Dissecting Dave Ramsey’s Tik Tok Advice - a podcast by Tony Mauro

Dave Ramsey is well known for his no-nonsense approach to personal finance, particularly in the areas of budgeting, debt management, and wealth-building. He has gained a significant following through various media platforms, including books, radio shows, podcasts, live events, and more recently, Tik Tok. Tune in as we peel back the layers of Dave’s bite sized Tik Tok advice and share our thoughts beyond the clips.

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Transcript: 

Marc Killian  0:01  
Dave Ramsey is well known for his no nonsense approach to personal finance, particularly in the areas of budgeting, debt management and wealth building. He's gained a significant following through various media platforms with books and radio shows, podcasts, live events, and now tick tock So, this week on the podcast, we're gonna peel back the layers of Dave's bite sized nuggets of Tiktok advice and share Tony's thoughts on those here on plan with the tax man.

Announcer 2  0:27  
Look up in the sky. It's a bird. It's a plane. No, it's the tax man. He may not be a superhero, but Tony Morrow has saved many retirement plans with his extreme knowledge of tax planning strategies. It's time for a plan with the tax man.

Marc Killian  0:44  
Welcome into another edition of the podcast where we discuss a little Dave Ramsey advice this week with Tony Morrow once again here with us. Obviously Tony from tax Doctor Inc. and always chatting with us here on the podcast about getting to and through retirement. He's got 27 plus years in the industry. He's a CPA, a CFP and an EA. So certainly a great resource to tune into and talk with and so Tony with all that good stuff said I got to ask you first how you doing? And second, do I am I gonna see you on Tik Tok pretty soon or what we're going to catch

Tony Mauro  1:14  
up and doing good is rolling into fall. So that's good. And you know, I'm not a tick tock guy.

Marc Killian  1:19  
No, no tick tock dance craze for Tony and coming up saying no, no,

Tony Mauro  1:23  
no, I've looked at it a little bit. And I know that that's not for me. Yeah, I

Marc Killian  1:28  
mean, either, man. That sounds like either get it? I don't get it. But you know, Dave's got he does do a lot tour his some of his demographic definitely can be younger. So it certainly makes sense. Right? It does. Definitely runs on it. And I don't know, it seems a little too addictive for me. So I Yeah. Why should people make a fool of themselves? And I can do that, too. Yeah. The internet has definitely no shortage of places to watch people do goofy stuff on video. That is for sure. If you ever need if you ever need a laugh that can you can certainly get a laugh that way. But then you can also kind of go down that rabbit hole and go, Oh, my Lord, what have we turned into? Oh, yeah. So yeah, it's a very, it's a very slippery slope. But for fun today, on the podcast, let's talk a little bit about some of his advice. It's really more about the advice versus the tick tock, if not really be into the app or anything like that has nothing really to do with it. Just kind of more of a humorous anecdote to kind of bridge this gap. But it's really more than interesting advice that he has, some of these are pretty good. So I want to get your take on this. He said, Don't invest in anything, if you can't tell me how it works, and don't invest in something just because you're really excited about it. If it gets your pulse rate up, there's a chance you're getting conned. Yeah.

Tony Mauro  2:37  
And I think you know, all of these, we'll go through today, just a moment on Dave Ramsey himself. He, I generally agree with his general financial advice. And I mean, there's some things I don't agree with, and you know, type of thing. But overall, if you, in my opinion, follow some of his basic things, it's really going to at least set you on the on the stage to go down the right path, he's not going to give you specific advice. That's where I think you need an advisor to help you implement the plan. But anyway, back to topic. Number one, I do agree with him on this, because I generally, you know, if you have something you see, or someone you know, is trying to provide you with, generally it's an investment, and you don't understand it and you don't feel comfortable with it. Generally, my advice would be SCS, maybe back up a minute, maybe try to get some some additional info right info on it. Because in an ethic even Warren Buffett says that, you know, he doesn't invest in anything that he doesn't understand. I am sure. Peter Lynch used to say that and so really their their theme there is you want something that you can at least understand that a lot of people say, Well, I don't even understand how the stock market works. So are you saying never invest in the market? No. But you know, you can get some education, right? Simple. Yeah. And make sure your adviser is explaining, you know, what companies that you're in and or funds that you're in, right? Because you certainly don't want to have somebody come in and say, you know, something like, Well, I can make you X percentage, and we're going to do it safely in futures. And you know, that that's really not the case there. Yeah,

Marc Killian  4:19  
yeah. And so we tend to follow them that fear of missing out thing, right, we tend to fall for that, that moment, where people are like, it sounds really good. And I'm gonna be cautious, but boy, I don't want to miss out on that either. Right. So it's easy to kind of slide down that slope.

Tony Mauro  4:34  
Yes. I had a tax client several years back, he was very much into that fear of missing out and he he loved to, you know, just gather information that was coming in, whether it's from the internet, and he he spent a lot of money but is the culmination was as he went to some seminar. And these people, basically, I think, talked him into, you know, doing this options scheme. Yeah. You know, and they they said, if you do this, this is follow us, you know, you're gonna make a lot of money. And he ended up losing a lot of money on the out and, and it was 50 some at the time and he just it's like it was no talking him out of it. But I think that's one of those things where, you know, that allure of maybe the fast buck and and he didn't understand it and didn't understand the risks involved, which again, if you're going to do something like that, you need to talk to your advisor first, I guess. At the end of the day, that's what it comes down to.

Marc Killian  5:31  
Yep, for sure. All right. Well, that was the first one and I definitely agree with a lot that just be careful. Don't you know, I mean, obviously, crypto would be the one you could easily think about on that first quote, people were like, Oh, I don't want to miss out on and I want to be the crypto millionaire. And it's like, okay, well, then the next day your crypto ramen noodle eaten fool to right. So you're up down your UPS down, right? So just be careful. And yeah, to your point about Dave, just remember, he is a financial coach. I mean, he's got a great empire there. But he's not he's no longer if he ever was, I'm not sure. But an advisor or consultant, he's not really licensed that right now. Certifications are licensed at this point. He does not he might have at one point he might have. Yeah, I'm not sure. But I don't think he did. Yeah, he doesn't need to be licensed because he's not selling anything as far as mutual funds or insurance or, you know, securities, things of that nature. So just kind of bear that in mind. And I think a difference between someone like Dave, or even Suze Orman who may have been that way at one point as well, they no longer practice, right, they're no longer seeing clients on an active basis. So the advice can be very broad natured in general, where, you know, we're going to talk general nature and broad stuff here on the podcast. But then when you come in and sit down with Tony, that's when you're diving into the specifics, because again, you're active, right? You're doing this every day, taking care of your clients. You're a CFP, right, and a CPA, and an enrolled agent. So yeah, there's a little bit of a difference there, and how the messages could be perceived. So

Tony Mauro  6:49  
we, you know, fortunately, or unfortunately, have to follow some rules. And we have, you know, we have a fiduciary responsibility to put the client first we can a lot of trouble, you know, if we don't do that, and so we have to make sure we're covering all the bases where I think, you know, just general advice, which is really what we're doing here, but yeah, you know, doesn't have to kind of, you know, adhere to that kind

Marc Killian  7:11  
of, well, we always view the podcast is really a way to share some nuggets of information, but also personality that is you right, so that folks that are listening to maybe a currently our clients, they're, they're getting to kind of catch up on some things that, well, they don't have to always see you, right, they can tune in to the podcast and kind of just stay abreast of what's happening. It's a it's a great way to just kind of keep in touch with your clients outside of the normal review, but also for other potential folks who might, you know, benefit from the message or need to seek the advice of a professional in their area. That's the kind of the other reason of the podcast as well. So it kind of serves both purposes. But again, we do kind of keep the general information somewhat general until you sit down and really go through that planning process. But anyway, enough of that, let's go back into the Tick Tock here, I'm gonna go to the third 1x I'm gonna jump around in the interest of time, he says if you're not careful, you make short term decisions, which tend to keep you in the short term, if you make long term decisions, they can probably be well, they're almost always are painful now, but awesome later. So it's the concept, Tony of that delayed gratification. We're not good at that. Right? So for me, the first thing I think about here is clearly the traditional 401k we kick it down the road, so we don't have to deal with it. Right. But if you'd maybe look at maybe doing conversions or paying the taxes now. Yeah, it's painful, right? That's better because nobody wants to pay taxes. But it could be awesome later.

Tony Mauro  8:32  
Yeah, this one it's worded a little differently, but it's pretty much right out of his book, The Total Money Makeover, which and I still tell my son this is last words aren't you know, live like no other. So eventually, you can live like no other, which is this in a different way, basically saying, you know, put off some of the short term gratification, right for long term happiness.

Marc Killian  8:53  
Right, right.

Tony Mauro  8:54  
We as we as well, I can't speak for the whole world. But I think as as Americans for sure. Don't like, we want stuff to right gratification. And big picture. What he's saying is maybe you should think about your long term plan before you go out and blow $100,000 on a car, for example. Yeah, you know, that short term gratification. It's all cool and everything. But is that a wise move? But at same time, he talks a lot about, you know, don't don't plan so much for the future, that your whole life is miserable. It's moderation. We don't know you're gonna die. And yeah, and we don't want that either. So there's a happy medium in there. Exactly. He talks a lot about what you think

Marc Killian  9:31  
about our politicians. Great Ones. Yeah, I think about our politicians. We were just talking about that a little bit. Who is in our leaders? I think they're really guilty of this. They don't really look long term, right? They make so many short term decisions. They want to be knee jerk reactions, and then later on, they go well, we'll just deal with and figure it out later. Much like the situation right we were talking about. Yeah. So you know, there's there's got to be that happy medium. But I think in this context, like I said, I certainly took it as is the one for right now. What's going on is maybe it's a tax consequence. Maybe it's a tax situation, to take a look at for yourself and thinking, Okay, do I bite the tax bullet now and reap those rewards a little later on? Or do I keep deferring and kind of waiting, you know, to deal with that animal 30 years from now, you know, so, right. Lots of ways to go about

Tony Mauro  10:17  
it. I was just gonna say I think too with with us, we tend to try to get people to start at least thinking about putting some money away for retirement. Start small. It's a little pain. Let's Let's bite off a little bit bits of pain before you know and and get you used to it. Yeah, yeah. And then we can always increase. But yes, there's a little bit of sacrifice there. Yes.

Marc Killian  10:37  
Yes, sir. Indeed. All right. Well, let's do one more. And we'll wrap it up this week here. I love this one people that retire wealthy, it wasn't an accident. They didn't get to wealth, get to retirement and go, gee, hell that happened. Right? So unless you hit the lottery, or an inheritance from your Uncle Milton who left you $30 million, you had no idea about more than likely becoming wealthy in retirement did not just you didn't fall trip and fall into it. Right?

Tony Mauro  11:03  
That's right, I actually have a picture. In my home office, I have a lot of, I don't know, you know, just kind of pictures that depict, you know, good sayings. And one is got this is worn out guys at the top of this mountain, they it says the guy at the top of mountain just didn't fall there, you know, and he worked hard. And I think well, yeah, same thing. With you know, getting to your goals into retirement is it's a process, it's work at some sacrifice. And, you know, if, if you're one of those few that get lucky, great. But for most of us, that's not going to work. And so, you know, we've talked about it. A lot of times, you know, you have to have a plan. It's not fun at times, there's some sacrifice, but in the end, you're going to be very happy that you did it. I think Dave Ramsey talks a lot about that is trying to try to stay the course.

Marc Killian  11:54  
Yeah, yeah. And I think you know, that, to me, this also speaks to tried and true ways of going about it, Tony, right. So not trying to necessarily swing for the fences, not trying to jump into crypto, you know, back to that investments that you don't understand kind of thing, right? You know, making sure that it's fine to have some of that, but there's nothing also wrong with the things that the, you know, academics has proven to work for the last, you know, 100 years, there's some tried and true things that work, right.

Tony Mauro  12:20  
There is a fact, you know, going back to that I was gonna say, we were talking about the first topic, I actually had an accounting client today, email me, and he's a chiropractor. And he said, I've got people that want to pay me in Bitcoin. I don't know anything about it. Should I do it? And I told him, absolutely not. I said, you know, that's you don't know anything about it, it's hard to get your money out. It's not you know, I'm not saying bitcoin is bad, right. But you certainly don't want to take that as forms of payment, and when you need it for cash and your bills, I mean, so it's, you know, kind of what we talked about, you know, have a fear of missing out. I mean, it kind of wraps it all up, and he doesn't know anything about this. And

Marc Killian  12:59  
I mean, it's, I don't even know how to be awfully small fractions, I think, I mean, I go to a chiropractor, and it's not that much of a bill. I'm thinking man and one bitcoin is still what, six or 700 bucks or something like that, you know, so I don't know. Yeah, that would be I don't know, I mean, maybe like he could be sitting on a potential goldmine. Just gotta figure out how to actually work it. But But to your point, if you don't understand it, don't do it.

Tony Mauro  13:21  
You know, at least at least get yourself educated. So yeah, I think that it's all relative. And, you know, going back to our main, our main point here is a lot of what Ramsey talks about in his head talks about does make good financial sense. You know, you just got to take it to that next level, work with your advisor and implement, you know, what works for you.

Marc Killian  13:40  
Yeah, you know, it makes me think about that pizza story. Do you know that? You know, the Bitcoin pizza story from about, I don't know, 20 years ago, 13 years ago, something like that? No. So a guy named Laszlo I think something another paid another guy 10,000 bitcoins in 2010 for two Papa John pizzas to have delivered to his house, right? Because they didn't know what they had or what it was. So just think about that for a second 10,000 Bitcoin right? For two pizzas, you know what's its what's its price today at the time we're talking 25,980 Only that's all. So he paid 50 grand in today's dollars for two pizzas. fetus. Yeah, that's incredible. So you never because you don't know what's he didn't know what they had. Right? They didn't know what it didn't know what the deal was until 2010. So you just never know that I think that kind of wraps it up and illustrates our point of make sure you understand what it is that you're doing, what it why that you have, what you have, what it's doing for you what it's doing inside your retirement plan inside your portfolio, and get educated get some help plan with a tax man. That's why Tony is here. If you need some help reach out to him. You're planning proz.com That is your planning proz.com to speak with Tony Morrow at tax Doctor Inc. You can subscribe to the podcast on Apple, Google Spotify, which every platform you like using just type it into the search box, Oregon, stop by the website for all the information and details that you're planning. proz.com Tony, thanks for hanging out my friend. All right, we'll see you next time. Yes sir. And I look forward to seeing your next dance craze on Tik Tok. Yeah. We'll catch you later here on playing the tax man.

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