Celebrities Go Broke Because They Don't Know This

The Personal Trainer Money Analogy

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I hired a great personal trainer. It changed everything. Better form, better results. It was amazing.

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I didn't hire anyone. I watched YouTube, read the books, and did the research myself. I'm good. I hired a trainer too.

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And we mostly ate pizza at Planet Fitness. He called it a recovery meal. This is triple the money. And what

Three Types Of Financial Advice

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we just told you about personal trainers is exactly how most people handle their money. And it will cost some of you millions of dollars.

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Okay, so here's how it works. When it comes to getting financial advice, there are exactly three types of people. You hire someone great, like Arnold Schwarzenegger, as your personal trainer. He comes up with a perfect plan. There's real accountability. The results? Exceptional.

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That's not realistic.

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It's an analogy. Stay with me. Type two, you do it yourself. There's no trainer. You watch YouTube videos, you read, you learn the fundamentals. You make decent progress. Slower, but you get there.

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That's literally me.

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We know. Type three, you hire someone. They look official. They even have a website. They sound confident. And then they take you to Planet Fitness and tell you pizza's a good recovery meal. We know.

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So, which one wins?

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Type 1 wins. Type 2 wins. Type 3 wins absolutely nothing. They actually go backwards.

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Wait, I went backwards?

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Financially speaking, yes, backwards.

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Wait, I ate so much pizza though.

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Now, this isn't just a gym analogy. This is happening

Celebrities Burned By Bad Gatekeepers

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with actual money to actual people.

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Like who?

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Nicholas Cage. He had career earnings of $150 million. He had a business manager managing his earnings.

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$150 million? That guy's set for life.

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His manager made some terrible investments and he lost it all. He had to sell his property and pay a lot of money to the IRS.

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His properties like his apartments or his castles.

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He owned multiple castles.

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Castles?

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And dinosaur bones.

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I'm sorry. What?

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He had a collection of dinosaur bones. Real ones.

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He had dinosaur bones and he lost them? That's genuinely upsetting.

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150 million dollars. Castles, bones, all gone. Just because he didn't vet his guy. Do you guys remember The Wolf of Wall Street? I'm sure you've seen it. It's based off a real person.

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Yeah, I love Leonardo DiCaprio. That's genuinely the best movie ever.

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They thought they had Arnold Schwarzenegger, but they had the pizza guy. He stole millions of dollars from his clients.

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Okay. So how do you know who's who?

Three Questions To Vet Advice

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Here's what nobody teaches you. Before you follow someone's financial advice, a YouTuber, a TikToker, or someone's uncle, here's what you have to know. First question Are they making money from you or with you?

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What's the difference?

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A great personal trainer makes money because you get results and come back. They need you to win. The pizza trainer makes money whether you get results or not. They don't need you to win. They just need you to keep paying. So in finance, that would be A fiduciary advisor is required to act in your interest and not their commission.

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Fiduciary. That's a word I need to know.

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Write it down. It's the most important word in personal finance. Question two. Are they showing real results or do they just sound smart?

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How can you tell?

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The pizza trainer will tell you all the right words. Recovery, macros. It sounds like he knows everything. But Warren Buffett, the greatest investor alive, gives advice so simple that it sounds boring. He tells you to do things like buy good companies, hold long term, and don't panic.

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That's it.

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That made him worth over a hundred billion dollars. Boring works.

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My trainer used big words and I ate pizza.

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Mm-hmm. Big words, bad results. Simple words, great results. That's the pattern. Simple works. Question three. Would the GOAT approve of this?

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The goat of what?

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Whatever you're doing. Would Arnold approve of pizza at Planet Fitness?

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No.

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Would Warren Buffett approve of a guy charging you 1% every year to put your money in the same fund that you could do yourself in three minutes?

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No.

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Ask yourself that question before you follow anyone's advice. Now

The Real Cost Of A 1% Fee

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let's talk about why this matters so much. Austin, you do your thing. What would that look like?

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I put my money in an index fund. Low fee? I don't touch it.

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Good. That's type two, the self-taught guy. Let's do the math on that. You start at 17, $500 a month. A simple low-fee index fund, 10% annual return, no advisor.

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For how long?

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40 years, and guess what? By that time, you'll have $3 million.

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$3 million? Did it all myself.

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Now what if instead of doing it all yourself, you hire someone and they charge 1% a year?

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It's 1%. It can't be that different.

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Same input for 40 years, $500 a month at a 1% fee. That's gonna be just over $2 million.

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Wait. You paid $760,000 in fees?

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Did the guy that put me in the same index fund I was already in?

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Most of the time, yes. Over 30 years, 90% of fund managers fail to beat the index fund.

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They charge you more and they do worse than what you could have done yourself.

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For most people starting out, yes. That's the math.

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So what is

The Crockpot Index Fund Strategy

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the move?

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The crockpot move. You pick a low-fee index fund, something like the Vanguard Target Date Fund. Annual fee, 0.08%.

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How much is that actually?

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1% of a million dollars is $10,000 a year. 0.08% of a million dollars? That's about $800 a year.

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800 versus $10,000 to do the same thing?

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The fund diversifies automatically and rebalances itself. It gets more and more conservative as you get older. You don't call anyone, you don't pay anyone 1%.

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You just

When A Great Advisor Is Worth It

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said it?

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You said it.

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Like a crock pot. Okay, what if you find a great financial advisor? Like genuinely great.

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If you find the Arnold, yeah, it's worth it.

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Wait, you're agreeing with him?

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A truly great advisor, one who's a real fiduciary, is fee-only, and has a truly great track record, is worth every penny. They keep you from panic selling when the market crashes. They optimize your taxes, they have a real strategy with genuine value.

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That's what I've been saying.

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The problem is, the pizza guy wears the same outfit as Arnold.

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Well, do I need one right now?

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You don't need to find an Arnold right now. Just make sure you don't hire the pizza guy. The crookpot works, so just do that right now.

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You can do this yourself, starting right now at 17, and you don't need anyone. And if you do hire someone, make sure they're a fiduciary. Or you'll lose your dinosaur bones.

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Here's the thing: Nicolas Cage had $150 million and lost all of it. Castles, dinosaur bones, everything. Just because he didn't properly vet his guy.

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Oh, the dinosaur bones.

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The wolf on Wall Street stole millions of dollars from his clients. He sounded like Arnold, but he was the pizza guy.

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So how do you protect yourself?

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Three questions. Always. Is this person making money from me or with me? Are they showing me real results or do they just sound smart? And would the goat of this field approve? And if you're 17 with no financial advisor in your life yet, that's fine. You're actually in a great position. The crock pot move. Low fee index fund, couple hundred dollars a month. Don't touch it, and just wait 40 years.

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We're triple the money. We know more than your financial advisor.

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Don't get wolf on Wall Street.

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Vet your people, find fiduciaries, get your crock pot if you want to.

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And don't lose the dinosaur bones.

Final Checklist And Subscribe

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