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The Salary Required To Buy A Home (Money Guy vs Ramsey)
01:03:56
Ask Money Guy | July 14th, 2026
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A
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- [01:02]
B
Today we're going to answer an important question. What's the salary you need to make to buy a home?
- [01:09]
A
I am so excited, Brian, because this topic, not only is it a big financial decision, if not the biggest financial decision a lot of you may make in your time on this earth, it is a decision that that you single handedly really helped me make. I don't know if I would have a house right now or at the time that I did if it were not for the money guy rule. So I think I have you bullying me into not putting 20% down on my first house to thank for what turned into a very good financial decision.
- [01:38]
B
Curious to know if you'll use the the term bullying because that is kind of what I did not take it
- [01:43]
A
that way, but I know you've described it that way, so I like to say.
- [01:46]
B
So you guys know Bo's Trap? Well, I don't know if you know, obviously Bo does not look like Reby, but Bo is traveling with the family today and we want to cover something because this is one of those things where, look, y' all know my story. I am a financial mutant through and through. I never had the bus cycle where I was bad with money. I've always kind of knew there was a better way to do things and had that. I don't know if you call it a engineer's mentality or whatever, but I was always trying to figure out how things worked and homeownership was one of those things where when I went to go buy my first home, I was like, wait a minute, there are creative products that let Me buy into this with 3% down. So I did that. And then what's funny is as I've grown my financial planning practice, I'm out there and I asked all my advisors, we even did a survey one time of our advisors. I think it was 70 plus percent put down less than 5% of their first homes. I'm like, wait a minute. If this is what people who are good with money are doing, why are all the talking heads out there telling Everybody to put 20% down on your first home is because that seems so disconnected. By the way, this has nothing to do at least for our rules with the 2021 inflation run up of real estate. This is, these were rules that even back when I was, you know, buying my first house in the 90s, that it kind of hit me that there is a better way to do money. So we thought, hey, if you think about all the talking heads out there in the money world, it's us. And then like there's Ramsey Solutions is out there. And I just want to. We love Dave. We love what Ramsey Solutions doing. You know, George gave us a shout out recently on a show on something. So we love those guys. Nobody gets you out of debt better. However, I do think that if you follow their home buying rules, it might keep you from this valuable goal. It's going to cost you time because just the requirements are different than our rules. So I wanted to kind of. We wanted to clarify the difference in the rules. So hopefully if you're out there sitting on the fence going should I buy my first house? And if I do, what are the rules? We got you covered.
- [03:55]
A
Let's dive into the comparison of the money guy home buying rules and the Ramsey home buying rules. And let me just say too, to give a, a shout out to our friends over at Ramsey. Some of these sound great. If you can afford to do this, this isn't necessarily a bad decision. I do want to throw that out there. But to your point, you're going to see it makes it more difficult. We're going to dig into that now. So for Ramsey they say a down payment needs to be 5 to 10%. Money guy says 3 to 5%. So right off the bat that is easier for a lot of younger folks and families.
- [04:26]
B
Well there, there's more to the story here. Cause you have to admit when you told me on your first house, what were you really thinking you had to put down?
- [04:33]
A
I thought I had to put 20% for a long time. It was because I grew up with the Ramsey Solutions knowledge Just in my.
- [04:40]
B
So this is what I saw. My systems change and I want to give credit to Ramsey Solutions in the fact that pre2022 they were 20% all the time. You know, this is what you had to put down. I do give them credit. With the post inflation run up of housing they realize hey, this thing is starting to get away from affordability as some is a true issue. So they amended their rules post 2022 and it's 5 to 10% still a
- [05:06]
A
lot but way more doable than.
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B
Yeah, but it's much more. I give them credit because they, they even though we're not known for, for changing rules. I mean if it was like if it's good for 1995, it's good for 2026. But I do give them credit for, for updating this. As you, as you said, we're 3 to 5%. We've been 3 to 5% all the time anytime.
- [05:24]
A
So the first home purchase. So yeah. So to keep going, Ramsey says you need to use 25% of your net income on housing expenses moving forward. Money Guy uses 25% of your gross income which is going to come into play.
- [05:37]
B
Yeah, this is going to be one of those things. Net is actually going to be a smaller number because that's after your 401k, that's after your tax withholding, that's after all your benefits from your cafeteria plan. All of that to say well we use gross because not only does it give you more but it also is harder to manipulate because you know you can take whatever your take home pay your gross amount. What is the amount that they tell you hey congratulations, you got a pay raise. This is what you're gonna make this year. That is your gross. After all the withholdings is your net. We like using gross.
- [06:10]
A
Yeah. Mortgage length is another big difference. Ramsey is really set on you doing a 15 year mortgage. Mortgage Money Guy says you should do or could do a 30 year mortgage.
- [06:21]
B
Yeah, I like once again by the way all mortgages, the majority of mortgages I've seen from clients, I haven't seen a prepayment penalty in forever. So all mortgages pretty much allow you to prepay them however term you want. So you could do a 30 year mortgage and prepay it in 10 years. You can prepay 15 years. So it's all on how your cash flow and your, your money's flowing in. Now I will say the benefit of 15 years, it's going to be a lower mortgage rate but I like the additional flexibility you get from the 30
- [06:51]
A
year mortgage because you also could not prepay and invest more. Just a thought.
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B
I know the ghost of bo. I do.
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A
I am the ghost.
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B
I do think that post 45, once you've made wealth and you're in the maintain face phase and multiply, there's going to come a season where you try to extinguish that debt. But there's a time and place when
- [07:11]
A
the truth of the matter is that 30 year often allows you to stay within that 25% of your gross income on housing. Just the reality that we'll dig into it more. And then lastly, the ownership period. Ramsey doesn't really speak to this. We say you need to be in the house for five to seven years to truly make that transaction worth it. We even have a data point that buying a home doesn't beat renting financially until you've owned it for approximately six years. It lets kind of all those like closing costs and additional costs with owning and buying a home kind of work themselves out and come out in the wash after you've been in it for five to seven years.
- [07:43]
B
Well, there's a lot of transactions. I mean think about anytime you do a real estate transaction, there's going to be, the county government's gonna get involved. You got attorneys that are gonna get involved. There's all kind of, you know, recording fees, there's insurances, there's. There's just a lot of hands in the cookie jar. So you gotta have enough time to kind of smooth out the costs and the friction costs of those transactions.
- [08:05]
A
Makes sense. And it is just a big transaction and big decision. So you wanna make sure you're thinking through the long term as much as possible.
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B
So now we get to what everybody's waiting for.
- [08:13]
A
I know, show us some numbers.
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B
That's what these are. This is great you guys gave us the philosophical stuff, but let's actually show show you in the reality of the world we live in. What is the difference of these two home buying rules look like?
- [08:25]
A
So we're going to cover if you're buying a home the Ramsey way, we're assuming a 15 year fixed mortgage at 5.85%. You're putting 5% down a PMI of 0.75% of the home value plus taxes, insurance and all of that. So if you wanted to buy a $300,000 home the Ramsey Way, you would need $15,000 for a down payment. You would need a resulting loan amount of $285,000. Your estimated monthly housing cost would be $2,935 per month. So your required take home pay, again, that net number would be $141,000, which means your gross income required to buy a $300,000 house household income would be $184,000.
- [09:13]
B
Now that's got a shock and awe factor to it. It does. If you just, if you're trying to say, hey, where does that fit in the number of American households? You'd be in the top 21%.
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A
Yep.
- [09:24]
B
So that's actually top 19% because that's what it's, it's the 81st percentile. So top 19%. Public math gets you every time. But it is one of those things where we get it that just seems hard. And it's all because a lot of this is once again we're looking at a 15 year mortgage. We're also looking at we did net. So you have to take into account all the withholding rates and so forth. So it gets grossed up to an even higher number. That, that's a lot for a starter home. Ribey, what happens when we're talking about like your upgraded home when you're doing by the way, and I guess it's not even upgrade because this is if maybe you're a higher cost of living market because we allowed the lower down payment.
- [10:00]
A
So the average home price, I don't have it off the top of my head, but it is in the $400,000 range. So if we're looking at a $400,000 house, you would need a gross household income of $253,000 by these rules. For a $500,000 house, it'd be 326,000 gross income required. And then for a $600,000 house, again, that's not even too crazy. If you're talking about a family or maybe a home upgrade like you're talking about, you would need a gross household income of $406,000. And that's where it just starts to, it just starts to hurt because we're talking, we're truly talking in the 96th percentile of income out of all of America.
- [10:41]
B
So, so let's, once again, I don't like, I'm an optimist and these are difficult times to buy a house. Let's, let's talk about the money guy rules.
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A
Let's do it.
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B
What is it is compare and contrast here.
- [10:52]
A
So here by the money guy, home buying rules, just to refresh, it's a 30 year fixed mortgage, a 6.54% interest rate. So it is a little higher.5% down. Same PMI and insurance values used before. For a home price of $300,000, you would need $15,000 down payment. Again, with a loan amount of 285,000, your estimated monthly cost of housing is $2,362. So that's already like ballpark, $600 less per month you would be spending, which is pretty huge for most families. And your gross income required would be $113,000. Now, Brian, I'm going to shoot straight with you. This is still hard for a lot of people. Average household income in America is what, $83,000? $83,000. But man, that number hits different compared to what we just looked at.
- [11:41]
B
Well, if you, if you have two workers in the household, it at least makes it where it's at least possible. Yeah, it starts becoming where home ownership is going to likely happen. I think that's why. And also we took out the net column. It made the math a lot easier. It is. Look, we tried to make this an apples to apples comparison. We could have done a 3% down payment if we wanted to make this even easier to get into the, to grease the skids, to get into homeownership. But we said let's keep it consistent. Do 5 to 5, 400,000. Like you said, that's probably closer to where the houses are in the United States in a lot of markets.
- [12:15]
A
Gross income or.
- [12:16]
B
Yeah, yeah, it's about 150,000.
- [12:18]
A
$151,000. For a $500,000 house, it'd be $189,000. For a $600,000 house, it would be $227,000. Not saying these numbers aren't still high, but man, this is more realistic or at least possible to more people, I would say. And like you said too, there's still levers that you can pull of like this was 5% down. What if you did 3% down? And then if you are upgrading the money guy rule, we didn't put it in here today, but like you can use your equity and you should put more 20% down on a home upgrade. And so those all change the numbers and at least give a path forward. And that's something that I've always appreciated about MoneyGuy, and that's honestly why I own a house right now.
- [13:02]
B
Yeah, and that's what quickly put up the income comparison. Just for all those out in the audience that want to see it. I mean, you can see we don't need to go through, spend a lot of time on this but it is interesting is that just for that starter home of 300,000, the difference in these systems is 63% more or $71,000. That's like an additional household income. It's a lot just, just on that for. And then if you were trying to upgrade or it's not even upgrade because it's just a higher cost of living down payment because we're using.
- [13:30]
A
You need a larger house. Yeah.
- [13:31]
B
If you need a $600,000 house, the difference is $179,000 of income. That, that just seems separated from, from reality. So I think the big key takeaways just to kind of go through these is that both of these rules have the same goal. Like I said, we're not here to pick on Ramsey Solutions with their overall because they have a great message to keep you out of debt.
- [13:52]
A
Absolutely.
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B
I think when you're looking at how you're going to buy your first home, both of these rules will keep you from the house owning you. You won't be house rich, life poor. They will both protect you. But if you just want to get on just like younger Rebi trying to buy that first home to raise a family with, you needed a little nudging saying, hey, don't, don't try to do this with 20%, 3 to 5% and a 30 year mortgage is a. Okay.
- [14:18]
A
And it was okay. Like it did turn into a good decision. Also, the key takeaway here is that home ownership, it is currently historically expensive. Like I just don't want to shy away from that. You really do have to weigh your options. Is home ownership right for you? Is renting right for you? And that's going to look different for different people because personal finance is personal. And you and Beau did an incredible breakdown of this. If you want to go check out our episode called should you buy or rent in 2026, the numbers shocked us. They do full case studies of breaking down the numbers of scenarios where a person rents versus buys and it will help you at least start to kind of hone in on what is going to be right for you in this season.
- [14:58]
B
Yeah, I would encourage. We really, we poured a lot of, of of soul into this show because I wanted to shoot everybody as straight as possible because I do think we have a everybody has a recency bias that you see how much houses appreciated around 21, 22 and even 23. To the point that I think a lot of people are like, this thing's just going to keep running from me. And we're like, no, no, realize there's some distortions in the market currently that it might make sense in the moment to rent versus Buy and I wanted to shoot everybody straight on that. So go watch this episode. If you are even considering buying a house or thinking about doing anything with a housing type decision, this show will help you. Because we, we really tried to think about this in a different way to take into account all the unique things that are going on in this crazy marketplace right now.
- [15:45]
A
And that kind of brings us to one last key takeaway is this isn't just a mathematical decision. And you are wonderful at talking about that. And I think that that comes into the rent versus Buy conversation too because just because home ownership can be a great goal, it doesn't mean you have to do that. It's not required to build wealth. And just because you're renting now and that's the best option, it doesn't mean that you're not going to reevaluate later and have a different option available to you, a different thing that's going to work for you and your family. And why else? I mean, do you have anything else to say? Because I know you are great. It's not just a mathematics.
- [16:18]
B
Well, I think it's. I always want people to understand the why. And I've shared this before. Is that a reason that you can rent in a lot of markets cheaper than you can buy is because the, the person who bought that house that they're renting to you probably paid about half of what it costs to buy it on the market because we've had such a huge inflation run up with housing. And then the other part is that they probably have an interest rate that's half of what the interest rate you're going to borrow at. So take advantage of those unique things in the market and then as things adjust. Because realize that we live in a dynamic world where the financial system is always changing. If you understand this and you understand what your metrics are, you'll be primed to take advantage. And that's why you got to go to moneyguy.com resources we'll load you up. We've got checklists, we've got calculators, anything and everything you might need to help you make the better decision. So you're measuring twice, cutting once on this big financial decision. We are going to hook you up and it's all completely free. So go out there. Moneyguy.com resources I love that.
- [17:18]
A
Yeah, personal finance is personal. Our goal is to equip you with this type of information These breakdowns and even discussing the non mathematical parts of it like, hey, you might have other really important goals that matter to you that you're going to use that cash for so you don't have a down payment right now. That can be okay. And that's why we want you to take advantage of our free resources moneyguy.com resources. That's why we do this show every Tuesday at 10am Central and that is why we're going to dig into your financial questions next. So I have the team. Normally I'm out in the wings, but right now the team is still out in the wings gathering your questions from the YouTube livestream chat and we are going to answer a few of those today.
- [17:58]
B
Now, did you. This is, it's unsaid but since Beau's not here, this is when you're supposed to do like a pec pop or make your biceps stand out or do something me you have typically does this stuff. I just didn't know if we were doing.
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A
You were just telling me you set a PR in your workout. This is all you.
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B
I just, I was trying to pick on Bo since he's not even here to defend himself.
- [18:20]
A
Oh man. All right. With that we are going to dive into questions. The first one is from Jacob. Are you ready for it?
- [18:27]
B
Okay, Jacob, let's see what Jacob's got.
- [18:29]
A
It says, hey moneyguy show. I have a medical bill coming up that is a lot more than I expected and there's no way I can pay for it without going into debt. I'm on foo step five and I'm curious how you guys would go about it. Honestly, great question. You don't know what you like. The unknown happens. What do you do now?
- [18:46]
B
Yeah, what I'd be curious first is this, is this post insurance. Like your insurance has gone through everything and you're left with covering the high deductible. Have you just triple check and that's the first part of this and that's the case. Then you just have to it is what it is and you have to kind of figure out now if it's you didn't have insurance and you had a big medical thing come up and you have to now you have a medical provider that's sending these huge bills. Realize that sometimes those brochure rates or what they send you are more of a shock and awe tactic. If you're a cash payer you can everything is negotiable. And what's crazy is you can even use a chatgpt a grok or whatever to help you write a letter campaign or to come up with a call script and see if you can negotiate. And you might be shocked to find out that it's literally like nickels on a dollar totally for what you can pay on a medical dynamic. And you still might even if there's. Like I said, that's why it's limited if you have insurance on what you can do because they supposedly are doing all that for you on your benefit and you're really already qualifying for the discount. But it's one of those things I would first want to know now if it is a deductible. This is where I hope that the step four and even step one of the financial order of operations is. This is why we have those two steps, is to make sure you have your deductibles correct.
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A
Because he says he's on step five. So can you hold up the FOO and tell us what step five is? Just refresh.
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B
If we got a medical expense that exceeded it, you start getting into so, so I would go back and, and there's nothing wrong with, by the way. A lot of people think the FOO is just a walk up the stairs. And I know we have a great understanding that we share with people. Foo actually looks more like this. As life happens to you, you might go back to step four and build up the emergency reserves, use the reserves to pay off the medical expenses and then get back to work to build those reserves.
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A
And now I'm going to go out on a limb. You can tell me if you disagree. But because the FOO is just like, it's a framework that's so helpful in taking some of the emotional decisions. Say you did drain your emergency fund and had to go into debt. That means you're back on step three and you gotta knock, you gotta knock out that debt. Am I, am I wrong? I don't know what the interest rate is, I guess, but like medical debt, you know, we don't want you to just stay in that debt. And so that means you're putting all, any extra money you have towards that debt until you're back to step four and then can get back to step five. That's why we have this food to follow, right? Yep. Okay, awesome.
- [21:16]
B
But don't feel, don't be scared to call the provider, the medical provider, to see if they can give you. Instead of you using a credit card to pay it off immediately and running up a 20 plus percent, see if they'll give you a little grace on how long you can pay it. Back.
- [21:30]
A
Right. And a lot like they do payment plans and things like that that probably would be better interest rate. So yeah, definitely ask all the questions. Just don't be embarrassed about it. Just do it for sure. All right. Well Jacob, thank you for the question. Let us talk really about kind of the FOO and how it's an all weather terrain vehicle as you say or something like that. That was a Brianism for you. But I think that since Beau is not here, I am going to dub it a Tumblr day.
- [21:53]
B
Is it?
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A
So Jacob, if you would like a money guy tumblr, since we answered your question on the show, just email winneroneyguy.com and we would love to send one to you as a thank you for being here. Okay, next question is from Chancellor Carter. Chancellor, how does the foo apply to working teens with no debt, bills, etc. How can I best help my kids get a head start in life?
- [22:22]
B
Well, I think the look, a lot of times when you're 15 years of age, you're getting the basics. This is the financial order of operations. Yes, it could work in a lot of ways because let me tell you how this is. Go work. You're going to like the creativity of this. Most teens don't have a deductible to cover because they're under their parents insurance. So step one is kind of covered on that. Having the highest deductible covered. But guess what if you are doing what I've shared is I love a parental match campaign. Meaning that if your kids go get that first job in fast food that I recommend and they figure out how crazy the world is, you can offer a $.50 on the $1 match on every dollar they make to start funding a custodial Roth ira. That very much matches into step two of the financial order of operations because you can set up your own prime the pump type thing. Just like you to get an engine started, you have to pour a little gas in the carburetor. You can do the same thing with your kids savings behavior. Because I love, that's why I love that first job is because it's it not only scratches the itch of them figuring out that they have a work ethic, but then you get them into a behavior of living on less than they make by saving a portion of those dollars to a matching fund. This gets really exciting really quick now. And also a 15 year old, typically you're not gonna go open up a credit card so they don't get out of step. They're really kind of stuck in step two because they're not doing so. So it is full. You know, it's part of the food. But it's just that they're kind of at the parental matching is where I'd really like you to encourage getting them saving and investing for the future.
- [23:55]
A
You have done a really good job at that in your own parenting journey. And I think just the idea of teaching them about compound interest, both how it can work for you or against you, I think that's key because then once they do have a job, they can follow the food and they're kind of set up with the behaviors that will help them do that.
- [24:11]
B
Hopefully that's why I would definitely go to moneyguy.com resources and look at our wealth multiplier. We even have some calculators.
- [24:16]
A
Wealth multiplier. Calculator.
- [24:18]
B
But a 15 year old, a wealth multiplier for a 15 year old is $145.37. So that's, I mean every dollar has the potential to become $145. To know that if you just want to build your first million dollars at retirement, you only have to save $58 a month. You'll just think about spending differently if you know that your money can be that powerful.
- [24:41]
A
And even just that mindset shift can do a lot I think for, for somebody who's 15 like to carry that into their adulthood, it's pretty powerful stuff. So I love that you're thinking about that. Chancellor Carter, if you would like a money guy tumblr, just email winneroneyguy.com we would love to send you one as a thank you for your question. All right, next question is from D. Gloff. Are you ready?
- [25:04]
B
D Gloff.
- [25:05]
A
D Gloff.
- [25:06]
B
D Gloff.
- [25:07]
A
I just got promoted and I'm now eligible. I know, that's awesome. And I'm now eligible for deferred compensation. I am married, I'm 50 years old, and I'm in step eight of the fu. How do I figure out if deferred comp is right for me?
- [25:22]
B
Yeah, this is a great question. This is one. I actually consider this more of a step seven of the financial order of operations. If holding it up is because you're thinking about, you know, once you're. You're beyond 25% savings rate, how are you going to use this money in retirement? A lot of. By the way, that also is probably a compliment to you. When you qualify for deferred comp, they usually structure these type of plans because it means you're going beyond the limits of what you can fund in your 401 annually. Good on you for reaching that level of success. I would start thinking about because the way we've used deferred comps is a lot of people, if you think you want it because you're 50 years old right now, but what if you want to retire at 58 or 60, which is earlier than most people who are working till 65 or 67 like Social Security would have you believe. But you could use a deferred comp because realize what it allows you to do is put the money into these plans. You don't pay current compensation. They're kind of building in the background. But then as soon as you have separation from service, they start paying out. And you kind of can structure right now how that's going to be. That could be your bridge until you start qualifying for or other income streams. And then this allows you to really create your own little mini pension as you enter retirement. So you don't even have to use your other assets. We do. That's why I love setting up, whether it's a five year, eight year type plan to where you're. As you're funding these deferred comp plans, you can really start laying out what those first few years of retirement are going to look like for you and also lower those taxes because you're probably in a higher tax bracket situation right now. This allows you to kind of legally manipulate that into a lower bracket and then hopefully when you leave work you'll start running the tax game and you'll have lower taxes, you'll have this bridge money coming in. It really creates a lot of cool planning opportunities for you. Now the only downside with deferred comp is realize that it's a promise to you in the future and if that company ever gets into financial trouble before you get your money, that creditors would have access to that money before you would. Now if your company's in great place financially, that's usually not something to worry about. But at least felt like I need to disclose it to you.
- [27:36]
A
No, that's really good. I'm just curious how common is deferred comp as an option for people? Is it like a pretty thing?
- [27:43]
B
It's on how the size of the. It's, you know, once companies get to a certain size that they have enough employees that are at higher compensation that they are, they're trying to figure out how do they help the employees plan for the higher income to take advantage of all the benefits out there. They add top hat, they add deferred comp. There's all kind of cool planning opportunities they'll do to incentivize executive teams.
- [28:08]
A
Okay, I was just curious. That's what I thought, but took advantage of your knowledge. So D Gloff, if you would like a MoneyGuy Tumblr, we would love to send you one. Just email winneroneyguy.com and thanks for being here and asking a question. Chronic migraine 15 or more headache days a month, each lasting four hours or more, can make me feel like a spectator in my own life. Botox Anabotulinum toxin a prevents headaches in adults with chronic migraine. It's not for those with 14 or fewer headache days a month. It's the number one prescribed branded chronic migraine preventive treatment prescription Botox is injected by your doctor.
- [28:44]
B
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- [28:46]
A
weeks after injection causing serious symptoms. Alert your doctor right away as difficulty
- [28:50]
B
swallowing, speaking, breathing, eye problems or muscle
- [28:52]
A
weakness can be signs of a life threatening condition.
- [28:54]
B
Patients with these conditions before injection are at highest risk.
- [28:57]
A
Side effects may include allergic reactions, neck and injection site pain, fatigue and headache. Allergic reactions can include rash, welts, asthma symptoms and dizziness.
- [29:04]
B
Don't receive Botox if there's a skin infection.
- [29:06]
A
Tell your doctor your medical history, muscle or nerve conditions including als, Lou Gehrig's disease, Myasthenia gravis or Lambert Eaton syndrome and medications including botulinum toxins as these may increase the risk of serious side effects. Why wait? Ask your doctor, visit botoxchronicmigraine.com or call 1-844botox to learn more.
- [29:24]
B
Did you know Sam's Club isn't a store? It's actually a club with cool finds. And like a whole community, it's a club.
- [29:31]
A
Of course, Jason. It's in the name. Sam's Club. Oh yeah. Come join us.
- [29:38]
B
Sam's Club.
- [29:39]
A
All right. Christian is up next. He says hi Moneyguy team I'll stop contributing to my HSA after switching insurance next year so he can't help it. Brian, before you panic. Yeah, well it says better to leave the money and well in the Wells Fargo account with limited options for when I contribute again. Or should I move it over to Fidelity? I'm guessing to another type of investment account. What do you think?
- [30:04]
B
Yeah, I mean I like because congratulations. You know there's nothing wrong with if you change employers and maybe now they offer you Cadillac health insurance and you don't even qualify because for a health savings account because Remember the whole. Before you can even fund a health savings account, you have to be under a high deductible health plan. So it sounds like Christian is moving to a different employer, going to be on maybe a PPO or some other, you know, it's not going to be a high deductible type plan, so he can't make additional contributions. But he's got money left in there. He's part of the, the 90% of people who are not just using it as a clearing account. I mean, he's part of the 10% that's actually trying to invest this money. My personal opinion, I think I would try to move it to Fidelity because I think Fidelity is just going to have easier and better investment options, lower cost index funds. It's going to be a pain in the rear though, because moving HSAs is not the easiest process, but it's, it also will set you up because if you're already investing. I don't know if you said you were investing at Fidelity too. I do love how it's all integrated into their one mobile app. It just makes your life a little bit easier. And Fidelity, I mean, that's where I have my health savings account. I get nothing from Fidelity for saying that. It's just that's where I have it. And I do like that I can kind of administer it and invest it right there from the same mobile app that I use with the other accounts.
- [31:26]
A
When you say it's a pain to move, is this still something that an individual could do on their own?
- [31:31]
B
Oh, yeah, you can do it. It's just you have to shepherd it, you know, because custodians, you'll find whenever you're transferring money, sometimes it goes very cleanly and easy and other times it's a phone call here or there, it's a follow up call.
- [31:42]
A
Hey, where, where are we in the process?
- [31:44]
B
Because every, every, every custodian has a process to help you transfer the money.
- [31:49]
A
Okay. I just thought that was a good distinction. I was like, you don't need professional help with this, right? Doesn't sound like it.
- [31:54]
B
I mean, it is something we do for clients. I mean, we have a whole team that goes out there and if you, if you have. That's one of the benefits of having a good financial advisor is that sometimes these custodians, they play reindeer games that they don't want to. It's almost like they've designed a system to keep the money in house. We, we have a crack recovery team. They'll go out there and make it happen.
- [32:15]
A
A crack recovery team.
- [32:17]
B
You see those repo shows, you know, where you know you have to go send the, the biggest, baddest person to go out there and recover because somebody's acting like a deadbeat. It feels like sometimes custodians are acting like deadbeats with not giving you access to your money. We got some.
- [32:33]
A
Yeah, no, that's definitely a huge.
- [32:34]
B
We got some pipe holding people, you know, they don't look like it on the outside because they're the sweetest looking lady.
- [32:39]
A
They've got the knowledge.
- [32:40]
B
They go out there and they know how to, they know how to get the unlock those assets.
- [32:43]
A
Right. Right. I love that. If you are ever interested in becoming a client, you can just go to moneyguy.com, click on a become a client button and fill out the form there and we'll connect you to the right service, see if this is a right fit for you. And also I think that's a really good point of. That is a great benefit of being a client, especially when you start having larger assets and you don't want to mess around with it. It's nice to have somebody in your corner. So I appreciate that you shared that.
- [33:06]
B
Oh, there's so many, like when you start doing QCDs with charitable contributions and other things and tracking all those. There's so many things when you get to retirement that you're going to be thankful to have somebody who's tracking your basis and all the other stuff for you because it's just, that's the. Your life can stay as simple as you want it to be, but success is go create complexity.
- [33:26]
A
Yeah, that's great. All right, we are going to do one more question and then we're going to get to our. From the wing segment.
- [33:33]
B
So I actually kind of like from the wings. I like it better than the. The it doesn't depend segments. I don't like the rapid fire stuff.
- [33:41]
A
I think you do well at it though. You just, I think you, you get in your head occasionally.
- [33:46]
B
Bo's better. Hmm.
- [33:48]
A
Okay. I'll let you fight that out when he's back. But for now, let's go to JB's question. It says, hey, money guy team, what all goes into mad? How do you say this? I always read it. Magi.
- [34:01]
B
I would say just modified adjusted gross income.
- [34:03]
A
Modified adjusted gross income. Thank you, Brian. What all goes into that? I got a promotion from 100k to 135k with some unexpected bonuses. I'm looking at 150k this year. Close to The Roth limit. What should I do if I've already maxed my Roth?
- [34:23]
B
Yeah, there's a lot, there's several questions here. There are, look, we could get into what modified gross income is. Realize there's things within the tax code. I mean it can be, it's all kind of things. So it can be IRA contributions, it can be, you know, in the past it's been like we've even added some charitable contributions to the front line. Instead of even on standard, I mean itemized deductions, we've added teacher expenses. So it's just a gazillion things. There's half of self employment income. There's just a whole list of things that go through. But for most people, the thing I want you focusing on is it's your gross income. That's, that's really what your AGI is. What's your income before we get to deductions and all the other things. So if he's, I'm looking at $150,000 a year close to the IRA limit. What should I do if I've already maxed out my Roth?
- [35:16]
A
Yeah, so he's maxed it. What if he goes over the limit? What does he do now?
- [35:20]
B
Well, he's saying. So the income limits I have Now I have 2025's limits. Here is. I need to get this thing updated. But it's for a. Let me file my limits. This is good radio. When there's silence.
- [35:38]
A
153,000 single. Is that right guys from the wings.
- [35:45]
B
Hang on, hang on, I've got it here. It's just this is where this is. It's. I thought it had gone over $200,000 for.
- [35:54]
A
Because this is, I think that's still married filing jointly. And a quick Google which. And this, this, Here we go.
- [36:01]
B
230. This is 2025's numbers. 236 to 246. For single individuals, it's 150 to 165.
- [36:08]
A
Yes.
- [36:09]
B
So when. So if he's right at. He must be a single individual is that he's 150 to 165. You know, whenever, follow the fu. I mean when you've crossed. When you've maxed out both 5 and 6 on this. I like funding an after tax account. You know, that's part of step seven of the financial order of operations is nothing's wrong with you opening up a brokerage account and start investing for the long term. Even into that after tax account. You know there's, you can buy index Funds just as easily in a individual brokerage account as you could a retirement account. It's just the taxability is just a little bit different.
- [36:47]
A
What if that was a segment we just pop quizzed you guys on contribution limits?
- [36:53]
B
Because that's the problem. You have to understand, in my brain, I've. I've been doing this so long, I know it changes. The number that comes out of my head for even married couples is like it phases out at $166,000. I don't know what year that was, but that's the last one. That. And then I just told you now for married couples back in 2025, it was up to $246,000. So they index this stuff for inflation. So all it would do is show you the time capsule of the year that my brain works in. And you know what I've often found interesting? I think the year that I was the best financial advisor technically was probably when I was 28 years of age. But I had the hardest time getting clients when I was 20. But I could tell you any fact or figure I had it. I was like an encyclopedia. Now I think most people now think I'm a better advisor now because I have all this wisdom, because I've built my own money. And the more success I've had, I've been able to pay it forward to our team where they understand where all the complexities lie with successes. Because that's the thing. I've tried to write the book on what you need to know to build, you know, your first few million dollars. But the reality is, is when you're going to deca and beyond millionaire status, there's not like a single book out there on all the things I've had to feed. We've figured this out. And that's why I tell you you don't have to be in all by yourself with your success. I mean, that's the thing I think about, bo. When we've done commercial real estate, we're doing cost segs, you know, all these fancy strategies we're doing, we do this stuff for our clients, too, because it's just hard to unearth all these different ways that money works. If you want to kind of streamline, maximize, and also just make sure you're living your best life financially. You don't. You shouldn't have to try to figure all that out.
- [38:35]
A
Yeah, I love it with that. Real quick, let me give. Who was it? Jb? That was your question. You get a Tumblr if you would like one. Just email winneroneyguy.com with that, let's move into our from the Wings segment here. From the wings is where I read a current headline and then Brian and Beau, or in this case me, since I'm in Beau's seat, will hold up a thumbs up or a thumbs down. Is this headline news or is it noise?
- [39:05]
B
News or noise?
- [39:06]
A
And then we discuss. Are you ready to dive in?
- [39:09]
B
Yes.
- [39:09]
A
All right. First headline from Wall Street Journal says, moving back home used to be a sign of failure. Now it shows financial savvy. A little context from the article. Nearly half of American adults under 30 pinched by the high cost of housing are living with a parent. What do you think? Is this news or noise?
- [39:30]
B
I think it's noise.
- [39:33]
A
Yeah, I think it's noise, too.
- [39:37]
B
Look, this is. I just, we had a Q and A segment that Bo and I reacted to and I was talking about how I did. I moved home for like three months after college and I saved up enough to buy my purple recliner, her burgundy recliner. The content team, by the way, in that react, nailed the color. So I was very, you know, hats off to the editors on sticking that
- [39:59]
A
color because that was rejoicing going on in the wings.
- [40:01]
B
I think I said chartreuse or something. And somebody in the comments says, hey, you realize that's green. I was like, that shows. I, I don't know any color either, but it just sounded like a fancy word.
- [40:09]
A
Really good at math and financial planning, this requirement.
- [40:11]
B
But look there. We know this, this whole. You've heard the term failure to launch and other things. We just also started the show talking about how hard housing is right now. So there are definitely unique things going on. But personal finance is so personal. I don't want you to see a headline like this. And it let it cloud your judgment on how you're navigating the financial world. You can do this. I'm here to tell you, I think that you just have to, to modify things and you staying at home as a tool for a moment. But I do want you to try to get out on your own as fast as possible because just life happens different when you're out on your own. I mean, that's what. I have an adult daughter and you know, and she's, she's come back to the nest for a few months, but she's already got a plan. We've actually asked her to stay until we get back from. We're going on a big trip and to Scotland in September. And I've begged her. I was like, please just Stay until we get back because you know, my youngest child, we have to deal with that. It was nice having her there to help, but I want her out of the house at some point just so she can start living doing the adult experience.
- [41:23]
A
Yeah, no, I agree. I said noise because. Just because somebody's living at home. You don't know on the surface if this is savvy or failure. It still could be either one in my opinion. Cause personal finance is personal. Like what's the reason, what's the impetus, what's the plan in the future? Is there some family dynamic that's making this a big win or is there some family dynamic that's making this a big L Like it's not all just that housing is up. I think that's, we kind of know that this is not as cut and dry to me.
- [41:54]
B
Yeah, I think you have to, you have to, you know, do what's best for your financial life. Just take into all the variables and don't let the noise of the news media or even people outside of your influence are saying because a lot of times they don't know the full picture.
- [42:09]
A
Okay, we've got some more headlines. The next one from cnbc. June home sales disappoint as prices reach an all time high. I'm going to say news just because I hope that's good news. I don't know though, you actually need to speak to this.
- [42:25]
B
Well, I mean look, I think inventory is back to. Well as we came through a unique period where for 2021, 2022 and 2023 the typical house price went up by over 50%. So you can't have such a huge market event and it not create some weird distortions going forward. So I'm not surprised at all. That's why when people think trees grow to heaven and they think just because houses ran up this fast there's going to be some distortions that come. So it doesn't surprise me what this, the under the surface this is, is the inventories are getting bigger and bigger on houses for sale. And when you, you know it's law is law of supply and demand. If you have too much supply, the only way you can get more demand to it is probably start lowering the price to where we start clearing out the inventory. So if you see June sales prices disappoint, prices reach all time high. Right now we're still in the denial phase where I think the inventories are going up. People haven't necessarily dropped the prices as much as they're going to have to and you're starting to see some of those distortions from that huge run up are slowly starting to work their way out. That's why I wouldn't panic. Don't feel like you have to force the home decision. There's going to be opportunities in the future.
- [43:41]
A
Yeah, good stuff. All right, next headline from Forbes. SpaceX stock down 25% inside the debt and equity risks. I said it's noise. Oh, so did Brian. Why do you think so?
- [43:57]
B
Yeah, no, I think it's, you know look, SpaceX was the and I'll say the word zeitgeist or whatever because you couldn't. Like I said when my mom calls me up and you know she's right at 80 years of age she calls me up and is asking about SpaceX. We know that we have gotten full. I mean the whole. Everybody's out there painting even my mother in law who's she's in her 80s, well into her 80s she asked me about SpaceX. So this thing got way out, out over its skis. It's not what you need to be focused on. It was more of a sideshow. I think it's exciting to keep up with what SpaceX is doing because I mean there are big technology developments that are going on but instead of trying to beat the market, just be the market. Buy an index fund. If SpaceX continues to do well eventually the S and p will add SpaceX after a 12 month period and we'll know much more what the real price of SpaceX is. It was always a little questionable with you and that's why we did that whole deep dive on SpaceX IPO because, and I was very transparent there because I've made money with, with Elon companies in the past. I will eventually own some SpaceX but I was not buying into the IPO. I was going to wait to see what settled out because we haven't even seen what happens when all the insiders start selling their shares. It's just there's such a small trading of shares available we really haven't seen what's going to happen with the stock.
- [45:23]
A
Yeah, I don't think this should play into your financial life much or even at all so I mean there's some unique circumstances where it does but I think that's why I said it's noise.
- [45:35]
B
I don't think it's more of a sideshow hobby. It's not what you should be making decisions for your. For your main.
- [45:41]
A
Like if it's. Yeah, I don't know. I was going to say if you're
- [45:44]
B
really worried, just vacation money, not eating
- [45:46]
A
money, like you have a bigger problem if this is like wrecking your financial life. That's kind of what I'm thinking. All right, last but not least, Brian. This is from U.S. news. This is a good one. Are you ready for it?
- [45:59]
B
Okay.
- [46:01]
A
Australian officials ask fans to respect the privacy of Neil. A one ton seal who respects nothing.
- [46:08]
B
Now, is this that seal that is like, keeps coming back and is like wrecking havoc if he knocks over fences? He knows Neil. No, I saw a report on this. I saw a video. I saw a video. It was on the Today show or it was on, you know.
- [46:25]
A
Oh, I'm so thrilled.
- [46:25]
B
The weekend edition of something. Yeah, I mean, it was so. Let me read the headline now. Australian officials asked fans to respect the privacy of Neil. By the way, have you seen the pictures of this?
- [46:36]
A
Do we have a photo of Neil?
- [46:37]
B
The video I've seen is Neil is literally laying. He's literally laying next to like, it looks like a roundabout or an intersection and cars are literally driving by this big monstrous seal that's just hanging out there. So, I mean, I think it's cool. If I lived in this town, I would think it's pretty cool that they've. They got Neil coming back to hang out and visit every year. Just kind of like, you know, because what is the Groundhog Day? This is just their version of the season. You know, Neil. Neil's back.
- [47:06]
A
He's back.
- [47:07]
B
But Neil seems like he's a horrible. He's not very nice because I watch him taking over like a utility, like transformer, where he's just putting his weight on it, knocking it over. He took over a fence.
- [47:19]
A
But apparently Neil has a very large social media following. So now that in itself has become its own hurdle or potential problem because now he's famous and people want to see.
- [47:28]
B
Well, hopefully people aren't touching him. They keep people out there to. At least the news report I saw, they. He has like a whole group of people that are out there to protect Neil too.
- [47:39]
A
There you go. Well, I am just tickled that you already knew who Neil the seal was. I think you know more than me.
- [47:45]
B
Bo wouldn't.
- [47:46]
A
Oh, no, he definitely wouldn't.
- [47:47]
B
Listen, Bo would be like, what you'd actually know what's a seal?
- [47:52]
A
Okay, that's shots fired severely there.
- [47:57]
B
Bo's a land animal.
- [47:58]
A
He's laying. He has no reason to know what seals are. He can't swim. All right, with that, that completes our. From the wing segment. Thank you. For playing with us. Brian, that was great. We do have a few more questions before we wrap up the show. Are you ready to dive into this?
- [48:19]
B
I can do a few more.
- [48:20]
A
You can do a few more. All right, let's do it. Tony is up next. He says, my wife and I are in a cycle of saving and spending. We keep falling off budgeting. After 2 to 6 weeks, this is relatable. We will save 3 to 6k, then flip and pull from savings down to about 1k and then repeat. Any tips for us?
- [48:44]
B
What?
- [48:44]
A
What?
- [48:44]
B
What? I'm a little. Because all this sounds behaviorally. From a behavioral standpoint, how much of this is goals driven? You know, that's what when we're doing. We don't do budgeting because it's fun. And this is like what we do as a hobby. We do budgeting because this is. We're trying to set up some muscle and so we can hopefully graduate to a cash management plan at some point where the money's automated, going to where it's supposed to. But in the beginning, it's just you knowing where all the money's leaking out at. So it's not a hobby. Like I said, it's goal driven. So I don't love the fact that so far it feels like you guys, y' all get very excited about doing it and then you fall off after the money builds up and it sounds like you literally fall off the wagon of good discipline and go spend the money and then you start the process all over. Y' all need to figure out. And that's why I do love, you know, whether it's Millionaire Mission or just going and downloading your copy, you have to figure out the why part of it. You have to. Because if you. If you're just trying to save money for the sake of saving money, it will feel empty and you'll. You'll find yourself highly subjective to the behavioral stuff. Whereas if it's goals driven and the why intersects with a bigger purpose that you're trying to build money for, I think the stick with it kind of starts building up much more. And it also helps you guys to communicate better as a couple.
- [50:04]
A
I agree. And here's. Here's what I'm thinking about mindset. This is coming from my own personal experience. I think I relate to this on a smaller scale. But the part that I don't get is that you say you save up 3 to 6k. It sounds like you're a couple. And then. But then you get down to 1k in your emergency Fund that scares me. Yeah, Like, I'm almost. I'm too scared to do that. Like, it's different if you have a full three to six months of expenses and maybe you spend 2,000, then have to, like, put it back up. But if you're getting all the way down to $1,000, I would let that fear drive you be like, hey, we can't spend that 3,000 right now because, shoot, what if a emergency happens? Because it's diff. Once you have the full emergency fund, that truly is like a backstop. And it, like, it does change some things. But like, if you. I don't know, I would use a little bit of fear to, like, help you get that behavior muscle started. I can't. I don't know. I hate the idea of only having
- [50:57]
B
$1,000 doing budgeting wrong and that it might be too restrictive.
- [51:00]
A
Yeah.
- [51:01]
B
Because if you're going, you know, hog wild with the budgeting and like, you're shutting it all down and then, you know, you build up a nice little pot of money and then you just can't stick with it, so you then spend it all out.
- [51:16]
A
Right. Because you're depriving yourself so much.
- [51:17]
B
Maybe, maybe I would ask yourself if you're even doing budgeting the right way. It needs to be realistic to where it's sustainable. I mean, this is. Look, we always make the correlations to health as wealth and diet and exercise is the same as the same type of discipline that goes into saving and building wealth. If you were going on like a fasting, yeah, you lose a lot of weight because you're just not eating sustainable. You know, the way you're trying to save money is you would just. You're like with an iron claw or iron fist. You're ruling the household, not letting any money go out. But then as. As soon as the money builds up, it's not sustainable. So you go and you binge spend the money out. Go look at how you're doing the budgeting process and make sure your assumptions are sustainable. That's the first thing is you have to have a good budget, not just this artificially restrictive budget that's not sustainable to you or your spouse. And I'll tell you from marriage advice, it's going to be much better if you're also very realistic to what's going on in the household versus what you want to go on because you don't want to have conflict down the road because you come off as a stingy tightwad spouse that doesn't let any dollars slip out to have fun and build memory.
- [52:34]
A
Yeah, practically. Brian's right on that. If you're depriving yourself so significantly for too long of a time, it does become not sustainable. I love the idea of putting a time limit on it and then also reevaluating your budget to do what Brian said and make sure there's. It's actually realistic. I also wonder if, like, if you're putting a time limit, okay, like we're going to try to get this back up in six months or in this calendar year, like, is there an opportunity to just for a season, bring in a little extra income or like, what else could you do to get you up faster so that then again, like, if you do want to, you go on a road trip and you need that little bit of extra, like $500, it's not as big of a deal because you have your six months of emergency fund built up. You know what I mean?
- [53:20]
B
I mean, there's a reason that in the financial order of operations, both steps one and four, cash reserves, it's to keep you from making desperate decisions.
- [53:28]
A
If you know you're like that, then you gotta build that into the system, I think. But I don't know. That's an interesting question. Cause that is one of the ones that's personal. It sounds like there's definitely some mindset and behavior stuff going on and you definitely need to define your why and your time limit on hitting those goals is what I'd say. All right, Tony, all that to say, we do appreciate you being here. You're asking the right questions and we would love to say thank you for that by sending you a tumblr. Just email winneroneyguy.com to cash in on that. All right, next one. Did. Did you like my, my fear comment or did you. Was that too fear mongery?
- [54:02]
B
What do you mean with, with.
- [54:04]
A
I didn't want to ask you that because I was saying like, well, man, that would, that would make me like really nervous and give me a little anxiety. If I only had.
- [54:14]
B
Fear is a healthy motivation. So if you, because you should be fearful if you don't have your, if you've completely exhausted your emergency.
- [54:21]
A
Yeah, that was truly just me. Like, I know that I'm more risk averse than some and so that was like my take. So I was just curious what you thought, because I think it can be a good motivator. But I also don't want to fear monger people.
- [54:31]
B
No, I, I want people to feel that sense of urgency when they're not Doing everything the way they're supposed to because hopefully that will get them on track with the behavioral stuff.
- [54:39]
A
Okay, I was just curious. Next question's from penguins 2,442 penguins.
- [54:48]
B
Oh, Pengui.
- [54:49]
A
Yeah, I'm looking to buy a Porsche from a good friend and mechanic. $16,500. So I want to take money out of my individual brokerage account. I'm 25. I would be left with 265k in retirement and 39 in individual, I think individual stocks, I guess. And so the question is, after all that information, is this bad? I feel like you have so many thoughts on this. There's just so many data points that I'm like, wasn't expecting that. Wasn't expecting that.
- [55:24]
B
Bingi, here's the thing. I mean you're 25 years old and to have $265,000 in retirement, 39%, that's incredible. Individual account for 25. That's pretty wild. What I then the. But the practical side of me is like because I don't know if y' all saw the story, you know, when Elon hit his first like big transaction, I think he went and bought a McLaren and he was driving a McLaren around every day and you know, as his day to day driver and I think he realized very quickly that's a bad car to drive around every day. Now, Porsche is a little different than a McLaren, but it's still for a 25 year old. I just know the, the cost. I'd be curious for 16,500. This is not a 911. I'm trying to figure out if is this like a Boxster? I'd be curious to know what type of Porsche this is and what's the. Why is that? Because that might be a hobby car. I mean at 16,500, this might be just a secondary hobby car. And for somebody. Look, this is where Pingy you're trying to get to. I don't know if it's rage bait or whatever, but I would say because this sounds like you might be at step eight, if it's 16,500, I'm not going to pick on you. If you went and bought this car, assuming it's a hobby type thing and you obviously and that 265 in retirement and 39 is through your hard work and your saving. Yeah, go do that. Now that's different than if you were trying to buy $145,000 Porsche, you know, as your day to day driver. That I would not be for that. But if you want to just go have a hobby and dabble. I grew up with a, you know, my father and my dad restored classic cars and got tremendous joy out of doing that. There's nothing wrong with you getting pleasure out of using the fruits of your labor. But probably wouldn't be my day to day driver. $16,500 Porsche. But yeah, so I'd be okay with that.
- [57:21]
A
Wow. So in summary, is it bad? Brian says no. Is this true?
- [57:26]
B
It's 16,500. I mean, this is a Porsche. That's just somebody who's got 300,000 DOL saved up at the 25 years of age.
- [57:34]
A
Makes it less of a big deal. Sounds like a big deal.
- [57:36]
B
Sounds like they're like, hey, can I go spend $16,000 on a hobby? Yeah, go have fun. I want you to leave your 20s without regret. I want you to leave your 30s without regret. But I also want you by the time you get to your 50s, that your 50 year old version of yourself looks you says, well done. You know, it's that that's the balancing act with all things in life.
- [57:55]
A
Yeah, no, I think that that's. Oh, we have a, from Pengi. He says the why on the. It's a hobby car. I already have a paid off 2016 Camry. So you were right on.
- [58:07]
B
Yeah. So go, go have a hobby car and then that'll be something from a memory standpoint. Could be pretty powerful, especially if you're doing a lot of the work yourself. That's, that's kind of a fun little thing to be working on.
- [58:19]
A
Yeah, I agree. I like when you get to tell people like, yeah, you get to spend the money because it is true. Like I was kind of like, oh, he's 25 and he's buying a Porsche and he's pulling from his investment.
- [58:28]
B
That's the brochure part of it. You look at like a Porsche 25 year old. No way. But, but then as you got in details, the, the, the deductive reasoning was this. I bet this is a hobby.
- [58:39]
A
Yeah. And he's done a lot. Like if he has $239,000 in retirement at 25, he's done a lot of the hard work.
- [58:46]
B
We could answer these questions by you going to moneyguy or aboundwealth.com and clicking on the work with us in a few years. I mean, as soon as you get that thing over half a million dollars, man, we can make some magic.
- [58:56]
A
It's true. So true. Click on become a client moneyguy.com all right, let's do one more to close it out. Are you ready?
- [59:03]
B
Sounds great.
- [59:04]
A
Bwassian. I think that's what we're gonna go with. He says, hi, Ruby and Brian. Hello. My wife is about to take a state job and will have access to a 403 with a match and a 457. Is the 457 a better bridge account for fire versus a brokerage? So they want to do financial independent retire early.
- [59:26]
B
Yeah, I mean this is somewhat easy, but it needs to have some asterisks on the answer. Yes. The reason we love 457s is because they don't have the early withdrawal. Most retirement plans like a 403B, a 401K, you know, you have to be 59 and a half or you have to be separated service beyond 55 to get access to that money. Penalty free 457s don't have those restrictions on there and that's why it's typically government. I love this for like law enforcement, you know, fire departments, other things because those employees get to usually, you know, retire earlier than your traditional 60 and they get. I like them to have access to the money. Now there is a caveat here. There's a 403B by the way. You can do both. You can have 403B and 457 and it says with match and you'll know where Match money is. Get that free money. That's step two of the financial order of operations. So before you know, you jump immediately over to the 457 because that gets you excited about funding those coast fire type things. I would make sure you're getting the free money from your employer on the 403B. You can do so whatever the funding limit is up on the 403B and then the amount after that you can go down to the 457. You can do both.
- [60:42]
A
Good answer, B. Wozian, thank you for the question. If you would like a money guy tumblr, just email winneroneyguy.com we would love to send you one. And there's something I need you to do and that is to click the subscribe or follow button wherever you're watching or listening because I want you to stay in the know and here's why. We have been scheming behind the scenes. Scheming, scheming about a lot of fun things that are coming out. We have some launches, we have some announcements, we have some new things that may or may not be free. We have collabs coming we have a lot coming in the next couple of months and I want you to know about it. So subscribe to the channel and then even better, go to moneyguy.com, click follow and subscribe to our email newsletter because there are times where you're going to get more details or maybe even be the first to know about certain things and I don't want you to miss out. So if you're at all interested in that, if you're at all curious about what I'm saying, just trust me and do those two things.
- [61:40]
B
And Bo, our newsletter. I can't say enough good things about it. That's worth it. Subscribing right there. Every Saturday morning I open our newsletter because look, I don't write the newsletter but I love to see what our content team has put together because usually they either are picking on me and Beau, they have a headline. There's tips and tricks in there as well that are part of there's some of our social media posts that we're putting out there. It's our releases that recently come out. You're going to keep up on everything. And we don't spam you. This is we're very. We take you giving us your email address very serious. And we don't sell it, we don't spam it. It's just something to help you be better with money and accelerate your journey. I think everybody, hopefully you guys hanging out with the brand, you'll see there is something to this abundance cycle, meaning that we're going to just love on you so you can learn these concepts, you can apply these concepts, you can accelerate your journey to success. And then when you reach that success point, you realize oh my God. Brian, Bo, Reby were right. Complexity does create or success does create more complexity in my life. And you'll remember who planted all the seeds of knowledge that have now sprouted into your success. That's the abundance cycle. And we'll leave the porch light on you so you can come and take the relationship to the next level. I'm your host Brian, joined by Reby this week. Bo will be back next week. Money Guy out.
- [63:02]
A
The Money Guy show is hosted by Brian Preston and Bo Hansen. Brian and Bo are partners with a bound 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.
- [63:37]
B
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