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Money Guy Show

Are You Driving Your Wealth Into The Ground?

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Education, Retirement, Moneyadvice, Investing, Savingmoney, Personalfinance, Business

4.62.8K Ratings

🗓️ 4 November 2024

⏱️ 27 minutes

🧾️ Download transcript

Summary

"​​My friend is underwater on their BMW. They always seem to be servicing it and can't afford to maintain it anymore, but it's valued at $43k and his loan is $58k. What do you think about when deciding how to handle an underwater car loan?"

We'll walk you through that question and more in today's Q&A episode!

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Transcript

Click on a timestamp to play from that location

0:00.0

Are you driving your wealth off a cliff?

0:10.0

Brian, I am so excited to talk about this because I feel like so many Americans fall into this trap where they are literally not recognizing the devastation they are doing to their overall financial

0:22.6

life.

0:23.6

And I love that we get to speak into that.

0:25.0

I love so much that we can answer questions that you care about.

0:29.6

And so right now in the live stream, we have our team in the wings collecting your questions.

0:34.7

So if you want to get our take on your financial matters, we would

0:38.8

encourage you get it in the chat right now. So with that, creative director, Revy, I'm going

0:43.5

to throw it over to you. Yep, we've got a question on that very thing from Joe. It says,

0:47.6

My friend is underwater on their BMW. They always seem to be servicing it and can't afford to maintain it anymore, but it's

0:56.1

valued at 43K and his loan is 58K. What do you think about when deciding how to handle an underwater

1:06.9

car loan? Yeah. Well, okay, so here's the first thing I want to say.

1:11.6

I have a little bit of compassion here because I think a lot of folks, especially if you

1:16.6

did not, if you were not like raised in a household that talked about money or you never

1:22.6

learned like the right way to go about buying an automobile. I feel like so many people, especially

1:28.6

early on in their financial journeys, find themselves in a place where they are underwater

1:33.7

on a vehicle, Brian. I think I've told you I've got a dear friend. Didn't know any better. Financed

1:38.2

a car for five years. Got into car wreck. Was not his fault. Insurance company told him the car. When he got the insurance

1:46.0

check, it was less than what he owed on the car. He was underwater on it and had no idea. He said,

1:51.5

Bo, I didn't know this was a thing. How'd this happen? But I don't know if that's the, Joe's

1:58.0

friend, I don't know if it is in that situation because he's driving

2:01.9

a luxury car.

...

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