Financial Advisors React To Crazy Money Scenes From TV Shows

Introduction – Reacting to TV Money Clips (0:00)

Brian: The content team has been busy. They went and found some of the greatest TV clips that happened to talk about money to see what we thought.

Bo: Brian, I am so excited about this because I’m in the messy middle. I don’t get to watch a lot of TV. So, I can’t wait to see what the content team has put together for us today.

The Office – Michael Scott’s Budget (0:20)

TV Clip: Okay. The green bar is what you spend every month on stuff you need, like a car and a house. The red bar is what you spend on non-essentials like magazines, entertainment, right? Things like that. This scary black bar is what you spend on things that no one ever ever needs like multiple magic sets, professional bass fishing equipment.

Michael Scott: How do they do this so fast? Is this PowerPoint?

Bo: It’s so funny because again, I have literally sat in these conversations. Someone I’m like, “Hey, let’s look at your budget.” It’s so good. They’ve got, hey, I’ve got this much for eating out and I’ve got this much for my gym membership and I have this much for health insurance and I have this much and it’s so well and it’s so wonderful. And then I look, I’m like, but hey, what’s this category over here? And there’s just this category called miscellaneous. And the miscellaneous category is like five times the size of every other category in the budgetary line item. That’s not the way that you budget. That’s not the way that you actually make sure your dollars are going into the place that you want them to go into. So, if you don’t have a plan for your money, you’re going to set yourself up for failure.

Brian: Well, I mean, we all love a good Michael Scott clip, but you don’t want to manage your money like Michael Scott.

TV Clip: Holy, is that real?

TV Clip 2: Yeah, they say three year salary.

Brian: I do love the idea of using a budget, of tracking your expenses so that you actually get to pay yourself first instead of just saving and investing what’s left over because I think there’s a lot of Americans that run it the Michael J. Scott way.

Producers: Michael Gary Scott.

Brian: Michael G. Scott.

Producers: Michael J. Fox.

Brian: Yeah, you know, they’re all related. That’s just the way Michael Scott would have done it, too.

Schitt’s Creek – The Write Off Confusion (2:05)

TV Clip: What’s this? Looks expensive.

David: This is some new bedding.David, didn’t I just tell you to save your money? Yeah. I am testing this out for the store. So, work is paying for it. Work is paying for your bedding. I was gonna leave, but now I don’t want to. What is that? Is that a new lamp? Yeah. I’m thinking of bringing homeware into the store. So, that’s a write-off. Oh, it’s his business. A write off? Yeah. Do you even know what a write-off is? Uh, yeah. It’s when you buy something for your business and the government pays you back for it. Oh, and who pays for it? Nobody. You write it off. Who writes it off? I don’t know. The government, the write off people. What? Why are we having this conversation? So, if I need booze to get through my day, I can just write that off. That’s a stretch. But the skincare products you got this morning, those are a write off. What skincare products? You purchased skincare products. Okay. I am the face of the company. If I have acne, what does that say about the legitimacy of the store? That’s not a write-off. That’s not a write off. This is not a write off. Oh, well, the bedding is non-refundable. David, a write off is a business expense used to reduce your taxable income. Okay. Well, then why isn’t it called a tax write off? It is. It is. You can’t just buy things for yourself and write them off. Tell him to stay off social media.Well, then I’ll return some things.

Bo: What’s so funny is we’re all laughing at that. I’ve literally had this conversation with people.

Brian: I’ve literally had people say, All you have to do is look at social media and they have all these people telling you you can live your best life and it’s all tax-deductible and it’s a write off. But what nobody ever tells you, first of all, everything’s deductible until you get caught. So, it really does need to be truly authentic business expenses to even be deductible. And then don’t forget, just because it’s a legitimate expense, it’s not a dollar for dollar. You still have to pay your hard-earned cash for something, you only get to deduct and take a deduction for whatever your tax rate is. So, people lose that and they lose their mind. They get so excited because they don’t want to pay the man anything extra. But then they also stretch the legal part, which is everything’s deductible. I’m telling you, be careful because one day you might actually be sitting across the table from an IRS agent and having to explain why you bought your lamp, why you bought your sheets and your skincare. And I can tell you it wouldn’t be like that. It would be tears and it would be a very desperate conversation.

New Girl – The Blockbuster Inheritance (4:53)

TV Clip: This envelope contains the inheritance my uncle left me. He died a year ago. He was so rich he had a whole room in his house just to eat in.

TV Clip 2: You mean like a dining room?

TV Clip: Yeah, but in Manhattan.

TV Clip 2: Oh, dang.

TV Clip: Let’s find out what I’m worth. I’m too nervous to open it.

TV Clip 2: Check it.

TV Clip: Okay. It’s stock, 1 million shares.

TV Clip 2: Oh my god.

TV Clip: Of Blockbuster video.

Bo: So, a few things. One thing we saw right off the bat, be careful spending money that you do not have yet. And a lot of times we’ll see people, they’ll bank on an inheritance, they’ll bank on a bonus, they’ll bank on money they think is coming their way, begin to mentally account for how they’re going to spend that money, and then the music stops, and the money they thought they were going to have did not show up. So, that’s one teachable lesson I took away from that.

Brian: I feel like we’re watching an episode of Vacation. I mean the movie Vacation because when you build your dreams off of somebody else’s money there’s usually, there’s a reason we use this in movie plots and TV plots. It’s so much better to actually create a plan, find your own money, build your own money so that you don’t have to worry about the jelly of the month.

Bo: Another thing that’s really great and we see this all the time, again this happens a lot of time with grandparents, they’ll have a stock certificate that they put in the safe deposit box because they thought it was going to be this wonderful thing that their child was going to want to get and in this case it sounds like they might have had all their eggs in the Blockbuster basket. A million shares of Blockbuster stock that we now know the rest of that story ended up going to zero. So, be careful putting all your eggs in one basket. And also be careful holding on to like stock certificates and the old way to do money. Make sure that you’re staying modernized with the times.

Brian: And shame on Reed Hastings for changing that.

New Girl – The 250 Credit Score (6:35)

TV Clip: Buying a phone’s a big deal. I mean, think of how long they’ll have this thing. It’s like buying a car or a bra. 8 years, man.

TV Clip: Hey. Sorry. I was just checking your credit score and I got this number that’s crazily low. So, I’ll try again.

Nick: Don’t bother. I’m sure it’s right.

TV Clip: Seriously?

TV Clip 2: Are you kidding me? 250? You get 150 just for being alive.

TV Clip: Morgan got a 250 credit score.

Nick: I guess the $40 I saved on that GAP card didn’t pay off.

TV Clip: Do you have like a box of charity phones you’re sending to Africa? Can you just have one of those?

TV Clip 2: Brendon, this guy’s got a 250 credit score. You’re bringing everybody out.

TV Clip 3: Look at this. 250.

TV Clip 4: Oh, I’m sorry. I’ve been doing this a long time. I’ve just never seen a score this low. Did you just wake up from a coma?

Brian: I would love if in the comments, let us know the lowest credit score you’ve ever seen a friend or a family. Because surely if you’re watching this content, it’s not you, but I don’t even know how low they go.

Bo: What I think is wild is a lot of people say, “I don’t need a credit score. I’m not going to have debt.” And you don’t realize there are a ton of different areas of your life where a credit score can actually serve as a benefit. You can get lower insurance premiums. In this case, you can go get a cell phone. You’ll be able to qualify to have that sort of plan. Just because you have a credit score, just because your credit score is good does not mean it’s an I love debt score. It means you understand how to responsibly use credit. You understand that it has implications throughout the rest of your life. Don’t be rolling around with a 250 credit score.

Parks and Recreation – Ron Swanson’s Tax Audit (8:03)

Ron: So, we need to find proof of every tax deduction I’ve taken in the last 5 years.

Leslie: Ron, most of these aren’t even receipts. This one says I bought supplies 2007.

Ron: You won’t find any bank statements either. I’ve heavily invested in gold, which I’ve buried in several different locations around Pawnee. Or have I?

Bo: Yeah. So, it sounds like in this particular clip, Ron was a little bit aggressive on how far into the gray he went on his taxes, and it sounds like the IRS has now told him, “Hey, sir, we need you to actually substantiate all these claims you’ve made over the last 5 years.”

Brian: Well, I mean, think of how many people I think that this is the behavior of the typical American is that they’re just like willy-nilly with their tax deductions and then when they get a letter from the IRS, it’s like, “Oh my gosh, I better clean up my activity and my behavior.” This is why I want you to have a plan before on how you’re going to make sure everything you file in your taxes is accurate. You know, how to button down the hatches because you don’t want to be on the wrong side of the IRS. And I would encourage you when it comes to tax documents, make sure you keep your records for at least 7 years. In this case, if we would have had buttoned up records that were substantiated, it’d be very easy to prove that to the IRS. Not, you know, sticky notes.

Bo: Great TV. Parks and Rec. It’s good stuff. You know, another thing I thought was super interesting is his investing strategy. No bank accounts, no bank statements. I’m just going to go bury the gold. And I guess whether or not that was proven or not depends on what day it was he buried that.

Brian: Very on brand with the prepper and you know making sure you do things a little differently.

Arrested Development – Money in the Banana Stand (9:36)

TV Clip: Trying to find some money for the family.

George Sr.: There’s always money in the banana stand.

Michael: We don’t have the money, Pop.

George Sr.: There’s always money in the banana stand.

Narrator: And so Michael, his son, and his brother together enjoyed the cathartic burning of the banana stand.

George Sr.: There was money in that banana stand.

Michael: Well, it’s all gone now, Dad.

George Sr.: There’s $250,000 lining the walls of the banana stand.

Michael: Why didn’t you tell me that?

George Sr.: How much clearer can I say? There’s always money in the banana stand.

TV Clip: No touching. No touching.

Brian: This is a funny clip, but no doubt I actually have had clients that they had older parents that they found out and I mean we got close to six figures of money hidden in curtain rods and closets with enclosed pockets. And if they had not somehow convinced this parent to actually share where they had hidden all this money, think about what a scavenger hunt or a mess that would have left for the survivors. So guys, be careful where you actually store your wealth because a lot of people and a lot of times it is people from older generations where they don’t trust banking institutions. It is one of those things you got to be just careful that somebody knows where the money actually is. And if you are doing something creative with either your storage or your accounting, make sure you have those conversations with your loved ones so they understand where your assets are and what your ultimate wishes are with those assets.

It’s Always Sunny in Philadelphia – The Timeshare Trap (10:57)

TV Clip: Hey guys, you here for the presentation?

Salesman: I’m Harris Martyr.

Mac: Save it bozo. We’re here for the free golf clubs. You got exactly 20 minutes to do your little song and dance. We’re just going to tune out. So why don’t you give us a wave when you’re finished?

Dennis: Or don’t.

Salesman: What’s the point? I’d just be wasting my time. I mean, obviously you two are smart.

Mac: 19 minutes and 50 seconds, clown.

Salesman: And don’t get me wrong, Invigoron is great, but you got to put in the hours. You fellas strike me more as men of leisure, obviously.

Mac: Well, we are.

Dennis: Yeah. I mean, this guy’s got the Hawaiian shirt. You with the killer tan.

Salesman: But it’s killing you guys to be stuck indoors on a beautiful day like today.

Mac: It is.

Dennis: So, less yapping. More golf clubs, please.

Salesman: Yeah, I get it. And you know what? Because you guys are such great sports, I’m going to throw in a coupon for a free round of golf at the Dusty Dunes Resort in Orlando. You guys been to Florida?

Mac: Been there?

Salesman: If you want, I can set you up with one of their private villas.

Mac: Suddenly.

Dennis: That’s pretty nice. Look at that.

Salesman: Did you know that the average rate for a hotel room 30 years ago was $19. Today, it’s $237. That’s a 1300% increase. So, it’s not inconceivable to think that in another 30 years, a week at a hotel runs you $20,000.

Mac: That’s not inconceivable. That’s very, very conceivable.

Salesman: Okay. But not for you guys. You’ll be locked in at $1,400 annually.

Dennis: Wait, we would be.

Salesman: Yeah. I’m not talking about taking a vacation, guys. I’m talking about owning a vacation. And look, if you’re still not comfortable with the numbers, you just double down. You get two weeks. Sell that second week. Boom. You’re vacationing for free.

Mac: Wait, wait, wait, wait, wait, wait. Mac, I think this guy just bent himself over a barrel a little bit.

Dennis: He did?

Mac: Yeah. For our pleasure. Follow me here. Okay. So, if we buy a second week and we sell that, we’re vacationing for free. What happens if we buy a third week and sell that?

Dennis: We’re getting paid to vacation.

Salesman: Oh, guys, I’ve actually never thought of it like that. I’m not sure I can make that deal.

Mac: I’m going to write in three.

Dennis: Write in three weeks.

Mac: That’s good. Yeah. Right.

Dennis: You thought we were a bunch of suckers, but guess we’re not. We just bought three weeks of a timeshare.

Bo: That’s the way it goes. That’s the way the presentation goes. They pitch you something that sounds so good that how on earth could I possibly not absolutely capitalize on this opportunity.

Brian: Well, and they also entice you with all the free stuff, all the perks. And you know, I haven’t actually been to a lot of timeshares myself, but I grew up in a household where this is how we did vacation. That was vacation. So, I got to just as a kid sit in on these things and it is amazing. There’s a reason that these things are highly profitable to the people who sell them. They employ some of the most impressive sales agents out there like this example showed. Don’t just don’t get yourself in those type of situations. It’s so much better to actually save up, pay for your vacation. All timeshares are is a way that you’re leveraging for future vacations. And then usually you’re signing on, the part they don’t talk about is the obligations for years on those annual maintenance costs that are going up more and more each year. And then good luck on trying to get out of a timeshare contract.

Bo: Here’s a little bit of a tip you can do. Give yourself a cooling off period. Don’t ever buy something at the presentation. If you sit in a presentation, there’s an opportunity that you think is so amazing. Give yourself 2, 3, 4 days to cool off to make sure that you actually want to commit to this thing rather than doing it on the spot. Most often when we’re faced with large financial decisions in the moment and there’s a pressure to go ahead and close a deal, your spidey senses should be going off. That’s a red flag moment.

Closing (14:36)

Bo: These were fantastic. I forgot how hilarious all of those shows were. But it just goes to show they would not make these. This would not be created if these things did not actually happen in real life. And we believe there is a better way to do money. So make sure that you don’t fall into these same traps.

Brian: And guys, hang out with us. You know, we give away tons of free advice. If you go to moneyguy.com/resources, we will load you up. So, not only are you entertained without getting suckered or snookered into something bad, you actually will learn how to live your great big beautiful tomorrow. I’m your host, Brian Preston. Mr. Bo Hanson, Money Guy Team out.