Let's Talk About The CoastFIRE Epidemic

20:54Brian Preston:I pulled it up on Waze. And it was only going to be like a 40-minute drive from the house to get the Dolly's truck stop. And I was like, you realize we could go eat? They have chicken and dumplings on the menu. Hold on, chicken and dumplings at a gas station? Oh, no. They have a bar. They have a restaurant. This thing is legit. So I'm kind of excited to go check it out. I had the girls all signed up to go. It was my wife that kind of threw the cold water. And it was probably because I bet it's loaded up. I probably need to let the dust settle. And then we'll go try to do this in the next two weeks.

21:27But, yeah, y 'all know. I'm a big Dolly fan. I'm always surprised. if you look around the set, you'll see some little Easter eggs to show our love for Dolly. The smartest, just sweetest, and she changes. For those of you who are now affiliated with Tennessee, Bo's kids, his daughters and son, everybody gets books. I mean, if you have a baby in the state of Tennessee, you get books. I mean, this is what elevates our literacy probably from all the other states when you're struggling with this, is sweet Dolly Parton has made sure that everybody feels some love on that. I think that should be celebrated.

22:08It's awesome. It's pretty incredible to be that generous. And that's why Dolly is universal. Yep.

22:12Brian Preston:That's right. But I do like your mug. It says cup of ambition on the mug that he's using, by the way, which I think is very clever. What about like a... I don't have fingernails, so I can't do the nine to five fingernail sound that she does. What if we did our next like our next money guy like little team meeting or like we had our next content meeting at the truck stop. Well, the problem is Dolly doesn't need us to draw crowds. No, no, no. I meant just our team. We probably couldn't get in. No. I wasn't saying. This was not the money guy meetup. I was talking about our team just going there for a meeting.

22:44Brian Preston:So I'll load up and. They got biscuits. They got chicken and dumplings. I mean, they got all the stuff. Biscuits? Caleb, don't have toast there? Huh. Interesting. Interesting. Funny. Just a note, if you're ever having breakfast with Brian and Bo, don't order toast. Just take my word for it. Just don't do it. Look, we love everybody, but if you're in the South, especially eating at a restaurant known for Southern breakfast, you get the biscuit. You get a cat head biscuit. You do not order toast. I mean, it kind of makes me want to turn the table over when you order toast. What a tangent already, just on question number one.

23:22I mean, that's, come on. There's no, So if you're looking at, that's the equivalent of somebody choosing like a, I shouldn't do brands, a moderate hotel versus a luxury deluxe hotel. Toast is moderate. Biscuits, luxury.

23:40Brian Preston:Wow. Three star versus five star. Okay. Let's move on to the next question, all right? The old Ohio is coming out of there. You see that? You see, look at it. She's so uncomfortable. It's from Jason. It says, hey, money guys, I'm 22 and just graduated college. Nice. I have$120 ,000 of student loans at 6%. Oh, wow. Should I follow the foo while living at home with no expenses and invest and save as much as I can? Okay, now this is. Jason, here's some layers. Here's one. I want to know what's your degree in. Like, what'd you go get your degree in? Great question. And what are you doing professionally now?

24:22Brian Preston:Like, what is your, if you don't mind sharing, I'd love to know your income. Because the question is, should I follow the financial order of operations? I always think that following the financial order of operations is a great answer. If you don't have your own copy, go to moneyguide.com slash resources and download your free copy. And one of the things that we do talk about in there is that there are two different segments for debt. There is step three, high interest debt. Ron, you show them the thing. And then there's step nine, low interest debt. And what you have to decide, and we actually talk about this throughout the course, and Brian, you talk about a millionaire mission.

24:58Brian Preston:How do you decide and what do you determine is high interest debt versus low interest debt? And specifically for young folks like you, where does student loan interest fall? Well, look, I think because Jason gave us the details here is the deets are, this is at 6%, but the thing that kind of made us go, oof, was it's 120 grand. So I'm hoping, because you know, So if you're following anything in the money guy sphere, $120 ,000 of student loan debt, I'm hoping you're coming out of school making pretty big bucks. I mean, because that's a lot of debt. Now, you could do all the above. And let me tell you what I mean by this.

25:34You can follow the financial order. You're living at home, meaning your footprint of expenses is pretty much nothing. It depends on if your parents are making you pitch in or not. But you could run the gamut on this thing with your student loan debt, go ahead and build up, assuming you don't have any credit card debt or anything, get you some emergency reserves, get the Roth IRA, load up your employer's retirement plan. You're going to get to 25 % savings rate so quick because you're living at home that then every dollar above and beyond that, go and start extinguishing the debt. I mean, because I wouldn't, you could do some incredible things in about a year, year and a half.

26:13Yes, it's not cool to live at home, but with a high income, but you really should get ahead of this$120 ,000 because you just do not want that albatross just hanging around you for the next year. It's just go ahead and see if you can do all the above. And I think you can living at home. You're one of the unique people because you have zero responsibility other than, hey, let's get out of debt. Let's build our financial foundation, respect the financial order of operations and build your army of dollar bills while you're vanquishing the debt. You'll conquer the world.

26:46Brian Preston:conquer the world. Did you hear that? Well, it's a clarification because 120 grand, I'm counting on some pretty big things. What was the, give me the screen name again. Jason Q. Jason, so I'm assuming this, there was the Jason Quinn that just said, I'm a business major going into a sales rep position. I wonder if sales rep means like commission, you kind of got to go eat what you kill. Unclear. But I would do everything I can to get my shovel as big as possible, as early as possible so that I can do exactly what Brian said, and try to get this get out from under... What was the word you said? Albatross?

27:20Brian Preston:Get out from under this albatross of debt. Albatross. Am I using that right word? I don't... I mean, if you saw my SAT scores, you'd be like, he shouldn't use words like that. Albatross meaning... Raby, you can go ahead and do that. Really good at math. Okay, Jason Q looks like... Well, it's a large web-footed oceanic bird, famous for its massive... I thought you were talking about Jason, but they're not looking up albatross. I'm once again playing horseshoes with the English language. Metaphorically, it refers to a psychological, physical, or social burden that feels like a heavy curse or inescapable handicap.

27:53Brian Preston:You nailed it, dude. There you go. Crushed it. Assuming you didn't mean the giant bird, you nailed it. I thought you meant the giant bird. I won't lie. But Jason Q, thank you for the question. You can email winner at moneyguy.com and cash in on your Tumblr. Next question is from Joey. It says, hi, Money Guy team. We are 31 and 36 and are hoping for retirement in 13 to 15 years. Whoa, hold on. 31 plus 13, probably mid-40s is what we're looking at here. Yeah, some early retirement going on. However, 99 % of our retirement is in a 401k. We don't have Roth because we make too much. 270k married, filing jointly.

28:34Brian Preston:Wow. How do we access money? It's almost like the financial order of operations, if there was a step, step number seven, where it talks about hyperaccumulation. What happens when you're just going through the process of letting your 25 % be tax incentivized only? And that's what Roth does. That's what your retirement plan does. It's step seven, where we actually say, hey, take a break and say, how am I going to use this money? When am I going to use this money? And for yourself, since you're going to be trying to access this money in your mid to late 40s to early 50s, you're going to need a bridge account.

29:13And the easiest answer to that is probably start building some after-tax brokerage assets. I'm assuming if y 'all make beyond$270 ,000 as a couple, y 'all can save a healthy account beyond the 25 % or even a portion of the 25 % if you're beyond getting free money from your employer and so forth. Let's start building off that after-tax account so that when you get to mid-40s to 50s, you have a very large account that's going to give you lots of liquidity, still lots of opportunity to grow the army of dollar bills, but it's just easier to, you don't have distribution limits, early withdrawal penalties, or any of that stuff.

29:53Brian Preston:I love that. I'm going to give a slightly different, yes, I agree with Brian's answer 100%. I'm going to give just a slightly different answer because it's another side of the equation. Can I tease a thing that we just did, Rebe? Is that okay? Can I talk about a thing that we just recorded and just did? I'm curious which one because we have a few. I know. I guess so. Now I want to know what you're thinking of. So we just had a collaboration that was super, super fun this past week, right? This is a good one, actually. You're talking about Carl and Mindy? Yeah, Carl and Mindy. We had Mindy from BiggerPocketsMoney.

30:17Brian Preston:And it was just so fun. We got to do a deep dive on their financial situation. And one of the things we uncovered was like this access to capital conversation that they were having. A lot of folks find themselves in the position when they save diligently for a lifetime, for a career, that have tons of pre-tax assets, tons of assets they can't get to. So one of the things I would encourage you guys to think about, first, you said we don't have any Roth assets because we make too much money. Yeah, once you're over whatever the income limit is at 270, you're over that limit to do that. I'd be curious if you could do backdoor Roth contributions.

30:48Brian Preston:Make sure you have the right account structure. If you don't have any IRAs and everything's in 401k, you could potentially do backdoor. So even building up Roth basis over the next 13 to 15 years and letting that dollar grow tax-free, would likely give you some sort of flexibility if you had to do it for earlier time, even though it's not our favorite. But you said that one of you is 36. So I'm just thinking through the math, 36 plus 15 years, it's 51, depending on how your 401ks are structured. If you could eke it out or maybe go to part-time or whatever, and you could get to age 55, and the year that you turn 55, so long as you're still employed with the company that sponsors your 401k, you can access your 401k starting at 55 without having to pay the 10 % penalty.

31:33Brian Preston:So you were really close. You were inside four years, maybe if it was a part-time thing or something like that, that you could potentially do that. But assuming that's not the case, we did a great show. I think it was a great show. And the title of that show was Four Ways, Three Ways, Four Ways to Retire Early That You May Not Know About. The team will put the name in the chat. And we walked through a couple different... They're all rolling their eyes going, which show was that? So we talked about how you can do Roth conversion ladders, how you can access Roth basis, how you can build taxable brokerage accounts, and we talked about 72T distributions.

32:07Brian Preston:Because one of the things that may potentially be interesting, may potentially be compelling to bridge that gap, if you are going to truly retire at 51 and have no income, no access, you could do what's called a 72T distribution to get you from 51 to 59.5. Now, I think Brian's method of building up a taxable asset by the bridge makes the most sense and the one that has the highest probability of success and the most flexibility, but there are methods and mechanisms by which you could still retire early and get to. The name of that show was Three Ways to Retire Early That You Might Not Know About.

32:44Brian Preston:I was so close to that. You were very close. So I would encourage you, if you've not checked that out. I can't see Justin's face, but I can see Will's face, and Will was like, I don't know what he's talking about. But Justin was able to pull it out of the dirt. I think we've done a show like that, but I just wasn't sure. No, I know we have. Still a trap up here, guys. You got it. You're doing that show because we're going through all the things. You got it. All right. We're going to do one more question, and then we're going to get to our rapid fire Moneyverse style. And also, Joey E., if you would like a Tumblr, thank you for your question.

33:14Brian Preston:Just email winner at moneyguy.com to cash in on that. Next question is from debit or credit CPA. Nerd. Oh, I want to give some like retort back to that so bad, but I'm not going to. How did you personally overcome the guilt of upgrading your lifestyle once you hit financial escape velocity? At what point did you realize delaying gratification was turning into depriving yourselves? Do you want to answer this first or let me answer this first? I mean, look, I think that it's all about the balance of your life. Because earlier in my career, I was, you know, Bo has always been generous from Jump Street.

34:01You know, he graduates college and he's throwing out beyond 10 % to charities and other things. It took a little, the financial mutant in me was like, well, I'll just do this later. And I don't think, looking back on it, that's not the right path. I was hanging out with Bo. I started becoming more generous. So I never had guilt about the success because I felt like the more successful I was because I was doing a very healthy beyond 10 % generosity of giving. We were growing this thing together where it was not only was my assets growing and my income growing, but also the organizations I could help and the charities and so forth that meant a lot to me.

34:44it was more of the why of with family and realizing the scarcity of time with people you really care about that and and things you could do to make sure you're maximizing the memory making that made me say hey instead of us doing this as small as possible let's make this really enjoyable so because I don't want to shower my kids in in gifts to where they're entitled I want to shower them with memories to where they're more knowledgeable about life and how great it is to have a loving family and how you can use this tool of money to do really a lot of positive stuff. Those are the intersection points that I kind of had.

35:27Brian Preston:Yeah, I would say that how did I personally overcome the guilt of lifestyle expanding? One of the things I did is in the financial order of operations allows you to once you get to a 25 % savings rate, it should free you from thinking, oh man, is it okay if I buy the nicer car? Is it okay if I go on the nicer vacation? Is it okay if I do the home renovation or do the improvement? Because if you know that you're paying yourself first and you have your dollars automatically going in the places they're supposed to be going, it should be a freeing thing to let you recognize, okay, it's okay to do this.

36:02Brian Preston:It's okay for me to spend. It's okay for me to let loose. It's okay for me to let my lifestyle increase so long as my lifestyle increasing does not crowd out me actually saving and building for the future. That's kind of the first part. That's how I escaped the guilt of it. And then when did I recognize that delayed gratification was depriving me of memories? For me, this is me personally, it was with my kids. It was me and my wife having this conversation. It's like, okay, yeah, we're saving and we're building and things are going good. But we want to do this thing and this thing might be very, very expensive.

36:33Brian Preston:And we look at the cost of this thing. We go put it in the wealth multiplier and say, man, at our age, spending that much money on that thing is a substantial sum of money later in life. Like if you just think about it, but our kids are only going to be young once. They're going to be in the house once. And we want them to be here building memories. I want this to be the child of the takeaway. And even if we do this thing, while there is an opportunity cost of those dollars not being there in the future, it's not going to inhibit us from doing our other financial things, of reaching our other financial goals.

37:05Brian Preston:And so it was okay. I recognize that money is nothing more than a tool that allows me to do the things that I want to do and accomplish the things that I want to accomplish both in the future, as well as now, in terms of what I'm able to do with my kids and the experiences and the memories we're able to build and create. And so I think if you can have that balance, it's not about all deferred gratification. We say deferred gratification is a wonderful thing and something you should exercise and something you should likely always exercise, but not complete and total absolute deferred gratification.

37:35Brian Preston:Because if it's complete, total, and absolute deferred gratification, tomorrow is not promised and you will not get back the moments that you are missing today, especially if you have young children in the house. So you got to figure out how you balance both of those things and don't let the financial achievement, goal, drive, whatever, crowd out your ability. If you've reached escape velocity to expand lifestyle, or if you've not reach escape velocity to figure out how to bedazzle your basic life today to create those memories. Also, look, I've had a few fellow creators who've reached out to me about housing purchases and other things.

38:13And I always bring it back to a grounding of what are the things that create fulfillment and happiness when you do all the research. It's relationships. It's your family. It's your friends. It's who you're hanging out with and making memories. Think about for your kids too, because I often wonder, you know, if you go too far up on the food chain on housing, I think that's why when we do our millionaire study of our clients, you're surprised. Yes, we have a few clients that have$10 million plus homes, but most of them don't is when I think you start thinking about, hey, I want to live in a neighborhood where my kids can go meet the other neighbor kids and play with.

38:49That probably is not going to be the, you get too far up on the thing. you price yourself out of family neighborhoods with lots of families in it. It's also, I vacation with my neighbors. I hang out on the weekends with a lot of my neighbors. And I was like, but my biggest pet peeve with my house is that I live in the Valley of Country Music Stars, as they all live on hundreds of acres. And then I'm down in this little valley on my, you know, 0.4 acres. So I mean, I can see my neighbors around me, which is a blessing and a curse when you want privacy. Um, but so I will, you know, I've, I've entertained going for bigger land, but then I think about, man, but then when you buy bigger land, cause I asked my, my builder who I got to be friends when we were building our house, when he approached me about buying into another neighborhood he was doing that had three to five acre lots, I asked the superintendent who I was friends with.

39:42I was like, so are any of these neighbors talking to each other? Or are they just all kind of living in their, their big mega life? And he was like, no, none of them talk to you. And I was like, well, see, that's sometimes going too far up. I think you might crowd out the things that actually bring you the happiness and fulfillment. So you don't have to, just because you can, doesn't mean you have to.

40:02Brian Preston:So what you were saying is if you increase your lifestyle too much, you can price yourself out of enjoying life the way that you actually want to be able to enjoy life. Yeah. And also toys, we got more toys. I mean, when we, like we were just talking to somebody like if your hobby is being a private pilot, how often do we see private pilots start off with a Cessna, go to a Cirrus next, but then when they start going up into the other planes, all of a sudden this thing gets more and more expensive, your cost per hour to operate. You can price yourself out. You can do the exact same thing on all the things that create happiness in your life too.

40:40So just be mindful of that stuff. Nothing wrong with you enjoying what you've created, but just understand the why and how it intersects with the things that bring you purpose and happiness. Love that.

40:51Brian Preston:I love that too. And now it is time to give debit or credit CPA a MoneyGuy Tumblr. Just email winner at moneyguy.com and we will love to send you one. Hey, can I apologize? I just had a visceral reaction and I said nerd and I didn't even mean to. Like I didn't even, cause I don't, I don't think CPAs are nerds. I have a lot of friend. One of my best friends is a CPA. One of his very best friends. Anybody who's in this audience, we're all nerds. Okay. I don't even look at that as a derogatory thing. Nerds take over the world. I'm a proud nerd. Yeah. Okay. All right. Well, hey, I'm not good at English, but I'm very good at math and nerdy stuff.

41:32So I kind of, I love the crowd of being a moniker of being a nerd.

41:35Brian Preston:Debit or credit in your screen name. That's a bold choice. That's, that is basically the CPA life. Says the guy that has a show called Money Guy. You thought you were taking a shot at me. Honestly, I did. You caught a stray that was really directed at him. That's on me. You guys are funny. All right. It is time for our rapid fire segment. Remember, this is our It Does Not Depend rapid fire segment where Brian and Bo get 30 seconds combined to answer your questions and they cannot say the words, it depends. That's 15. Now, we will say, we'll have We have a segment at the end, and maybe it does depend segment where if you really need to say something you didn't get to say in the 15, 30 seconds.

42:14Well, the Southern draw, that's probably only about eight words.

42:17Brian Preston:And also shout out again to the Moneyverse. All of these rapid fire questions are coming from our Moneyverse Discord server and all of the great financial mutants in there. So thank you for submitting. Are we ready? Yes, ma 'am. Okay. Question number one, 30 seconds on the clock. You can go first. Okay. Age 34, step nine of the Foo, with a 1.5 million investable portfolio spread evenly across three buckets. Is 100 % target date index funds still adequate? I would argue that you're at the point where you've likely graduated past a generic portfolio solution. Target dates are great generic solutions for the general public.

42:53Brian Preston:You now, at this level of wealth, likely need a specialized solution built to your unique circumstances, time horizon, risk tolerance, and goals. Yeah, because you're going to want to be more tax advantage. You don't want to look at the tax advantages. You want to look at how you're going to access the accounts. It's really more of a step seven operation. So I think you're beyond index target retirement funds. Question two. But, Bo, how do I do that? Well, you go to moneyguy.com slash becomeaclient. We will leave the porch light on for you. So are we not going to see the questions? I guess y 'all don't have the ability to put the questions for us.

43:24We don't usually do that.

43:25Brian Preston:You got to active listen on the rapid fire. It really kicks it up a notch. All right. Next question. What are your thoughts on being generous towards friends in need? I'm worried that monetary help instead of educational help will lead to an awkward dynamic in the friendship. You're first. Yeah, it can be awkward because sometimes people, even though you're trying to be generous, will think you're just showing off. So you have to be, I would be very nervous about loading people up you care about. In my experience, one of the best ways, if you can do it, is to do it anonymously. If you really want to help them and it's less about you getting anything for it, more about actually helping someone in need, if you can find a way, okay, where's the bill due, who's the person, whatever, and you can just satisfy that and not take credit for it, I think that's a great thing.

44:14I probably won't. We can give more on that later.

44:17Brian Preston:Next question, where should I save for a down payment for a house? if you're buying the house in the next five years i think high yield savings account liquid cash is going to be your best bet make sure you hold it somewhere that can likely earn somewhere between three and a half to four percent if you're not getting that you're probably not getting enough on your cash yeah i mean you can use money market you know mutual funds at the brokerage accounts like fidelity vanguard or you can do the high yield savings accounts i think um trying to think of which ones, stay away from Capital One, but which ones, I have a story on that.

44:54Brian Preston:Ally's good. Ally's pretty good. All right. Next question says, my wife and I, 27 years old, 230K income with an 800K net worth, are buying a new car. At 27, you say? Yep. Give me those numbers again. 27 years old, 230K income, 800K net worth. Shit. They're buying a new 35K car to have something reliable for their first baby on the way. Oh, congrats. Should we sell stocks in our brokerage account or take on a 5 % loan?

45:32You're up. Yeah, I think you could, with this big, assuming that$800 ,000 has liquid assets, I would look and harvest some losses, and I would go and pay cash for this vehicle. But use it in negotiation where you maybe finance for a little bit, but you paid off quickly.

45:47Brian Preston:At a$230 ,000 income, I don't know what your living expenses are, but assuming there's margin in the system, I don't know how big your emergency fund is. Perhaps you could borrow from your emergency fund, not trigger any taxes, and use that high income to rapidly pay back the emergency fund. That's a better answer. And within the time frame, well done. Next question, what are the three things you would bring to a deserted island? A cell phone to call for help.

46:17Brian Preston:some MREs so that I can survive and then a boat to get off the deserted island. Okay. I watch TV, so I know the answer to this. You need a fire starter, you need a tarp to keep you dry, and then you need a bow and arrow so you can hunt. Do you realize how much faster I'm getting off this island with my boat and cell phone than you are? Honestly, Brian, it sounds like you're camping out on the island. I'm a rough bit. I was like, I'm out of here, dude. Brian's like, I'm set up to stay. Oh my goodness. There's not going to be any cell phone reception out there in the middle of nowhere. Well, at least he still has the boat.

46:46Brian Preston:I have a Starlink phone. I have a boat. And I said MREs because I couldn't think of a third one. But yeah, I'd have a boat. Good answers. Nobody sets up a reality show with those. Nobody gives you, okay, it'll be the worst reality show. Because episode one, I get off the island. You know what I mean? Hey, let me, you know what I'm not doing? I'm not swimming off that sucker. I was going to say, you see people are saying that you need a life jacket. That should be number one. Hey, well, I mean, that's messed up. After we make it through Rapid Fire, you can ask me about swimming. I want to brag on the handsome family.

47:19Brian Preston:Oh, okay. I have a feeling who's not getting bragged on. Let's do some more. Let's finish Rapid Fire. Next one says, should anyone in their 20s hold bonds in their portfolio at all, assuming retirement in their 50s and 60s? Only if it's in your index target retirement fund. I don't want you actively going out there and buying bonds in a mutual fund in your 20s. typically, unless there's unique. I don't want to say always because you might be a unique person. I think that target retirement index funds will likely have some fixed income exposure. But if you're just starting out early on and you're just buying low-cost index, low-cost S &P 500, I think that's totally fine.

48:00Brian Preston:Totally fine. Heard it here first. Next question says, Brian regrets missing an early Roth contribution. You wrote about that in your book and have talked about it on the show. Are there any life experiences or purchases you regret delaying because you were too disciplined? I won't say regret delaying, but there are some purchases I made that I was like, man, that was so good. A really, really nice coffee maker was a gift I got myself and my wife when we got our first house. Once I was like, holy cow, why didn't we do this earlier? A lot of the services we outsourced, like lawn, was one that I should have done that way earlier in life.

48:37I don't have a role. I'm pretty happy with my life. I don't have a lot of regrets on things.

48:41Brian Preston:No, is it things you wish you would have done earlier? I mean, by adjoining rooms or when you go on vacation? Another one? Yeah, that's it. We'll come back to it. We'll come back to it. Oh, man, I got a thing I want to say. Next question. So what counts for prepaying future expenses? I believe they're referring to step eight of the food. Abundance goals. Yeah, the big things. I mean, this is when you can give to your kids' college without regrets. You can get into commercial real estate. You can live a little nicer lifestyle with a nicer car, nicer house. It's just all kind of, yeah, live your best life.

49:18Brian Preston:Realistically, steps one through seven are about building towards financial independence. Once you get towards steps eight, it's those goals that exist before you get to financial independence. So whatever that intermediate term goal may be, that's going to be what those prepaid future expenses are. Nicely done. Three more. This one says, how often to rebalance? Does it change with age or progression in the FOO? It does change. It likely changes with size of portfolio more so than age or where you're at in the FOO. What we do professionally at the firm is every quarter we look at the allocation.

49:50Brian Preston:We're not always making changes. At least twice a year, we look at rebalancing. Again, not often making changes, but looking for losses or capital gain avoidance. And then as life circumstances change. Yeah, I mean, I wouldn't be trying to do daily, maybe even quarterly. In the beginning, as long as you're looking at this once or twice a year, you should be good. Next question. Just because you're... I still had a few seconds. No, we'll come back to it. Your time is up. You have to come back to every one of these pretty much. I know. You are on a roll with having too much to say today. Okay. 30 seconds is not that long.

50:23Brian Preston:Next question. Are extended car warranties worth it on used vehicles? I don't think so. No. Basically, the good decision is buying the vehicle that has good reliability built into the manufacturing of it. I think one of the things, if you look at like gently used, like early on cars or maybe even buying a new car, one of the big benefits of buying new as opposed to buying used cars, you do get the manufacturer's warranty and the early mileage warranty and all that kind of stuff. It's one of the things that kind of tilts the scales towards new purchasing instead of used purchasing right now. Right on the money.

51:03Brian Preston:Brian looks like he has something to say, but too late. Last but not least, you've said a lot about biscuits and toast on this live stream. What if the toast is homemade sourdough bread? I love it, but I don't eat that for breakfast. You put avocado on there and a fried egg, that. But if I'm sopping up, and that's the technical term. He brought in avocado toast. I'm just saying, that's what I would put. You are such a bougie son of a gun. That's what I would put. I love sour I love sourdough and you know and cinnamon sugar on that would even be awesome but for breakfast you want biscuits you can put some gravy on there you can put some bacon on there it's biscuits for the win because here's the thing the biscuit is like the all weather vehicle if you want it to be savory no no we're done if you want the if you want something savory you can put an egg on there you can put some sausage you make a sandwich that's great or you can put some honey on there or some jam or something like that you can make it a dessert it is so multifunctional So is sourdough bread.

52:01Brian Preston:Look, sourdough bread is wonderful. I'm not going to... His wife makes sourdough too, so that's why somebody's hitting him below. And look, you can do sourdough cinnamon rolls. It's unbelievable. I'm a big fan. It still doesn't rise to the biscuit for breakfast. But it's not a biscuit, right? These are different things. These are different things. Now look, by the way, we're not talking about Pillsbury biscuits either. If you've ever had homemade biscuits, when you crack that bad boy opening, You see the steam coming off of it. It's a little slice of happiness. I mean, even I'll give Cracker Barrel credit.

52:32You go to Cracker Barrel and they bring out fresh right out of the oven biscuits. I'll tell myself, Brian, you only go do one. Three biscuits later, I'm like, how did I end up here? And it's just biscuits pull you in.

52:43Brian Preston:A good millennial joke after Bo mentioned avocado toast. Someone wrote, Bo's never going to be able to afford home. That made me laugh. I was like, that's too real. Stop. That's funny. Okay. Let's wrap up the show with our maybe it does depend segment. You did say you wanted to come back to a few questions, so I will honor that. Our very first question, the question asker said they had 1.5 million investable portfolio, and I did kind of cut you off when you were mentioning a pretty important resource that they may want to know about. Yeah, I was just saying that a lot of people, okay, I've done the target retirement thing, and I did that, but now I do want to graduate to this more specialized solution, something that takes into account my unique circumstance, what I have going on.

53:24Brian Preston:Tax structure. that's exactly what we get to do in our day job. That's exactly what we get to help individuals just like you do. So if you think you're at that point where now the gravity of your decisions is so big because you have a million and a half dollar portfolio, I would argue at least have the conversation, go to moneyguide.com slash becomeaclient and look at what it might be like to partner with a professional advisor. Love it. Also, you said you may have more thoughts on being generous toward friends and needs, Brian. What do you have to say? I've had a few, because I want to qualify that.

53:55I have had a few situations where, like, I had, I don't want to give too many details, but, like, somebody wasn't going to make a trip, and I've approached them privately, and I said, look, you being at this trip is more important than the money side of it. Let me help out. And I've had mixed bag. I've had one that it went swimmingly well, and it's never been spoken about against, and they got to come, and I love it, and I've had another one that didn't go so well. So, I mean, I think you have to know who the, one of the things I wrote about in Millionaire Mission, one of Bo's superpowers and why he owns part of the business with me is he says, thank you incredibly well to where when every time I try to be generous with him, he always overwhelms me with his thankfulness that I want to do more.

54:40Some people just don't receive generosity well. So you need to kind of base it off of the person, because some people will bite the hand that feeds sometimes if you're trying to be helpful. But I've had other people where I've helped them through some really life-tough situations, and you see a lot of the fruit. So it's a case-by-case situation. I don't want you to be a miser just because you listened to us answer the question and we said no. There is definitely, it depends on this answer.

55:08Brian Preston:And money can be so charged. If you are going to be generous, one thing you have to do, and this is like a self thing that you need to do, if it's truly coming from the place of generosity, be very careful trying to receive something for it. because I think all too often you give somebody some money or you help them out with something, there's this expectation that they now owe you something. That's not what generosity is. Generosity is, hey, I'm going to do this. And my wife and I have had to struggle with this before. We've had some people that have been in some tough spots, and we were able to take care of a thing.

55:39Brian Preston:And then unfortunately, we see that person go make a horrible financial decision. And we're like, oh, my gosh. That's not what it was about. It was about helping someone in need in a moment of need. And so I just think if – and I think when it comes to like doing that, you have to be careful like loaning money to people and that sort of thing. It's a real dangerous sticky game. So if you can remove yourself from it entirely and you have the means and mechanism to do that, in my experience, that's been the best way. There is a way to be generous though without getting yourself in financial trouble.

56:09That's right.

56:10Brian Preston:You also mentioned it was about Brian regretting missing an early Roth contribution. is there anything else you may regret delaying? I didn't go through things I regretted delay. One of the best decisions, this is for all of my young people out there, right? If you were someone early on and you are thinking about getting, or you're going to get married, right? And you're going to get married and this stuff. One of the best decisions my wife and I ever made was one of the very first decisions we made was we bought a king bed. And I know that's so silly and so out there, but I'm amazed at how many counterparts that we have right now, like good friends of ours, I was like, oh, yeah, we have a queen bed.

56:47Brian Preston:I'm like, oh, what? It's funny you say it. It was a game. The first seven, eight years of my marriage, we were on a queen bed, and I remember when we got a king bed. But the problem is it ruins you because now when we go stay at somebody's house and it's a queen bed, I'm like, how did we fit on this for seven to eight years? We must have loved each other more back then because right now it's just tough. I mean, because I had that recently. We went and visited my mother-in-law, and all she has at her place is full and queen beds, so we slept on a queen bed. But it's funny you say that. That may be like millennial and bougie, whatever.

57:19Brian Preston:It was like, I was like, holy cow, this is. The other two things I was going to say, adjoining rooms, once I could afford to put my kids in an adjoining room next to us, I should have done that probably sooner. So you just get a little more space. I still struggle with that one. And then the other thing is, is if something is beyond six hours of driving, we do flights. I mean, because that's, I don't know. It's anything, you know, maybe six to seven is gray zone, but anything. Because I remember when we were down in Georgia, I could drive to Orlando in six and a half hours, and it seemed reasonable.

57:55I moved to Tennessee.

57:56Brian Preston:You can't make that drive anymore. I drove to Orlando. And by the way, it wasn't 10 hours like the thing GPS told you. It was like 11 with traffic. And I was like, never, ever, ever, ever, because that's like an hour and a half flight. The last time that we did that drive was driving from, we drove to Orlando for Disney and we drove back and never again. I was like, that broke me. Never again. Six hours. That last time I did it after we went on a cruise, my oldest daughter, she got sick and was about to throw up in the car. So I pulled off the interstate. And of course I chose this great, I chose this exit where I didn't realize that they had cameras on the lights.

58:38It ended up being like a$150 ticket because I did a U-turn on an intersection where I went to because I was trying to get her not to throw up in the car. So I wrote the check, and I was like, this was probably paid for part of a flight with that ticket.

58:53Brian Preston:All right, and last but not least, I did kind of cut you off on the rebalancing question and just wanted to make sure there wasn't anything else to say. We just ended it pretty quickly, I believe. I think we nailed that. I thought you did pretty well. I just felt like there was something you wanted to say. Financial mutants often think that we have to take action. When it comes to decisions, remember, you are awarded as an investor or as a financial decision maker based on the quality of the decisions that you make, not on the quantity of decisions that you make. A lot of times when we look at client portfolios, one of the decisions we make around rebalancing is not to rebalance, not to rebalance.

59:33Brian Preston:because oftentimes when you're rebalancing, there are friction costs, there are taxes, depending on account structure. So a lot of times we will make the active choice to do nothing and that's still an active choice. So if you are gonna view your portfolio quarterly, twice a year, annually, whatever, just because you're reviewing and looking at rebalancing does not mean that you absolutely have to rebalance because a lot of times you can actually underperform by overdoing that. That's what I was gonna say. That's fantastic. Well, thank you so much for joining us every Tuesday at 10 a.m. Central, asking your questions, chatting with us on YouTube and on the Moneyverse Discord.

1:00:09Brian Preston:We really appreciate you. We love chatting with the Financial Mutants and hopefully helping you grow your confidence in your financial situation so you can focus on what really matters. That's what it's all about. That's why we do the show. And that's why we have MoneyGuy.com available for you at any time, full of free resources, calculators, and all of our shows archives. So be sure to go check it out. Yeah. Take advantage of the abundance cycle. There's a reason we give you so much free stuff was we want to give you value, value, value, let you live your best life, own your money and your time that much sooner.

1:00:39And then hopefully you're going to find is, or you will find, it's not hopefully, it will happen. Your success will create complexity and you're going to remember who planted the seeds of success. We'll leave the porch light on for you. I'm your host, Brian, joined by Mr. Bo Reby, the rest of the content team, Money Guy out.

1:00:55Brian Preston:The Money Guy show is hosted by Brian Preston and Bo Hanson. Brian and Bo 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.

1:01:27Brian Preston:All investments involve a degree of risk, including the risk of loss.