Financial Advisors React to Insane Money Clips

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0:43Bo Hanson:Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses set up required, compatibility and availability varies 18+. Y 'all ready to get wild? Let's see some insane money clips. Brent, I am so excited because whenever the team says insane, we know it's going to be good. I'm 27 and I have no savings. Only broke people would disagree with me on this. Do you know what a 401k is? Absolutely not. Do you know how to mail a check? Not a clue. Day 60 out of 60 of making 10k in 60 days. It just doesn't work that way. Me and my wife, we make about$150 ,000 per year.

1:17Bo Hanson:Poverty line. What? I hire a private chef to cook the meals. Hello, mess. How old are you and how much do you have in savings? I'm 27 and I have no savings. Okay, and what's holding you back from saving right now? I think that money is an idea that allows people to do what they want with their time. And I think most people stress about the value that they have at a specific time in their life. But I like to think about myself as less of a member of society, but more of a member of nature and the universe. Okay, so that's a perspective. You might have a different perspective, a different idea. But even if you do think of yourself as a member of nature and the universe, money for most people is still a necessity in order to do the things that we value.

1:59Bo Hanson:Maybe one of the things you value is being in nature or spending time having activities and making memories of the universe. And to do those things, most often, you have to have some sort of money to be able to do that. And if you want to be able to do those things in the future, you probably ought to be saving some sort of money today so that you can have in the future. First of all, that is a very small inseam on those shorts. They're short shorts.

2:23And also, I can go ahead and tell you, as a person that grew up with everybody wearing cut-off jean shorts, because that's the way all my uncles, when they used to come over to go in the swimming hole, jean shorts can't go in swimming pools because they can mess up your pumps and stuff. So you just got to be careful. He's got all kind of things going on there. But the other thing I was going to say is, look, for somebody who loves nature and wants to be part of the universe and is in his 20s, this is the ideal time to just take a little bit of today to build that great big beautiful tomorrow to utilize that most powerful resource he has which is time put that money to work your future self will thank you and you'll still care about the

3:00Bo Hanson:universe only broke people would disagree with me on this but i have a carefree spending habit towards money a lot of times people will try to criticize my spending habits and they'll be like dude you could save this much a day or if you cut this out you could save this much money at the end of the year listen i don't care i got motion and movement i'm not looking to penny pinch because the moment that I do, I am now controlled by money and I am controlled by dollars. I am going to live my life the way that I want to, and I'm going to earn the money to exceed the spending. It's never a spending issue.

3:28Bo Hanson:It's an earning issue. And honestly, adopting this mindset, 10 X my income. It works. It worked. And look, he's actually laying out something fairly noble that money itself should not be the goal. The goal should not be to stack money, to have money, but rather than to use your money, to do the things that you want to do and focus on the goals that you have and focus on the experiences you want to be able to take advantage of. Now, where that falls apart is yes, so long as you earn more than you spend, you're going to be okay. But if you never save and you've never stack anything for the future, that means for the rest of your life, well into your old age, you are going to have to always be able to earn more than you spend.

4:05Bo Hanson:And most people, as they age, as they get into the twilight years, they want to work less and have more free time and not be controlled by having to show up to earn a wage, if you subscribe to his philosophy, you will never break that cycle. There is a case to be made that you can live this buck wild life and the algorithms will reward you and you'll make millions of dollars. And we know a few of those people and it can work, but I got to be honest with you. They're the outliers. They're the statistical, this shouldn't be happening, but it is. And he might very well be one because I could tell he was sitting in some type of fancy car based upon the stitching of the leather.

4:42And then you could tell, so he's building this life off of his crazy lifestyle, his opulent lifestyle. And it might be working for him, but to try to replicate this in your life and not expect it or expect dividends or for your life to turn out to be the best version of itself is a fool's errand.

5:00Bo Hanson:If you have one penny and melt it down, the copper is worth four cents of metal. That means with just$1, you can trade it for 100 pennies. melt those, and you've got$4 worth of copper. Take that$4, swap it for 400 pennies, and now you've got$16. Every time you repeat it, your money multiplies by four. Until finally, on the 10th trade, you end up with$1 million and a lifetime in prison. There is truth in this, that the cost of creating a penny was more than one cent. So they've said they're not going to create any more pennies. They're done. They're done producing that. The idea here is that, oh, this might be a get-rich-quick scheme, a way to beat and break the system.

5:46Bo Hanson:I don't know that you would be able to extrapolate this out into millions and millions and millions of dollars. And they are true. If you destroy money, that I think is against the law. And it could likely maybe end you up in jail. Maybe. Yeah. Do you know how to do your taxes? No. Do you know how to build credit? Mm-mm. Do you know what a 401k is? Absolutely not. Do you know how to mail a check? Not a clue. Do you know how to balance a checkbook? Nope. Do you know what a mortgage is? No. Do you know what the powerhouse of the cell is? The mitochondria. The what? What's the Pagarin theorem? A squared plus B squared equals C squared.

6:20Bo Hanson:Do you know what moon phase this is? Waxing cursive. Do you know the underlying theme for Of Mice and Men? The impossibility of the American dream. You know, this makes a solid point. I can't. You know what? All these other things have been insane. This one? We do have a problem, I believe, in our education system. A lot of people do not have the basic, fundamental financial skills when they graduate, when they come out. And yet, there are a lot of things that we do know, like the powerhouse of a cell, the mitochondrion. We were talking about this the other day. Do you think the system is rigged against people?

6:56Bo Hanson:Do we think that people, the system wants people to stay uneducated because it's more profitable for that to be the case? There's 60 out of 60 of making 10K in 60 days. So the 60 days have now finished, and my final total is negative$8 ,380. And that's from January 1st, so not exactly 60 days, about four months. That's$2.7K lost in trading and about$5.6K lost in e-com. but I also spent 5K on courses. So without the course fees in total, I almost lost about 3.4. But yeah, I did not make 10K in 60 days. So now we're going to continue and see how long it takes me to make my first 10K. I would love to know what the S &P did during the same month.

7:52Now look, it's two months. Sure. So my expectations wouldn't be very high. It actually could even be down just as much. Well, Andy said starting in January,

7:59Bo Hanson:so first quarter, the actual market was down. But I think it's interesting. A lot of people want to tell you the system. Oh, here's how you can beat the system, make all this money. And it just doesn't work that way. If something sounds too good to be true, if there's some automatic money to be made based on some trading strategy, some option strategy, some e-commerce platform that you're going to subscribe to, that's just not the way that wealth is built. And I actually love that this, I mean, I feel bad for this guy, but I love that he made this video saying, oh, you know what? I did what the internet told me.

8:29Bo Hanson:And man, it didn't work out. But what I am nervous about is now he said, I'm not going to cut my losses. He's just going to work a little harder. Let me just see how long I can keep doing this. Hey, you know what? Put the shovel down. Sometimes it's better to just quit digging and try to change course. That's what I would do. Instead of trying to beat the market, let's be the market, understand the power of index funds and also this concept of the law of accelerating returns, meaning that things are actually speeding up. Innovation is making it where you can make even more money. So don't try to waste your effort.

9:02Don't waste your resources and your money or your time. The most powerful of all three of these, I want you to focus on being the market by being. Study and play.

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9:53Bo Hanson:Spend less time searching and more time actually interviewing candidates who check all your boxes. Listeners of this show will get a$75 sponsored job credit at Indeed.com slash podcast. That's Indeed.com slash podcast. Terms and conditions apply. Need a hiring hero? This is a job for Indeed sponsored jobs. An index investor. So what is your combined household income? Me and my wife, we make about$150 ,000 per year. Nice. Poverty line. What? Got it. And how much do you have in debt? We have about 90K in student loan debt. Oof. Ugh. Didn't have to react like that. Ah, yes. That's just a lot of money.

10:29Bo Hanson:Okay. And your credit score? 700. Great. Okay. So, good news. Looks like we're going to be able to approve you for a loan of$210 ,000? That's all? Are you serious? That's not really enough. We need, like, multiple bedrooms. I don't even think that amount of money would get us a bedroom. Yeah, we can look into alternative options. Might I suggest divorcing and finding a richer spouse? No, I'm not going to do that. All right, well, good luck renting the rest of your life, nerd. Okay, so how much income do you currently have? Zero dollars. I'm 17. Okay, how about liquefiable assets? Zero dollars.

11:06Bo Hanson:I'm 17. Okay, how about this? How much money do you think you'll probably make someday? Oh, I'd say a mil, a mil and a half per year, easily. See, that's great. Okay, we'll just use that. What do you think you're going to do for a career? I don't know. I haven't thought that far ahead. Awesome. So I have some pretty good news. We are going to be able to approve you for a loan at$250 ,000. Yes, baby. I am sure this will not financially ruin the next 20 years of my life. It's so true. Oh, it's so true. Because he's talking about student loans. It's unbelievable. Yeah, he's talking about the difference in how difficult it is to get a mortgage and to prove income and substantiate income in order to be able to buy a home versus how easy it has been for the last 20, 25 years for students at a young age, 17, 18, 19 years old, to rack up tens, if not hundreds of thousands of debt that I would argue is unjustifiable debt.

12:00Bo Hanson:They're spot on. It's a problem. I feel like next time I go on Netflix under the thriller category, we ought to have that because you see the twist there. I was like, wow, that is brilliant. What a great teachable concept. And it's true. Look, y 'all know education. If you read any of the content that Bo and I create, if you read my book, Millionaire Mission, you know that I think that education is noble. Yet somehow all that goodwill has been squandered by a lot of these institutions in the banks to really just put people and take the goodwill of what education can do for you and just make it where now all it is is a trap in a lot of ways.

12:38Bo, So how many people care when they see your diploma, how many years you spent at that school?

12:44Bo Hanson:It does not say. It does not say how many years you say. It only says how long you spent the last semester. So long as your diploma is from that school, doesn't matter if you did community college, doesn't matter if you did joint enrollment, doesn't matter if you did AP. It just matters where you finish. So you should consider that in your equation. Don't let the colleges sell you a product that's not going to actually have a return on investment. be an active education student. You're not an education student. Be an active student who knows how your education's going to pay it forward. Now, I have a question.

13:15Bo Hanson:You said there was a twist. Did you not see at the very beginning it said the difference in getting a mortgage versus getting student loans? It kind of led with that. Oh, did it lead with that? It was the very start. It was the very first thing. So you really were surprised when it, because I was like, you're like, who's Tom Mostert? I was like, yeah, it's said. You know what? My elementary teachers are right now watching this go, there it is. There's that reading comprehension that I put on his report card back in the third grade. Watch that reading comprehension. I fell right into the trap. He foreshadowed.

13:47Your 20s.

13:48Bo Hanson:S, you may not generate a ton of wealth in your 20s, but that is when you need to be taking the biggest risks, taking the most shots. You have nothing to lose in your 20s. Okay, I don't disagree. B, you can really start to generate wealth in your 30s, but if you slacked off in your 20s, it's going to be very difficult. Your 30s are reliant on your 20s. Your 40s. A, you have a lot of knowledge and relationships and experience, and your 40s are the beginning of your highest income potential years. Your 50s. A, just like your 40s, your 50s are also your prime earning years. But in your 50s, you're not yet to the age where you have to really start thinking about taking your chips off the table.

14:25Bo Hanson:Your 60s. D, you do not want to be building wealth in your 60s. You want to be preserving and growing the wealth that you built earlier in your life. Here's the only thing I think. I don't know what S stands for. I got like A, B, C, D, E, F. I want to know what S stands for. But I'm assuming it's the best, right? Superior. If that's what that means, then I would argue that 20s is that.

14:49Supercalifragilisticexpialidocious. I'm trying to give you choices on what S could be.

14:54Bo Hanson:I think that's what it is. And I would argue that in your 20s, it's not about taking the biggest risks and being the most aggressive. Although, if you're going to do that, it's a great time. I would say your 20s is most important to just start doing something. Because if you don't take a big risk, if you don't do something crazy, if you can just start saving a little bit in your 20s, I would argue that is even more important than trying to catch fire in your 30s, 40s, or 50s. So I think that's the way he laid it out, but I'm not exactly sure because of the supercalifragilisticexcategory. You can see, but man, man, oh man.

15:27And by the way, I get that excited about people in their 20s because you said it, if you just do something, You don't have to swing for the fences. If you just start buying index funds in your 20s, man, oh man, is your future self going to be just sloppy happy.

15:40Bo Hanson:To be in the top 50 % in terms of retirement savings, you'd need to have$13 ,000 saved up. To be in the top 25%, you'd need to have$122 ,000 in that nest egg. And to be in the top 10%,$460 ,000 in retirement savings. And to be in the top 1%, if we're really reaching for the stars, you'd need to have a total nest egg of$2 ,290 ,000. Now, if you've been investing, but you're still nowhere near those numbers, don't worry, don't freak out. It takes time for compound growth to do its thing. You don't need to invest$2 million to have 2 million. You just need time to let compound growth work its magic.

16:17Bo Hanson:So that wasn't insane. Well, and here's what I think is interesting. It's insane on how much growth it creates. Well, all the numbers were right, you know, to be in the top 50%, 25%, 10%, 1%. but does it matter if you are in any of those percentages? No. What matters for you is how much do you need to be able to live the life that you want to live on your terms the way you want to live it. That number for you may put you in the top 1 % of net worth, or you may be someone who has that 500 ,000, 600 ,000. You're not in the top 1%, but because of the lifestyle that you want to live and the resources that you have and the sources of income you have, that might be enough for you.

16:55Bo Hanson:So be careful just chasing the scoreboard or leaderboard because that may not be what matters for your financial situation. Guys, don't sleep on the fact that your money can work harder than you can with your back, your brain, and your hands, but you got to do something and make it take action. I can't write off a private chef, but if I invite somebody over every single night to have business meetings with me and I hire a private chef to cook the meal, I can write off the private chef and the food that went into making the meal. This is how I'm able to afford having that private chef every single year, every single month, every single day inside of my house, making me and my wife meals along with my friends, family members, and my business clients who also some of my family members sit on my board of directors.

17:33Oh, man. You know, we have covered this before. Look, niece, you need to be more deductible. Pass that lettuce on over here so I can slap some ranch dressing on it. That's how. Hey, by the way, did you fund your Roth? All right. There. Deductible. I made it happen. See? That's how it works. Hey, uncle. Uncle. Hey, what do you think you ought to be doing with your next dollar? All right. Now pass those potatoes over here. That made, that deductible. Deductible. All right. Wife. Wife. What are we going to do here? How about, how about, how about cut that roast? Cut that roast. Okay. Hey, what are you doing to make sure, what do you know about an employee stock purchase plan?

18:12All right. You answered that. Okay, good. You're deductible too. Let's keep it rolling.

18:15Bo Hanson:Everything is deductible until you get caught. That's right. And I would argue Carlton has taken some aggressive stances here. Liberties. I just don't know that having your friends and your family and your spouse and in your home with a private chef, I would have a hard time, if I were sitting across from an IRS agent, explaining to the IRS agent that this is legitimate business meetings, these are legitimate business purposes, and these should legitimately be deductible. I think if you are going to try to take this advice and make it your own and implement this in your life, You better be ready and prepared to defend that to the IRS.

18:51Bo Hanson:And I don't know that you want to do that. If you've ever represented clients before the IRS, it is scary. I've literally seen grown men cry because they were too cheap to pay me to represent them. And that's what I'm telling you. Be careful what you think you can get away with because the IRS, they have the guns. They can take your stuff. You need to be on stable ground when you take deductions. Look, there's nothing wrong. Our government highly encourages you to maximize your deductions, but they don't want you to crook it out. You know, look at how did they get Al Capone? They found him crooking out on his taxes, so don't be Al Capone.

19:32Bo Hanson:We believe that there is a better way to do money. You don't have to follow this insane advice. You don't have to carry out these crazy strategies. If you can understand the three ingredients of wealth creation, discipline, margin or money and time, and you can put those to work, then you can build a great, big, beautiful tomorrow. As I've already shared, there is a better way to do money. And we are loading people up with what we call the abundance cycle. Go check it out yourself. Moneyguy.com slash resources. We give you all the love in the world with all the tools you need, all the calculators.

20:05And then when you reach success, you'll remember who planted that little apple seed that has turned into the huge tree that's generating so much fruit that you're living your best life. I'm your host, Brian, joined by Mr. Bo, the Money Guy team.