Former IRS agent here - that first clip, yes, he is full of it. Once I hear that he has put his family on as board members and then he is deducting family meals EVERY night at his house on his taxes, I am disallowing everything. Then I am going to dig into every aspect of his business because he is being incredibly aggressive and no sane person would buy that interpretation of the code. I'm also leaving that meeting thinking I may have a fraud case on my hands. Second, if he is doing this he isn't affording it because of the tax savings - for every dollar he is spending he is only saving 18.5 cents AT BEST (assuming 37% tax bracket - 1*0.5*0.37). Nobody stays in business spending $100,000 to save $18,500.
Sounds great, but then WHY do so many super rich people get away with so much, re tax loopholes, special tax structures, etc. and "legally" pay far less taxes (as a percentage of their income) than the middle class? As a person who honestly pays all the taxes I owe (though I certainly take legal deductions, deferrals, etc), it really FROSTS me when rich people get away with lots of nonsense.
@@rogergeyer9851I think you answered your own question with the “legally”. What they do is actually legal, they hire the best of the best accountants to make sure of that. Doesn’t matter how shady it is as long as it is legal.
People think tax write offs make things free. In reality it's a discount equal to your effective rate. Congrats spending $100 to save $20 on your taxes 😂
If you always intended to buy it, great deal. Through my job my gym is tax free, which is a great deal for everyone who goes to the gym. For the ones who just got it for the essentially cashback, it's an extra expense.
no - at least they don't have a pit boss or a "Guido" introduciing themselves to the girls ----- this is seriously a mother teaching her daughters how to get-rich-quick, next scamming - later card-counting (if they have the home-schooled mathematical ability for it) ----- definitely child abuse.
these influencers really gain any money by duping people into buying their "system" ........it is refreshing that there is a huge backlash now to all influencers
@ The Money Guys. Perhaps do a simple model showing a younger person that keeps buying new cars vs one that buys a good used car and saves for retirement early (e.g. 88.3X multiplier).
I think about this nearly every time someone tells me they have nothing to save at the end of the month when they have over $500 car payments and I just think to myself if you put that in the market over 30 years, you could have half $1 million but instead you want a brand new car with nothing to show for it For example my sister was complaining about being broke and having no extra money at the end of the month however, in the same discussion making fun of me for still living with my dad and paying $400 for rent while she’s paying $2000 in rent to live in a “luxury apartment“ and her and her husband have a fairly new Jeep Wrangler and Nissan rogue with probably over $1000 a month in car payments on top of higher insurance premiums because they are newer cars and are now struggling to save payoff debt and get a down payment for a house
Actually a vehicle, new or used, is an expense. All vehicles cost money. That expense is the cost of the vehicle spread over its life less the cost recovered at disposition. So a new vehicle bought at $40K used for ten years costs less than $4K a year. A used vehicle of the same make/model bought at $24,000 used for eight years costs less than $3K a year. A difference of about $80 a month, not a big deal for many folks. With the new vehicle, if purchased well, you have a manufacturer's warranty of 3-4 years plus more for the power train and you often have 3 years or so of free maintenance. The key thing about buying a vehicle, new or used, is to ensure the cost of the vehicle (including things like insurance, registration, fuel, etc) fits within your budget. The simple reality is if buying a new vehicle is an inherently bad concept those 16 million buyers of new vehicles each year would not buy new. Personally, I would not buy someone else's problems.
I love these types of videos! I always find someone parroting one of these people on tax write offs. Also people thinking tax write offs being an infinite money glitch, they don’t understand you still pay for it.
9:30 is my mom in a nutshell. She'd always say "I'm going to move out of my Section 8 apartment this year, watch." She's been saying that for the past 21 years.
One aspect of the tax benefits of a 401k not often talked about is how you likely get a tax deduction at a higher tax bracket than when you withdraw it. In my case, most of my money going into my 401k would be taxed at the 24% tax bracket. I expect my income will be lower in retirement, so I doubt I'd hit the 24% tax bracket then, but even if I did, a lot of my withdrawals would be filling the 10%, 12%, or 22% tax buckets. So, while it is true that I'll need to pay taxes when I withdraw from my 401k, it will be less than the savings going into it. And while it's possible taxes will be higher in the future, I doubt there will be the political will to raise taxes at the lower brackets, where I expect most of my retirement income to be.
@@saraashkir5793 Right, it's taxed as ordinary income, but it's likely most of it would be in a lower tax bracket than it is when it's deposited. Again, in my example, the money I put in the 401k would be at the 24% tax bracket. But when I withdraw it, I won't have much other income, so at least part of it (and perhaps all) would be at the 10%, 12%, or 22% tax brackets.
@@Kingolimar354You're missing the point. You get the tax deduction on the marginal tax rate, but when you take it out, you're paying the effective tax rate. In general. I think this is correct, however you have to be careful about if there are other sources of income as well.
Kiana Danial; according to an article from business insider; was fired from Wall Street ( she was PR associate).. started “hustle jobs”.. ( RUclips; books and courses in investing - from a washout PR associate 😂).. in mid-2021 has 2 million net worth ( less in her investment portfolio).. and now 3 years later.. 4.7 Million in her portfolio? Yes sure 🤦🏻♂️
"401K is a way to hide money for the future" True, but the best part is that if you started contributing at 25, you will be taking out lots of money that you never put into the 401K plan. Living off that growth for a decade or two is a great thing even if you are paying income tax.
There are LOTS and LOTS of highly tax efficient index funds and mutual funds. Vanguard for example, has a big crop of them. The idea that you must have an official tax advantaged account like a 401-K to defer taxes is nonsensical. And with such ETF's and funds, you aren't constrained re investing, by all the limits and rules for 401-K's, IRA's, etc. Or the massive fees of annuities.
@@rogergeyer9851Yes but almost every company is going to offer some sort of match and I bet those index funds are giving you a 100% or 50% guaranteed return. So not contributing at the least the minimum to get the full match before doing the other stuff is just stupid.
The private chef thing is the most unhinged and illegal lack of understanding I've heard in a while. Writing off an expense doesn't mean the government pays for you. You just don't pay tax on it - which is just a small percentage of the expense. Being able to write it off doesn't make you more able to afford the expense. You're still paying 100% of the cost. You're just not paying the additional 28% you would have paid for taxes.
The funny thing is she shows a bunch of individual stocks like Google and Palantir that are dragging down her portfolio by even more than VOO by her logic.
There's also the fact that all she does is show the stocks that outperformed and ignored the rest. Anybody's profile will look impressive if you just show the winners and stop. I also like that she conveniently plastered her face over the scroll bar, so you can't see how much further it goes.
I have to say there are faster ways to become rich than consistent index investing. It's just they usually also happen to better ways to end up broke. Anyone selling them as a guarantee is either blinded by survivorship bias, a scammer, or both.
Actually 401(k) dollars are accessible at 55 if retired versus 59 1/2 in IRA with zero penalties. Roth conversions are great way to convert pretax dollars in retirement, when most people are in a lower income tax bracket.
I've watched a few of these react videos and Bo's face always sours once Grant Cardone pops up😅 I think it's the only time he's not excited to discuss a subject
9:29 Thinking you are sick can give you symptoms of being sick even if you aren't, but thinking you aren't sick isn't gonna get rid of that virus/cancer/whatever.
The coozie is a reference to how powerful compound interest is. How $1, compounded at average historical market returns, maths out to $88 by the time you hit retirement if invested it while you're young
For every $1000 I put into my 401k, I defer $220 in taxes far out into the future where the rate will likely be less than 22%, I get 3% matching form my employer and my rate of return on my 401k investments for the past twelve months has been 14%. How is this a bad thing?
9:28 plus if you could avoid paying income taxes by just chilling out on the ocean for a week, i'd think all of the wealthy ppl with fully stocked yachts would be taking advantage of it already.
Cardone was not wrong on three points. 401k does lock you in for decades, with no withdrawals. There is a penalty for early withdrawal. And taxes are likely to be higher in the future than today.
Can you please make a video about 17 year olds making 250,000 student loan college decisions without considering how that much debt for a piece of paper could potentially hinder progress in life. (my little cousins parents are walking her into this decision) i may not be able to convince her otherwise but what can i tell her so that she isnt surprised once she graduates?
What penalties are there? Here in Canada, we have RRSP (same idea as 401K). We can withdraw whenever we want without penalty - but we do pay tax on the withdrawal as it is income for the year. We can borrow from our RRSP tax free for purchasing first home or for getting further education (must be paid back in small installments over a certain number of years or you get taxed on it).
If everyone buys index funds, then the system is not cleansing itself because you are indirectly buying those under-performing stocks because they are in the index!
It may have some effect but ultimately the active investors will take advantage of buying the undervalued and selling overvalued stocks, which will balance the index
Why do people act as if index funds are guaranteed growth? Just because something worked in the past does not mean it will work in the future. Just because it worked for 30-40 years, it doesn't mean it will also work in the next 40 years. You can hand wave all you want but your course/book whatever is still shilling that "secret" while saying there is no secret.
It hasn’t just worked for 30-40 years it’s worked for over 100 years. The average growth of the S&P500 for 100 years is 10.5%. Will it work continue working next year? I can’t guarantee it, but probably yes it will
The statement about retirees being in a lower tax bracket may be true while both are living. As soon as one goes there is a good chance of the survivor jumps up a bracket.
For the 401k topic, if $1 can turn into $88, then I'd rather pay 40% on the $1 than 1% on the $88 (assuming you can pay the tax in addition to funding the account, and it isn't eating away at contributions). It seems like traditional retirement accounts don't start to make sense until (maybe) close to retirement, and before that, Roth and brokerage accounts make more sense. I'd love to see a video going deeper into the math for this.
What? That 40c in tax you paid could have turned into another $35.2, versus the 88c in tax you paid in retirement... You were much better off taking the lower tax rate.
Doctor: You have cancer. Me: I don't believe I have cancer. Doctor: Well, you are cured then. I need to go tell all my other patients to just not believe they are sick and we can close this hospital! You sir have cured all disease!!!!
One thing you're wrong about is the ability of the human mind to have physiological effects on the body. The brain is a POWERHOUSE and a mystery and there are many instances throughout human history where beliefs impact physiology
The index fund girl is funny, because there are a bunch of stocks under the index fund, which kind of invalidates her point. You basically have to be lucky.
13:45 Thanks Bo, i needed to hear that. in this post virus economy, stocks are going up.... a LOT. but as a conservative person, I only invested in blended funds rather than individuals stocks. so its good to hear that in THIS BULL economy that individual stock could outperform blended funds in the short term. while im not sure if I'd do that, since I dont personally invest my own funds but use a robo investor. But idk if I could temporarily do short term high risk stock then sell before the markets go back to their see-saw pattern. I still dont really wanna tell folks to invest but since I have a blue collar job, i want my generation to have what the boomers had. 1) get an education 2) hold a good career 3) get a home 4) save for retirement 5) live comfortably while I knew you guys arent Caleb Hammer, i love the way he guilt trips folks who dont plan for their retirement. Since the parents dont understand how their adult kids will inevitably feel. (if they had a heart)
I think there’s a lot to be said about the mental powers and sickness. While yes there is a fine line that that guy didn’t mention, I’d bet there is a fair amount of brain power that can go into how our bodies respond to it. It’s probably going to be mostly marginal differences but differences nonetheless
@11:00 Buddy forgot about Implied Volatility build into the options. When a security falls that hard that fast, the options will try to price in the rebound. Not to mention the widening of spreads between the bid and ask will make it hard to get in at the price you want. Kid is fulk of 💩!
Everything about this homeschooling mom screams "I'm a good Christian!!!". Honey, why in the name of pedagogy are you teaching your children how to gamble? And it's not even the house you're boxing up against, it's whole ass computers and algorithms designed to do what you're teaching your toddlers to do, but 10.000 times better
there are two way to get rich overnight - casino or lottery. ROTH IRA - must have retirement account. tax free - do not require withdrawals . you are still supporting your family from heaven after you died. your account will still grow 9 more year Tax free. new rule for 2024. " 10-year rule for inherited Roth IRAs Notice 2024-35 will not apply to your account if you have an Inherited Roth IRA. Under the 10-year rule, Inherited Roth IRAs are not subject to RMDs in years one through nine, regardless of the deceased's age. If you don't need the money, you might want to leave the funds in your Roth IRA for as long as possible for as much of the 10-year period. Your account will grow tax-free and can be withdrawn tax-free in the future. "
outrageous, it's difficult to believe that 1) there are people like that out there posting "advice" and 2) that they believe anyone would ever take their advice seriously. Surely when they make those slapstick videos it's only so viewers can have a laugh.
Sadly, if you go over to Coffeezilla's channel, it turns out that there are tons of people falling for this kind of Cheap grifting. Patrick Boyle did a very insightful video about what he calls financial nihilism that explains a lot about why this keeps happening.
@@debbielockhart7762 I agree, there's plenty of that to go around. Some would say it's foolish to buy into cryptocurrency and at the same time there are some who say you're a fool to NOT put your money into cryptocurrency.
My system is to listen to the best advice by the smartest people and then do the exact opposite of what they say b/c i assume they are trying to profit off me.
Stevo may have done a lease. "I bought a car!" is a common thing to say whether leasing or buying. In the case of leasing it is best to put no money down.
A part if me really would like to see us abolish all forms of taxes just for a year so people can see what life without taxes look like. People are too damn happy about not paying taxes or reducing their taxes so why not make their dreams come through. And rest easy, those people will be fine. If you already have tge kind of income to qualify for many of these ridiculous tax breaks, you will be fine. But I think the regular people need to feel it in their souls.
Sooo, you’d be fine with no air traffic controllers, no maintenance of interstate highway, border wide open( oops, that one already happened), no federal crimes investigated and on a local level no firemen, no police, no trash pickup, no code enforcement??? Certainly, the government could spend taxes more judiciously, but make no mistake that modern society, which is pretty damn nice, would exist without taxes.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
That Kris guy is partially right. Your subconscious mind is the most powerful force. If your subconscious mind believes it then it will be true. There are books out there that discuss this.
@TheBusDriver98 This is my opinion on investing: I spent $12,500 and am currently sitting on $53,000. Do your own research to learn, and work with an investment adviser like "Mildred Geneva Hyder."
![Stromae, Pomme - “Ma Meilleure Ennemie” (from Arcane Season 2) [Official Visualizer]](http://i.ytimg.com/vi/1F3OGIFnW1k/mqdefault.jpg)
Former IRS agent here - that first clip, yes, he is full of it. Once I hear that he has put his family on as board members and then he is deducting family meals EVERY night at his house on his taxes, I am disallowing everything. Then I am going to dig into every aspect of his business because he is being incredibly aggressive and no sane person would buy that interpretation of the code. I'm also leaving that meeting thinking I may have a fraud case on my hands.
Second, if he is doing this he isn't affording it because of the tax savings - for every dollar he is spending he is only saving 18.5 cents AT BEST (assuming 37% tax bracket - 1*0.5*0.37). Nobody stays in business spending $100,000 to save $18,500.
Sorry, you lost me at former IRS agent
Got to love the fact that he gave a full admission on video for review. 😋😋
But how does the Maritime Law work?? 😂
Sounds great, but then WHY do so many super rich people get away with so much, re tax loopholes, special tax structures, etc. and "legally" pay far less taxes (as a percentage of their income) than the middle class?
As a person who honestly pays all the taxes I owe (though I certainly take legal deductions, deferrals, etc), it really FROSTS me when rich people get away with lots of nonsense.
@@rogergeyer9851I think you answered your own question with the “legally”. What they do is actually legal, they hire the best of the best accountants to make sure of that. Doesn’t matter how shady it is as long as it is legal.
People think tax write offs make things free. In reality it's a discount equal to your effective rate. Congrats spending $100 to save $20 on your taxes 😂
If you always intended to buy it, great deal. Through my job my gym is tax free, which is a great deal for everyone who goes to the gym. For the ones who just got it for the essentially cashback, it's an extra expense.
@@Lillith. yeah those people are the ones buying Range Rovers to sit and rot at the end of the year to save on taxes. So dumb
it depends. like lets say you want that shinny new f150. Buy it for your "LLC" save a bunch on taxes. That could be tens of thousands
@@Theaverageazn247 ok so spend $100k to save $20k. Genius move lol
@@d_all_in”I only dropped $80K on this truck I didn’t need!”
Im just gonna jump at midnight on 4/15. That way im not on US Soil and not subject to federal income tax
The US government owns the air too. Sorry bud.
😂😂😂
😂😂😂😂😂
I'm dead 😂😂💀💀
😂
Teaching your daughters daytrading? They would probably be better off learning card counting in Vegas
no - at least they don't have a pit boss or a "Guido" introduciing themselves to the girls ----- this is seriously a mother teaching her daughters how to get-rich-quick, next scamming - later card-counting (if they have the home-schooled mathematical ability for it) ----- definitely child abuse.
At least that’s regulated out of the hands of children, legally
these influencers really gain any money by duping people into buying their "system" ........it is refreshing that there is a huge backlash now to all influencers
The guy in that second clip 1000% knows those cars are getting repossessed.
Hmm I wonder if you have to give back the tax write off when a vehicle is repossessed...
500$ down? I might pull off with a lambo
Thanks you so much Money Guy Show for all you do! You react and also educate. Keep up these videos coming, really enjoyable!
I LOVE THESE EPISODES
I lose braincells anytime I hear Grant Cardone's voice😅
Dude is cringe to watch. Even worse he’s getting his daughters to act like that like they aren’t nepo babies.
Oh IKR ! I think the phrase might be "punche-able face"
Bo, is there ever a time you are not excited? Would love to see a (short video) of the things that bore Bo.
@ The Money Guys. Perhaps do a simple model showing a younger person that keeps buying new cars vs one that buys a good used car and saves for retirement early (e.g. 88.3X multiplier).
I think about this nearly every time someone tells me they have nothing to save at the end of the month when they have over $500 car payments and I just think to myself if you put that in the market over 30 years, you could have half $1 million but instead you want a brand new car with nothing to show for it
For example my sister was complaining about being broke and having no extra money at the end of the month however, in the same discussion making fun of me for still living with my dad and paying $400 for rent while she’s paying $2000 in rent to live in a “luxury apartment“ and her and her husband have a fairly new Jeep Wrangler and Nissan rogue with probably over $1000 a month in car payments on top of higher insurance premiums because they are newer cars and are now struggling to save payoff debt and get a down payment for a house
Brian did a study like that in his book.
Actually a vehicle, new or used, is an expense. All vehicles cost money.
That expense is the cost of the vehicle spread over its life less the cost recovered at disposition.
So a new vehicle bought at $40K used for ten years costs less than $4K a year. A used vehicle of the same make/model bought at $24,000 used for eight years costs less than $3K a year. A difference of about $80 a month, not a big deal for many folks.
With the new vehicle, if purchased well, you have a manufacturer's warranty of 3-4 years plus more for the power train and you often have 3 years or so of free maintenance.
The key thing about buying a vehicle, new or used, is to ensure the cost of the vehicle (including things like insurance, registration, fuel, etc) fits within your budget.
The simple reality is if buying a new vehicle is an inherently bad concept those 16 million buyers of new vehicles each year would not buy new. Personally, I would not buy someone else's problems.
@@jerrylundegaard2592 This. Just don't also forget about loan interest (if a loan) or opportunity cost (7% against S&P 500).
@@jerrylundegaard2592 You're forgetting a few variables like insurance, taxes, registration, etc. It's more than just the monthly payment.
I think paying tax is illegal as there is no law that says we should.
this stock market news is giving me a headache! Tax cuts for some, interest rates all over the place... how's a regular person supposed to invest?
You ain't wrong. That's why I finally took the plunge and found a financial advisor. Best Decision Ever.
401k does lock in for decades and early withdrawals has penalties.
Really? Tell me more. I feel like I'm constantly playing whack-a-mole with my portfolio.
401k is truly a way to hide money for the future.
I love these types of videos! I always find someone parroting one of these people on tax write offs. Also people thinking tax write offs being an infinite money glitch, they don’t understand you still pay for it.
10:35 i hope i never have to see another video by this guy ever again in my life
If you have kids, this is the natural evolution of a lot of RUclips Kids content creators.
@@eedre4864 thankfully I don't and this is another reason I never want to!
9:30 is my mom in a nutshell. She'd always say "I'm going to move out of my Section 8 apartment this year, watch." She's been saying that for the past 21 years.
One aspect of the tax benefits of a 401k not often talked about is how you likely get a tax deduction at a higher tax bracket than when you withdraw it. In my case, most of my money going into my 401k would be taxed at the 24% tax bracket. I expect my income will be lower in retirement, so I doubt I'd hit the 24% tax bracket then, but even if I did, a lot of my withdrawals would be filling the 10%, 12%, or 22% tax buckets. So, while it is true that I'll need to pay taxes when I withdraw from my 401k, it will be less than the savings going into it. And while it's possible taxes will be higher in the future, I doubt there will be the political will to raise taxes at the lower brackets, where I expect most of my retirement income to be.
Nope! Withdrawing 401k growth is still taxed at income tax rate, not capital gains tax! It’s seen as retirement income
@@saraashkir5793 Right, it's taxed as ordinary income, but it's likely most of it would be in a lower tax bracket than it is when it's deposited. Again, in my example, the money I put in the 401k would be at the 24% tax bracket. But when I withdraw it, I won't have much other income, so at least part of it (and perhaps all) would be at the 10%, 12%, or 22% tax brackets.
@@rffinances8567 gotcha! I misread your comment earlier, thanks for the reply
Why are you assuming tax brackets will be the same in 40 years? If anything they will be higher
@@Kingolimar354You're missing the point. You get the tax deduction on the marginal tax rate, but when you take it out, you're paying the effective tax rate. In general. I think this is correct, however you have to be careful about if there are other sources of income as well.
Kiana Danial; according to an article from business insider; was fired from Wall Street ( she was PR associate).. started “hustle jobs”.. ( RUclips; books and courses in investing - from a washout PR associate 😂).. in mid-2021 has 2 million net worth ( less in her investment portfolio).. and now 3 years later.. 4.7 Million in her portfolio? Yes sure 🤦🏻♂️
3:08 (Brian’s Troll Here) …Nice video guys, seeing your reactions sprinkled with reality makes my morning
"401K is a way to hide money for the future" True, but the best part is that if you started contributing at 25, you will be taking out lots of money that you never put into the 401K plan. Living off that growth for a decade or two is a great thing even if you are paying income tax.
There are LOTS and LOTS of highly tax efficient index funds and mutual funds. Vanguard for example, has a big crop of them. The idea that you must have an official tax advantaged account like a 401-K to defer taxes is nonsensical.
And with such ETF's and funds, you aren't constrained re investing, by all the limits and rules for 401-K's, IRA's, etc. Or the massive fees of annuities.
@@rogergeyer9851Have fun paying income tax on what you put in AND capital gains taxes on what you pull out
Or you can just use a Roth 401k and pay the taxes now....
@@penguin12902 That is if, your company offers a Roth 401K. They may not and to get the match, they might only match the regular 401k.
@@rogergeyer9851Yes but almost every company is going to offer some sort of match and I bet those index funds are giving you a 100% or 50% guaranteed return. So not contributing at the least the minimum to get the full match before doing the other stuff is just stupid.
The private chef thing is the most unhinged and illegal lack of understanding I've heard in a while. Writing off an expense doesn't mean the government pays for you. You just don't pay tax on it - which is just a small percentage of the expense. Being able to write it off doesn't make you more able to afford the expense. You're still paying 100% of the cost. You're just not paying the additional 28% you would have paid for taxes.
Some of these Tik Toks can really be infuriating lol…. Thanks for keeping us grounded, Money Guy team!
The funny thing is she shows a bunch of individual stocks like Google and Palantir that are dragging down her portfolio by even more than VOO by her logic.
There's also the fact that all she does is show the stocks that outperformed and ignored the rest. Anybody's profile will look impressive if you just show the winners and stop. I also like that she conveniently plastered her face over the scroll bar, so you can't see how much further it goes.
You absolutely can access funds in a 401k pre retirement. Roth convert and wait 5 years or IRA SEPPs or a 401k loan. It just takes some planning.
Rule of 55. And like you sd roth conversion ladder.
That Alameda Research chick also claimed she is not math wiz. I forget how that worked out.
The "oh ya, right back up" comment from Brian has me in tears hahaha 😂
I have to say there are faster ways to become rich than consistent index investing. It's just they usually also happen to better ways to end up broke. Anyone selling them as a guarantee is either blinded by survivorship bias, a scammer, or both.
Actually 401(k) dollars are accessible at 55 if retired versus 59 1/2 in IRA with zero penalties. Roth conversions are great way to convert pretax dollars in retirement, when most people are in a lower income tax bracket.
Glad I have my Roth 403b / IRA and an HSA
I've watched a few of these react videos and Bo's face always sours once Grant Cardone pops up😅 I think it's the only time he's not excited to discuss a subject
9:29 Thinking you are sick can give you symptoms of being sick even if you aren't, but thinking you aren't sick isn't gonna get rid of that virus/cancer/whatever.
I would love to see a “Financial Blunders” bingo card that they can mark off during these TikTok videos
Bo - "when I look at my portfoliio .... that's not what I do" ... OMy ---- ROTFL
Lol you can deduct anything until they audit you.
Good job editor. I got that yelling sound clip music video reference. I see you.❤
Would love to see a collab with Dallen Haws from Haws Financial to do a TSP video.
So glad steveo got me rolling is on here, the comments are always hilarious.
I've never heard of 20/3/8. Is that 8 supposed to be pre or post tax income?
I love these, please do Brian Bishops credit card advice next time 👀
Money guy show, could you guys make a video about things to do 5 years before retirement
Love the mini cyber truck
New follower here. What’s the story with the $88 beer coozie?
When you’re 20, 1 dollar can turn into 88 dollars in retirement
The coozie is a reference to how powerful compound interest is. How $1, compounded at average historical market returns, maths out to $88 by the time you hit retirement if invested it while you're young
For every $1000 I put into my 401k, I defer $220 in taxes far out into the future where the rate will likely be less than 22%, I get 3% matching form my employer and my rate of return on my 401k investments for the past twelve months has been 14%. How is this a bad thing?
500 down on the Charger. That man’s paying 1273 dollars a month minimum
Happy Friday yall! How excited are we this morning?
I am so so so so excited.
As a city boy who was homeschooled, I'm offended 😂
I underperform S&P. I best Dow Jones. Is that good?
What’s “NuhVidia”? 😂
"Was her name Diamond?" 😂😂😂
Roth accounts are tax free at withdrawal and don't require minimum distributions anymore, Grant 💀
9:28 plus if you could avoid paying income taxes by just chilling out on the ocean for a week, i'd think all of the wealthy ppl with fully stocked yachts would be taking advantage of it already.
IIRC, boat guy is actually going through some issues with the IRS.
If you are 30 years away from retirement, Roth 401k is much better. If you are 10 years away, maybe 401k.
Not really based on years but rather on your current tax rates
This was a fun one!
The maritime law guy looks like Bill and thinks like Dale. Good thing you all are honest like Hank.
Ads have gone mad - I am not watching a 3.17 ad for a 16 min video?!
Refreshed until I got a 15 second ad :|
@9:30 so by his logic we can cure cancer by telling patients to keep saying " I don't have cancer. "
Tik Tok Finfluencers are crazy. Highly recommend ignoring 99% of them
Cardone was not wrong on three points. 401k does lock you in for decades, with no withdrawals. There is a penalty for early withdrawal. And taxes are likely to be higher in the future than today.
Roth
@@c2s2942 Roth has income limits for everyone in the professional class.
If you're so successful it's in large part because of the infrastructure and laws in this country. Just pay your taxes jfc.
Can you please make a video about 17 year olds making 250,000 student loan college decisions without considering how that much debt for a piece of paper could potentially hinder progress in life. (my little cousins parents are walking her into this decision)
i may not be able to convince her otherwise but what can i tell her so that she isnt surprised once she graduates?
You can also take a loan from your 401k and some emergency cases you can do withdrawals early penalty free.
What penalties are there? Here in Canada, we have RRSP (same idea as 401K). We can withdraw whenever we want without penalty - but we do pay tax on the withdrawal as it is income for the year. We can borrow from our RRSP tax free for purchasing first home or for getting further education (must be paid back in small installments over a certain number of years or you get taxed on it).
10:07 The Best Burn!
She didn't just get and out and the right time. She did that perfectly over and over again for a 1000 times. $500 to 4.whatever million.
"Growing Chickens." Tell me Bo is not a farmer/rancher without telling me you're not a farmer.
I would be converting that 401(k) to Roth right now
If everyone buys index funds, then the system is not cleansing itself because you are indirectly buying those under-performing stocks because they are in the index!
It may have some effect but ultimately the active investors will take advantage of buying the undervalued and selling overvalued stocks, which will balance the index
Why do people act as if index funds are guaranteed growth? Just because something worked in the past does not mean it will work in the future. Just because it worked for 30-40 years, it doesn't mean it will also work in the next 40 years. You can hand wave all you want but your course/book whatever is still shilling that "secret" while saying there is no secret.
It hasn’t just worked for 30-40 years it’s worked for over 100 years. The average growth of the S&P500 for 100 years is 10.5%. Will it work continue working next year? I can’t guarantee it, but probably yes it will
Most home schoolers are not in farms.
The majority of her gains were like 20 something percent. How is that turning $500 into $4.7M?
The statement about retirees being in a lower tax bracket may be true while both are living. As soon as one goes there is a good chance of the survivor jumps up a bracket.
Can y’all talk about how we don’t really have to pay taxes because it’s illegal and there’s no law saying we have to pay taxes 😑…..😊
For the 401k topic, if $1 can turn into $88, then I'd rather pay 40% on the $1 than 1% on the $88 (assuming you can pay the tax in addition to funding the account, and it isn't eating away at contributions).
It seems like traditional retirement accounts don't start to make sense until (maybe) close to retirement, and before that, Roth and brokerage accounts make more sense.
I'd love to see a video going deeper into the math for this.
What? That 40c in tax you paid could have turned into another $35.2, versus the 88c in tax you paid in retirement... You were much better off taking the lower tax rate.
The guy on the left sounds like Joe on Family Guy!
Kris Krohn & Grant Cardone would get along so well. Just a couple of geniuses giving life-changing advice and spitting on poor people.
Doctor: You have cancer.
Me: I don't believe I have cancer.
Doctor: Well, you are cured then. I need to go tell all my other patients to just not believe they are sick and we can close this hospital! You sir have cured all disease!!!!
One thing you're wrong about is the ability of the human mind to have physiological effects on the body. The brain is a POWERHOUSE and a mystery and there are many instances throughout human history where beliefs impact physiology
The index fund girl is funny, because there are a bunch of stocks under the index fund, which kind of invalidates her point. You basically have to be lucky.
These react vids make me so happy to not have stupid tik tok
That steveo guy should film the customer after 6 months and ask if they still would have bought the car
13:45
Thanks Bo, i needed to hear that.
in this post virus economy, stocks are going up.... a LOT. but as a conservative person, I only invested in blended funds rather than individuals stocks.
so its good to hear that in THIS BULL economy that individual stock could outperform blended funds in the short term.
while im not sure if I'd do that, since I dont personally invest my own funds but use a robo investor. But idk if I could temporarily do short term high risk stock then sell before the markets go back to their see-saw pattern.
I still dont really wanna tell folks to invest but since I have a blue collar job, i want my generation to have what the boomers had.
1) get an education
2) hold a good career
3) get a home
4) save for retirement
5) live comfortably
while I knew you guys arent Caleb Hammer, i love the way he guilt trips folks who dont plan for their retirement. Since the parents dont understand how their adult kids will inevitably feel. (if they had a heart)
Grant wants you to cash in your 401k so you can spend it all on his courses.
I think there’s a lot to be said about the mental powers and sickness. While yes there is a fine line that that guy didn’t mention, I’d bet there is a fair amount of brain power that can go into how our bodies respond to it. It’s probably going to be mostly marginal differences but differences nonetheless
The IRS does not fall for that goofy logic. That would be a quick audit.
I think this guy just invented accounting
Been more American if the guy on the boat if he had some PBR
@11:00 Buddy forgot about Implied Volatility build into the options. When a security falls that hard that fast, the options will try to price in the rebound. Not to mention the widening of spreads between the bid and ask will make it hard to get in at the price you want. Kid is fulk of 💩!
2:18 this is just sad. He is literally shackling that kid for years
A roth 401k would be tax free
Everything about this homeschooling mom screams "I'm a good Christian!!!". Honey, why in the name of pedagogy are you teaching your children how to gamble?
And it's not even the house you're boxing up against, it's whole ass computers and algorithms designed to do what you're teaching your toddlers to do, but 10.000 times better
Hey Brian… fyi, it’s pronounced EN-VIDIA, not NUH-VIDIA. :)
Great video as always!
Now do boiling point and naked 😉😂
ok..
- bowling point
- nekkid
Also if Bo is excited to read this comment…
- soul security
there are two way to get rich overnight - casino or lottery.
ROTH IRA - must have retirement account. tax free - do not require withdrawals .
you are still supporting your family from heaven after you died. your account will still grow 9 more year Tax free.
new rule for 2024.
" 10-year rule for inherited Roth IRAs
Notice 2024-35 will not apply to your account if you have an Inherited Roth IRA. Under the 10-year rule, Inherited Roth IRAs are not subject to RMDs in years one through nine, regardless of the deceased's age. If you don't need the money, you might want to leave the funds in your Roth IRA for as long as possible for as much of the 10-year period. Your account will grow tax-free and can be withdrawn tax-free in the future. "
I think many of us financial mutants will be earning/collecting more income by the time we begin withdrawing money from 401Ks. 😀
The guy on the boat the clip is stolen. He does not talk about money, just loving America.
The intro song sounds like farts
outrageous, it's difficult to believe that 1) there are people like that out there posting "advice" and 2) that they believe anyone would ever take their advice seriously. Surely when they make those slapstick videos it's only so viewers can have a laugh.
Sadly, if you go over to Coffeezilla's channel, it turns out that there are tons of people falling for this kind of Cheap grifting. Patrick Boyle did a very insightful video about what he calls financial nihilism that explains a lot about why this keeps happening.
You are definitely overestimating the average person's intelligence. People are idiots.
@@debbielockhart7762 I agree, there's plenty of that to go around. Some would say it's foolish to buy into cryptocurrency and at the same time there are some who say you're a fool to NOT put your money into cryptocurrency.
My system is to listen to the best advice by the smartest people and then do the exact opposite of what they say b/c i assume they are trying to profit off me.
Stevo may have done a lease. "I bought a car!" is a common thing to say whether leasing or buying.
In the case of leasing it is best to put no money down.
Agreed, unless you intend to buy out the lease at the end of the term
I've never heard anyone refer to leasing as buying. How odd.
A part if me really would like to see us abolish all forms of taxes just for a year so people can see what life without taxes look like. People are too damn happy about not paying taxes or reducing their taxes so why not make their dreams come through. And rest easy, those people will be fine. If you already have tge kind of income to qualify for many of these ridiculous tax breaks, you will be fine. But I think the regular people need to feel it in their souls.
Sooo, you’d be fine with no air traffic controllers, no maintenance of interstate highway, border wide open( oops, that one already happened), no federal crimes investigated and on a local level no firemen, no police, no trash pickup, no code enforcement??? Certainly, the government could spend taxes more judiciously, but make no mistake that modern society, which is pretty damn nice, would exist without taxes.
@@glasshalffull2930please read more carefully what you are responding to. You are trying to lecture somebody that agrees with you
@@mrmistmonster Try presenting your ideas in a clear fashion.
@@glasshalffull2930 Mrmistmonster was not the original poster, they are someone who /read/ the original post.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
That Kris guy is partially right. Your subconscious mind is the most powerful force. If your subconscious mind believes it then it will be true. There are books out there that discuss this.
@TheBusDriver98 This is my opinion on investing: I spent $12,500 and am currently sitting on $53,000. Do your own research to learn, and work with an investment adviser like "Mildred Geneva Hyder."