A lot of your financial advice makes sense. However, I feel like when Gen Xer's and boomers talk about real estate investing, the GFC and the people they knew who lost it all they omit that those people were using ARM's.
@@Scott_Trench This was a fantastic crossover from the two BEST money shows on the internet and I loved the back and forth about the thoughts on FIRE. The money guy show always felt like a retire at 65 plan with little advice for early retirement. As someone who wants to be retired by 40 at the latest, I never agreed fully with their FOO. I'm currently 31 with a net worth of 532k according to the net worth statement from the money guys resources page but I personally don't include my primary residence. My house has no cash value if I don't sell which I don't plan on ever doing, so that puts me at ~260k net worth. It felt really good to hear that both Scott and Mindy got Brian talking about the plan being different for FIRE instead of only focusing on hitting Fi through going in order on the FOO. I also really enjoyed the discussion on paying off mortgages early or not. I never want to have a mortgage, regardless of the interest rate, for my primary residence. That's why I paid cash for mine. That being said, I have a 4.25% rate on my rental property and that one I'm not in any hurry to pay off so I'm kind of doing both.
@mrniceguy423 not really, ARMs, they used leverage and often were susceptible to banks calling in loans. That's, as he explains, Ramsey went bankrupt. Leverage is what can make you "blow up."
Glad I wasn't the only one, I've been hoping for and waiting for this crossover ever since I discovered the money guy show (was always a fan and follower of BP money).
Thank you for covering book launches. Audiobooks are the primary way I keep myself motivated in the messy middle. It's nice to know of all the options of financial content to listen to.
At about 17min, In the debate to pay down mortgage vs invest, people very often make the mistake of comparing interest rates with returns and don't factor in any current or future tax benefits if you haven't already maxed out tax advantage accounts.
The Money Guy(s) are for people out of debt. Ramsey might be great getting people there, but B&B move you along your financial path. They are professionals, and don't just use anecdotal evidence to support their advice. Mindy said it best, when she pointed out not to believe the anomaly of early success in real-estate will work for most people. That's the fallacy of survivorship bias. Most of the people pumping real-estate options early have never gone through even one of the real-estate crash cycles Brian and Mindy noted. Great episode.
I've been a landlord since age 19. I've worked very hard. Brian and Bo came from privileged lives where they hire someone to do everything for them. And yes I know Bo is adopted.
@anniealexander9616 Obviously, you know nothing about Brian and Bo. As Brian talks often about his life when his father was fired and they had no money, and how Bo was adopted and raised by a grandparent and got to UGA on a scholarship. Both these guys are truly self made from years of hard work. Definitely no privileged upbringing for these two. Watch there show or read Brian's new book if you want to be financially educated on proven methods towards wealth. As the always say, it's not complex to get wealthy (not rich), but it does take a plan, time and patience, which isn't always easy.
@@Kornheiser10My sister helped raise her granddaughter after the Mom left to go party. She grew up privileged. I have a friend who was adopted. He grew up privileged. We've even had conversations about how I was working while he was partying!!
I would always choose to pay off the mortgage first if it was a reasonable mortgage because I would never want to pay extra for my house we bought a reasonable home on a 10 year mortgage at 6 1/4% in 2001 and lived at poverty level for three years to pay it off that freed up an enormous amount of cash flow
There were double digit mortgage rates in the 80s and 90s. The mortgage interest rates went down when builders started creating these homogenous home communities all over America. The mortgage interest rates went down so people could buy these huge homes
I remember in 2007 when the stock market was halted because it was dropping so fast. Credit froze and I had a property under contract. We aren't all the same. Some of us did great during the housing crash. What did people lose during the tech crash?
I was thinking my emergency fund would be reduced in retirement since i am living on a set income, and the original emergency fund was to cover job loss. Now getting ss, pension, and 401k 4%... what would the new emergency be? Medical?elder care?
Homeowner's deductible is $30k. So you can't get off step one of the Financial Order of Operations until you have $30k in savings. That might be more than an emergency fund in some situations.
I’m tired of everyone telling me to invest into real estate. I get it, I understand why, but I want nothing to do with it. I don’t want to deal with people, or running a business. It’s just not for me. Hell, I’m not even sure I want to own a home right now.
Look at and run the numbers. Real estate growth is circa 1.7% above inflation. Whereas the the compounding of your market investments returns are just over 7% above inflation. At 7% mortgages you should be buying broad index funds. If rates come down to 2-3% interest rates you can look to invest in real estate or even home ownership. Home ownership only makes sense in the Midwest or low cost areas as the mortgage payments and rents are similar. In high cost areas where ownership is way higher cost than renting you shouldn’t buy. Rent and invest the difference.
The money guys are too conservative for me. They give good advice for a lot of people, but the goal for me is to retire ASAP! If i want to retire well before traditional retirment age, I cant be putting in all my money in the tax advantaged accounts that i dont have access to until im freakin 60!!! I need the cash to support my lifestyle now.
Don't necessarily agree with you on that. I don't *need* all of it right now, but I can't *afford* to wait for all of the funds to get freed from tax advantaged accounts either. But it's not an either/or scenario. You can do both so you have enough when you need it, as you need it.
Thank you for sharing these steps! Sharing it w my son. I’m in book tour myself in NY today. Book on healing from divorce called “THE SUN ALWAYS PIERCES THROUGH” ☀️
31:30 💯 my situation. Maxed out backdoor roth and 401k for both wife and I for 10 yrs (30-40). We now have $1.5m and 20 yrs to access it. 10yrs of doubling means at 59.5 we are at $6m. Way too much. Followed the generic script for way too long. No longer contributing to retirement accounts.
I bet you put in a lot more capital than he did into paying off the mortgages. I also bet you would be surprised to learn what his rental homes are worth. I paid $69,150 for a property. In 5 years a tenant paid for the initial investment. My neighbors house sold for $875k. That's just one property. Brain and Bo are for high earners who can put in lots of capital. Real estate is for people who use others to build our retirement.
@@customersupport-v9h we did not, everything we made went towards real estate (currently have 2.2M in real estate across 3 rentals and primary ..$1M in mortgages) or retirement accounts for the tax benefits
I was just thinking about how dumb it was that he was saying he expects interest rates to go down. Obviously nobody knows, but they are average right now and then Mindy said it lol. My exact thought process was about how interest rates were even 12% back in the 70s.
Mortgage interest rates on the long term average is 7%… which is where they are right now. They are not high. They are just higher than recent experience. You will never see a 3% or sub 3% again. It’s a result of a global economy shut down.
Still smacking myself for not going for 30 years fixed @1,5%. Chose 15 years fixed @1,01% instead. Ah well, still a pretty good rate if you ask me! We'll see where those 15 years will take me.
Thank you so much for having us on! 💙
A lot of your financial advice makes sense. However, I feel like when Gen Xer's and boomers talk about real estate investing, the GFC and the people they knew who lost it all they omit that those people were using ARM's.
Thanks for coming on! Great show and book!
@@Scott_Trench This was a fantastic crossover from the two BEST money shows on the internet and I loved the back and forth about the thoughts on FIRE. The money guy show always felt like a retire at 65 plan with little advice for early retirement. As someone who wants to be retired by 40 at the latest, I never agreed fully with their FOO.
I'm currently 31 with a net worth of 532k according to the net worth statement from the money guys resources page but I personally don't include my primary residence. My house has no cash value if I don't sell which I don't plan on ever doing, so that puts me at ~260k net worth. It felt really good to hear that both Scott and Mindy got Brian talking about the plan being different for FIRE instead of only focusing on hitting Fi through going in order on the FOO.
I also really enjoyed the discussion on paying off mortgages early or not. I never want to have a mortgage, regardless of the interest rate, for my primary residence. That's why I paid cash for mine. That being said, I have a 4.25% rate on my rental property and that one I'm not in any hurry to pay off so I'm kind of doing both.
@mrniceguy423 not really, ARMs, they used leverage and often were susceptible to banks calling in loans. That's, as he explains, Ramsey went bankrupt. Leverage is what can make you "blow up."
I saw the title and the thumbnail, I clicked faster than gazelle.
Lmao 😂
Glad I wasn't the only one, I've been hoping for and waiting for this crossover ever since I discovered the money guy show (was always a fan and follower of BP money).
The FOO makes a lot more sense than the Baby Steps
OMG! I love this crossover! Thank you everyone for all you do! 😇🙏
These two are on another level. I listen to them on my way to work and I benefited a lot from their advice. They know what they are talking about.
The crossover we all needed
Thank you for covering book launches. Audiobooks are the primary way I keep myself motivated in the messy middle. It's nice to know of all the options of financial content to listen to.
Two of my favorite money shows having a great and thoughtful discussion! Love these collabs!
I love The Money Guys! Watch them every week! Great interview. I don’t do things the same way either but I learn something new with every video!
Wow! Two of my favorite podcasts sharing! Fantastic episode
Money guy collabs are always fantastic content
Love the Money Guy Show
Great episode. Money guys have been a great resource.
Clicked because of the money guy ❤
Yay!!! My two favorite finance channels!!! ❤
Scott was spot on
At about 17min, In the debate to pay down mortgage vs invest, people very often make the mistake of comparing interest rates with returns and don't factor in any current or future tax benefits if you haven't already maxed out tax advantage accounts.
The Money Guy(s) are for people out of debt. Ramsey might be great getting people there, but B&B move you along your financial path. They are professionals, and don't just use anecdotal evidence to support their advice. Mindy said it best, when she pointed out not to believe the anomaly of early success in real-estate will work for most people. That's the fallacy of survivorship bias. Most of the people pumping real-estate options early have never gone through even one of the real-estate crash cycles Brian and Mindy noted. Great episode.
I've been a landlord since age 19. I've worked very hard. Brian and Bo came from privileged lives where they hire someone to do everything for them. And yes I know Bo is adopted.
Real estate crash is the best time to buy.
@anniealexander9616 Obviously, you know nothing about Brian and Bo. As Brian talks often about his life when his father was fired and they had no money, and how Bo was adopted and raised by a grandparent and got to UGA on a scholarship. Both these guys are truly self made from years of hard work. Definitely no privileged upbringing for these two. Watch there show or read Brian's new book if you want to be financially educated on proven methods towards wealth. As the always say, it's not complex to get wealthy (not rich), but it does take a plan, time and patience, which isn't always easy.
@@Kornheiser10 Didn't Brian's parents pay for his college?
@@Kornheiser10My sister helped raise her granddaughter after the Mom left to go party. She grew up privileged. I have a friend who was adopted. He grew up privileged. We've even had conversations about how I was working while he was partying!!
Wow; 2 of my highest valued sources of personal finance info coming together. Excellent debate and good for thought!
I don’t know. Bo didn’t seem to be so excited.
😂😂
Dream colab! ❤❤❤🎉🎉🎉
I would always choose to pay off the mortgage first if it was a reasonable mortgage because I would never want to pay extra for my house we bought a reasonable home on a 10 year mortgage at 6 1/4% in 2001 and lived at poverty level for three years to pay it off that freed up an enormous amount of cash flow
I also want to pay off my house fast. I'm old enough to know that anything can happen, and no matter what, housing always gets more expensive.
Great guests 🎉
Great show! I did enjoy the back-and-forth. I watch both of your content regularly; both provide lots of great information.
Oh, this is nice. Two of my fav money shows together!
There were double digit mortgage rates in the 80s and 90s. The mortgage interest rates went down when builders started creating these homogenous home communities all over America. The mortgage interest rates went down so people could buy these huge homes
I remember in 2007 when the stock market was halted because it was dropping so fast. Credit froze and I had a property under contract. We aren't all the same. Some of us did great during the housing crash. What did people lose during the tech crash?
I love them!!!!
I was thinking my emergency fund would be reduced in retirement since i am living on a set income, and the original emergency fund was to cover job loss. Now getting ss, pension, and 401k 4%... what would the new emergency be? Medical?elder care?
U guys are crushing it. Ignore the naysayers!
Homeowner's deductible is $30k. So you can't get off step one of the Financial Order of Operations until you have $30k in savings. That might be more than an emergency fund in some situations.
I’m tired of everyone telling me to invest into real estate. I get it, I understand why, but I want nothing to do with it. I don’t want to deal with people, or running a business. It’s just not for me. Hell, I’m not even sure I want to own a home right now.
Look at and run the numbers. Real estate growth is circa 1.7% above inflation. Whereas the the compounding of your market investments returns are just over 7% above inflation. At 7% mortgages you should be buying broad index funds. If rates come down to 2-3% interest rates you can look to invest in real estate or even home ownership. Home ownership only makes sense in the Midwest or low cost areas as the mortgage payments and rents are similar. In high cost areas where ownership is way higher cost than renting you shouldn’t buy. Rent and invest the difference.
Me gusto el video
The money guys are too conservative for me. They give good advice for a lot of people, but the goal for me is to retire ASAP! If i want to retire well before traditional retirment age, I cant be putting in all my money in the tax advantaged accounts that i dont have access to until im freakin 60!!! I need the cash to support my lifestyle now.
Getting money from tax deferred accounts is ridiculously simple and easy. Look into 72t SEPP and rule of 55.
Don't necessarily agree with you on that. I don't *need* all of it right now, but I can't *afford* to wait for all of the funds to get freed from tax advantaged accounts either.
But it's not an either/or scenario. You can do both so you have enough when you need it, as you need it.
Thank you for sharing these steps! Sharing it w my son. I’m in book tour myself in NY today. Book on healing from divorce called “THE SUN ALWAYS PIERCES THROUGH” ☀️
31:30 💯 my situation. Maxed out backdoor roth and 401k for both wife and I for 10 yrs (30-40). We now have $1.5m and 20 yrs to access it. 10yrs of doubling means at 59.5 we are at $6m. Way too much. Followed the generic script for way too long. No longer contributing to retirement accounts.
I bet you put in a lot more capital than he did into paying off the mortgages. I also bet you would be surprised to learn what his rental homes are worth. I paid $69,150 for a property. In 5 years a tenant paid for the initial investment. My neighbors house sold for $875k. That's just one property.
Brain and Bo are for high earners who can put in lots of capital. Real estate is for people who use others to build our retirement.
So you didn’t contribute any savings towards taxable brokerage accounts? Must be hard to determine how much to put in each bucket
@@customersupport-v9h we did not, everything we made went towards real estate (currently have 2.2M in real estate across 3 rentals and primary ..$1M in mortgages) or retirement accounts for the tax benefits
Please excuse my dear aunt Sally (PEMDAS)
I was just thinking about how dumb it was that he was saying he expects interest rates to go down. Obviously nobody knows, but they are average right now and then Mindy said it lol. My exact thought process was about how interest rates were even 12% back in the 70s.
❤❤❤
Mortgage interest rates on the long term average is 7%… which is where they are right now. They are not high. They are just higher than recent experience. You will never see a 3% or sub 3% again. It’s a result of a global economy shut down.
Still smacking myself for not going for 30 years fixed @1,5%. Chose 15 years fixed @1,01% instead.
Ah well, still a pretty good rate if you ask me! We'll see where those 15 years will take me.
My first Home Mortgage was 18% in December 1979.
House hacking is 🎊 🎉😂
LOVE The Money Guy!!!
Finally lol
I mean the baby steps are comprehensive too. Promote your program, but dont trash others.
I am SO excited 🤗 also, I can't wait for the bowling point 🎳