The BEST and WORST Cars (And Which Brands We Avoid)

17:33I thought I was a genius. My daughter, who's, like I said, about to graduate college, but she was in high school at the time. And she's like, Dad, I'd blow through your data plan before we got out of the driveway. So I don't think that'll work.

17:45Brian Preston:So obviously, you know, these were our thoughts, right? These were the thoughts on what do we think about brands. But, you know, there are some other authorities out there and just some like honorable mention things that we thought were worth bringing up and bring your attention. Here were some superlatives that were given out in terms of automobiles that depreciate the fastest. According to U.S. News and World Report, we're not playing the game anymore. You just disagree with it. They said that Tesla is the car that depreciates the fastest. As someone who's a big advocate for Tesla, what would you say to that?

18:18I would say this glass half-empty problem actually creates a glass half-full opportunity. Go buy a used Tesla. I mean, obviously, do your due diligence research on batteries and so forth and knowing. I also would tell people, if you're going to buy a used Tesla, go make sure you understand what hardware package is on that car. Because full self-driving has gotten so legit. but you probably want to get that four and beyond on the hardware package so that you can really get all those features.

18:50Brian Preston:Love it. All right. The next one was what car brand in general holds its value the best? Toyota. This one was not surprising. This is according to Kelly Blue Book. I am currently a Toyota owner, and it's true. You'll see how he dropped that in there. He's like, I'm good at this. I'm good with this thing called money. Yeah, yeah. Brian owns the one that appreciates the fastest. I own the one that holds the value the best. It makes total sense. Toyota, not surprising, one of the best long-term holders of value if you're someone who drives your car for a long period of time. Safety and liability.

19:23Brian Preston:Subaru actually came in. I'll be honest, Brian, I don't have a ton of – someone in the comments said, hey, why didn't y 'all mention Subaru? I don't have a ton of like – they just weren't super common down where I grew up. I remember I always thought about Subaru whenever me and my boys back in high school used to drive or even college, go hike up in the Appalachian Mountains up around the Blue Ridge Mountains. And, you know, they had only let you drive, and this is back in the 90s, quattro, I mean, our four-wheel cars or all-wheel drive cars was not as common as it is now. So it was always the Audis and the Subarus.

19:55Brian Preston:Were the ones that were up there? They wouldn't let you over a certain part in the road unless you could show that you had four-wheel, all-wheel drive. Got it. And that's why I think of Subarus. They're supposedly great for that type of weather. We live in the south, so that's why you probably don't. exposure to it. And then the last approach was what is the best brand to buy used? Now you may think that Tesla's coming up because that's what Brian just said that he would recommend is buying a Tesla to use. But actually the best brand according to Consumer Reports to buy used is Lexus. And I don't hate this one either because I think if you're going to go luxury and you don't want to go Mercedes or BMW one of those, I'm actually a huge fan of Lexus.

20:32Brian Preston:I think that's a great luxury if you're in that stage. Now it does still count as luxury so no 23.8 on that one. I think Lexus is fantastic, but it's say don't buy it new, don't pay for all that front-end depreciation, buy one a few years old. I think that makes tons of sense. Yeah, I mean, you know, the car that kind of made me, I feel like, was my, I bought an ES350 in 2006, no, it was 2006, because it was a 2007 that I was bought in 2006, because I loved that I got a free year, essentially, because they redesigned the body style that year. And I drove that car for 12 plus years, and I had not a lick of trouble.

21:10I don't even think it had a warranty claim on it whatsoever until they replaced the airbags, if you remember when Lexus went through all that crazy stuff. But it was a great, great car. So I don't have anything negative to say about that. And those two, by the way, they're related, Lexus and Toyota. I'm surprised that Honda didn't make it on here.

21:30Brian Preston:I was surprised Honda didn't make any superlative either, because again, I've always had wonderful experience with that. And so here's what we want you to take away from this. Obviously, So we talk all the time about buying a car the right way. We want you to do 23-8, 20 % down, don't finance for any more than three years or 36 months, and we don't want your car payment to be more than 8%. But also, the kind of car you buy matters. Don't go out, contrary to some other opinions, going out and buying a$1 ,000 car may not be the best financial decision. There has to be likely somewhere in the middle that could potentially make sense.

22:03Brian Preston:So when you go to make the car purchase, Don't just make sure you're doing it the right way. Make sure you're buying the right thing because the better the decision you can make, the more impact it's going to have in your financial life over the long term. I think this made me feel a little loved because obviously I go on vacation and y 'all tried to figure out how y 'all could pick on me. No, no, no, no. We didn't do that. Also, I hear while I was on vacation, y 'all came out and decided, you know what? Marvel's got this whole multiverse. why don't we come up with money verse absolutely love it it sounds like you know and i was i was feverishly because you know i just came back from vacation so i haven't caught up on everything i was trying to get myself in this thing um before the show i ran out of time the buzzer beater because i realized holy cow i've got like you know my mother's maiden name you know and and my pet names and everything else you grew up on all the all the things you don't want the public to see I had in my original Discord setup, so I didn't have enough time to get it all set up before I was able to wade into the waters.

23:07Brian Preston:This is, what, a week old now. It's been incredible. I've loved being in there. Can we get a quick poll for our audience right now, guys, of just yes or no, have you been in the moneyverse, right? Because I want to know how many of you guys out there, it's awesome. If you're not familiar with what it is, it's the ecosystem where we get to hang out 24-7. We can ask questions. We can celebrate milestones. We can chat. There's all kinds of amazing stuff that we're able to do, and we're able to stay connected. You guys may be wondering, well, man, are Brian and Bo and Rebe and the team going to be in the moneyverse?

23:40Brian Preston:Absolutely. It's turned into my new little guilty pleasure that when I'm just, like, on my phone, I'm not scrolling through social, I'm scrolling through the moneyverse. So, yeah, if you post in the finance questions channel, I mean, there's no guarantee Bo will be in there answering you. But there's a good chance. He has been. There's a good chance I'm going to be in there. A lot. So definitely take advantage. Bo, you spoke big words this morning. You said, because Bo knows I'm out there on X getting ticked off at the world because there's just so much craziness in the world these days. Bo says, I predict that this moneyverse is going to take the place of how much time you spend reading news and stuff like that.

24:18Brian Preston:Well, because a lot of times on YouTube and the comments and stuff, you don't know if you're talking to your people or not your people, right? People kind of come in or whatever. What I love is that if you're the moneyverse, you probably are a financial mutant. You want to be hanging out with financial mutants. So it's an awesome, awesome spot. So if someone wants to go get in that Discord, be on the server, where do they go, Reeves? Go to moneyguy.com slash moneyverse. You guys have blown me away with how active you have been in there. We're posting weekly surveys and discussion points. And honestly, you guys are crushing it.

24:47You are answering each other's questions. You are discussing what's going on in your financial lives. And that was exactly what I was hoping would happen. So it's really cool to see all the connections being made and just get to chat with you whenever we want to, which is amazing. I mean, I literally just have seen a sliver of this because you did a screen share earlier this morning in the content meeting and people posting wedding, like the anniversary photos. And I was like, this is a really cool way to connect. We had one fellow financial mutant this morning post in milestones that he crossed millionaire status.

25:20Let's go. So we like we got to celebrate that. That's what we talk about on the show all the time, and so it's cool to see it in real life and be able to say we're so excited for you in the chat.

25:31Brian Preston:And look, I'm not saying that we're always going to tell secrets and give away stuff a little bit early, but if you go out in the moneyverse, it's just a little bit more comfortable. We get to share some stuff. So there's some stuff out there that we get to talk about that I think you guys would love. Oh, yeah. Bo was basically channeling his Brian Preston last week. Yeah, because I don't keep secrets. I just let some stuff out of the bag. I was like, what am I supposed to do? He messaged me separately and was like, can I post this? I'm going to say this. And he didn't do anything away, but he like hinted at something.

26:00And I'm not telling you where it is or what it is, but he was hinting at things. So you're probably going to get that in this money verse for sure.

26:07Brian Preston:So I love that we get to talk about, okay, how to make good financial decisions. I love that we get to have this money verse where we get to interact with our people. But I also love that we get to show up here, Brian, every single Tuesday at 10 a.m. and answer your questions and load you up with the things that you care about. So right now, if you have a question you want us to weigh in on, we have the team out in the wings collecting those questions. Make sure you get them in the chat because we believe that there is a better way to do money and we want to answer the things that you care about.

26:38Brian Preston:So with that, Creative Director Reby, I'm going to throw it over to you. We're going to kick it off with Hector's question. It says, Hi, Money Guys. My wife and I, both 34, just bought a$500K home with 20 % down, 6.4 % 30-year mortgage. She wants to pay it off early. I would rather invest the extra cash. What are your thoughts? 34? I'd love to know how much they had in investment. There's no information here on what their investments. Hector, if you're out there, let us know how much you got in investments. And then I would really encourage, Hector, you need to know, are you ahead of the curve, behind the curve, or right where you're supposed to be?

27:14I'd go to moneyguy.com. Actually, it's learn.moneyguy.com so you can know your number course because you've got to figure out where you are. Because it's really more of a worksheet to kind of put in assumptions so you can figure out. Because what I would hate is for you guys to be debt-free but then not have ever built your army of dollar bills. And you're going to realize you have a very unique opportunity in your 20s and 30s especially to really let that wealth multiplier do the heavy lift for you. Really, you make wealth building easy when time is a strong element in your arsenal of tools. And I just worry if you focus on all the debt prepayment while you're in your 30s instead of waiting until you're in your late 40s or 50s, there's going to be some huge opportunity costs.

28:01Yeah.

28:02Brian Preston:One of the questions that I'd, Hector, that I'd want to ask your wife is, hey, why do you want to pay this off? Like, what's the goal? Because like, let's say that we increase our mortgage payment. We want to pay it off quickly. Well, it's still going to take years, likely decades to do that. And the question, okay, why, what does that unlock for us? What's the goal of being debt-free? And it is our goal to have the lowest mortgage balance possible at all times, or is our goal to ultimately be debt-free one day, to own our home and be financially independent? Because I would argue there might actually be a better way to pursue that goal and be debt-free sooner than aggressively paying off that mortgage.

28:41Brian Preston:Because right now, 6.4 % in the context of interest rates over the last five, six, seven, eight years seems high, but it's not that high. It's not like super, super high, but there even might be a chance that as rates continue to fall and we get down to 6.1%, 6 % maybe into the fives, you might even have an opportunity to refinance. And all of a sudden now, a 5.5%, 6 % mortgage for a 34-year-old just is not going to be that egregious. So I want to know, what do you have in outside investments? As Zach O 'Brien said, are you head behind on the curve? And then why do you want to pay off or why does she want to pay off the mortgage?

29:21Brian Preston:What's the underlying thing behind that? and might there be a better way for you to accomplish that goal without increasing the month in mortgage payment? And if her answer is that it just feels, it'll make her feel safe, it takes some risk off the table, I always remind people is that you really only take that risk off the table when the mortgage is completely paid off. Because what banks are not good at is that once that money is put into, you prepay this stuff so fast, if you hit a rains it pours moment, when I mean rains it pours, it means bad stuff is happening. The stock market's getting beaten up.

29:53The real estate market's getting beaten up. You lose your job. You're going to want access to capital. Now, hopefully, obviously, step four is financial, you know, having your cash reserves. But even beyond that, if you get into a really dire situation, I like being able to have assets that I can have access to easily. And I think that you might actually have less risk if you're building up other investable assets in the background that will also be your future retirement. It's a multifaceted, multi-value structure there versus just loading it up, being a debt crusader. You might find yourself in a pickle of a situation if you haven't paid it off to create that margin.

30:36That's what I always remind people is that it's really only gets good after it's fully paid off. That's more than likely going to take years and years. Meanwhile, in the background, and you could be building it up and building up assets and then even being able to pay off that debt even faster if your army of dollar bills creates its own arbitrage and exceeds the performance of what your mortgage rate is. That's right. Hector, hope that helps. Thank you for asking the question. It is your lucky day because today is Tumblr day. Let's go. So if you would like a Tumblr, just email winner at moneyguide.com.

31:09Do you see what's going to happen for Hector? He's going to start making his morning coffee. His wife is going to be like, those are the guys that told you not to pay off the mortgage. And you're going, yep, that's the ones. I think it depends on how he presents it. So hopefully you turn that frown upside down with your wife so she also is a financial mutant with us. Absolutely. That's hilarious.

31:32Brian Preston:This episode is brought to you by Indeed. Stop waiting around for the perfect candidate. Instead, use Indeed-sponsored jobs to find the right people with the right skills fast. It's a simple way to make sure your listing is the first candidate C. According to Indeed data, sponsored jobs have four times more applicants than non-sponsored jobs. So go build your dream team today with Indeed. Get a$75 sponsored job credit at indeed.com slash podcast. Terms and conditions apply. So good, so good, so good. Spring styles are at Nordstrom Rack stores now, and they're up to 60 % off. Stock up and save on Rag & Bone, Madewell, Vince, All Saints, and more of your favorites.

32:13Brian Preston:How did I not know Rack has Adidas? Why do we Rack? For the hottest deals. Just so many good brands. Join the Nordic Club to unlock exclusive discounts, shop new arrivals first, and more. Plus, buy online and pick up at your favorite Rack store for free. Great brands, great prices. That's why you Rack. All right, next one is from Dan4224. It says, Hey, money guys. I know that despite market turbulence, you recommend always be buying, or ABB, as Brian likes to say. ABB! There it is. If I have extra money to invest, do you still recommend index funds or can I invest in individual stock? Oh, wait a minute.

32:51We covered a lot of ground there.

32:54Brian Preston:So his real question is, I've got some excess money. I've got some powder money. Look, I'll always be buying. I get it. What should I buy? Should I buy, if this is above and beyond my normal standard savings, should I buy individual stocks or index funds? So what say you? Well, I mean, I think there's a time and a place. I mean, that's why we created a system called the Financial Order of Operations. And I feel like for young people especially, I don't, Dan didn't give us his age in here. A lot of people are trying to cut off the corner of wealth creation. And they'll, you know, get into doing individual stocks.

33:28They'll do crypto. They'll do other things. I always say, look, until you get to step eight, let's stick to the plan. So as long as now, look, Dan, if you're in step eight and you actually, because that's where you get to unlock additional lifestyle. That's where you get to unlock if you want to start using cash as being your mini Warren Buffett. And it's also when you can maybe get into residential rental property or you could start playing around with individual stocks. But I wouldn't try to push it before that point.

33:57Brian Preston:Yeah, I think you have to be at the right stage. And then even if you are at that stage, one of the questions I'd ask is when you're an individual stock investor, generally speaking, there's a few decisions you have to make. what company do I want to buy? What do I deem as the appropriate stock price to enter into this position? And then realistically, you ought to be thinking about it. What stock price would I think about exiting that position? Like if you're going to be like a good stock investor, that's the way that you would approach it. When it comes to index funds, when it comes to just buying the market, when it just comes to participating in the general market movement, you really only have to answer one question.

34:32Brian Preston:It's how much can I invest, right? I mean, I guess you got to pick, you know, what index and that kind of stuff. But let's just say we're looking at large company stocks versus just buying the S &P 500. It's really easy and has no mental calories at all. Just buy the index, buy the index, buy the index, buy the index. So that way, if Apple does good, you make money. If NVIDIA does good, you make money. If fill in the blank does good, you make money. And you're not having to worry about, okay, how's my individual position doing? And oh man, it just went down 15%. Does that mean that something's happened with the company and there's been a fundamental shift and I need to exit?

35:03Brian Preston:it just removes the decisions that you have to make. Again, nothing necessarily wrong with individual stock investing at that stage. But for me, what I do with my money where I'm buying, every single month when I'm buying, I'm just buying index funds. It's like our friend Charles says, do this with your vacation money, not your eating money. That's right. So that's why I say follow the financial order of operations until you get to step eight. Dan 4224, thanks for your question. and we'd love to send you a Money Guy Tumblr as a thank you. So email winner at moneyguy.com if you would like one. If you would like to be part of our Rapid Fire segment, go ahead and get those questions in the live chat right now.

35:43I forgot about it.

35:44Brian Preston:I figured, oh, we played a game. I bet we're not doing Rapid Fire today. Look at that. I decided to do it. She brought it back. But RF at the beginning of your question, we'll know that that is for the Rapid Fire segment. We'll do another long-form question or two, and then we'll dive into that. So get those questions in the chat. Did you know that last week Reby did a rapid fire segment? Oh, no. We let people rapid fire Reby, and it was awesome. It was fun. We changed it up, too, but we'll tell you about that later. All right. Connor E. has a question. It says, hi, Money Guy team. I was asked to teach a local youth group of 17-year-olds about finances.

36:21That's awesome. What would be the most significant thing I could tell them to help them start their financial journey? Oh, I love this question. So I was just like, oh, where do we begin?

36:30Brian Preston:You go first, and I'll try to think of something that you don't say. The thing that I always highlight, we talk about the three ingredients to wealth, is the discipline, creating margin on your life by living on the lesson you make, and then maximizing the time. Those are kind of the three components. So I always kind of highlight that thing when I talk to young people, the wealth multiplier. And then I have a great illustration that we even put in Millionaire Mission because it's the thing that I remember being so excited about. is I showed somebody who started investing, and you could talk about for 17-year-olds and use our wealth multiplier for 17-year-olds, but I think in the book I used a 20-year-old who saved and invests every month only for 10 years, so just during their 20s, and then they stopped, versus the person who started saving and investing with even more money in their 30s all the way to 65.

37:20And the person who started in their 30s could never catch the person who just started in their 20s for 10 years. So it's just early and often for young people is the easy button to if you want to be wealthy. Because remember what Mr. Morrow taught me when I was in my junior year of high school was if I could just save$100 a month, I would be a millionaire. And with that thing, it just, I was like, I can do this.

37:44Brian Preston:Just do something. Just start doing something and never, ever, ever, ever stop. I have some dear clients. It's a multi-generational family that I work with. and the parents, they had young children when I first began working with them. They were around the age of 10 or 11, and based on the grandparents' estate plan, there was some annual gifting that was happening, and the grandparents wanted the young kids to learn about investing. So I would sit down with them at 13, and I think one was 11, one was 13, one was 15, something like that. And I still remember one of the daughters, I sat down, and I was kind of explaining to her how compound interest works, and I was showing her how the money can multiply.

38:25Brian Preston:We're talking about what stocks are and how they work and that sort of thing. Well, as she got a little bit older, she got her very first job, and she got one of the gifts. And I was like, hey, we can invest this money. This is great. But one of the really keys to investing is not like investing big chunks of money, big lump sums. It's just starting to do a little bit very, very consistently, do that for a long time. And she goes, well, I've got this job. What if I just started saving$20 a month? I was like, oh, that sounds incredible. Let's do that, right? And so when she was 15 or 16 years old, we turned it on, started doing$20 a month.

38:56Brian Preston:today now she is a client in her own right she's in her mid-20s and the other day we were talking she still has that same 20 like we never change she still has that same even though now she's got the 403b and she's putting money like she's making all in it and i'm like you realize that one decision you made back then is probably one of the most valuable decisions that you can ever make so if you could just get the 17 year olds to grab onto that you realistically can change their entire financial lives. Connor, let me go ahead and prime the pump on this wealth multiplier discussion. By the way, you can go to moneyguy.com slash resources if you want to know specifically what your wealth multiplier is.

39:33But for a 17-year-old, every dollar that comes into the control of these 17-year-olds has the potential to become$119. So that's amazing by the time they retire. If you want to become a millionaire, have your own Mr. Morrow moment, they only need to save and invest$71 a month and they will be a millionaire. If they wanted to know how to be a multimillionaire, $2 million, it's$141. It's amazing how math works. Just cool stuff. Good luck on planting those seeds of success and hopefully you're successful. Let us know how it goes. Maybe you can do that in the Moneyverse. That's great. That would be awesome.

40:14We'd love to hear. I can't wait to get in there. Moneyguy.com slash Moneyverse. I'm not even going to tell people what my screen name is because I want people to kind of figure out who I am once I get in there. I've got all kinds of crazy things. I actually don't know his screen name.

40:27Brian Preston:I'm going to make a guess, though. I bet it's Quack, Quack, Quack. I bet that's his screen name. What if that was your screen name? Is that it? No, that's not it. That would have been a good one, wouldn't it? Well, when Bo got in there, people thought somebody was impersonating him. They didn't believe it was really him. So we had to give him a special role that was like, this is the real Bo. Did he then just tell them what his bench press was? Oh, no, it has to be Bo. The only people that can lift that much weight is both. That's funny. Well, Connor, if you would like a Money Guy Tumblr, since we answered your question, just email winner at moneyguy.com.

40:57All right. One more long form, then we'll move into rapid fire. This question is from Messy Middle WP. It says, what are the pros and cons of applying for an extension on my taxes? All my family put an extension for multiple years, then seemed to play catch up. Is there an arbitrage that I don't see? I think this is a good question because people do it for a reason, but what are those reasons? Let's talk about it. What's funny is I was down on spring break last week, and one of the couples we were down there with, they also own a business. He actually, Beau, it shocked me because they own multiple businesses, and his accountant was following their business returns and their personal returns.

41:37I was like, how does not happen? That sounds amazing. Look, the part I always share with people is that keep your life simple. If you can file your taxes, of course you can file your taxes. I think that's the thing. I have found from my own personal life, because with all these profit-sharing calculations, all these other business ownerships, success creates complications, so I now have to file extensions out of necessity. We crave to file it on time. I wish we could file it on time. I will tell you, I don't know if this is even true anymore. I mean, because I used to tell this, I'll tell you the antidote, but I'll also put the disclaimer.

42:19I have no idea if this is true. But years ago when I was in the tax game and preparing taxes professionally, we would share that the word on the street was is that if you filed your taxes on time, you had a more likelihood of being audited faster because they met their numbers. Now, the odds of you're getting audited anyway is so slim to none that I think that doesn't really move the needle. But for me, it was more about, you know, when could I get the tax return organized and filed with all the appropriate information? Because unfortunately, with profit sharing and all the businesses, it just doesn't happen by April 15th.

42:58Brian Preston:So a few thoughts. In my opinion, Messy Middle, there's not really an arbitrage to be had. because one of the things that's true is even though you can extend the filing of the return, you cannot extend the paying of the taxes. Your taxes are still due on April 15th. So it's not like you can wait until later in the year to true up. If you do that, you're going to get hit with penalties and interest. So what most people do is they file an extension, they make some sort of payment with the extension. Well, if you overpay, which is what you should do if you're filing an extension so that you don't get hit with penalties and interest, what you're really doing is you're giving the government an interest-free loan.

43:37Brian Preston:And when you get that money back as a refund later when you receive it, you kind of lost out on that. So there's not really an arbitrage or benefit to doing that unless, and this is the one thing where you do have a little bit of caveat, a lot of retirement plans, right, if you need to fund profit sharing or you need to fund cash balance, but you don't quite have the capital to do that, but you know that you're going to have money and receivables coming in, you can file an extension to push back your filing timeline so that you give the business enough time to create the capital and then be able to go fund the profit sharing or go fund the cash balance.

44:12Brian Preston:So it does extend your window just a little bit to be able to do those things. It's not really an arbitrage as much as it is a flexibility if you're having a cash flow constraint from a timeline standpoint. I love that because it is true. Like Roth IRAs, your HSAs, all those things need to be funded by April for last year's funding. But you do get a kind of a cool thing if you're doing SEP IRAs, solo 401Ks, anything with profit sharing or employer funded. Filing that extension lets you make those contributions all the way up until those extended deadlines. Pretty cool stuff. Great question, MessyMiddleWP.

44:50If you would like a Tumblr, just email winner at moneyguy.com. By the way, I love the screen name, MessyMiddle. It's one of those things that we're very proud that we hopefully give comfort to all those who are struggling with the messy middle. You're short on time. You're short on money. But don't worry. Life is still awesome because those years are, you know, the days are long, but the years are short. That's right. True that.

45:14Brian Preston:And that middle is messy. Amen, Ruby? It is. It's fun, though. You know what's going on in my life right now? What's going on? Every time my kid goes to the dentist, it's like, it's just a ton of money. Like, every day they go for cleaning, it's just a ton of money. kids it's like they just are they getting fillings yes it draws me nuts so do they have bad because look I grew up as a child I have meticulous dental health now because of my childhood because I felt like I had a mouth full of fillings but as I've gotten older I've realized I think I was just genetically flawed I think my teeth design you know it's more susceptible my wife's I shouldn't say this on air she doesn't have the same dental hygiene but she doesn't get she doesn't have to she doesn't get cavities because I think she's just genetically better than me so it's not she's genetically better if your if your cavity exposure was by work ethic I would be you know cavity free I just oh it drives me and like it's fine we're gonna be fine I just it's annoying because I'm like oh girls floss your teeth better I know floss your teeth better but yeah it is true Brian's not wrong like maybe they do and they still are just have a, you know.

46:28Brian Preston:So go easy on it. A predisposition towards those types of issues. Every time I say, do better. I was like, hey, do you know how long? I was telling my eight-year-old this yesterday. You know how long it takes for you to pay this dental bill? And she was like, no, Dad, how long? I was like, well, long time. You're like, a long time. It wasn't well thought out. It wasn't well thought out. That's hilarious. All right, it is time for our It Does Not Depend Rapid Fire segment where Bo and Brian answer your questions in 30 seconds or less. Yes, that is a new twist. We have a 30-second timer queued up today.

47:02For both of us? Cumulative. Cumulative. Oh, wow. Okay. And so, yes, you have to answer it in 30 seconds or less, and you cannot say it depends. Now, to ease your anxiety about this, at the end of the rapid-fire segment, we will do a brief, maybe-it-does-depend segment, where you can say anything you didn't get to say in those 30 seconds and clear the air if necessary. And I'll say the quiet part out loud. Brian, don't Bogart the 30 seconds. Okay, go ahead. I'm going to just see how you guys handle it. It's going to be a fun twist. Because you guys, honestly, y 'all were crushing 60 seconds. You were doing too well.

47:34So we have to change it up. Buckle up, Rabes. We're going to crush 30 seconds as well. I can name that in three tunes. Keep going. I'm sorry. What? Okay. We're going to move forward. I will read the question and then the 30-second timer will start. So let's go. The first question is, first car, current car, and favorite car that you've owned? Go. First car is a 1984 Ragolier, Chevy Cavalier with the F41 package. Bo, you do first because I can't remember with the second.

48:10Brian Preston:First car was 1995 Isuzu Rodeo. Current car is a 2019 Tundra Platinum. And favorite car is the Tundra right now. Okay, and I have a Tesla Model X Plaid. And that's it. Okay. And we don't know which one his favorite is. We'll never know. We'll never know. You can make your guesses. Next question is, I'm retired at 52. Should I try to find a way to contribute to a Roth IRA? My wife is retired as well. If you're both retired, you don't have an earned income, you can't contribute to a Roth, but perhaps you should consider doing Roth conversions. Yeah, I mean, that's, and look, and if you start doing some side hustle stuff, of course fund the Roth IRA, but I wouldn't make it a requisite because more than likely, exactly like Bo said, you could do Roth conversions with your low earned income.

49:02I don't know how big your investment portfolio, but you might have some tax arbitrage opportunities. Well done. Next question. Aside from Greatest Showman, what other movie dynamic duos would Bo and Brian be? Turner and Hooch. What? Thelma and Cash?

49:19Brian Preston:Thelma and Louise. Tango and Cash? I'm trying to think about some really good superheroes, but not the two that people want to say immediately. Batman and Robin? No, that's not who you would be. That's not the one that you say. That's not it. That's not it. Other good dynamics. Walt and Roy? I'll take Walt and Roy. I like Walt and Roy for you guys, yes. Warren and Charlie? Right? There's some good duos out there. Yep. What was Michael Eisner's right-hand guy? The guy who died in the helicopter. That's the other one at Disney. Um, Wells? I don't know. I don't know this. He's the quiet. Most people don't remember how.

49:54Was it Frank Wells? He's super powerful. Oh, I think we're over time. Okay.

49:59Brian Preston:Which one of us is the quiet one? All right. Next question is, what percentage of net worth should a retiree spend on a newer car? Net worth. Percentage of net worth. I don't think it's a percentage of net worth. I think it's a percentage of either liquidity or income. Like, how much income do you have going in? or how much liquidity do you have where you could just pay cash for it? Yeah, I just want you to pay cash and then make sure it's not, it's more of backing into the math of not stressing out the system about looking at your monthly cash flow compared to your investable net worth. Did I say depends there?

50:37One more second. Did you? I didn't catch it.

50:38Brian Preston:I don't know if I like this, but someone just said, Brian is Tony Stark and Bo is Peter Parker. Now, like, don't get me wrong. Spider-Man's cool and all. Bo has bigger biceps than Peter Parker. But I don't know that I'm like a... I think you would be like... If we were going to come to a counter, if he's Tony Stark and we're trying to think about all the Marvel folks... Yeah, what about Captain Marvel or anybody else? Can we deal into what that means? That means I'm rich and nerdy. That means, Bo, they look at you as young. They obviously don't know how much you can bench press, but it's still a compliment.

51:10Brian Preston:I'm just saying, of all of those... Spider-Man can bench press a lot. It seems like there's one or two that I would really lobby for inside of that universe. I pick on Bo's bench press. It's probably, he'd want to probably some cling or jerk or there'd be some other leg exercise he'd probably want us to actually brag on him more. Maybe next time. He can let us know. All right. Next rapid fire question says, I'm 20 years old running my own couch flipping side hustle while studying accounting in college. It says 60K a year, so I think he's making 60K a year. We reacted to a video on a couch flipper.

51:44That's why I'm laughing. The question is, do I pursue a career in accounting or strive to my dream of owning my own business?

51:54Brian Preston:This is not specific advice, but what I would say is I think getting the degree in accounting will set you up later in life. Meaning if you go and try to be an entrepreneur now, it's really hard to go back and get the accounting degree. If you get the accounting degree now, very easy to go become an entrepreneur in the future. You know, everybody wants to be in business with me is because I have this accounting background. because you always... No, seriously. All through my life, people when they come up with these ideas of starting business, they want me because I do the bookkeeping and I do the taxes.

52:22I know how business works. Great points.

52:25Brian Preston:Everybody wants to be in business. Think about it. I could go through stories. Hey, I'm with you. I'm in business. Clearly, Bo wanted to be in business. He can't argue. All right. As a young investor, should we consider double leveraged market index funds? Bo, why don't you tell them about the time burn on there. What's that? Time decay. Inside of these levered funds, people think, oh, if the S &P makes 10 % on average and I go triple levered, that means I'm going to make 30 % on average. That's not the way that levered funds work. There is a specific time decay that even though you might be thinking you're going to hold it for long term, the way that they recalculate every single day, you will not get compounding growth unless you get a long stream of momentum ups.

53:10Brian Preston:Momentum. That's what I was going to say. Momentum is the word I would use with levered funds. Man, that was not long enough. All right, next question is, currently engaged, do I follow my single foo or what our married foo will be? Well, you're not married yet, so you follow your single, but as soon as y 'all two become one, that doesn't mean that this gets into your structure. That's a whole nother question, but I definitely like looking at household for family members once they're married. I think there's a glide path, right? Single foo today with an eye towards What's the merry foo going to be?

53:43Brian Preston:Because you are kind of like moving into that realm. So I completely agree. And that's where the complexity happens. You know, life creates complexity. All right. Next question. If I max out my Roth IRA, can I still contribute to my Roth 401k? Yes. Yes. I knew that was easy, but there you go. Rapid fire. By the way, if you want to know, since we had extra time there, I still like doing the Roth IRA because it lets you choose the custodian. You get a lot of control. And then, you know, as long as, but if you're just trying to get the free money, start with the Roth 401k because you can do, you still get your employer match even with a Roth 401k.

54:24Love it. Brian will take that 30 seconds. Financial order of operations is your friend. Last but not least, morning workouts or afternoon workouts? Oh gosh, we're split. You go first. I mean, I do an afternoon workout. Everybody who knows me is in the 315 with me. Bo gets up at like... I do early morning. Bo goes to bed at 6 p.m. at night.

54:46Brian Preston:Because I'm in the messy middle, if I don't get it done early in the morning, it will not get done. And it's important to me. It matters, so I make time. So me and three other dudes, we wake up and we start going about 445. What time do you wake up? I wake up at 413 and we're going at 445. Peace mode. 413 specifically, I love it. You want to know? Because here's the thing. I wake up at 4.13. I'm a Hatch. Are we sponsored by Hatch yet? We should be. We should be. Hatch alarms, amazing. Well, actually, no. I'm not going to tell you what alarm I love. I'll tell you in the future if we ever get a sponsorship.

55:17Brian Preston:Oh, my goodness. But what's great is I wake up at 4.13. I immediately reach over, grab my phone. I snooze it until 4.22. 4.22. I get up. I go to the restroom. I brush my teeth. Take my vitamins. Go make my pre-workout. Out the door at 4.33. Ready to roll at 4.45. That was so intense. Every morning. Hatch. I need a nap from that. Right. Every morning. Well, that was great. You know, I think you guys crushed it because I didn't hear tons of fodder. I think 30 seconds was poor appropriate because we actually felt the stress of the experience. Right. You actually had to follow through on being speedy.

55:52By the way, my favorite car. Yeah, that's the one thing we used to do. I got to say, my Tesla Model 3, because I just, y 'all have no idea. Yeah. You know, I've never driven cool cars my whole life. And then when I got there, because I was one of the early adopters of that Tesla Model 3, I'll never forget because they used to do a coffee and cars up in the woods. You're talking about it in Cool Springs? Yeah, in Cool Springs. And I remember my car came, I got it so much sooner than everybody else, all the head turning. I was like, this must be what it's like to drive a Ferrari. Yeah. It's because I had so many people and I couldn't go to a gas station without people coming up to me and talking.

56:28And that was also the reason I even bought some Tesla stock back in that phase was that so that probably forever will be my favorite car just because it was such a unique moment in time that everything just aligned perfectly with that car. It was a cool car.

56:45Brian Preston:And you love the Jeep too, but I think you did love the Model 3 a little because when the Jeep had the same sort of experience, it was a big head turner too, but you loved the Tesla so much, the Model 3, because it was just so different than anything you've ever driven before. It was different. And I thought it was so I remember when I first got it, I was like, it stinks that this thing doesn't have auto headlight, like high beam cut off because my wife's car at that time had that. And then it was like three months later, they added that feature through an over-the-air update. And then I remember it didn't have the auto windshield wipers.

57:12They still struggle with that. If you want to true Tesla struggles with the auto windshield wipers worse than the European companies. But I love how these things get updated. And I thought that was a really novel, cool thing. But that was just that moment in time was a pretty unique time for that Tesla Model 3. Love it. See, it's why I need more than 30 seconds Yeah, that's okay

57:31Brian Preston:I don't feel like there was any Were there any questions there that we need to expand upon? We hit the Roth IRA, Roth 401k I think even though it wasn't a ton of time These levered things, people think it's going to be a magic bullet It's not And what you often find is you begin playing with that Or even like volatility investing That got super popular a number of years ago Where people want to go buy the volatility indices Yeah Yeah. That stuff only works if you get lucky, right? Like it's not, those are not long-term investments. Those are, and I don't want to say gambling because it's not exactly gambling.

58:06Brian Preston:It's definitely more speculative. It's like a kiss and cousin to gambling. And so I just don't think that's the way that you ought to be using your dollars to build wealth over the long term. There was. Do you remember that crazy prospect I had? He put, you remember the numbers? You remember the numbers. In 2009, he bought$250 ,000. He didn't know what he was doing, but he bought$250 ,000 in a, I think it was a triple lever. It was a triple lever. Triple levered ETF. And when he came to us, this is probably seven or eight, it had turned into$9 million. He had turned$250 ,000 in$9 million. I didn't believe it because, you know, look, when you're a financial advisor, you have to worry about money laundering type stuff.

58:52because when I worked at another firm, we had a prospect that just how they made their money seemed a little fishy. So you always have to be worried of somebody trying to clean money or do something. So you have to stand on guard. So when he told me the story, I was like, you did what? And I was like, can you send me some statements? And he did. Sure enough, he did. He had the receipts. And I couldn't. I was like, holy cow. So I mean, there's always going to be some crazy story. but who's crazy enough that you do this in 2009 and then once you doubled or tripled your money you don't get out you're a wild man if all of a sudden you're like you know what let's ride this thing to$10 million that's one of those oddball stories that's still so unique

59:32Brian Preston:and those are the exceptions not the rules far too many people say oh this person did it there's a ton of other things that have happened over the last 10 years oh well so and so made all this money doing this well yeah you can't go recreate that. You can't go back in time and do that thing again. Well, I still, you know, I tell, I share the story that, um, because I'm about to see them. One of my high school buddies I'm going to get spring training with them this weekend, actually, but I remember three of us bought Apple stock in 2008-9 when everything, crap was really going bad. Um, we and I remember looking at the balance sheet and the market cap on Apple was the same as just like what their assets were on their of like, like their campus and those didn't even include all the software.

1:00:18So it was just the disconnection from the value. So we bought like$5 ,000 each of Apple stock. I sold mine when it turned to$15 ,000 because I was like, hot dog, I tripled my money. My buddy, I mean, it's over. I mentioned it in, when I talk about crazy stories, I mentioned it in Millionaire Mission. It's worth over half a million dollars now. He still owns it. It's wild. There are crazy, weird stories out there that happen for those wild people who don't take their profits.

1:00:47Brian Preston:Exception is not the rule, though. That's good stuff. Well, thank you so much for submitting all of your questions today, both long form and rapid fire alike. We'll be back here every Tuesday at 10 a.m. Central answering more of your questions and hopefully making it fun. We have fun. And in the meantime, you don't have to stop the chat. Just go to moneyguide.com slash moneyverse to join our Discord server where you can chat, ask personal finance questions, take part in our weekly surveys and even celebrate milestones and maybe even see Brian and Bo make an appearance in there and answer some of your questions throughout the week.

1:01:20My goal is in the next day or two, I have to, today we have so many things we're recording. I don't know if it's going to happen today, but I do plan on making some visits in there based upon all the feedback Bo's giving me. You heard it here first. Go join the Moneyverse. Guys, I'm your host, Brian, joined by Mr. Bo. It's good to be back in the saddle. We'll see you next week. Same time, same bat place. Money guy, out.

1:01:45Brian Preston:The Money Guy Show is hosted by Brian Presson 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.

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