Overview of The Money Guys Gave Us Advice… Here’s What We’re Changing
In this episode of the BiggerPockets Money Podcast, Mindy and Carl recap their recent conversation with Brian Preston and Bo Hanson of The Money Guy Show. The episode centers on how professional financial advice challenged their assumptions about cash, concentration risk, tax planning, retirement withdrawals, and teaching kids about money. The biggest theme: they’ve been optimizing so hard for taxes and future growth that they haven’t fully let themselves feel financially secure or “rich” in the present.
Biggest Takeaways
1) They need far more cash
The biggest surprise was the recommendation to increase cash dramatically.
- Their current cash position was only about 0.7% of net worth
- The Money Guys suggested a target closer to 5% of net worth in cash
- Mindy and Carl realized they’ve been thinking about cash in terms of “years of spending,” but their future expenses are more complex:
- a home build
- kids’ education costs
- upcoming college expenses
Key insight: If you’re already financially independent, cash is not “lazy money” — it can be a buffer and a planning tool.
2) Their portfolio is too concentrated
Brian and Bo pointed out just how concentrated their holdings are:
- 85% of their net worth is in five stocks
- Roughly 70% is tied to companies controlled by Elon Musk
That was a wake-up call, even though they already knew they were tech-heavy. They agreed they need to diversify, especially once certain private shares come out of lockup.
3) Taxes should be managed proactively, not feared
The hosts have spent years minimizing taxes, but the episode reframed the issue:
- They’ve been over-optimizing for current-year tax savings
- They haven’t been thinking enough about:
- capital gains brackets
- RMDs (required minimum distributions)
- future tax risk
Their takeaway was that taxes should be managed strategically, not at the expense of flexibility and peace of mind.
4) Withdrawals should be planned in the right order
They discussed the typical withdrawal order:
- Taxable brokerage
- Traditional retirement accounts
- Roth accounts last
Why Roth last?
- Roth money has already been taxed
- It can grow tax-free longer
- It can be especially valuable for heirs, since inherited Roths are more tax-efficient than inherited traditional accounts
Mindy initially disagreed, but after hearing the inheritance logic, she came around.
5) They should teach the kids money through action, not just conversation
Brian suggested helping their kids build wealth directly by:
- opening Roth IRAs for them
- contributing money so they can see compound growth
- helping them connect work, saving, and investing
This resonated strongly after their daughter got excited about earning money from a job and side hustles. Mindy and Carl see this as a way to make investing real for their kids now, not later.
6) They need a regular year-end tax audit
One of the practical suggestions was to do an annual income and tax audit near year-end.
This would help them:
- estimate taxable income
- decide whether to sell investments
- make Roth contributions or gifts
- plan around current and future tax brackets
Carl and Mindy both agreed this is a smart habit.
“Do You Feel Rich?” — The Bigger Reflection
A major thread in the episode was the question: Do you feel rich?
Carl’s answer before the show was “no,” even though their net worth is substantial. His reasoning was that the money always felt fenced off for the future.
After talking with The Money Guy Show, he had a shift in perspective:
- the money is not just for some distant future
- they can access it more intentionally
- it’s okay to stop obsessing over tax optimization at the expense of using their wealth
Main emotional takeaway: They felt more liberated and more willing to actually use the assets they’ve built.
Action Items They Plan to Take
Near-term
- Increase cash holdings toward a more reasonable target
- Review and reduce concentrated stock exposure
- Start doing an annual tax projection in late fall or early December
- Continue planning for kid Roth contributions
Medium-term
- Reassess private stock positions after lockup periods end
- Shift proceeds from concentrated holdings into broad index funds, likely VTI
- Build a more balanced long-term allocation
Family planning
- Fund Roth IRAs for their children, potentially matching income or gifting up to the contribution limit
- Keep teaching investing and taxes through everyday conversations
Final Thoughts
The episode is part financial debrief, part mindset shift. The headline change is not just “we need more cash” or “we need to diversify” — it’s that Mindy and Carl realized they can stop treating their money as untouchable and start using it more intentionally.
For listeners, the episode is a useful reminder to ask:
- Is my cash allocation actually enough?
- Am I too concentrated in a few stocks?
- Have I thought about future RMDs?
- Am I optimizing taxes, or am I just avoiding decisions?
The conversation ultimately pushes toward a more balanced view of wealth: not just building it, but being able to use it with confidence.