Top 3 Most Controversial Money Issues! (Our Hot Takes)
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- เผยแพร่เมื่อ 14 ก.ค. 2022
- Top 3 Most Controversial Money Issues! (Our Hot Takes)
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I'm in my 40's, and high net worth, with no debt or mortgage for years. I drive a 7 year old VW golf. I could buy whatever vehicle I want (except some exotics) in cash. Meanwhile my coworkers with no money and substantial debt constanly buy and sell vehicles/boats/motorcycles/houses. People, especially in the US, are insane over vehicles, mostly to their financial detriment.
I paid cash for my used 1993 Honda Accord (in 1994) and drove it 23 years. Then I moved up to a used 2007 Acura TL (just like Bo?) in 2017 (again paying cash) ... retiring this year before my 59th birthday ... Love your show!
Bo every episode beginning: “Brian, I am excited for this episode.” Love the content!
Ya gotta have "your thing" to fingerprint your product, ya know? I love it!
Bo hit em' with the "becausssseee"
At this point I’d be worried the episode will be bad if he didn’t say that.
That man downs a triple cappuccino shot 10 minutes before every episode.
… B-COZ!
Your children have such an advantage in life if they take your financial advice.
My husband and I didn’t have good financial role models growing up in the 70s and 80s, and honestly didn’t learn anything until the internet came along and information became readily available.
I can only imagine If we knew then what we know now.
Never stop doing what you do, guys! You’ve made a hugely positive difference in many lives! Thank you!
I am 54 and drive a 96 Toyota 4runner that I bought new. Lol. 291k miles on it now.
My first real estate investment was a duplex. I was going to live on one side and rent the other. Fast forward 30 years, I still own the duplex and I've never lived in it because it's been rented 98% of the time. That investment has paid for itself many times over.
Agree the latte math isn’t important to your financial health. You can always stop or cut back on the daily latte. But car buys are commitments or mistakes that can be difficult to escape for years.
Great content. I bought my first new car this year at 41 yrs old. But it was a 30k car. Paid cash. House paid off 2 yrs ago. I figure in this case, I do truly “deserve” it. Buy once, cry once, then back to investing!
Driving my 2004 Honda Civic, and getting 40mpg is perfect for me. The only issue is as it gets older, maintenance is more frequent. Definitely going to keep it until it doesn't make sense anymore.
I paid $15.5k for a two year old Camry 5 years ago. I put down $9600 and my monthly payment were $150. I wish I knew about investing back then though
As a new financial adviser, I really value your channel. Great information.
We've been driving an old Forester and I like the fact that we have no car payments and our insurance is very low. But recently I've had this itch to get a 3-5 yr old WRX. I've yet to run the numbers & apply the 20-3-8 rule. Not sure if we can afford it based on that. But thanks for this as it does prevent from overspending on cars.
I am going to use part of this video in my econ class.
Thanks for putting out good content guys. I’m 26 and have been delving more into investing. Your show has some very good general wisdom for people of my generation. Been listening to the show on my commutes a lot lately.
The case study with the cars is awesome. Thank you for sharing.
The take on the car was a great perspective.
I want to say thank you for the years of content it has been extremely helpful
I'm personally very proud of my 2003 Honda Accord I bought for cash 2 years ago. It's got an upgraded stereo, so I can use bluetooth and it gives just enough bells and whistles to make the experience better. I'm never going back to spending big on cars.
My proudest moment and purchase was a 02 Honda civic for 1500 cdn. I'm driving that into the ground! No car payments, 150 car insurance. No it's not cute but I'd rather be rich than look rich
I’m still driving a Corolla to work, even though I have the option to buy in cash and drive a Beamer instead. The money going to work for a better future is much more important. It is just a working car at the end of the day.
That and the BMW will be a money pit inside of 5 years.
You are being smart.
My 18 y.o. cousin just bought an SS Camaro V8. Insurance is $500 per month. 🤣
As far as taxes go - I do work for a lot of entrepreneurs as a consultant. My best sales month is December when companies (read: small business owners) are trying to reduce their corporate profit and tax burden. But most of these guys are paying at least $50-100k in taxes... which is significantly more than I do!
You guys are the hero’s of the finance world !!! There’s too many get rich fast fake money gurus out there . Glad u guys keep it true honest . Keep it up , love your messages and advice , it’s timeless . To have knowledge of finance and be honest and convey the message in entertaining manner is truly rare !!!
Zoey's new $30,000 car is a reasonable example in this car market, it's good to show you can still save and invest even when economy cars are selling with markups, great analysis!
I'm so happy. I put between 500-3000 biweekly into my brokerage account, HSA and IRA.I pretend it's a car payment so it's Money that I deposit and can't take it back. Some of my nurse friends see how much money they're making and they buy brand new cars, travel, and other crap don't appreciate. I'll travel when I have my target amount in retirement. Have a paid off house, car and just paying off nurse practitioner school. Only vice is Jiu Jitsu and video games.
Good stuff! Don't take guilt in pleasure. You have your life to live now too, not just in retirement. Once you hit your % of income invested per month (20% minimum for a financial mutant), don't forget to enjoy life!!
Travel now!!
Just wanna say I love this show just as much as Dave Ramsey. You guys are incredible! 😁
ditto! lol
It’s way better than Dave Ramsey. He’s too afraid of debt. Just because he’s an idiot who went bankrupt doesn’t mean others can’t use debt responsibly.
Don't forget that this period is a huge time of inheritances. The transference of wealth in process.
Keep em coming!!!!
Great information in this episode! The real estate take is spot on 💯
Love your content, fellahs. New subscriber. Thank you.❤
I do taxes for a range of people, but most of them are in the top 1%. Whenever I take on a younger client that didn't come from money... They are shocked that there isn't some magic button to wipe out their tax bill
Thank you for bringing the truth.
You should ask them who do they think paying for building the road, having the biggest military, cleaning water system, FDA. CDC, Congress, Senate….
What is the comparison between all stocks and stocks + real estate after you factor in how much cash reserves you have to hold to be in real estate?
If y'all would put timestamps in your videos it would help a ton. I often don't have time to sit through the entire video to find the concepts that are relevant to me/topics I want to learn more about. Thanks for all the good info tho!
Wait, Bo is excited about this episode? Its gotta be one of a kind episode 😃
Bought a brand new 2001 accord, sold it this year after 21 years and 267,000 miles. Have never had a car loan since.
18:00 it’s absolutely halarious seeing that Acura TL lol. I have that same generation and I’m the same age (20 years old) I paid 5k for it and I STILL feel like I’m balling in that thing lol. Still get compliments on it too.
Great information so valuable
Is the advise on vehicle purchases different for business owners ? Tax deductions, debt to income %, payoff, etc ??
Im glad money guy made it clear rich people pay taxes. I'm middle class feeling like the poor paying taxes 😭
I do have money set aside for a new car because I am a grad student currently living within walking distance of campus, but there's a possibility (depending on campus housing lottery) that I might need to find a reliable car within a 2-month turnaround time. Even with a new car, it would be the cheapest Honda or Toyota (maybe hybrid at most, especially depending on what environmental regulations seem on the horizon within a few years of the car purchase), and I AM debating whether it might pay off in the long run to find a reliable used car when I'm NOT under pressure and take on the monthly expenses now (parking, insurance, etc.) in exchange for having a car ready to go if / when I NEED it, BUT to be on the safe side, the peace of mind from a new car would probably be worth a lot to me.
The computer ignorance when they asked "Where is the cloud?" is so silly haha
Regarding #2: now do all taxes paid and include percentage of tax vs their income. Start with the Social Security tax.
Brian, I'm a little older, but MY first car was the 2 door Mazda 626, and I'm sure you like me presumed that the oscillating fan was the greatest modification to the car since power steering...what happened?
Not sure why more cars (at this point any) don’t offer the feature- it was the greatest thing ever- ever passenger was also pleasantly surprised - loved that 94 626 ❤️👍
As much as B & B’s first point (the luxury car) may not be popular, they are absolutely right (been there, screwed that up).
A) You guys rock. B) I wish you would clarify if the car payment should be less than 8% of NET income or 8% of GROSS income. ? Thank you for all you do.
Pretty sure it's gross, but not positive
Just anecdote to what you were saying at about 16:00 where "where do you go from here" if you start out early on with nice things - I'm kind of in that boat materially. I'm not saying I've got all the fancy stuff and as much property as I aspire to have in life, but I don't think I want for material things as much having experienced a lot of it already. I don't think it's bad that there isn't that same kind of material carrot on the end of the stick, the motivation has kind of pivoted to do work that people appreciate and that I'm proud of - not as a means to acquire money to acquire other things.
Thanks!
Sharing this with my employees as a training video - appreciate you guys.
I have a hard time believing Bo does crossfit. He doesn't talk about it enough to let everyone know.
This $100,000 car cost me $8.8M
In my late teens early 20’s, I watched an older interview of Ronald Reagan and Barbara Walters. Former president Reagan explained “Reaganomics.” The one thing that stuck with me was the explanation of tax cuts for the rich. He explained how the top earners pay the majority of taxes and giving them a small deduction will allow them to put a huge amount of money back into the economy. Hence, can help during a recession. I am sure there was a lot more to the interview and probably way over my head at the time but this part stuck with me. It is nice to hear that you pointed it out in your content. Thanks for your thorough content and I really appreciate you bringing reality to your talks.
The Reaganomics goal hasn’t never been fully observed in the real world. The top earners will put that tax savings in the stock market which doesn’t by itself grow the economy. Its also called trickle-down economics and his future VP, George HW Bush called it voodoo economics, implying it only enriched the wealthy.
I'm almost 50 and wrestling with the decision to buy a waverunner used lol. I'm glad though that I am having a hard time dipping into the savings, and not the question of can I afford this or not.
If you're having trouble getting yourself to buy something, set up a separate savings account and put money in it each month until you have enough, then you can buy it without having to take from your main savings.
@@elmateo77 already do :) but I still struggle sometimes using the money for fun over function. I am trying to be better with that balance.
I'm looking forward to the day I need to attend a consultation with Abound
“Where is the cloud?”
Ashburn Virginia is a good place to look
Laughing at the Chloe/Zoey BoJack Horseman reference. What is this, a crossover episode? 😆
“Where’s the cloud?” - It’s in the various data centers that are owned and operated by cloud service providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud.
Hm, they showed a chart on what percentage of the total tax revenue is paid by top earners, but that is skewed way up based on how much income they make. A better question in my opinion is what percentage of their income are they paying in taxes, or at least consider both metrics. I love this show and they do a lot of good, but I did get a bit frustrated at that part. To be fair, it is a hot take though, haha. And they did have a good point about small business owners right after though too
I actually think the rich are taxed somewhat fairly.
Who needs to be taxed more are the big corporations, look at Delaware loophole I think like >300,000 companies technically located within a crummy old brick building in Delaware and no one bats an eye because they have a lot of friends in congress lol.
Good ol’ misdirection
Live your life, and worry less about what others are doing. I've been around the block a few times. You can thank me later.
@@WallaceDunn Then why are you here on this video commenting on someone else's post? Civil discourse should always be encouraged.
The top 50% of earners in the US pay 97% of all federal income taxes. Earning about $100k puts you in the top 50%.
@@beernutzbob Thats totally irrelevant to the original post lol
Can you clarify the 8% in car rule of 20/3/8? Is that car payment 8% of your net income, gross income, monthly or annual income? Is that for one car, or all cars combined?
The 8% rule means that the total of all car payments can not exceed 8% of your total monthly take home pay, since car payments are made on a monthly basis.
@@radiox24 never heard of the 8% rule, but just did the math and my payments for both cars combined come out right at 8%!! Guess I better skip buying a new one next year😆
I'm seeing a lot are people buying a vacation home. They think they are going to make a lot of money through short term rentals. I think they aren't considering all of the costs associated with this property: mortgage interest, insurance, higher utility costs, management fees, cleaning, maintenance, and taxes on the revenue generated minus the itemized expenses. What do you think?
Yeah, you prove our point a second later. Lol. About the percentage of taxes paid.
I had no clue Brian grew up in my stomping grounds!!
There are plenty of amazing performing and looking vehicles that wont break the bank. My used 2017 Ford looks nicer than 95% of vehicles on the road today.
Don't forget how much more the one sister will be paying on insurance.
Yes, small business owners pay a lot of taxes, but your father was right in the fact that big companies do not pay a lot of taxes.
Contrarily, my effective tax rate this year was 7.3% and I brought in an extra $30,000 gross income from Uber.
Your dad wasn't referring to small business owners or lawyers or anyone who makes six figures. People who inherited billions are able to avoid taxes for the most part. Once you can move money around and live off low apr loans, you can avoid most of your tax liability. Most billionaires pay less than 10% in actual taxes and they are able to shelter their money in corporations who can avoid paying any taxes. Yes, they have to put most of their money in investments or depreciating assets to do it, but they don't have to sacrifice their lifestyle.
Also, while i agree in general about cars, I would say the one caveat would be if owning a fancy car was your one goal in life and that was the majority of your for fun spending. If your life would not be enjoyable without something and you can afford it while still being on track for retirement, always do that thing. Life is for the living.
I think it's cool that Brian is usually drinking a bush light during the show
We're at that point in economic-illiteracy where 2 grounded dudes giving common-sense advice, is now a 'hot take'. 🤡world
Should have stuck with a Toyota of Honda
This is why parents should buy the nice car. We are smart enough to get a great car for a good price. I got my daughter an Infiniti and she loves it. It was a used car but clean and in great shape. She babies it and it makes her a better driver.
Is the 8% of income net or gross?
When you say 8%, is that based off gross or net salary?
Gross
25:00 I think that this take is technically correct, but you are missing the major sentiment here: these avoidance strategies favor the wealthiest people significantly. How can a local mechanic with a small business use international obfuscation to benefit them? You also illustrate the imbalance of tax avoidance explicitly when you discuss Warren Buffett's tax rate commentary, and this is what is meant by "not paying their fair share": the tax avoidance strategies generally favor the wealthiest. I like that you encourage common people to use tax avoidance strategies, and have listened supportively for years, but this "hot take" misses the point and provides less benefit than something like "most people may more taxes than they need to be paying"
When it comes to cars, if you live in CT like I do you also pay property tax on your car every year lmfao. I know peoppe that pay 500+ every year in car taxes.
Ive mad my bad car purchase. Roght out of college. Got my first big boy job. Before I even got my first paycheck i leased a subaru wrx. Lol. I dont have it anymore. Stepped way down.
I like the clarification you did on the first one. Should a 27-year-old have a sports car, probably not. But if they make six figures (Many of us do in tech) and want a hybrid that will save on gas? Sure why not.
Assuming a bunch of other things have been taken care of, obviously
$1000 car note/month for a small savings on gas isn’t financially viable lol
Does the $1 equal to $88 account for inflation?
No. But over the last 45 years, that 88 dollars would have been the same as $20.46 if inflation never happened.
Pretty sure you can still get a 30-rack of Busch for less than $1/can
What is considered a luxury vehicle these days? A new Ford F-250 with only the necessary amenities is around $70K.
Luxury BRANDS... if you NEED AN F-250... HAVE AT IT. JUST FOLLOW THE GUIDELINES.
Should I contribute to traditional IRA to try and get my marginal rate down to 12% and out of the 22% bracket or should I just do Roth and pay the taxes?
Do the math.
The 22% rate is very likely to go back to 26% in 2026. The 12% rate will revert to 15%. Now is the time to pay taxes they will NEVER be lower.
So where should I be investing this money I’m saving ? I don’t know jack about stocks, etc where would I start?
My $2500 Lexus LS400 might just be the best decision I've ever made.
My husband did this when we got married. Dumped 25 grand on a preowned beamer. The car was GREAT but man that was not the right choice. Those oil changes visits and insurance for those german cars quickly add up. We enjoyed that car to death and drove it for 10 years but after that he went and bought a brand new Honda Civic that we paid off in 2 years. oh the irony 🤣 But man do we love not having a car payment but a great car. Our retirement and savings account thank us everyday. I on the other hand do not get one bit of pleasure from fancy cars 😁
@Ben Dover and your point is?
Earners pay taxes, even TOP earners. It's investors who are getting away with dodging taxes
One of the best videos! Live this
tax avoidance.... retirement savings is tax deferrals
#3 is most controversial. Only dummies find #1 and #2 controversial. But I agree with all 3.
Regarding the luxury car purchase, I think there are non-quantitative factors that should be considered. Would a 25 year old, who isn't under financial pressure and their car + insurance is less than 10% of their monthly income, enjoy/make the most out of their luxury car purchase more or less than a 65 year old living a much less active life?
Food for thought, i understand is the principle of saving for the future and that the "bad" car purchase probably also signals bad money management in other areas. I think there are some things in life you should enjoy now vs later in life, that car purchase and travelling are two for me personally - its not the same for everyone of course
Rich people pay taxes but mega rich pay none 😅 did you ever consider when we said rich we meant mega rich
if you want to live a happy life, start working on passive incomes.....
I alwasy umderstand "Mr. Bo Handsome"🤣
Cars are mobile burning piles of money unless you really get into specific unique vehicles that appreciate which 99.9% of people don't know how to identify.
The more money you put into that car the more money you lose.
Good way to save money: live in a city that wasn't designed by people with car engine for a brain and get public transit ticket paid for by employer. Has worked great for me. Only costs for transit I have are new shoes and train tickets when visiting my mother. If I had to pay for a car and all related expenses I'd go from saving a lot to not saving that much.
But housing costs more in a city. So, isn’t it a wash?
Pay in the city can be more so not necessarily.
@@Mexicobeanpole You have to look at your overal costs. If you compare living in city vs living in country side the minimum is to compare housing+travel cost and time needed for commute and other travel.
If you get the same sized appartment for 500per month less in the countryside / further away from the city but pay 200 more car/travel costs and spend say 1-2 hours more a day commuting or going to other places, you aren't really saving anything.
Business owner here: I pay a lot of taxes…small business owners get soaked the worst as we don’t have the “connections” to get preferential tax policies crafted in our favor
You also don’t get the tax holidays/breaks from the state, county or city that multinational corporations get to set up shop in any particular town
I want the Q & A’s. It’s so annoying to try watching the live stream and getting cut off halfway through the Q & A if you have to pause a few times. I want the Q & A’s more than the scripted content.
What's a b-caz?
Here's my hot take: Single family home investing shouldn't be allowed. A single family home should not be able to be purchased, especially by corporations or private equity groups, and turned into a rental property.
Why? Do you believe people who can't get bank loans for houses shouldn't be allowed to live in single-family homes?
@@ghostlyone2 I agree with Joseph to a degree. Corporations shouldn't, individuals I might be okay with.
There are a lot of vacant properties being sat on that should be opened to people living in them. At the very least, make it so that a rental property needs to be occupied for 6 months out of the year, and if there is a reason you may need more time for a repair or something, you can apply for an extension.
Opening vacant properties, or disallowing corporations from buying single family homes could make housing slightly more affordable, or at least bring rent pricing down.
Obviously wouldn't happen, but in an ideal world that'd be my idea.
@@trevorbrennan5885 So, I agree that this sounds like a good idea. I used to agree with you. But like every brilliant idea I have, I go do some research to figure out if someone has reasons for disagreeing with me. When I had this brilliant idea, I figured out an entire country agreed with the idea. They put a ban in place to stop all the things that everyone is complaining about now. It was a disaster. The unforseen consequences turned out to be dominoes that destroyed housing in the country until they repealed it and investors were able to go fix everything. And I just spent a while trying to find info on it again, but Google is inundated with bans on foreign property investing. It's like they're hiding it on purpose. It's maddening. But anyway, you can at least believe that this might be way more complicated than you think it is, and the consequences may be much different from what you think they will be. Yeah, there are some greedy people out there causing problems, but like every single time people come to the conclusion that attacking rich people is the solution, the fallout of horrible. I know it's counter-intuitive, but the road to hell is paved with good intentions.
@@ghostlyone2 According to the U.S. Census Bureau, 35% of homes in America are not owner occupied. If we didn't have 1/3rd of houses in this country being used as rental properties then housing would be much more affordable and many more people would be able to afford homes.
@@ghostlyone2 You say this already happened somewhere and it was a disaster yet you can't even name what country it was.
Expensive car for a young guy will get expensive high maintenance girlfriend.
I always was learned if you can’t pay cash with it you don’t need it.
Rule #1 of buying cars is never buy a brand new car. A used car with 30k miles on it will cut the price of that car by around 50% or so
POST THE Q&A SEGMENTS SEPERATELY. NOT EVERYONE CAN CATCH THE LIVE STREAM WHEN IT'S LIVE.
THANK YOU FOR THE GREAT SUGGESTION VERY HELPFUL TO ALL
Nope, driving a luxury sports car through my later 20s and 30s greatly enhanced my life experience and well worth the money spent even if it prolonged my target retirement age from 45 to 50.
If I wanted to
I can get a Rolls Royce every 8 months just on my interest.
Oh and I’m old not young 😝