Financial Advisors React To WILD Money Advice On YouTube

Introduction – Breaking Out the Hammer (0:00)

Video Clip: For the Rebel, it’s $1,159 a month. The Audi’s $901 and the Corvette Z06, $775.

Bo: That’s $4,000. Chris, you didn’t even do it right. If you’re going to try to break into an ice cube full of money, let us show you how it’s done.

Brian: And we’re back with another react episode for all of you guys. I can’t wait to see what the content team has put together for us.

Bo: Brian, I am so excited because we never know what’s going to be on the other side of the screen. So, with that, let’s dive right in.

Your Money is Frozen in a 401k? (0:34)

Video Clip: You’ve been working hard, Chris, saving diligently and dumping cash into your 401k. You think your money is growing, right? Well, I hate to break it to you, but what’s really happening? Your money is frozen. No, it’s not. If you have a 401k or IRA, your money is trapped, barely pacing with inflation, locked away when the banks and Wall Street can use it. What about the returns? The max is around 7 to 8%. But after you factor in inflation, fees, and taxes, you’re left with scraps. That’s not freedom. That’s a financial glacier holding your wealth hostage.

Bo: Your money in a 401k or an IRA is not sitting still. You are literally growing your wealth in a tax advantaged, tax incentivized manner. No, you do not access it today because it’s not supposed to be today money. It’s supposed to be retirement financial independence money. Chris, what a frustrating example.

Brian: Well, I mean, I let the stats talk for us. I mean, if you look at millionaires, the first account that typically crosses seven figure status is typically the 401k. There’s so many things going for it. The tax favored, the free money from your employer, whether it’s 50%, 100%, dollar for dollar match. These are powerful concepts to let your money grow and build automatic for the people because it’s rewarding that behavior of investing monthly. Chris is trying to sell you something. See through it and act accordingly.

Bo: Chris, you didn’t even do it right. If you’re going to try to break into an ice cube full of money, let us show you how it’s done.

Ice Cube Money Challenge (2:03)

Brian: What cockamamie idea? You realize Chris had like a fishbowl full of ice. We did this in a way where you got this. You got it. I mean, we can see the ice cubes attached to it.

Brian: Come on, Brian. You show Chris how it’s done. Look at that. Watch your fingers, Bo. Look at that. Take that, Chris Hogan.

Flipping Mobile Homes – Insurance Fraud Edition (2:22)

Video Clip: If I had to start over again right now, I’d be flipping mobile homes. You go out in the middle of the night, two, three, four of your buddies. You flip over a mobile home. You call the insurance company. You say, “Hey.” Oh, you mean physically flipping them over? What did you think I meant? So, you go in, you flip the mobile home over, you call the insurance. Hey, I got hit by a tornado last night. And they say, “Oh my gosh, we’ll send somebody out.” They’ll say, “Well, yeah, because how is you going to tell somebody, “How did this house flip over?” Wait, so do you flip it back over then? You get the money, right? Then you go hire somebody to flip it back over. Now you got the money plus the house. Plus the house. The stimulus overload here. That’s a side hustle right there, man. All right. It’s thinking smarter, not harder.

Brian: You’re going to have to tell me what he was talking about.

Bo: Well, he was talking about flipping a mobile home. He was talking about flipping mobile homes, which would be an idea of like buying and selling, but that’s not what he was talking about. He was talking about active insurance fraud. And so if your financial strategy is built upon the fact that if the authorities catch on to the fact that’s the way that you’re making your money and it results in you being arrested, you may not want to perpetrate, no pun intended, that financial strategy.

Brian: Well, I mean, let’s go make some content on it. Just go ahead and paint by the numbers on how you can wear orange.

Car Payment Horror Show at the Audi Dealership (3:28)

Video Clip: Asking people who work at Audi what their car payment is. Hey, Montana, what car do you drive? I have a 2021 Ram Rebel, a 2017 Audi S6, and a 2017 Corvette Z06. And what’s your car payments? For the Rebel, it’s $1,159 a month. The Audi’s $901, and the Corvette Z06, $775 a month. $4,000. I drive a 2019 Audi e-tron and my payment is $798 a month. You drive 2018 Audi A5 Sportback. What’s your payment? $678. Zach, what car do you drive? Hey, it’s my last day, man. I’m just trying to go. I’ve got three. I have my 2023 S5. I’ve got a 2010 S4. And then I’ve got the 2007 Corvette. And what are your car payments? $850 on the S5, $650 on the Corvette, and $450 on the S4. $2,000. This is my car. 2022 Porsche Taycan. What’s your car payment? $1,367.

Brian: And by the way, he didn’t tell us how many months. You know that that bad boy’s like 84 months, too.

Bo: Why do you need three cars and much less three cars that are all financed that all have debt on them? If any one of those people, Brian, if they went to moneyguy.com/resources and they went to our wealth multiplier tool and they just took that car payment, whether it was the $495 or the $1,367 or the $898 and they just could see what that monthly car payment could turn into. If they had that money working for them, they could buy a fleet of those cars when they get to retirement and pay cash for all of them if they wanted to.

Brian: It is so much better to be rich than to look rich. And these people, they are just going to be the servant to those banks because they’re never going to own their life and actually turn the power of compounding to work for them. They’ll always be indebted to this lifestyle.

Bo:Look, when you go to buy a car, make sure you follow 20/3/8. We want you to put down 20%. We don’t want you to finance it for any more than 3 years or 36 months. And the total payment cannot exceed 8% of your gross income. But Brian, if you’re buying an Audi, what should you do instead?

Brian: You have to do same as cash. I mean, that’s the thing I was going to say. Any luxury car, what are you doing taking any debt? If you can’t pay cash for those things, you are faking it until you make it. And you’re never going to make it to the make it.

Financial Astrology (5:36)

Video Clip: What you told me when I met you was that you’re an astrologer, right? Financial astrologer. What exactly is a financial astrologer? We basically look at planetary patterns and we correlate them to stock market activity. How can that be correlated? Remember astrology is a mathematical science. Is that really fair to say that it’s a science because there’s no way to really verify it? My background is in mathematics and psychology and astrology is a mathematical psychology based on astronomy. We take data like this for example which gave us information today which is something you probably would know how to interpret and then we put it together with our opinion about what the market’s doing. And when we charge depends on services. We have for example a company coming to me and we’re going to probably make them about $40 million. They’re offering me maybe $100,000, $150,000 and I don’t think I’m going to accept it. Not that $150,000 is not a lot of money, but we’re going to make them $40 million. I feel like we’re underpaid.

Bo: It did feel like an episode of The Office, right? Like that didn’t feel real. If let’s just assume for a moment that the guy in the suit could use astrology to figure out trading strategies, why on earth would he need to sell it? Why would we not see his name on the Forbes 400 right next to, you know, Musk and Buffett and Bezos? Why isn’t Zodiac Trader, right? Why isn’t he the wealthiest? It wouldn’t be Apple. It’d be Zodiac Trader in his brown suit. Unbelievable.

Government Control and Crypto (7:03)

Video Clip: Government controls your money. They can freeze your account at any time. Having your money in the bank used to work in the past. Interest rates were high. Inflation was relatively low compared to where it is today. They’re okay. They’re moderate. Let’s say they’re 4 and 5%. So you have your savings in there. Maybe you get 4% on a long term saver, but inflation’s at 10%, you’re losing money every single year. The bank, at any time, they can freeze your money. They can cause an issue for you. They can hold on to your funds. They can lock you out of your account. Crypto solves many of these issues. Crypto is a wealth builder. You know, I’ve always said that it’s a savings maximizer. You know, I consider putting money in Bitcoin, putting money in Ethereum as two long term savings accounts. I always say that to the guys. I’ve been saying that since Bitcoin itself was when I was first in, $800, you know, in 2015. I’ve considered Bitcoin a long term savings account. That’s been my savings account. That’s been a very good idea for me. You know, it’s much harder for the government to freeze your money, it’s much harder for them to seize your funds. And ultimately, if you’re responsible, if you’re self sovereign, if you’re able to actually manage your money, crypto is just the only solution for that.

Bo: There are people who have made money investing in crypto. There are people who have become very wealthy because of changes in prices in cryptocurrencies. But to suggest that it’s a savings account, to suggest that you should be your own bank and you should be sovereign, you should use crypto as a means to do that just seems absolutely asinine. If you don’t believe me, go look at what the value of Bitcoin has done in terms of volatility over the past 3, 4, 5, 10 years and then go look at what the value of a savings account, a single dollar in a savings account has done. When you think about savings, you want a stable store of value, not something that is wildly volatile.

Brian: There was so much going on in that video. Bo, look, I want to give him credit, though. If you’re going to make the bold decision to do your video shoeless, I appreciate the fact that you positioned your legs so that we didn’t get to see your gnarly feet. Thank you. That was well done for the public service. I kept waiting on Jason Statham to bust in because I thought he was the bad guy in a Jason Statham movie. I missed the first half of the video because I was waiting for that. Look, I got to believe a neck tattoo hurts.

Options Trading for Beginners (9:07)

Video Clip: Here’s a question for someone with a tasty bite size account about $4,000. Super busy getting started in a small account. You might want to sell a put on an inexpensive stock naked. Sell an out of the money call spread. Sell an out of the money put spread. Just a simple, you know, one side strategy where you’re either betting up or down. Maybe defined risk when you’re just getting started just to get your feet wet or if there’s a stock you really like, buy the stock and sell a call against it.

Bo: Yeah, if you’re just starting out with small accounts, you should do like very complex options trading obviously. Like that’s the thing that you ought to be doing with your money when you just start out. The things that like seasoned professionals still screw up on a daily basis, totally where you should start.

Brian: Was it buying the calls or selling the calls?

Bo: He was selling a naked call.

Brian: What’s the actual potential for loss?

Bo: Infinite. Infinite loss beyond.

Brian: Holy cow. When you see the news report that there is somebody who did something silly and then this turned out to be a disaster where they lost millions of dollars or hundreds of thousands of dollars is typically doing something like that because your potential for loss is to infinity. If you go start an S&P 500 or an index investment, the most you can lose is just your investment. But that’s not historically, that doesn’t even, that’s not something you’re thinking about. But with these strategies, you could lose many times over even what you put into that initial strategy.

Bo: You know what you should do with that $4,000 account instead? Maybe go follow the financial order of operations. You can get your free copy at moneyguy.com/resources and maybe just take that and use that to fund a Roth IRA. There’s a really good chance you fund that Roth IRA, buy a good low cost index fund, you’re going to be in a much better place than if you try to go do some option strategy. And then let your tasty be just towards cakes, not trading.

Study the Wealthiest (10:54)

Video Clip: Study the wealthiest. I don’t mean Bill Gates and Warren Buffett. I mean, if you study Goldman Sachs, that’s where the real wealth is. Okay? Study the wealthiest. Explain that. Why isn’t it Gates and Buffett? Because they’re only worth $80 million. $80 billion. Okay. Okay. You know, Goldman Sachs will destroy $80 million in an hour as far as their income, their revenues. You’re talking about Vanguard controls $5 trillion of ETFs, right? That’s money. There’s endless amounts of money. Like, I don’t know what the queen controls, but it’s freaking massive. Massive. Or the Putin money. You’re not talking about all that dark money.

Brian: I feel like we’ve covered a lot of all the black in the shadows money. I don’t know what to react to here. Basically, go look for the biggest holders of resources and that’s what you should learn from. I guess we just got an endorsement from Grant that index investing is good. Not apartment complexes, but index investing is where you should go because that’s where Vanguard and others are building assets. He just said that there’s $5 trillion in ETFs and one of the biggest ETF providers is Vanguard. I think maybe Grant’s saying go buy indexes.

Bo: Thank you, Grant.

Brian: Thank you, Grant.

Nobody Makes Money (12:11)

Video Clip: There’s no such thing as making money. Nobody makes money. Is he smoking? They take money because whenever you get it, it has to come out of somebody else’s pocket. Every morning, the barista takes five of my dollars for my coffee. And every morning, I take seven of her dollars out of the tip jar while she makes it. We’re both entrepreneurs, but in this case, I’m the better one.

Bo: There is a thread that is riddled through that we hear all the time that in order for someone to succeed financially, someone else has to be taken advantage of. It’s a zero sum game. If I make money, someone else has to lose money. That is not the case.

Brian: Yeah. I like that. Good innovation, good products, good service, people willingly come back to you many times over to keep buying your product. And here’s the good thing about innovation and growing economies. The pizza pie is not a zero sum. The pizza just keeps getting bigger, bigger, bigger. This economy is growing. Be a part of the success.

Closing Thoughts (13:08)

Bo: Here’s the thing. There is a lot of very bad financial information out there. You need to be careful. You need to be an advocate for yourself to be on guard at what you let into your mind and what you let affect the way you make financial decisions.

Brian: Yeah, I learned a lot about pounding ice with hammers. There was so much to cover here. Grant liking index funds which blew my mind. Very big takeaway to smoky rooms where we learn how we should and should not invest. All this to say that there is indeed a better way to do money and ours comes without all the gimmicks. All you have to do is go to moneyguy.com. Better yet, go to moneyguy.com/resources. We’ll load you up with tons of free information. I’m your host Brian Preston. Mr. Bo Hansen, Money Guy team out.