 years old, that same plan may not be the one that makes sense. So oftentimes as you age, as your net worth changes, as your children's age, as individuals in your life change. You want to make sure that you keep your, your estate documents updated. It's not, not something that has to happen every single year, but it is something you just don't want to get 30 years in the future. And that plan that you had 30 years ago is still the plan in place. And we've seen that happen where either state laws have changed or even circumstances were changed. But what had to happen was that 30 year old will.

• 35:23Speaker 02

  So you want to make sure that you keep that updated and refreshed as you move through time.

• 35:29Speaker 04

  Great. Ryan T, I hope that helps you think through a complicated question, but hopefully point you in the right direction. Thank you for being here and asking it today.

• 35:37Brian Preston?

  And thanks for a little spice.

• 35:38Speaker 04

  Thanks for a little spice.

• 35:41Speaker 02

  What was that thing you always used to say from that movie about the spice?

• 35:44Speaker 04

  Oh, yeah.

• 35:45Speaker 02

  What was that thing?

• 35:45Brian Preston?

  Oh, spice must flow. That's a completely different spice.

• 35:48Speaker 04

  Not the same type of spice.

• 35:49Brian Preston?

  That's a Dune reference.

• 35:52Speaker 04

  Not that you would know.

• 35:53Brian Preston?

  Bo.

• 35:54Speaker 04

  You're not nerdy.

• 35:55Brian Preston?

  Bo is just, he wants to be a nerd so bad. He really does.

• 35:58Speaker 04

  He's not trying very hard.

• 36:00Speaker 02

  I keep good company, right? I keep.

• 36:03Brian Preston?

  Y'all heard me. I mean, this is, this is one of the side things. I get so mad at Bo because he's so dagum smart. So he's got all the components of nerdness, but he's also somehow, God, when he was making Bo, got confused and let him have the athleticism, the good looks, the muscles, all of it. It just, I don't know. It's sickening.

• 36:21Speaker 02

  Nah.

• 36:21Speaker 04

  Rude.

• 36:22Speaker 02

  Rude.

• 36:23Brian Preston?

  He knows it. That's why he's not offended by it. He's like, oh, stop.

• 36:27Speaker 02

  Spice, spice must flow.

• 36:28Speaker 04

  Okay.

• 36:29Speaker 02

  Spice flows.

• 36:32Brian Preston?

  I do give you credit. Weren't you watching Star Wars with your kids?

• 36:35Speaker 02

  Uh huh. We did. We did. We did.

• 36:37Brian Preston?

  Going through the movies?

• 36:38Speaker 02

  We didn't get through all of them, but we started and we got through the first one and a half. So we were like, it's still on the docket. We're getting there.

• 36:44Speaker 04

  By first, do you mean the original?

• 36:46Speaker 02

  The original.

• 36:47Speaker 04

  Okay.

• 36:48Speaker 02

  The original.

• 36:48Speaker 04

  Just checking.

• 36:49Brian Preston?

  You mean 1977?

• 36:50Speaker 02

  They didn't come out.

• 36:51Brian Preston?

  Episode, episode four.

• 36:52Speaker 02

  Yes. They didn't come out chronologically, right? From what I understand.

• 36:56Speaker 04

  Right, right. See, I wanted, I wanted to know.

• 36:59Speaker 02

  No, first in terms of like.

• 37:00Speaker 04

  How much you actually knew, Bo.

• 37:01Speaker 02

  The oldest.

• 37:03Speaker 04

  All right. Are you ready for the next question?

• 37:05Speaker 02

  Yes, ma'am.

• 37:05Speaker 04

  I've got one queued up here from Need a Tumblr. It says.

• 37:10Brian Preston?

  It's not a Tumblr day, is it?

• 37:12Speaker 02

  Is that a Tumblr day? You want to say something for next?

• 37:13Brian Preston?

  The last question also said, is it a Tumblr day?

• 37:16Speaker 04

  I almost just skipped the name, but I could, I. I wanted to ask the question, so here we are. Need a Tumblr says, hello, Money Guy team. Just read Millionaire Mission. Mind blown.

• 37:29Brian Preston?

  This person is trying to get a Tumblr.

• 37:32Speaker 04

  Thanks for the Millionaire Mission shout out.

• 37:33Brian Preston?

  Flattery gets you everywhere.

• 37:35Speaker 04

  By Brian Preston. And he says, I'm especially rethinking HSAs. As someone slightly risk averse, is there anything that should keep you from moving to a high deductible plan? Because obviously you need a high deductible plan to have an HSA and take advantage of that. So you can, can you kind of break down some of that for him?

• 37:53Brian Preston?

  Well, here's the good news, Need a Tumblr, is that, and this is, I kind of feel, it's not dirty, but it's just the reality of the planning with health insurance. You can change every year. So you don't have to, it's not like, there are financial planning concepts that they, they change over time, but that we, sometimes you get very nervous because if you pull this lever, you're stuck with that decision for the rest of your life. And you're like, oh my gosh, the weight of this is heavy. No, here's the great news with a health savings account, as long as you qualify and have access to that HSA eligible high deductible plan, you could choose it this year because maybe you don't have any procedures coming up, you don't think you're doing any family planning,

• 38:36Brian Preston?

  and you're young and healthy, rock and roll, this thing might be your benefit. But then fast forward to next year, your open enrollment time comes around and you're like, oh man, this is the year, I'm going to load it up, we're going to expand the family. I know I've got some procedures coming up, or I'm of that age where things are just going to be expensive because of some tests I have to do this year. It's completely legal and even encouraged, just more of financial mutant behavior 101. Go exploit, you can jump in, you can jump out. That's why you don't have to have so much fear that you're going to screw this up. You just need to do the homework and the preparation, measure twice, cut once, to make sure you nail the decision.

• 39:16Speaker 02

  Now, I'm gonna say this, but I don't like saying it, but I'm gonna say it, uh, cuz we love HSAs. I mean, they're so, they're like Roth IRAs, but even just a touch better because you get a tax deduction the front end. So, we absolutely love them, but there are circumstances where it does not make sense to opt into the high deductible plan, which means that it's, you're not gonna be eligible for the HSA. And we see this all the time. If you have an employer and they're offering you some Cadillac insurance, where insurance where you gotta pay like a $10 copay and you got a $20 deductible and you got a $30 out-of-pocket max and it's all employer paid, well, it would be crazy not to take advantage of that. And there are some employers that will make it that way. And so, what you wanna do

• 40:00Speaker 02

  is you wanna do an analysis to determine, okay, if I do the high deductible plan and I'm able to save in the HSA and take advantage of that, am I going to come out better? Is there a higher probability that I'll be better off than if I were to take another health insurance option? But some employers subsidize those Cadillac plans so well that they make it, it's like it is an offer that you can't refuse. It's something that you can't walk away from. And so, in those circumstances, we'll actually have to tell clients, hey, we're looking at your enrollment options and as much as we want you to be able to take advantage of the HSA, this is better insurance and you ought to take the better insurance because of how valuable it is. So, you wanna make sure you do that assessment at open enrollment every single year.

• 40:43Brian Preston?

  Well, and that, the whole discussion is, your employer's paying that cost as part of your compensation? And if you don't take advantage of that, you're kind of leaving that

• 40:52Speaker 02

  Leaving money on the table.

• 40:53Brian Preston?

  On the table. And look, and sometimes, these are plans that they'll have the Cadillac plan that they're highly subsidized, and then they'll also have the high deductible plan right next to it. It's just the spread is just not that different in what you're paying on premiums because of how much they're subsidizing that I just can't in good faith tell you, yeah, this is, you should take advantage of this just so you can go save it, you know, but. It's worth sharing those details. So you, once again, it goes back to that homework component. Make sure you measure twice, cut once, because this is, this is complicated stuff, but it doesn't have to be stuff that you don't get out of, meaning that you, every year, you get to do, get a do-over and reevaluate.

• 41:34Speaker 02

  Love it.

• 41:35Speaker 04

  Love that. Personal finance is personal. So your insurance plan, that's going to depend on your situation. And I hope that that gives you some food for thought. And thanks for reading Millionaire Mission.

• 41:45Brian Preston?

  Oh, yeah. Thank you, thank you, thank you.

• 41:46Speaker 04

  So fun to hear. All right. Next question is from Ally G. She's a bit new to the Money Guy Show, which I love. And it's a great, classic question that we all need to be aware of. It says, "Morning. Why do y'all say you can count your employer match and your savings rate if you make under a certain income? What difference does a higher income make? I'm 31 and just found y'all. Love the show." Thank you.

• 42:10Speaker 02

  Yeah, Brent, how come some people can use the employer match and some people can't? Why do we say that?

• 42:15Brian Preston?

  Well, the bigger your shovel is, the more the responsibility falls on your shoulder. And I just get nervous. Look, when, look, life comes at you fast, like Ferris Bueller, where when you're, you're starting out and your income's not that high, I mean, things are expensive. Housing's gotten more expensive, everything. So we wanted to build into our system that yes, when you're not making a high income, can we take into account that social security is going to probably cover a chunk of your retirement? Can we take into account that your employer and that profit sharing contribution and even that match are probably going to turn into large sums of money? Because what's the first account

• 42:57Brian Preston?

  to cross into seven-figure status typically? It's that 401K. And a lot of times, that's because your employer's putting money in there. But now, take it and flip the equation. Somebody makes great income. What happens when you have a great income is that a lot of times, your living expenses will also balloon out as well. You get closer to retirement, and even if you take a 70, 80% of what your income is, It's going to be big. I mean, if you're over, because remember, our numbers are 100,000 for single individuals, 200,000 for married couples. So if you've been making a life for decades at over $200,000 as a couple, and then you get to retirement and you never saved, how big of a nest egg do you think it's going to take to replace all those living expenses?

• 43:42Brian Preston?

  It's going to have a lot of zeros behind it. So we built into the system, because we see teachers all the time, that they may never reach millionaire status with their savings accounts, but because of pensions, because of the social security and other things, they don't need a million dollars. They could be okay with much less than that. But we see people all the time, attorneys and professionals, you know, in specific trades, that they had great incomes, but they retire with $300,000. And you're like, well, how is that? That's one times your income. How are you going to live off that? So we built into the system, with great income requires great responsibility. So you don't have that disconnect when you

• 44:26Brian Preston?

  retire, because you're so far from the social safety net and all those other features. It's built into what we did with the Financial Order of Operations.

• 44:33Speaker 02

  Yeah. And what we see naturally happen is at higher incomes, if you are saving less, or if you're counting the employer match, which is causing you to have a lower savings rate, where that money is going is the lifestyle. So now you're actually even exacerbating the problem. The lifestyle that you need to replace, the lifestyle that you want to be able to maintain in financial independence, has actually gotten even more expensive because you weren't saving the way that you should. So we love the employer match. And by the way, it's still, even if you don't get to count it towards your savings rate, it's still happening. When you do your annual net worth statement, your accounts will be increasing by how much that employer's putting in. But we want to make sure that you are also doing the heavy lifting to build towards the

• 45:18Speaker 02

  great, big, beautiful tomorrow that you actually want to have.

• 45:21Speaker 04

  Did we say the income limits? I was reading the question.

• 45:24Brian Preston?

  I said 100,000 for-

• 45:25Speaker 04

  I want to make sure we call out, hey, if you make X amount,

• 45:27Brian Preston?

  Yeah, 100,000.

• 45:28Speaker 04

  You are not supposed to, yeah.

• 45:29Brian Preston?

  100,000 for single individuals, 200,000 for a household, on whether you get to count the employer match and profit sharing and all the other contributions in your savings rate. And what, where that comes in is people hear our 25% savings rate and they go, these guys, they're clueless. Who can save 25%? Well, you might be surprised if you find out that your employer is, is doing a, you know, 6% match and then they give you 5% profit sharing at the end of the year or something, you're like, holy cow, no, I'm only saving, I'm getting back to that more traditional 12% to 15% that I hear other financial pundits talk about. That's why I love our adaptive system, is that it has enough flex in it. This thing has really been thought through.

• 46:13Brian Preston?

  It's almost like we're nerdy and good with math, is that we've tried to build in the behaviors plus the analytics so you can live your best life.

• 46:21Speaker 04

  That's great. Ally G, thank you for the question and welcome to the Money Guy family. We're glad that you're here. Next question is from user. Yes, it does just say user.

• 46:32Speaker 02

  How early on into YouTube did you have to be to get like very-

• 46:37Speaker 04

  That's a great point, yeah.

• 46:39Speaker 02

  Like not user like 4597342, but just user. Well done.

• 46:43Speaker 04

  I don't know, I just see it says user. And the question says, would you recommend selling funds in an UTMA annually to reset the cost basis as a tax strategy?

• 46:57Speaker 02

  Uh, can you? Can you do that? Yes, sure. I mean, obviously, inside of an UTMA, the way that the kitty tax laws are- by the way, you're the CPA, should I, are you sure?

• 47:06Brian Preston?

  Oh, no, you keep going because, you know, I've been disconnected from actually preparing taxes for probably over a decade at this point.

• 47:12Speaker 02

  The way the kitty tax laws work is that you can generate up to a certain level of income where you'll pay tax at a 0% tax rate, then your kid's tax rate, but over some threshold, and I want to say it's like 2,600, I'm going off memory, then you'll have to start reporting that income at the parent's tax rate. So, yes, there is a- Strategy where you could recognize gains inside and up below those thresholds, not to pay tax on those and reset the basis. My question for you is, is the juice worth the squeeze? Like, is it, is that sort of strategy actually valuable? Or is that majoring in the minors? So what I'd rather you do is instead of spending your time and effort doing that, think, man,

• 47:54Speaker 02

  I wonder if I could get my kid to do some sort of vocation where I could open up a custodial Roth, and we could be saving more and having more going into it. I just don't know that the impact of trying to do some sort of basis resetting for that child is gonna make a ton of sense. Can it be done sure? Is it a viable strategy that you ought to waste a lot of mental calories on? There's a good chance maybe not so much. Agree, disagree?

• 48:21Brian Preston?

  I was over here, I was trying to see, because I grabbed my quick tax reference guide, because I was looking to see the asterisks, because you have to be careful sometimes with custodial accounts, because they'll have little side rules that can exclude certain things. I do, I want to, I have a little different take with user and the fact that, no, no, it's fine.

• 48:38Speaker 02

  Oh, with user, not with me.

• 48:39Brian Preston?

  Yeah, you're right.

• 48:40Speaker 02

  Different take with user.

• 48:40Brian Preston?

  But, but I like the, I like the financial mutant thinking. If you can, if you can find something, a flaw in the, the design or a loophole, I, I think it's great to do it, but I do think you have to put it under the metric of, is, am I doing all the other stuff I should be, the foundational stuff first? And is this a sweetener activity I can do? So I'm not going, I, I don't want to say, I don't want to endorse it, because like I said, I would need to go make sure there's not some caveat I'm not thinking about with, with, with doing this. But I like the mindset, because the mindset is to say, I want to maximize my financial life. And that's kind of what led to Millionaire Mission, that's what led to Financial Order of Operations,

• 49:23Brian Preston?

  is we're thinking about things like this all the time. Is there, are there little maximizing behavior? What small decision can I make today to build my great, big, beautiful tomorrow? Our goal, and that's the point of what Bo was saying, is we want to make sure that it's, it's, it exceeds the hassle factor, because every decision you make has a cost. There's a calorie, there's an incremental decision, a different, you know, you go left, you go right. And we just want to make sure that it, that it actually would read, lead to fruitful results.

• 49:53Speaker 02

  Love that.

• 49:55Speaker 04

  That was great. User, thank you for the question.

• 49:59Speaker 04

  Alana P. is up next. Money guys, love the show. Our family invests 20% plus. We have a three-year-old. I'm looking at 529s, but I'm unsure between investment or guaranteed options. What if she doesn't go to college? And I think that's a question that comes up a lot with 529s. If you're uncertain your kid's going to go to college, how do you weigh those options and pros and cons? You guys are big fans of 529s.

• 50:29Brian Preston?

  I'll give the disclaimer is that we can't answer, we don't know all your details. But I think I give some general guidance that will help this person make the decision. Is what feels risky in the short term, a lot of times, like investing, and you look at the historic performance, is actually not as risky when you spread out what does it look like to be a long-term investor? And when you have a three-year-old and they're not going to go to college for 15 years, it kind of falls in. And then what feels safe in the short term actually can be very risky in the long term. If you think about what happens with inflation and purchasing power, and then the loss of growth that could have come from this.

• 51:12Brian Preston?

  So I can tell you from my own experience share is that I used age-based formulas and did even the aggressive-based age-based formula. Because here's the other homework I would tell you to do on your due diligence when you look at this 529. Even if they have an aggressive age-based system, go look at the strata of what they do to that 529 when your child is three to four years from going to college. And I think you'll quickly see that that term aggressive is more of just a placeholder than it actually being aggressive. Because it's going to do, when they do those age-based formulas, they're still going to, just like a target retirement fund, it's going to have a glide path where it's aggressive while you're decades out, and then it gets very conservative as you get close.

• 51:55Brian Preston?

  I think by the time my daughter was in college, I mean, it was all in short-term holdings, even though it was the aggressive portfolio. So go look at that. And I think it'll help you in your due diligence in answering that question.

• 52:09Speaker 02

  Yeah, and to answer the second part of your question, what if they don't go to college? Let's remember how 529s work. The way that they operate is you put money in, that money grows tax-deferred, and then if you use it for qualified higher education expenses, you can pull it out completely tax-free. Well, what if that last part doesn't happen? Well, the good news is, any money that you put into a 529 plan can always come out of the 529 plan. You don't have to pay taxes on your contributions, you don't have to pay penalties on your contributions. The taxes and penalties are only on the earnings not used for qualified higher education expenses, or K through 12. You said you have a three-year-old? If you're going to have other children in the future, you can always change beneficiaries. So you can roll 529 assets down.

• 52:53Speaker 02

  You could change the beneficiary to yourself if you're thinking about doing some sort of post-secondary education, or doing grad school, or something like that. Or, again, worst-case scenario, you can distribute those dollars to yourself. You can pull them out for non-educational expenses. You can pay the tax, you can pay the penalty. Or, and this is as of recent, there is a provision in the recent tax law changes where up to $35,000 of excess 529 assets can be used to make Roth IRA contributions for the beneficiaries. So you have a lot of, like, get-out-of-jail-free's there. So one of the things we counsel our clients to do is when you're, if you're unsure about your kid going to college, or you have some nervousness around that,

• 53:36Speaker 02

  don't try to fund 100% of college costs through the 529. Don't think about, like, tuition, room, board, fees, books, all of that stuff, and trying to hit 100. Maybe you shoot for somewhere between like a 60% to 80% funding. I'm going to try to save 75% of what I anticipate college being in the 529. And that way, if they end up not using it, not needing it, I can employ any of these other four strategies on how to get those dollars out. And at the worst, at the absolute worst case, I pay earnings and penalty, I pay taxes and penalty on the earnings. But there are ways to get around that and not have to do that.

• 54:16Brian Preston?

  Well, I always, I love how 529s have got, if you know, I was giving out trophies. Most improved, it seems like every tax bill that's come out in the last decade has some provision in it to try to make 529s better. I mean, you think about when they opened them up to where you could do K through 12, you know, private education. That was $10,000 a year. Now it's 20,000, in the upcoming, it will be $20,000 a year. I think about the fact that they've, it's always been, made it easy, because a lot of people think in traditional college, you can use this for community college, you can use it for, you know, trade school. We've even used it for cosmetology school for, for clients. I almost said patients, I don't know why.

• 54:59Brian Preston?

  But that's, that's outside the scope of what we do, but it's, there's just a lot of improvements. And then even adding this Roth provision that you said, I mean, that's, that's kind of cool. And the fact that it's given more and more flexibility. So, so don't sleep on these benefits. Now, remember, it's back to our whole thing. I want you, this is step number eight.

• 55:20Speaker 02

  That's right.

• 55:20Brian Preston?

  After you put your own oxygen mask on, and you have to get your personal finance household in order first. Steps one through seven, before you start loading up the kids' college, because they can take student loans. There's no such thing as a retirement loan. You're just, it's called living in the kids' basement.

• 55:40Speaker 04

  Yikes.

• 55:40Brian Preston?

  And that, which is good. If you, if you choose to do it. If you choose to do it. I love extended families living. That's one of the hardest things about moving to Tennessee is that we don't have as much family in the area. But man, do you know how much more valuable it is when it's a choice? Versus, you remember all those great investments I made in you as you were a child? I'm here to redeem

• 56:05Speaker 02

  Time to collect.

• 56:06Brian Preston?

  That coupon of living in your basement.

• 56:10Brian Preston?

  It's different. It's just different.

• 56:11Speaker 02

  I have a question. You were, um, you mentioned before the last, hey, I'm going on a cruise. If any of you go on this cruise, say hello. Did anybody actually say hello on the cruise?

• 56:21Speaker 04

  Oh, yeah.

• 56:21Brian Preston?

  I did, I did have. Somebody approached me, um, on the cruise ship. He, he came up and, oh, actually I, I was coming out of the men's restroom. If you want to know the true technical, um, and he, um,

• 56:33Speaker 02

  Why share that part?

• 56:34Brian Preston?

  I mean, I just want to give everybody the full details is that, um, it was outside of the bathroom though. It was by the stairwell and gentleman goes, I watch a lot of your content. And I said, really? And he's standing there with his family, big family there. I mean, I'm talking like, I don't know if they're cousins. I don't know if they're brothers, sisters, but it was all a bunch of adults standing around. And I said, oh really? Where are y'all from? And, and he had like, uh, it was an, uh, like an island accent, but he's like, I think Raleigh, North Carolina.

• 57:00Speaker 02

  Okay.

• 57:01Brian Preston?

  Um, the only thing bad that he did was my wife wasn't there.

• 57:05Speaker 02

  Oh, that's right.

• 57:06Brian Preston?

  I mean, cause so she didn't get to hear it. I had to tell her, yeah, somebody, but that was it.

• 57:10Speaker 04

  Recognize.

• 57:11Brian Preston?

  Yeah. So that was, that was the only downfall to it. And then I saw him again by the elevators, like two days. That's the thing about a cruise. You're not exactly jumping on and off. Um, so you go see each other a lot. That's why I wondered when other personalities have had cruises for their fans. You know, one who I'm thinking about, do you think he was just like hanging out by the men's restroom? Or was he out by the elevators or was he just hanging out in his room? I've often wondered, these are the things that make me go, hmm.

• 57:37Speaker 02

  Funny, first time, the person you're thinking of, first time we met them, met him was in a men's restroom.

• 57:42Brian Preston?

  Oh, yeah.

• 57:42Speaker 02

  That would be very first time that we met him.

• 57:45Brian Preston?

  Story there too.

• 57:46Speaker 04

  I actually thought of that too. I was like, you have a lot of like, I was just coming out of the bathroom type stories.

• 57:51Brian Preston?

  I will, I have had somebody say something to me in the bathroom before and that, don't do that. I mean, I, I like when people come and talk to us, but the bathroom I'm a little weird about.

• 58:00Speaker 04

  Just wait till you're outside.

• 58:02Brian Preston?

  Let's get outside the doors. Something about that threshold outside the bathroom.

• 58:05Speaker 02

  That's hilarious.

• 58:06Speaker 04

  Good to know. Good to know.

• 58:08Speaker 02

  It's funny.

• 58:09Speaker 04

  Oh, right.

• 58:10Brian Preston?

  But even if a celebrity is talking to you in a bathroom, it's still awkward. That shows how this rule for me is, is because I ran that person you're talking about. We had a conversation about him and I was like, this is so weird.

• 58:22Speaker 02

  I don't like it.

• 58:22Brian Preston?

  So weird. Don't like this.

• 58:25Speaker 02

  Hilarious.

• 58:26Speaker 04

  Oh, man.

• 58:27Brian Preston?

  Then they told me I'm lucky that his wife didn't come in there because she comes in that bathroom all the time, too. Somebody told me that.

• 58:33Speaker 04

  Oh, you mean the celebrity?

• 58:34Speaker 02

  The celebrity. I was thinking the cruise. I was like, this sounds awful.

• 58:37Brian Preston?

  That facility is nice. That facility is nice. It has a whole makeup area and everything. So I understand.

• 58:43Speaker 02

  I'm tracking with you. I thought he was talking about the cruise.

• 58:45Speaker 04

  Yeah, and I was like, wow.

• 58:46Brian Preston?

  No, no, no.

• 58:48Speaker 04

  I didn't track that at all.

• 58:50Speaker 02

  That's awesome. Hey, you know what? We're happy to have you back. We missed you. We're happy that you're back. Doesn't it feel better when the cruise all together?

• 58:57Speaker 04

  I really mean it. It does.

• 58:58Brian Preston?

  Utopia of the Seas? Because I haven't been on Royal Caribbean in probably a decade. That ship, if you like shows, whoo, it'll knock it out of the park. I mean, their ice skating show was just chef's kiss. The 80 Aqua 2 show, where it's this dive show, but dance show. And by the way, the splash zone, I'm so glad, because with most shows, we try to sit as close. Because it's one of the few places if you're going to go see a really good show, you can get really close and not have to pay a fortune because it's open seating. Don't do that on the Aqua show. Because they, I mean, they just were dousing everybody in the first three rows.

• 59:36Brian Preston?

  Yeah, it was great. It was really good. I will say one unique fact about me. Never went through the buffet lot. I never saw, I didn't get to see what the windjammer looked like on Utopia of the Seas. We just tore up the specialty dining package.

• 59:51Speaker 02

  Was this show sponsored? This was not, this is not sponsored by Utopia of the Seas yet. Not sponsored by them yet. I see, Ruby, I keep seeing one more question in the chat. It keeps coming up. Should we, should we tune in next week at 10 a.m. to see if that one's coming?

• 1:00:08Brian Preston?

  Did somebody go out to ask you what you bench press?

• 1:00:10Speaker 02

  Oh, no.

• 1:00:11Speaker 04

  That one does appear sometimes. I have not seen that one today, though.

• 1:00:14Speaker 02

  No, this one's much.

• 1:00:15Speaker 04

  This one was for you, Brian.

• 1:00:16Speaker 02

  This one's much spicier and much more interesting than that. But you know what? Should we check in next Tuesday at 10 a.m.? Check in next Tuesday at 10 a.m. if you want to hear the answer to the question in the chat that keeps coming up over and over and over.

• 1:00:32Speaker 04

  Do you want to tell people in case they're listening and can't see the chat?

• 1:00:36Brian Preston?

  Yeah.

• 1:00:37Speaker 04

  Are you trying to build that much?

• 1:00:38Brian Preston?

  Including your co-host that doesn't see the chat?

• 1:00:40Speaker 04

  Including Brian Preston.

• 1:00:41Speaker 02

  There just seems to be a lot of questions coming in about your home and your mortgage and up, and we will talk about it next week.

• 1:00:50Brian Preston?

  Oh, I've got the answer for you because of course.

• 1:00:52Speaker 04

  Don't give it.

• 1:00:52Brian Preston?

  Junk.

• 1:00:54Speaker 04

  What?

• 1:00:55Brian Preston?

  No, I'll tell you.

• 1:00:56Speaker 04

  Spicy.

• 1:00:56Brian Preston?

  Later.

• 1:00:57Speaker 02

  Next Tuesday, 10 a.m.

• 1:00:58Speaker 04

  Next Tuesday, 10 a.m. Central.

• 1:01:00Speaker 02

  Be there or be square.

• 1:01:02Speaker 04

  Love it. And in the meantime, while you're waiting for that big reveal next Tuesday at 10 a.m. Central, make sure you go to moneyguy.com/resources and check out our brand new compound interest calculator along with all the other free resources that are right there on the website for you. Lots of great feedback on the compound interest calculator. So, thank you for checking it out. Thank you for the feedback and we love seeing you use it to hopefully just give you that much more confidence in your financial situation.

• 1:01:29Brian Preston?

  It is so wild to me that you guys, because y'all, we launched, I knew it was going to happen, but we launched it while I was gone and just seeing the numbers of people, thousands upon thousands upon thousands upon thousands that are doing it.

• 1:01:42Brian Preston?

  That's so cool.

• 1:01:42Speaker 02

  It's awesome.

• 1:01:43Brian Preston?

  And then knowing how many, and here's just a testament. You guys know we asked for an email address. You have to, and put in the comments just so the new people know, it's not like we load you up and we're going to spam the heck out of you, but it is just so helpful because you know, as content creators, we're always at the mercy of, you know, what if you got deplatformed or what if, you know, the mood of this provider or platform changes? The email addresses are just so powerful to know how many of you are out there and that's why we take it with great responsibility and we don't abuse it. But thank you, thank you, thank you. I don't take it for granted because that's, that's the scary part about being on a podcast that then turned into a YouTube channel and all these things is that you are a lot of

• 1:02:27Brian Preston?

  times at the mercy of the people who control the levers of those platforms. And I just appreciate you guys being willing to share that. And that's what, you know, it's all part of the abundance cycle. We're going to give you as much free love as we can with all the resources at moneyguy.com/resources. And then, but once you reach a level of success, we're going to turn the porch light on for you and let you fulfill the abundance cycle and hopefully give us a chance of becoming your fee only financial advisors. I'm your host, Brian Preston, Mr. Bo Hanson, Money Guy Team, out.

• 1:02:56Speaker 02

  The Money Guy Show is hosted by Brian Preston and Beau Hanson. Brian and Beau are partners with Abound Wealth Management. Abound Wealth Management is a registered investment advisory firm regulated by the Securities and Exchange Commission in accordance and compliance with the securities laws and regulations. Abound Wealth Management does not render or offer to render personalized investment or tax advice through The Money Guy Show. The information provided is for informational purposes only, may not be suitable for all investors, and does not constitute financial, tax, investment, or legal advice. All investments involve a degree of risk, including the risk of loss.