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

Summary

Money Guy Show — The BEST and WORST Cars (And Which Brands We Avoid)

Hosts: Brian Preston & Bo Hanson
Episode Date: March 18, 2026

---

Episode Overview

In this lively episode, Brian and Bo tackle one of the most fraught spending categories for aspiring wealth builders: cars. They explore not only how to buy a car the financially smart way, but also which brands are the best (and worst) choices for your wallet and long-term financial health. The hosts play a fun “Cruise or Snooze” game, weigh in on depreciation, reliability, and luxury cars, and answer listeners’ burning questions about vehicles and broader money topics. If you’ve ever wondered which car brands savvy millionaires actually buy—or avoid—this episode is a must-listen.

---

Key Themes & Concepts

• Car purchases are major financial decisions: For most people, cars are among the biggest lifetime expenses — and making the right choice pays off.
• The “23/8 Rule” for car buying: Their favorite formula—put down at least 20%, finance for no longer than 3 years, and keep payments under 8% of gross income.
• Car buying mistakes, luxury cars, and “financial napalm”: Not all cars (or buying approaches) are created equal when it comes to protecting your wealth.
• Brand-by-brand opinions and surprising takes: Brian and Bo hold nothing back on BMW, Jeep, Tesla, Land Rover, and more.
• Depreciation and reliability: Which brands lose value fastest? Which are hidden gems (especially used)? The data-driven (and anecdotal) answer may surprise you.

---

Detailed Discussion & Memorable Quotes

Why Car Choices Matter (01:04–04:55)

• Bo Hanson: “Automobiles can be financial napalm. They can blow up your financial life.” [01:09]
• A startling stat: 1 in 5 car buyers now have $1,000+ monthly payments. Brian & Bo stress that over-spending or under-spending (the $1,000 beater) both carry hidden costs.
• Brian Preston: “To afford a $1,000 car payment with the 23/8 rule, you have to make over $150,000—double the median household income. It’s just not happening.” [03:01]
• Insights from millionaire clients:
  • 60% paid cash for their current car, 40% financed;
  • 72% financed their first car—so financing, done wisely, is normal on the way up.

The 23/8 Rule Refresher (03:01–04:12)

• 20% down
• No longer than 3-year financing
• Don’t let payments exceed 8% of gross income
  “That’s going to keep you conservative.” [Brian, 03:01]

Luxury Cars—Yay or Nay? (04:12–04:55)

• The hosts clarify: They’re NOT blanket anti-luxury, but timing is everything. Don’t buy a luxury car too soon in your wealth-building journey.
• Bo: “We’re not anti-luxury car. We just want you to do it at the right time.”

“Cruise or Snooze” — Brand-by-Brand Car Takes (05:55–16:47)

Ribe moderates a game where Brian and Bo vote “Cruise” (thumbs up) or “Snooze” (thumbs down) on car brands, sharing quick, candid takes.
Memorable moments and highlights below.

---

BMW (06:32–07:21)

• Consensus: SNOOZE
• Bo: “Every single repair is so unbelievably expensive. You take it in and you’re one comma in every time.” [06:50]
• Brian: “If you drive a black BMW X5 in my neighborhood, you might as well be driving a Honda Accord. There’s at least 26 of them.” [07:02]

Jeep (07:22–08:46)

• Used Jeeps: CRUISE (Brian); New/Families: SNOOZE (Bo)
• Brian: “I would never, ever, ever buy a new Jeep, but I love used Jeeps. If only my family liked the hair blown…” [07:41, 07:49]
• Bo: “Impractical for a family vehicle—a Jeep is an extra, recreational ride.” [07:59]

Tesla (08:46–09:35)

• Both: CRUISE
• Brian: “You know I love me some Tesla.” [08:50]
• Bo: “Teslas are wonderful for the right person, at the right stage.” [09:02]

Land Rover (09:35–10:11)

• Consensus: SNOOZE
• Bo: “They’re so cool looking, but my financial mutant mind says snooze.” [09:50]
• Brian: “No way I would want to own something that costs this much to maintain.” [10:02]

Kia (10:21–10:59)

• Mixed (More Neutral/Skeptical)
• Bo: “The Telluride was nice, but not quite big enough for my family.” [10:37]

Nissan (10:59–11:57)

• Leaning SNOOZE due to reliability
• “There are just some other brands that beat it out.” [Bo, 11:23]
• “They struggle with reliability.” [Brian, 11:14]

Rivian (12:00–12:44)

• Consensus: SNOOZE
• Bo: “If you’re going expensive electric, why go Rivian over Tesla?” [12:17]
• Brian: “Tesla’s got the advantage—especially with self-driving.” [12:22]

Volkswagen (13:01–13:37)

• Consensus: SNOOZE
• Bo: “High cost maintenance—aren’t Volkswagens hard to work on?” [13:15]
• Brian: “Germans are known for over-engineering everything.” [13:34]

Mercedes (13:59–14:28)

• Consensus: SNOOZE
• Brian: “Always struggled with reliability. Not super into them.” [14:06]
• Bo: “If you’re going to make that bad luxury decision, I’d do it with other brands, not Mercedes.” [14:28]

Volvo (14:54–15:55)

• Consensus: SNOOZE
• Bo: “Never owned a Volvo, I feel like I’ve heard they’re reliable, super safe, but are they still expensive?” [15:12]
• Brian: “They were doing weird things for efficiency. Maybe they’re reliable, but I’m jaded—the old Volvo wagon stigma.” [15:22]

Winnebago (15:55–17:22)

• Consensus: SNOOZE
• “RVs aren’t my thing… everything’s made of plywood, and I break everything. I felt like Shrek.” [Brian, 16:52]
• “We’re too big for RVs!” [Bo, 17:10]

---

Car Depreciation & Value: The Superlatives (17:50–21:59)

Fastest Depreciators (per US News & World Report)

• Winner: Tesla
• Brian: “This is a glass half empty/glass half full. Go buy a used Tesla, and research hardware for self-driving. Massive opportunities.” [18:23]

Best Value Holders (per Kelley Blue Book)

• Winner: Toyota
• Bo: “Currently a Toyota owner. It’s true—one of the best long-term holders of value.” [19:07]

Safest & Most Reliable

• Winner: Subaru for certain climates/regions (esp. where AWD matters) [19:11–20:16]

Best Used Car Brand (per Consumer Reports)

• Winner: Lexus
• Bo: “If you’re going to go luxury but don’t want the BMW/Mercedes headache, Lexus is fantastic—but buy it used to avoid front-end depreciation.” [20:16–20:52]

Underrated: Honda

• The hosts express surprise Honda wasn't on the “best of” lists; both think highly of their reliability.

---

Major Takeaways & Actionable Advice (21:35–22:21)

• Car-buying is not just about math, but also brand/reliability choice: Don't just buy “right” (low payment, big down payment, etc)—buy the right car.

“The better decision you can make, the more impact it’s going to have in your financial life over the long term.”
— Bo Hanson [21:59]

---

Listener Q&A Highlights

Should I Pay Off My Mortgage Early or Invest? (26:46–31:03)

• 34-year-old couple, just bought a $500k house, wife wants to pay it off early.
• Brian: “Are you ahead of the curve or behind? What’s your number? Don’t sacrifice building your army of dollar bills early for debt freedom.” [27:11]
• Bo: “Find out the why of wanting to be debt-free. Is it just for security, or something else? Sometimes you can be debt-free faster by investing efficiently first.” [28:06]
• Brian: “Paying extra only reduces risk if the mortgage is fully gone—and that takes years. Liquid assets > mortgage prepayment for flexibility.” [29:34]

Index Funds or Individual Stocks? (32:44–35:21)

• Rule: Stick with index funds until you hit “Step 8” of the Financial Order of Operations (FOO).
• Bo: “With index funds, you only have to answer one question—how much can I invest? Stock picking is for play-money, not your main wealth.” [34:00]
• Brian: “Like our friend Charles says, do this with your vacation money, not your eating money.” [35:21]

Teaching Teenagers About Money (36:01–39:26)

• Brian: “Teach the wealth multiplier—time is the magic. Every dollar at 17 can become $119 by retirement. $71/month makes you a millionaire.” [39:26]

Pros & Cons of Tax Filing Extensions (41:16–44:51)

• Bo: “There’s no secret arbitrage—your taxes are still due April 15th. Only advantage is more time for complex returns or business retirement plan funding.” [43:01]
• Brian: “Simplify when possible! Only file extensions out of necessity.” [41:42]

---

Rapid Fire Q&A Segment (47:05–55:33)

Hosts answer quick questions in 30 seconds or less—for the highlights:

• First, Current, and Favorite Cars:

  • Bo: ’95 Isuzu Rodeo, currently a 2019 Tundra Platinum, favorite is the Tundra.
  • Brian: ’84 Chevy Cavalier, currently a Tesla Model X Plaid, favorite is actually the Tesla Model 3 (“most transformative, unique moment in time”). [55:56]

• Should retirees spend a % of net worth on a car?

  • Focus on cash flow & liquidity, not net worth.

• Young listener earning $60k flipping couches: major in accounting or pursue business?

  • Both: Get the accounting degree—it enables future entrepreneurship but is hard to get later.

• Double leveraged ETFs for young investors?

  • Steer clear for wealth building—time decay and volatility make them riskier than you think.

• Morning or Afternoon Workouts?

  • Brian: Afternoon. Bo: Early morning (“If I don’t get it done then, it won’t happen.”)

---

Notable Quotes

• “Automobiles can be financial napalm. They can blow up your financial life.” —Bo [01:09]
• “To afford a $1,000 car payment with the 23/8 rule, you have to make over $150,000—double the median household. It’s just not happening.” —Brian [03:01]
• “We’re not anti-luxury car… you just have to do it at the right stage, at the right time.” —Bo [04:12]
• “If you’re going to make that bad luxury decision, I’d do it with other brands, not Mercedes.” —Bo [14:28]
• “The better decision you can make, the more impact it’s going to have in your financial life over the long term.” —Bo [21:59]
• “Do this with your vacation money, not your eating money.” —Brian [35:21]

---

Timestamps for Key Segments

• 01:04 — Cars: The Best & Worst for Financial Mutants
• 03:01 — The Math Behind Car Payments & The 23/8 Rule
• 05:55 — “Cruise or Snooze” Car Brand Hot Takes
• 17:50 — Superlatives: Depreciation & Value by Brand
• 26:46 — Mortgage Pay-Off vs. Investing Listener Q&A
• 32:44 — Index Funds vs. Individual Stocks Discussion
• 36:01 — How to Teach Teenagers About Money
• 41:24 — Tax Extension: Pros & Cons
• 47:05 — Rapid Fire Q&A
• 55:56 — Brian’s Favorite Car (Tesla Model 3 Story)

---

Final Thoughts

Car buying is both an emotional and financial decision. Understanding the numbers (down payments, payment percentage, depreciation) and the brand reputations will help steer you clear of “financial napalm” and keep you accelerating toward your wealth goals. Whether you’re looking for reliability, value retention, or just some affirmation on your dream car, Brian and Bo’s blend of data, experience, and fun makes this episode an essential tune-in for anyone thinking about their next set of wheels.

Transcript

[Ribe]

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@ Indeed.com podcast. Terms and conditions apply

[Bo Hanson]

during Lowe's Pro Savings Days. The job works in your favor. Myloes Pro Rewards members buy more and save more on materials they rely on every day. Get up to 25% off select molding when you spend $1,000 or more and up to 25% off Pergo Evercraft Laminate Flooring. Put Pro Savings Days to work for you. Members get more at Lowe's. Valid through 327. Selection varies by location while supplies last Royalty program subject to terms and conditions. Visit the Pro Desk or lowe's.com terms for more details. Subject to foreign.

[Brian Preston]

This ought to be interesting. The Best and Sadly Worst Cars for

[Bo Hanson]

Financial Mutants I am so excited to talk about this because for a lot of people an automobile may be one of the most expensive things that you ever spend money on. And for most people you don't just do it one time in your life, you do it over and over and over. And it's not just that we want you to buy a car the right way. We talk about that all the time. We want you to do it right, but we even thought we want you to buy the right car because in our opinion when it comes to automobiles, especially when you say that they're like napalm for your finances, not all cars are created equal.

[Brian Preston]

Well, I think it's crazy because we all see this trend. We even we've reacted to it in some of our react videos where a lot of dealerships and others were posting their car payments and and as a point of pride and but yeah, and it was over a thousand dollars. I was like who's doing thousand dollar car payments? Well, we come to find out 1 in 5 people now it's coming. It's just way too comfortable have thousand

[Bo Hanson]

dollar car payments and I thought it was interesting. I I've never went and financed a car even when I was younger and I was making not the best financial decision. You know, I was one of those people that graduated Earl or graduated and I got my first big boy job and I went out and bought the car that was way nicer than I should have bought. But even that payment was not a thousand bucks. Once you have a common the car payment, that's just sort of a different realm. And far too many people have gotten, have gotten comfortable with that. But there's also sort of this, this caveat, right? So I think people are spending too much on cars. But buying too cheap of a car can also be a problem because we see people say this, oh I'm going to, I'm going to go out there and buy a thousand dollar beater. I'm not worried about having $1,000 payment. I'm going to spend $1,000 in total. And I think that neither one of these are necessarily correct.

[Brian Preston]

Well, I mean look, we're, we're nerdy enough. There's a better way to do money we actually backed into to even afford a thousand dollar car payment. You realize that puts you in a situation. If you use 23,8 you have to make over $150,000 like double the median household. It's just not happening. So we were, we were thinking about hey well let what do people who are good with money do? And we're like well we have the perfect resource. We have our millionaire clients. We went and asked them, we said hey, your current car, how did you pay for it? Did you finance it? Did you pay cash for it? And you can quickly see that the majority actually paid for it. 60% paid straight up cash for it. But there was 40% that finance. But then we modified the question. We asked another one to follow up and said hey, how about that first car? Because we know to get to that job, that first wealth building opportunity, a lot of us need reliable transportation. Exactly what you said. We don't want the thousand dollar beater, the $5,000 beater. And we found that 72% of our clients actually financed their first car. They weren't able to pay cash. So that's why I do love the thoughts of following something like 23, 8, 20% down. Don't go longer than three years. That's going to keep it you conservative on that. And don't exceed 8% of your gross income.

[Bo Hanson]

Now this is where I think our take is going to deviate a little bit from some other creators because you hear us say all the time that automobiles can be financial napalm. They can blow up your financial life. But here's what I want you to hear us say and maybe this is the first time you've ever heard us say it here. We're also not anti luxury car. We're not anti buying a car that you like, we're not even anti you quote unquote, being a car person. So long as it's done at the right time at the right stage. I think far too often people jump into it way too early, not recognizing the opportunity. The cost of that decision to buy that nicer, more expensive car today is huge. When you actually see what that cost you over the long term.

[Brian Preston]

If only there was a better way to do money. And this is what we talk about all the time. Step eight is your friend when it comes to making these big lifestyle decisions.

[Bo Hanson]

So we were talking about cars, we're talking about this stuff. And Ribe said, all right, well, guys, I think in true money guy fashion, let's play a little game.

[Ribe]

Oh, let's go.

[Bo Hanson]

You came up with an idea. You want to play a game. And me and Brian are always open to your.

[Ribe]

The team came up with a game that we're going to play.

[Brian Preston]

We have on hair hands that are going to come on and pinch you.

[Ribe]

Why? Oh, because I'm not wearing green.

[Brian Preston]

Yeah.

[Ribe]

And it's.

[Brian Preston]

Oh, really? We noticed this right before we went live. We're like, I. I stared at my closet going, I don't really understand.

[Ribe]

Honestly, Brian, you barely have any green.

[Brian Preston]

I'm like, a little annoyed that company went out of business. I think so. I mean, this is how old this shirt is. How little green.

[Ribe]

Somehow I honestly forgot. I'm also not Irish, so sometimes I forget. Sorry.

[Brian Preston]

Is that you have to be Irish to wear.

[Ribe]

You don't have to, but, like, you

[Brian Preston]

know, top of the morning to you.

[Bo Hanson]

Nailed it. We're gonna need to clip that one.

[Ribe]

This is everything to me. Okay, well, we do have a really fun game queued up for you. It's called Cruise or Snooze. So I am going to name a car brand to you guys, and you give me a thumbs up it for cruise, a thumbs down for snooze, basically. Is it worth the money to you? So some opinion is going to come into play here. And then you're welcome to give me a quick reason why you would or

[Bo Hanson]

would not buy any context. Is this like, hey, for a brand, for a young person buying a car, for someone who's like, what step of the foo are these cars?

[Brian Preston]

Or is this for ourselves?

[Bo Hanson]

Or is this just like, in general? Okay, in general,

[Ribe]

if you heard your friend was buying this, would you be like, oh, okay. Or would you be like, ooh, they should consider this? Okay. Cruise or Snooze. All right, brand number one, BMW. Cruise or Snooze. For.

[Brian Preston]

I mean,

[Ribe]

they both said snooze. Give me a sentence.

[Bo Hanson]

Why every single repair is so unbelievably expensive. Like, you take it in for like a thing and you're one comma in every time. Yep.

[Brian Preston]

I mean, I think this is the car that people who are in their 30s who are trying to impress people. I mean, use a BMW. And truthfully, in my neighborhood, like, if you drive a. A black BMW X5, dude, you might as well be driving a Honda Accord. In my neighborhood. There's. There's at least 26 of them.

[Ribe]

All right.

[Bo Hanson]

Yep, Exactly.

[Ribe]

All right, good takes, good takes. Next brand is Jeep.

[Brian Preston]

Brian, I love that we use the Jurassic park version too. Well done, Caleb.

[Ribe]

Caleb had to.

[Bo Hanson]

New Jeep or old Jeep and daily driver or just owning a Jeep.

[Ribe]

Just owning a Jeep.

[Brian Preston]

I mean, this is. This is gonna look. I would never, ever, ever, ever, ever buy a new Jeep, But I love used Jeeps. Brian loves Jeep. I do love used Jeeps. I knew you were gonna say I had one for many years. If I wasn't blessed with just daughters and a wife that don't like the hair blown, I would still own my Jeep. I sold my Jeep a few years ago.

[Bo Hanson]

The only reason I say snooze is it's fairly impractical for a family vehicle. Like, this is like an extra recreational vehicle. Extra vehicle for a daily driver. I'm a snooze on a Jeep, being a daily driver after you've kind of started doing the family stuff.

[Brian Preston]

Hey, look, on the used Jeep side, I own that car for like 12 years and I think I made a thousand dollars now, like profit. I really make a thousand dollars. If you think about, I put like three or $4,000 rims on there and everything. I put a subwoofer in the back. Anything a 16 year old wanted, I put on that Jeep.

[Bo Hanson]

It was an awesome Jeep.

[Brian Preston]

It was pretty ticking. Every time I went through, like a Burger King drive through, they were like, I like your pretty kicking. This is the affirmation I so wanted. When I was 16 and I was driving around in that beater of a car, this is what I wanted to feel like. So I did it as an older man.

[Ribe]

All right, next brand. Another personal one. Tesla.

[Brian Preston]

I see what y' all are doing. Come on. You know I love me some Tesla.

[Ribe]

They both said cruise. No surprise.

[Brian Preston]

I'm surprised you did what you pulled up. Didn't want to hit me.

[Ribe]

He may just be like, hey, you

[Bo Hanson]

know what I want to be? I want to be true. And I want to be truthful. I do think Teslas are wonderful automobiles for people. That it makes sense at the stage and the kids and all that kind of stuff. They're a really, really fun car to drive. I do not presently own a Tesla, but I'm going to say cruise on the test.

[Brian Preston]

I will tell you there is. I always look for crazy arbitrage moments because Tesla's depreciate a lot.

[Bo Hanson]

Save it. I mean, don't talk about that yet. We're playing a game. We're playing a game.

[Brian Preston]

Sorry, the educator in me just has a hard time going to sleep.

[Ribe]

Next brand is Land Rover, Cruise or Snooze.

[Bo Hanson]

Is my wife going to watch this episode?

[Ribe]

You have to decide that for yourself, Bo.

[Brian Preston]

I mean, I think these things are horrible.

[Ribe]

You both say snooze, but I got

[Bo Hanson]

to be honest, they're so cool. I mean, yes, I am in my financial mutant mind. I'm a snooze. But man, some of them are so cool looking.

[Brian Preston]

Have you read a consumer report?

[Bo Hanson]

But man, they look cool, right?

[Brian Preston]

If I was ever going to have one of these things, by God, we would rent that thing because there is no way I would want to own something that costs this much money to maintain.

[Ribe]

That's a lot of money to maintain, not wrong. All right, next brand is Kia.

[Brian Preston]

I don't know enough. I mean, look, I rent cars every time I go down to Florida, to Preston, South Preston, sometimes even when you live. And I've had Hyundai's and I've had Kias and, and I've had Mazdas. I mean, is the tell. I don't know how, I don't know how good they are in the long term.

[Bo Hanson]

Is the Telluride Ikea. That's a Kia. Oh, I have a bunch of family members. It was not like we wouldn't look that it wasn't quite big enough for my family, but the Telluride was a nice. I've gone on a few trips in them.

[Brian Preston]

I mean, I'm kind of in between because I don't, I don't know how reliable they are. I haven't renewed my subscription to Consumer Reports to keep up with how, how well Kia's do.

[Ribe]

All right, next brand is Nissan. Bo says.

[Bo Hanson]

And this is hard because we live in their backyard. Like this is where Nissan headquarters is

[Ribe]

a little close to home. Brian, what do you think? Come on.

[Brian Preston]

I don't think. I think that. Oh gosh, we're good. Hopefully none of my neighbors work, unfortunately. I think they struggle with some reliability.

[Bo Hanson]

Yeah, I've gone. We went and looked at them when we were car shopping and there are just some other brands I'm sure that we'll about. They just didn't beat him out. And so for that I think that the way I'm doing this is would Bo Hanson buy this car? I probably would. I probably wouldn't feel like we're kicking

[Brian Preston]

them while they're down though. Little mean.

[Ribe]

Well, sorry. This is just a fun opinion. Okay. It's all right.

[Bo Hanson]

It's okay.

[Ribe]

You guys are so nice.

[Bo Hanson]

I'm, I'm like looking at the comments to see how many Nissan people we just offended.

[Ribe]

I, I doubt it now if it was a Maxima.

[Brian Preston]

I'm just kidding. So that's what I wanted when I was in like high school.

[Bo Hanson]

We all did. That was the cool car.

[Ribe]

Next car brand is Rivian. Snoo.

[Brian Preston]

Oh. Oh, yeah, yeah, yeah.

[Ribe]

So wait, you both. Okay, you both said snooze. Brian fooled me there for a second, but you both said snooze.

[Brian Preston]

That's because I was looking at what side I could see and I remember, oh no, we're broadcasting if you're going,

[Bo Hanson]

if you're going expensive electric and you're. Why would you go Rivian over Tesla? Is my opinion.

[Brian Preston]

Well, I mean, there you go. If Elon would have gotten a little more reasonable on the truck design. I mean, because I will say I have a friend who has a Rivian and it's pretty cool. Like he stores his golf clubs right behind the. There's a cargo area right there behind the door which is pretty cool for golf clubs and stuff. But I just worry that I do think from a, from an electrical standpoint, Tesla's got the advantage.

[Bo Hanson]

They got the market.

[Brian Preston]

Some of that stuff especially full self driving, bomb diggity, pretty awesome.

[Ribe]

All right, great. We've got just a few more. So keep us posted in the chat. If you agree, disagree or want to fight with Brian and Bo, I want to know the next brand is Volkswagen Cruise or Snooze.

[Brian Preston]

Wow, we dug deep. I mean I've just never. I mean I'm just not. I'm not a German engineer. Like, you know, I have a friend who only buys Audis that's not me.

[Bo Hanson]

I think this falls into the high cost maintenance category because I think aren't Volkswagens hard to work on? Like, isn't it hard to find someone who works on Volkswagens? Isn't that a thing?

[Brian Preston]

I mean, I mean back in the day, Back in the day, the bugs, they were easy.

[Bo Hanson]

Well, Bron, this isn't back in the day you talking about, but now today,

[Brian Preston]

Germans are known for over engineering, everything.

[Bo Hanson]

Yeah, I'm a snooze on. I'm a snow.

[Ribe]

There you go. All right, next is fantastic branding.

[Bo Hanson]

Back when I was in high school, like, high school. Remember when they had all the branding.

[Brian Preston]

Marfanugan. What? Ain't that what the branding was back

[Bo Hanson]

when you were in high school?

[Ribe]

I don't know, it was like all

[Bo Hanson]

the like multicolored bugs, you know what I mean? That was the thing.

[Brian Preston]

Somebody, somebody in the comments be like, holy cow. Brian goes deep.

[Ribe]

All right, next brand is Mercedes.

[Brian Preston]

No, that one's easy.

[Ribe]

Ah, that was easy. They both immediately said snooze. Why do you say that? Just expensive to maintain as well.

[Brian Preston]

I don't even think, you know, they've had that whole thing where, you know, became part of Chrysler and so forth. I think that. I think they've always struggled with some reliability. And I don't even know if, I mean, I guess if you're a Formula one fan, you love Mercedes and what they do, but it's. It's just not a brand that I'm super into.

[Ribe]

Fair enough.

[Bo Hanson]

As a former Mercedes owner, you heard it first here.

[Ribe]

I was going to let you reveal

[Bo Hanson]

that my wife did have the Mercedes S. It was fine. But just like, if you're going to buy a luxury automobile, if you're going to make that bad decision. I'd make that bad decision on some different brands than Mercedes, in my opinion. Just didn't look like.

[Brian Preston]

Why didn't we go hit the easy button on the. By the way, if y' all want to know how much control Bo and I have, these would not be. I would have been like, where's Lexus? Where's Toyota? Where's Honda? Where's those type of things?

[Ribe]

Oh, come on. This is fun.

[Brian Preston]

All right, two more, Two more.

[Ribe]

The next one is Volvo.

[Brian Preston]

I mean, like, let's see how many people we can upset.

[Bo Hanson]

You know what I. Aren't they, like, the safest?

[Ribe]

Well, okay, no. Brian says snooze, and we have some. I think you're firing some people up in this room on our content team, so please explain.

[Bo Hanson]

Look, Volvo is not. Not my favorite. I've never. I've never owned a Volvo, but I feel like I've heard that they're pretty reliable and they're super safe. I don't. Are they expensive still?

[Brian Preston]

They used to be expensive, you know, look, it's been a while since my Consumer Reports was all Updated. But weren't they trying to master a five cylinder engine or something? They were doing crazy stuff with their cars that was crazy weird reliability when they were trying to go for more efficiency. So I don't know, maybe they're reliable, whatever. But I'm also probably jaded because my wife, you know, because back in the day you wanted like the Volvo station wagon. And I remember my wife was so anti that from the get go. That's probably jaded me over the years.

[Ribe]

All right, last but certainly not least, and now I'm hoping I'm saying this correct. Winnebago.

[Brian Preston]

Winnebago.

[Ribe]

Winnebago. I was like, oh, I don't remember. I've only ever read this. Winnebago wasn't prepared. Get out of here. Bo.

[Brian Preston]

I thought, I thought all homeschool kids knew high school camping show.

[Ribe]

I think that I actually, I mean, clearly I love the homeschoolers, but sometimes you've only read things and you realize you haven't heard them pronounced because you're.

[Brian Preston]

Yeah, but I thought like growing up, since y' all weren't in school, y' all were like camping out and being with nature and stuff like that. Not in Winnebago.

[Ribe]

I've never been in a camper like that.

[Bo Hanson]

Have you ever heard their term. Have y' all ever heard the term unschooling? I have heard it for the first time at the state park this weekend.

[Ribe]

That's something different.

[Brian Preston]

What's unschooling?

[Bo Hanson]

I'll save it for later on in the show. But there's reminding me.

[Ribe]

What do you think of this camper van? Cruise or snooze? They both said snooze.

[Bo Hanson]

Look, RVs are your thing. That's great. They are not my thing.

[Brian Preston]

I've rented a few. I mean, like, I remember we went to like a Jeep fest back when I had a Jeep and we rented like a camper Winnebago. Everything's made out of plywood, so. And look, I'm just, I'm the type of person because it has to be light because it's. This thing moves every night. I break everything. Everything's just not set up to.

[Bo Hanson]

We're too big.

[Brian Preston]

Yeah, I felt like Shrek. You know, you close the bathroom door like, oh, I just broke the latch. You know, it's just like doesn't know his own strength.

[Ribe]

He's too powerful for this camper van.

[Brian Preston]

I don't think I'm made to be a. An rv.

[Ribe]

Rv.

[Brian Preston]

Plus, look, I will say I tried to rent an rv. I had this idea, this is probably six years ago. I had this great idea that we were gonna rent an rv, drive across country like you and your family. See my family, and then we were gonna fly home. We were gonna rent this thing and then fly home. I thought I was a genius. My, 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.

[Bo Hanson]

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, your attention. Um, here were some superlatives that were given out in terms of automobiles that depreciate the fastest, according to U.S. news World Report. This is, we're not playing the game anymore.

[Brian Preston]

You just disagree with this.

[Bo Hanson]

They said that Tesla is the car that depreciates the fastest. As someone who's a big advocate, advocate for Tesla, what would you say to that?

[Brian Preston]

I would say this, this glass half empty problem actually creates a glass half full opportunity. Go buy a used Tesla. I mean obviously pay it, do your due diligence research on batteries and so forth. And knowing I also would tell people, if you go buy 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 the, you know, that four and beyond on the hardware package so that you can really get all those features. Love it.

[Bo Hanson]

All right, the next one was what car brand in general holds the value, holds its value the best? Toyota. This one was not surprising. This is according to Kelley Blue Book. I am currently a Toyota owner and it's true.

[Brian Preston]

I see how he drops it. I'm good at this. You're good with this thing called money.

[Bo Hanson]

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 reliability. 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.

[Brian Preston]

Well, I remember I Always thought about Subaru whenever me and my boy, my boys back in high school used to drive or even college go hike up in the Appalachian Mountains, around the Blue Ridge Mountains and you know they'd only let you drive. And this is back in the 90s Quattro, I mean our four wheel cars are all wheel drive cars was not as common as is now. So it was always the Audis and the Subarus were the ones. They wouldn't let you over a certain part in the road unless you had, you could show that you had four wheel, all wheel drive. Got it. And that's why I think a Subarus that they're supposedly great for that type of weather. We live in the south so that's why you probably don't see them exposure to it.

[Bo Hanson]

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 used. 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. I think that's a great luxury. If you're in that stage now, it does still count as luxury. So no 238 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.

[Brian Preston]

Yeah, I mean I, you know the car that kind of made me, I feel like was my. I bought an ES350 in 2005 because 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. I don't even think it had a warranty claim on it whatsoever until they like 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, I was surprised

[Bo Hanson]

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, 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 thousand dollar car may not be the best financial decision. There has to be likely somewhere in the middle that could potentially make sense. So when you go to make the car purchase, don't make sure. Don't just make sure you're doing it the right way. Make sure you're buying the right thing. Because the better decision you can make, the more impact it's going to have in your financial life over the long term.

[Brian Preston]

I think this made me feel a little loved because obviously I go on vacation and they try. Y' all tried to figure out how y' all could pick on me.

[Bo Hanson]

No, no, no, no, we didn't do that.

[Brian Preston]

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, 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 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 my pet names and everything. You grew up on all the things you don't want the public to see. I had in my original disco discord set up so I didn't have enough time to get it all set up before I was able to wade into the waters.

[Bo Hanson]

I have, you know, 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. Have you been in the money verse? 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. Are Brian and Beau and Ribi and the team going to be in the money verse? 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 money verse.

[Brian Preston]

Yeah.

[Ribe]

Post in the finance questions channel. I mean, there's no guarantee Bo will be in there answering you, but.

[Bo Hanson]

But there's a good chance he has been. There's a good chance I'm going to be a lot.

[Ribe]

So definitely take advantage.

[Brian Preston]

Bo, Bo, Bo, you spoke big words this morning. You said. Because Bo knows I, I, I, I'm out there on X getting ticked off at the world because there's just so much, you know, just craziness in the world these days. Bo says, I predict that you're. This money verse is going to take the place of how much time you spend. I think so.

[Bo Hanson]

Like that so well, because a lot, you know, a lot of times, like on YouTube in the comments and stuff, you don't know if you're talking to, like, your people or not your people. Right. Like, people kind of come in or whatever. What I love is that if you're the money verse, you probably are a financial mutant. You will be hanging out with financial mutants. And so it's an awesome, awesome spot. So if someone wants to go get in that discord, be on the server

[Ribe]

where they go, reeves, go to moneyguy.com/money verse. 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. You 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 of the connections being made and just get to chat with you whenever we want to, which is amazing.

[Brian Preston]

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 stuff. And I was like, holy, this is a really cool way to connect.

[Ribe]

Yep. We had one fellow financial mutant this morning post in milestones that he crossed millionaire status.

[Bo Hanson]

Let's go today.

[Ribe]

So we, like, we got to celebrate that 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, you know, say we're so excited for you in the chat.

[Bo Hanson]

And look, I'm not saying that we're always gonna like tell secrets and give away stuff a little bit early. But if you go out in the money verse, 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.

[Ribe]

Oh yeah. Bo was basically channeling his Brian Preston line.

[Bo Hanson]

Yeah.

[Brian Preston]

Cause I don't keep secrets.

[Bo Hanson]

I just let some stuff out of the bag.

[Brian Preston]

I was like, what am I supposed to.

[Ribe]

Messaged me separately and was like, can I post?

[Bo Hanson]

I'm gonna say this.

[Ribe]

He didn't give anything away, but he like hinted at something and I'm not telling you where it is or what it is, but he was hinting at things. So you're probably gonna get that in this money verse for sure.

[Bo Hanson]

So I love, 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 10am 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. So with that creative director Ribe, I'm going to throw it over to you.

[Ribe]

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?

[Bo Hanson]

34.

[Ribe]

34.

[Brian Preston]

I wanted to know how much they had and invest. There's no, there's no information here on Hector.

[Ribe]

If you're out there, let us know how much you got in investments.

[Brian Preston]

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? I'd go to moneyguy.com actually it's learn.moneyguy.com so you can know your number.

[Bo Hanson]

Course.

[Brian Preston]

Because you got to figure out where you are. Because it's really. It's 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, is, is a strong element in your arsenal of tools. And, and I just worry if you, 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.

[Bo Hanson]

Yeah. One of the questions that 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 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. 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, it's not that high. Right. 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 6.16%, maybe into the fives, you might even have an opportunity to refinance. And all of a sudden now a five and a half, six percent mortgage for a 34 year old and just is not going to be that egregious. So I want to know, what do you have in outside investments? Exactly what Brian 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? What's the like underlying thing behind that? And might there be a better way for you to accomplish that goal without increasing the monthly mortgage payment?

[Brian Preston]

And if her answer is that it just feels it 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's 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, the real estate market's getting beaten up. You lose your job, you're going to want access to capital. Now, hopefully you 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. 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. That's what I always remind people is that it really only gets good after it's fully paid off. And that's more than likely going to take years upon years. Meanwhile, in the background, 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.

[Ribe]

That's right, Hector. Hope that helps. Thank you for asking the question. It is your lucky day because today is Tumblr day.

[Bo Hanson]

Let's go.

[Ribe]

You would like a Tumblr just email winner@moneyguy.

[Brian Preston]

Do you see what's gonna happen for Hector? He's gonna start making his morning coffee. He's already. His wife's gonna be like, those are the guys that told you not to pay off the mortgage. Yep, that's the one. So I don't know if we're creating

[Ribe]

how he presents it, you know, so

[Brian Preston]

hopefully, hopefully you turn that, that frown upside down with your wife. So she also is a financial meeting with us. Absolutely.

[Bo Hanson]

It's not just something you made. It's the privilege that you get to work with your hands. It's building something that serves a purpose, proof that you have the grit to keep going. At Timberland, we understand you take your craft seriously, and we do too, which is why our products are built to the highest quality. We put in the work so you can perfect yours with purpose, in every detail, and crafted with intention.

[Ribe]

Timberland built on craft.

[Bo Hanson]

Visit timberland.com to shop.

[Ribe]

It's crunch time at work and you need to bring wings to your workday. Visit redbull.com gettingitdone and answer a couple questions about your work style to get a Spotify customized playlist tuned to your productivity. Plus, score a can of Red Bull on us while you go from to do to done. And remember, Red Bull gives you wings. Supplies are limited. Terms apply. Visit the website for more information. 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.

[Brian Preston]

Abb.

[Ribe]

There it is. If I have extra money to invest, do you still recommend index funds or can I invest in individual stock?

[Brian Preston]

Wait a minute. We covered a lot of ground there.

[Bo Hanson]

So his real question is, I've got some excess money. I've got some powder money. Look, always be buying. I get it. What should I buy? Should I buy? If this is like above and beyond my, like, normal standard savings, should I buy individual stocks or index funds? What say you?

[Brian Preston]

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 were trying to cut off the corner of wealth creation and they'll, they'll, you know, get into doing individual stocks. They'll do crypto, they'll do other things. When I always say, look, until you get to step eight, let's stick to the plan. So if you, 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 a, as a, you know, as an 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, I wouldn't try to push it before that, that point.

[Bo Hanson]

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 is the appropriate stock price to enter into this position? And then realistically 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 participating in the general market movement. You really only have to answer one question. 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 by the index, by the index, by 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? 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.

[Brian Preston]

It's like our friend Charles says, do this with your vacation money, not your eating money.

[Bo Hanson]

That's right.

[Brian Preston]

So that's why I say follow the financial order of operations until you get to step 8.

[Ribe]

Dan4224 thanks for your question and we'd love to send you a moneyguy tumblr as a thank you. So email winneroneyguy.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.

[Bo Hanson]

I forgot about it. Didn't I forget? I figured, oh, we played a game. I bet we're not doing rapid fire today. Look at that.

[Ribe]

Decide to do it. Put RF at the beginning of your question and 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.

[Bo Hanson]

Did you know that last week Reby did a rapid fire segment?

[Brian Preston]

Oh no.

[Bo Hanson]

We let people rapid fire Ribi and it was awesome. She did great.

[Ribe]

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 MoneyGuy team. I was asking to teach. I was asked to teach a local Youth group of 17 year olds about finances.

[Brian Preston]

That's awesome.

[Ribe]

What would be the most significant thing I could tell them to help them start their financial journey?

[Brian Preston]

Oh, I Love that.

[Ribe]

I can see you guys just like,

[Bo Hanson]

oh, where do we go? You go first and I'll try to think of something that you don't say.

[Brian Preston]

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 less than you make and then maximizing the time. Those are kind of the three components. So I always kind of highlight that thing when I, 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 like a 20 year old who saved and invest 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. And the person who started in the 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.

[Bo Hanson]

Just, just do something. Just start doing something and never, ever, ever, ever stop. I have a, I have some dear clients. It's a multi generational family that I work with. And the parents, they had, you know, they had young children when I first began working with it that were like around the age of like 10 or 11. And based on the grandparents estate plan, you know, there was some annual gifting that was happening and the grandparents wanted the young kids to learn about investing. Say, hey, will you meet? So I would sit down with him at like 13 and I think one was like 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, you know, how the money can multiply. 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, you know, 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 like big, you know, 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 bucks a month? I was like, oh, that sounds incredible. Let's do that.

[Brian Preston]

Right?

[Bo Hanson]

And so when she was 15 or 16 years old, we turned it on, started doing 20 bucks a month. 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 changed. She still has that same even though now she's got the 403B and she's putting money like she's making all the and 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 can just get the 17 year olds to grab onto that, you realistically can change their entire financial lives.

[Brian Preston]

Connor, let me go ahead and prime the pump on this wealth multiplier discussion. By the way, you can go to moneyguy.com resources if you want to know specifically what your wealth multiplier is. But 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, 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 money verse.

[Ribe]

That's great. That would be awesome. We'd love to hear moneyguy.com moneyguards.

[Brian Preston]

I'm not even gonna tell people what my screen name is because I want people to kind of figure out who I am once I get in there.

[Bo Hanson]

I've got all kinds of crazy. I actually don't know his screen name. I'm gonna make a guess though. I bet it's Quat Quack Quack. You think that? I bet that's a screen name.

[Ribe]

What if that was your screen?

[Bo Hanson]

Is that it?

[Brian Preston]

No, that's not.

[Bo Hanson]

That'd have been a good one, wouldn't it?

[Ribe]

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.

[Brian Preston]

Did he then just tell him what his bench press was? And then, oh, that has to be Bo.

[Bo Hanson]

The only people that can lift that

[Brian Preston]

much weight is Bo.

[Ribe]

That's funny. Well, Connor, if you would like a money guy Tumblr, since we answered your question, just email winneroneyguy.com all 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 seem to play catch up. Is there an arbitrage that I don't see? I think this is a good question because like it's. People do it for a reason. But what are those reasons? Let's talk about it.

[Brian Preston]

What's funny is I was, 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 bo. It shocked me because they own multiple businesses and he filed. His accountant was following their business returns and their personal return. I was like, how does not happen.

[Bo Hanson]

It sounds amazing.

[Brian Preston]

Look, the part I always share with people is that keep your life simple. If your life is. 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 businesses life success creates complications. So I now have to file extensions out of necessity. We crave to file it on time.

[Bo Hanson]

I wish we could file on time.

[Brian Preston]

I will tell you, I don't know if this is even true anymore because I used to tell this. I'll tell you the antidote, but I'll also put the disclaimer, I have no idea if it's 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 more likelihood of being audited faster because they met their numbers. Now, the odds of your 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.

[Bo Hanson]

So a few thoughts there 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. 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, then be able to go fund the profit sharing or go fund the cash balance. 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. That is a flexibility. If you're having a cash flow constraint from a timeline standpoint, I love that

[Brian Preston]

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, profit sharing or employer funded, that following that extension lets you make those contributions all the way up until those extended deadlines. Pretty cool stuff.

[Ribe]

Great question. Messy middle WP. If you would like a Tumblr just email winneroneyguy.com by the way, love the

[Brian Preston]

screen name Messy Middle. You know, it's one of those things that very proud that we hopefully give comfort to all those who are struggling with the messy middle. If 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.

[Bo Hanson]

That's right.

[Ribe]

True.

[Bo Hanson]

That middle is messy. Amen, Ruby.

[Ribe]

It is, it's fun though.

[Bo Hanson]

You know what's going on in my life right now?

[Brian Preston]

What's going on?

[Bo Hanson]

Every time my kid goes to the dentist, it's like, it's just a ton of money. Like if they go for cleaning, it's just tons. My kids, it's like they just poor.

[Brian Preston]

They like getting feelings and stuff.

[Bo Hanson]

Yes. It drives me nuts.

[Brian Preston]

So do they have bad. Because look, I grew up as a, I have meticulous dental health now because of my, my childhood where. Because I felt like I had a mouthful of feelings. But as I've gotten older, I've realized I think I was just genetically flawed. I think a lot my teeth design, you know, is more than my wife's. I shouldn't say this on air. She doesn't have the same dental hygiene stuff, but she, she doesn't get, she doesn't get cavities because I think she's just genetically better than me. So it's, it's not if, if you're, if your cavity exposure was by work ethic, I would be, you know, cavity free.

[Bo Hanson]

I just, oh, it drives me nuts. And like, it's fine. We're gonna be fine. I just, it's annoying because I'm like, ah, girls flossy middle.

[Ribe]

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, so go easy on predisposition towards those types of issues.

[Bo Hanson]

Every time I say do better. Like, hey, do you know, you know how long I was telling my 8 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, you're like a long time. It wasn't, it wasn't well thought out. It wasn't well thought out.

[Ribe]

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 second timer queued up.

[Brian Preston]

Cumulative.

[Ribe]

Cumulative.

[Brian Preston]

Oh, wow. Okay.

[Ribe]

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.

[Brian Preston]

And I'll say The quiet part out loud. Brian, don't bogart the 30 seconds. Okay, go ahead.

[Ribe]

I'm gonna just see how you guys handle it. It's going to be a fun twist. Cause you guys, honestly, y' all were crushed in 60 seconds. You were doing too well. So we have to change it up.

[Bo Hanson]

Buckle up, raves. We're gonna crush 30 seconds.

[Brian Preston]

I hope that I can name that in three tunes. Keep going.

[Ribe]

I'm sorry, what? Okay, we're gonna 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.

[Brian Preston]

First car is a 1984 Ragalier Chevy Cavalier with the F41 package. Bo, you do first.

[Bo Hanson]

Cause I can't remember what the second first car was. 1995 Isuzu Rodeo. Current car is a 2019 Tundra Platinum. And favorite car is the Tundra right now.

[Brian Preston]

Okay. And I have a. I have a Tesla model X plaid.

[Ribe]

And that's it. Okay.

[Bo Hanson]

And we don't know which one his favorite is. We'll never know.

[Ribe]

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.

[Bo Hanson]

If you're both retired, you don't have earned income. You can't contribute to a Roth. But perhaps you should consider doing Roth conversions.

[Brian Preston]

Yeah, I mean, that's. 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 likely. Exactly. Like Beau said, you could do Roth conversions with your low earned income. I don't know how big your investment portfolio, but you might have some tax arbitrage opportunities.

[Ribe]

Well done. Next question. Aside from Greatest Showman, what other movie dynamic duos would Beau and Brian be?

[Brian Preston]

Turner and Hooch, Thelma, Little Tango and Cash.

[Bo Hanson]

I'm trying to think about some really good superheroes, but not the two that people want to say immediately.

[Brian Preston]

Batman and Robin.

[Ribe]

No, that's.

[Bo Hanson]

That's the one. That's not the one that you say.

[Ribe]

It's not it.

[Bo Hanson]

Other good.

[Brian Preston]

Walton Roy.

[Ribe]

I'll take Walton Roy for you guys. Yes.

[Bo Hanson]

Warren and Chocolate. Right. Like, there's some good duos out there.

[Ribe]

Yep.

[Brian Preston]

What was. What was Michael Eisner's right hand guy? The guy who died in the helicopter? That's the other one at Disney Wells.

[Ribe]

I don't know. I don't know.

[Brian Preston]

This he's the quiet. Most people don't remember how it was a Frank Wells. He super powerful.

[Ribe]

Oh, I think we're over time.

[Bo Hanson]

Okay, which one of us is the quiet one?

[Ribe]

All right, next question is what percentage of net worth should a retiree spend on a newer car?

[Brian Preston]

Net worth?

[Bo Hanson]

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?

[Brian Preston]

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. Your investable net worth. Did I say depends there. I didn't mean.

[Ribe]

Did you. I didn't catch.

[Bo Hanson]

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

[Brian Preston]

Man's bigger biceps than Peter Parker, but

[Bo Hanson]

I don't know that I'm like a p. You know, if we 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 mar.

[Ribe]

Like Captain means I'm rich and nerdy.

[Brian Preston]

Can. Can we deal into the what that means. That means I'm rich and nerdy. That means fo they look at you as young now. They obviously don't know how much you can bench press, but it's still a compliment.

[Bo Hanson]

I'm just saying of all of those

[Ribe]

things bench press a lot, it seems

[Bo Hanson]

like there's one or two that I would really lobby for inside of that universe.

[Brian Preston]

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 be probably want us to actually brag on him more.

[Ribe]

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. Do I?

[Brian Preston]

We reacted to a video on a couch flipper. That's why I'm laughing. Keep going.

[Ribe]

The question is do I pursue a career in accounting or strive to my dream of owning my own business?

[Bo Hanson]

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.

[Brian Preston]

You know, everybody wants to be in business with me is because I have this accounting background. So because you always. No, it's seriously all through. Everybody wants to be all through my life. People, when they come up with these ideas of starting business, they want me because I do the bookkeeping, I do the taxes. I know how a business works.

[Ribe]

Great points.

[Bo Hanson]

Everybody wants to be in business.

[Brian Preston]

Think about, I could go through stories.

[Bo Hanson]

Hey, I'm with you. I'm in business.

[Ribe]

Clearly, I wanted to be in business. We can't argue. All right. As a young investor, should we consider double leveraged market index funds?

[Brian Preston]

But why don't you tell them about the time burn on there? What's that? What's that?

[Bo Hanson]

Time decay. Time decay inside of these levered funds. It's not like people think, oh, if the S and 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.

[Brian Preston]

Momentum. That's what I was going to say. Momentum is the word I would use with levered funds.

[Bo Hanson]

Man, that was not long enough.

[Ribe]

All right, next question. Is currently engaged. Do I follow my single foo or what our married fu will be?

[Brian Preston]

Well, you're not married yet, so you follow you're single. But as soon as y' all two become one. Now, it 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.

[Bo Hanson]

I think there's a glide path. Right? You. You single fu today with an eye towards what's the Mary Fu gonna be? Because you are kind of like moving into that. That realm. So I completely agree.

[Brian Preston]

And that's where the complexity happens. You know, life creates complexity.

[Ribe]

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.

[Brian Preston]

Next, by the way, if you wanted to, 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?

[Ribe]

Love it. Brian will take that. 30 seconds.

[Brian Preston]

Financial order of operations.

[Ribe]

Is your friend last but not least. Morning workouts or afternoon workouts?

[Brian Preston]

Oh gosh, we're split.

[Bo Hanson]

You go first.

[Brian Preston]

I mean I do an afternoon workout. Everybody who knows me is in the 3:15 with me.

[Bo Hanson]

Bo gets up at like I do early morning.

[Brian Preston]

Bo goes to bed at 6pm at night.

[Bo Hanson]

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 4:45.

[Brian Preston]

What time do you wake up?

[Bo Hanson]

Yeah, I wake up at 4:13. And we're. We're going at 4:45 specifically.

[Ribe]

I love it.

[Bo Hanson]

You want to know because here's the thing. I wake up at 4:13. The. I'm a Hatch. We're not. Are we sponsored by Hatch yet? We should, 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. Oh my goodness. But what's great is wake up at 4:13. I immediately reach over, grab my phone, I snooze it till 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.

[Ribe]

That was so intense.

[Brian Preston]

Every morning Hatch, I need a email from that.

[Bo Hanson]

Right every morning.

[Ribe]

Well, that was great. You know, I think you guys crushed it because I didn't hear tons of fodder.

[Brian Preston]

30 seconds was more appropriate because we actually felt stress of the experience.

[Ribe]

Right. You actually had to follow through on

[Brian Preston]

being, by the way, my favorite car.

[Ribe]

Yeah, that's the one thing we.

[Brian Preston]

I gotta say my Tesla Model 3 because I just. Y' all have no idea. 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 can. I'll never forget because like there was a. They used to do a coffee and cars like up in this.

[Bo Hanson]

You talking about right in Cool Springs.

[Brian Preston]

Yeah, in Cool Springs. And when 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. And 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.

[Bo Hanson]

Well, and you loved the Jeep too, but I think you did love the Model 3 a lot 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.

[Brian Preston]

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, you know, 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, you know, through an over the air update. And then I remember it didn't have the auto windshield wipers. They still struggle with that. If you want to truth. Tesla struggles with the auto windshield wipers worse than the European companies but they got. 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.

[Bo Hanson]

Love it.

[Brian Preston]

See it more than 30 seconds.

[Ribe]

Yeah, that's okay.

[Bo Hanson]

I don't feel like, I don't feel like there was any. Were there any questions there that we need to extend, expand, 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. Volatility indices? Yeah. That stuff only works if you get lucky.

[Brian Preston]

Right?

[Bo Hanson]

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 but definitely more speculative. It's like a kissing 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.

[Brian Preston]

There was, do you remember that crazy prospect that I had?

[Bo Hanson]

He put. You remember the numbers?

[Brian Preston]

You remember the numbers?

[Bo Hanson]

I mean, in 2009, he bought 100. He put $250,000. He didn't know what he was doing, but he bought $250,000 in a. I think it was, it was a triple level. 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.

[Brian Preston]

I didn't believe it because, you know, looking when you're a financial advisor, you have to worry about money laundering type stuff. So there's always, you know, people, because when I worked at another firm that 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 are, there's always going to be some cool crazy story. But no, who's crazy enough that you do this in 2009 and then once you doubled or tripled your money, you don't get out. That's right. It's. 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 those. One of those oddball stories. It's still so unique.

[Bo Hanson]

And those stories, those are the exceptions, not the rules. Far too many people say, oh, this person did it. You know, 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, that you can't go recreate that. You can't go back in time and do that thing again.

[Brian Preston]

Well, I still share the story that because I'm about to see them, one of my high school buddies, I'm going spring training with them this weekend actually. But I remember 3 of us bought Apple stock in 2008. 9 when crap was really going bad. I remember looking at the balance sheet and the market cap on Apple was the same as just what their assets were of like their campus and those. It didn't even include all the software and all. So 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 because I was like, hot dog, look at my money. My buddy. I mean, it's over. I mentioned it in if you, you know, when I talk about crazy stories. I mentioned it in Millionaire Mission. It's worth over a 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.

[Bo Hanson]

Exception's not the rule though.

[Ribe]

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 10am 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 moneyguy.com 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.

[Brian Preston]

So yeah, my 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 gonna happen today, but I do plan on making some some visits in there based upon all the feedback Beau's given me.

[Ribe]

You heard it here first. Go join the Money verse guys.

[Brian Preston]

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.

[Bo Hanson]

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. All investments involve a degree of risk, including the risk of loss.

[Ribe]

Where's your playlist taking you? Down the highway to the mountains or just into daydream mode while you're stuck in Traffic? With over 4,000 hotels worldwide, Best Western is there to help you make the most of your getaway, wherever that is. Because the only thing better than a great playlist is a great trip. Life's the trip. Make the most of it at Best Western, book direct and [e-mail]

[Brian Preston]

there's fishing

[Ribe]

and then there's fishing.

[Brian Preston]

Out here, you're after dinner. Online hackers are after your data. They'll bait you with fake emails, look alike, excites, anything to lure you in. But with Cisco Duo's end to end phishing resistant access control, every login, every

[Ribe]

device, every user stays protected.

[Brian Preston]

Looks like no one's biting today. Cisco Duo fishing season is over. Learn more at duo. Com.