0:00 Download the Conscious Spending Plan so you can use your money GUILT-FREE: iwt.com/csp-youtube Please remember: These are real people who had the courage to come on my podcast and ask for help. Would you be willing to come on this podcast and share every detail of your financial life? Feel free to leave comments based on what you think, but remember that we are here to help in a supportive way, not to demean and criticize.
Hi Ramit. Just a question that stood out for me which is unrelated to the point of the video, about term life insurance versus the expensive ones with cash value. I'm trying to find more information on this. Would love to hear your point of view on this please! Love your content! Thanks 😊
I agree & I apologize Ramit if I have made any comments that could be construed as mean-spirited or harsh. It does take courage to go on your show & reveal your shortcomings before the world. I applaud them both for their bravery…& I pray it works out for the best for both of them.
I could tell that half way through, Brad just gave up and decided to agree with Ramit on everything. He faked being a team player and taking advice just to get off this call.
While I absolutely appreciate the courage it takes to come on this podcast and open yourself up to the world, I am completely taken aback by Brad’s attitude. He wants to teach personal finance and yet doesn’t understand it for himself. He wants to have businesses instead of working even if what his family needs now is some stability. He wants to continue to invest in get rich quick schemes instead of a new, full informed and boring approach. I can see why his wife is anxious. There is no balance in this approach. It is all risk.
I cannot get over that he teaches personal finance. HE BARELY KNOWS WHAT LOW-COST INDEX FUNDS ARE OR HOW TO INVEST IN THEM!?!? I'm more qualified to teach this class than he is.
It’s pretty normal for people who are bad at things to teach them sadly. Life coaches, personal trainers, and therapists also tend to not be great because they typically got into their field because they were bad at it and wanted to work on it and then they tend to think they fixed their problems long before they truly did.
Two finance mistakes I see here. 1. Brad's oil investment is NOT paying dividends - it's returning his own capital, a small amount at a time. If Brad decided to get out of the investment immediately, he would not get his $1MM back. He would only get the payouts he received until the day he gets out, not a penny more. This is where the real risk comes in ... if the oil company crashed, or Brad left after collecting $600k, he would have a LOSS of $400k or 40%. 2. I've seen several videos where people don't understand that an IRA, 401(k), 529 is NOT an investment - it's an account type that can hold different investments and has different restrictions and tax consequences. You can put crap investments (penny stocks, junk bonds) in a Roth IRA and lose money. I think Ramit should emphasize this a bit more. FYI, I'm an old Boomer lady with an MBA in Finance currently working as a web developer at a major investment house. I started reading personal finance books before Ramit was born. His advice and psychology is some of the best I've ever seen.
Shoutout to Ramit for having the patience to deal with this couple. They’re both triggering each other’s buttons in the worse way. It’s stressful and exhausting as a viewer, can’t imagine what it’s like to help them dig themselves out of this delusional hole.
It was hard to listen to, makes me sad but so grateful for my marriage and people who care about me. Like I won’t ever have their money, but I cannot imagine having a partner like either of them.
It is wild to me that Brad felt attacked and didnt even care to write the email himself-- it's especially wild to me after listening to eps with guys who have been in more dire straits (overwhelming debt, repeating unhealthy patterns with money, lower incomes over adulthood, both partners are unskilled with money), but those dudes were able to own their mistakes or at least get curious about it getting the same level of truth speaking thrown at them by Ramit. The truth wasnt "nice" but it was KIND. Brad is a conventionally attactive white guy and probably has rarely if ever been in positions where his worldview is directly challenged. He said in the previous ep that he thinks those that are righteous get blessings, so probably to him in his mind, who is this guy Ramit think he is to challenge that? Especially when these oil guys make him feel like he's one of them, temporarily in jeopardy, but a multimillionaire in the making, bc no risk, no reward, #amirite?. He needs to own that he makes emotional decisions driven by wanting to be the white knight/hero/savior to keep up appearances trussed up by his ego. If that all feels threatened by some advice he got for free, he's got some work to do.
I totally agree. The constant eye blinking when he was speaking about the "doomsday" scenario spoke volumes to me about his arrogance around his "go all in" oil investment. It's almost like Remit offended his "smart" decision to invest. I actually finished the episode and see that Brad refuses to engage further. Kinda proves my suspicion.
I wish both Sandra and Brad the best - - together or apart. This episode felt like watching a marriage falling apart. Brad talks about leaving Sandra throughout the episode - - - I wonder if the divorce he threatens with will be a catalyst for Brad to get a fulltime job? I was also shocked that Brad put the weight of his risky investment decisions on Sandra's need to feel safe. I truly hope he can listen to his words and see that his high risk tolerance is the opposite of what his wife is looking for.
Brad talking about leaving Sandra is a manipulation tactic. Clearly she'll be just fine financially without him. He's playing her emotionally to shut down the money conversation.
I can see why Sandra doesn’t feel the $20,000 per month is income. If $1mm of investment was used for the oil rig venture then the $20K per month is just refilling that investment bucket. Anything over and above that original capital could be considered income. This is a super risky investment that can go to $0. It’s not like putting $1mm into a Vanguard fund.
I agree. I would see this as retirement income and making sure it’s going back into my investments to ensure we’re compounding. I would be making sure it’s going directly to an ETF.
I completely agree and I'm shocked that Ramit doesn't see that money as untouchable. By using the $20k to use as living expenses, basically means they took a reverse mortgage. There is no way I would ever let my husband make a decision to put the bulk of our money into a super risky business and not diversify it.
As a teacher it’s insulting when people view teaching as a cush, semi-retirement job. It’s a tough job, and a stable paycheck + time off isn’t enough to keep most people in it (or to make you an effective teacher for your students). I have seen 2 men in their late 40s/early 50s start teaching at my school; a former engineer and a former lawyer. Neither made it past the first year, and I witnessed both crying at some point in the year due to the cruelty of the students, or overwhelming amount of work. I would caution Brad against pursuing a career change to education, there are easier ways to make ~50k/year.
Wow, it's valuable to hear from a teacher on this!! Especially the lawyer... You know he was likely working bad hours before. Sounds like teaching was more difficult.
Hard agree, Virginia! I was driving home to work on a lesson plan for my undergrads listening to the podcast and was like... you wanna make 10k a month teaching without having no credentials and just your wife's faith in you and your ego as your backup? Naw, Brad.
@@debbielockhart7762in my state they can make 113k. Plus health care. Plus fully funded retirement, which they add zero dollars, plus do not pay into social security, and only work 183 days out of 365.
What Brad doesn't seem to understand - if this investment average investor has $60M in the project, why the heck would they allow him to invest with $1M?? A general partner in an oil drilling project wants to deal with as few investors/partners as possible, and unless Brad has some special deal or is a friend or family member, why cut him in at $1M when the average investor has $60M?? Brad is being scammed and he doesn't even know it. I have a feeling it isn't the final time Brad will be involved in some sort of scam - Sandra needs to completely take the reigns on the money before Brad puts them under
I didn't know the upfront investment was a red flag in these ventures. How could he lose all his money? Is he being scammed on the dividends? I'm a boring investor so I have no idea how this stuff works and I'm genuinely curious.
@@2snipe1 upfront investment isn't the problem. The flag is that you should be leery when your profile doesn't match the profile of the other investors in a project. Sure there are friends/family investments where partnerships will take on some investors with little capital. When you don't match the other investor profile, you're taking on considerably more risk. A $1M loss would wipe him out. A $1M loss on someone with $60M invested would be a blip. The general partner is running the investment with the $60M person in mind - not the $1M The second flag is oil ventures - there are two types - drilling and exploratory oil ventures. These are only for sophisticated investors with high net worth. These investments have low liquidity and low transparency and is often being managed by a general partner. You have a chance for a big payday, but more often then not the venture ends up running out of money and the team leading the disaster closes up shop and creates a new venture and lures in investors. These investments are rife with fraud and mismanagement. It sounds like they paid out a few months with hopes of getting this guy to invest more. Once they've gotten all his money, the pay structure peels back or totally stops
@@2snipe1 There are many ways this could be a scam. Or it could be for real. He just has no way to know. It could be a con game where he gets a taste of his own money back to induce him to reinvest more, or just to delay his suspicions when they eventually steal his money. It could be a Ponzi scheme where he's getting his "returns" from subsequent marks who buy into the scheme. It could be an actual oil royalty trust, but they've misled him about something, like the realistic range of outcomes, or what oil price they truly need to break even. To me, the deal has many of the hallmarks of a scam, including their insistence that he see the actual oil (I just feel like that's designed to create an illusion), their emphasis that he's getting a special deal, and their appeal based on political affinity. They are also doing far too much hard selling, considering that this investment, if genuine, would be attractive on its own terms to most investors. Of course, none of this is conclusive, and it could be for real, but if you're going to invest your family's life savings, you need stricter standards than "It might not be a scam."
@2snipe1 I have no idea either, but I imagine the oil operation was well under way, the initial investors got their money back and then some.. now they want to bring in as many smaller investors as possible, selling off their portion, as the oil is likely running low. I'm just guessing though.
She works full time and another part-time job and is a Mom to 4 kids, and she needs to tiptoe around him to make sure he doesn't get mad?? Does anyone else see the discrepancy?
Yep. It’s absolutely insane. He made a ton of money and squandered it (and is blaming her) and now they have little to show for it. Now she is carrying everything including his hurt feelings.
I am so glad SOMEONE said it! He’s resisting working full time when she has 2.5 jobs. And he felt attacked?! I honestly thought Ramit was much harder on her than him- he *is* underemployed and choosing to be so for his lifestyle, at her expense. I feel awful for her.
Are we even watching the same episode? I see a man whose face is twitching under the pressure of a wife who has the same scarcity mentality no matter how much he makes, puts constant pressure and put-downs on him, constantly telling him he could do better, but is perfectly happy to spend it when it’s there. She said she doesn’t feel she’s contributing unless she is worrying, and her worrying takes the form of pressuring him without understanding how it comes across. “How would you feel if he said xy to you?” “Oh yeah, I guess that would feel bad.”
@@JasonF_1985 Agree 100%. Most of their marriage husband was sole provider while wife was SAHM. Wife is stuck on the 2 years husband earned $800k, that is what she really means when she said "he is underemployed". She also makes pie-in-the-sky comments about needing $5million+ to retire in 17 years. Husband has been & still is under tremendous pressure to meet her fantasy expectations. Personally think he needs to re-evaluate what would he like to do professionally for next 17 years, instead of putting up with the emotional grindstone he dealt with for 25 years of marriage.
As incredibly difficult as it must be to put all this out on the Internet, there has to be a level of embarrassment on the husband’s part. Remit was totally on point, kind and did not attack at all. it makes complete sense to run best and worst case scenario. That investment is terrifying. I would not be able to be as kind as she is with this level of risk & lack of ambition. Wishing them both well.
If I may ad to it. Ramit spend (from what we saw) a lot of time as well talking to Sandra about her behaviour and what needs to be off the table. So that is something that was a concern for him. It's not easy to be confronted with the reality, so I hope he comes around.
I can see that the husband felt attacked, but Ramit was just giving his opinion on how much risk he was taking. The wife didn't want him taking all that risk so he shouldn't have invested all of THEIR money.
It’s one thing to risk all of your money, probably a low-ish amount, when you’re 25. Altogether different when you’re 50 and have a decent amount. And even more risky when both are not taking a regular job.
Probably tough to be told publicly that you made a bad decision. The guy’s main argument was that wealthier people were also investing in the oil well and they know what they’re doing. Thats flawed thinking. Rich people often lose money as well. I hope the oil well works out for them but fracking wells can dry up very quickly. And to “re-frack” the well, costs money.
I thought calling it "dumb" money was a bit much. The money's already invested and he can't take it back. Yes he should think about the downside scenarios, but I think many of us would shut down if we're being called dumb.
Securing a full time position at a university or community college is very very difficult, even in business, marketing, or finance. I speak from experience as I was on a community college hiring committee for a full-time business instructor position and there were more than fifty resumes submitted and 8 brought in to interview and provide a teaching demo. And the person ultimately hired started out at 60k a year, which is about half of what Brad claims he can easily secure. I’m in a middle to high middle cost of living metro area. There have been other couples on this podcast who think securing academic positions are well within reach. They are not.
@@YIWOTY Corporate middle management jobs only comes easy if you have enough connections (top b-school or being the Harvard club or the likes) and family reach. Else you are sol thinking you can just land mid level manager job at F500.
Heck, if they put that in schd or some other dividend etf… assuming 5% price growth and 8% dividend growth, they’d be making 160k+ per year forever after 15 years
The true tragedy to me is how that oil shit happened. A sales person masquerading as a financial advisor. Shit should be illegal . Non fiduciary is absolutely criminal
Thanks to Sandra and Brad for their participation. Brad mentioned several times that there are people investing tens of millions in the fracking group, which helped to provide security in his mind. Perhaps those people have hundreds of millions in the bank, so that amount could be an appropriately diversified investment for them. Percentages matter. I hope the investment works out for them.
I think Ramit was fairly gentle with the reality of risk here for this couple's financial future. It struck me someone could have replaced the oil investment with a timeshare and it would have been the same thought-process to buy into the scheme. Something I have noticed is that as people start to heal on their life journey the illusion of "get rich quick" becomes less and less appealing. God bless Ramit for his knowledge and heart to help people with his financial wisdom.
Did not talk enough about them needing to reduce spending. They are spending over $100k / year on fixed expenses alone. National median household income is $75k. They are spending 33% more than the national median average income. They simply don't need to be spending that much money. The hand wave of "once you've made a lot of money its hard to go down in lifestyle" simply doesn't work. People need to confront their spending and actually be willing to move down in car, or move down in house, or in some cases send kids to public school, to make their finances work. "Make more money" is a nice idea, but they are already making plenty of money, its the spending that is the problem.
Reducing spending could be a real solution! That's why it's so important they get on the same page with their goals. Maybe they'd both be fine with spending less so they can both have the careers they want. Sounds like Brad hasn't even been given that option. His mandate is to make bookoo bucks and the pressure is too much.
@@benchristensen1526but that’s the issue neither wants to accept that reality. He doesn’t want to work a real job and she can’t accept that he’s not bringing in what he used to. They got used to this life and can’t get rid of it now. It’s unfortunate but this is what happens to people.
I appreciate every couple who has the courage to open themselves up to scrutiny by being on this podcast. Even so, the fact that Brad left feeling attacked is surprising. I wondered what it was about him that gave me pause, and then I realized that, in this episode, his behavior reminded me of religious people I grew up with who presented themselves as being humble and willing to listen, but possessed deep wells of arrogance rooted in emotional fragility and pride. I’m trying to be very specific in my language by saying that he came across this way in the episode because 2 hours of a UA-cam video aren’t enough to say, definitively, who a person really is. But that is what he reminded me of during said episodes. Usually I watch these and have some hope that the couple will change, but it’s hard to maintain that stance in light of Brad’s response.
I know they have to count the $20 k as income but it’s literally not. They had a huge lump sum to work with. The fact that they gave it to the oil people who now give it back to them in bits and pieces as they are being taxed on it as dividends and now they have to live off of it and then invest the rest when they haven’t even recouped their initial investment is mind blowing. They could have skipped all this and just invested to begin with. I would feel insecure too up until I recouped that investment…which, if they’re lucky, is several years from now. Not a great feeling.
Yeah I disagreed with Ramit on that one. It's not comparable to a dividend fund if you can't sell the position. To spend that is closer to pulling from savings.
Right, whatever the return on that investment is, if they're not saving or re-investing the dividends they're essentially withdrawing their retirement in their 40s.
@@funginimp Calling it "income" honors what Brad wants (respect for his choices) and puts it in the bucket of "money that should be distributed into responsible investments," which is what Sandra wants. So it actually takes something contentious and turns it into a win-win.
Not surprised Brad's a big baby and felt attacked. Ridiculous. In my opinion Ramit was harder on Sandra and actually helped Sandra see Brad's side. And I really thought that Sandra's position was more relatable.
Totally agree. He’s a good looking guy who’s taken risk for years and wheeled and dealed his way through life and it’s catching up with him AND his family. I’ve been where she is on a lesser $ scale. It’s mentally exhausting to feel like you are carrying all that responsibility and dragging another child along. He needs to get a job. Any job.
Oof… make £1million in a house sale and investing ALL of it into one risky investment - he thought about divorcing HER?? Surely it should be the other way around? The fact that he felt attacked after the call too is surprising - Ramit gave them all the solutions to resolve to the mess they are in. He should be thankful for a way out. He is feeling attacked because he doesn’t want to admit that he might actually be wrong.
Right? I’m like girl leave his crazy ass but the problem is she wants that money too and doesn’t want to work. He’s a massive problem, but she’s at fault too. Super toxic relationship and people to listen to.
My thoughts exactly. If I were her I would have said this is where we draw the line on this marriage. Split the 1.2 million and go their separate ways. She definitely would have to work, but (to me) that would be preferable to losing everything down the line. What I see is that he makes all the financial decisions regardless of what she thinks/feels and he wants to divorce her for nagging him. Give me a break.
Putting your whole nest egg into one incredibly risk venture is insane. I can totally understand her anxiety and stress. I would not have been comfortable even putting $50k into fracking let alone $1million. It’s too much to lose in one investment when it’s all you have.
Man, I was feeling hopeful that the couple had made a breakthrough on seeing each others' perspectives, but the follow up email about Brad feeling attacked and not wanting to engage further seems pretty concerning for whether they'll execute on the plan as discussed.
Ya I agree. So interesting because he was taken it pretty well in the interview. Now I do feel Ramit did attack a bit but in the end still had some good stuff and should have focused on progress he made with his wife. Not responding is a cop out and not cool
I think Ramit lost him with the dumb money label. I mean, we all know that was a dumb decision but it’s another thing to be labeled as such in front of your wife and everyone. I wouldn’t count that as income if I were her either. So with her on that. I’d treat it as my principal and invest it wisely.
Yep, Brad seemed to take the dumb money phrase well but then a little later in the call, he started getting angry and spat “it’s not dumb money.” You could tell that phrase was really eating at him. It was unfortunate because Ramit’s point was completely valid.
Yeah you can tell Brad basically shut down after that. He responded positively but was very short and just agreeing to get the call over with. He didn’t want to be on there anymore
It sucks that Brad is likely not going to change course on the oil investment, but you just could tell he wasn't gonna switch to index funds and was just saying their are good investments to placate Ramit. Sandra, for all her many faults, abandoned that "get rich quick" mindset while Brad is still stuck in it. Ramit using the term "dumb money" might have backfired on him, but it 100% fits this description. Brad's feelings are valid (cause Ramit was attacking him) but he deserves it (or at least to be called out for it) for willfully ignoring the major risk he's taking with almost 100% of the family's net worth. Lastly... totally not surprised that they read and bought into the ideas from RDPD.
@@JonKrueger I agree but also agree with Chukwuemeka. I think that the phrase “dumb money” activated Brad’s defensiveness. What I liked about Ramit’s approach is that he didn’t call him dumb; he just used a phrase that others in the investment community might use. That oil investment is downright foolish. He needed to hear that truth, even if he’s too stubborn and proud to accept it. I hope that it works out for Sandra’s sake and that of their kids. I don’t think it will, though. 🫤😔
@@aic0809 Brad's defensiveness came out in the form of avoidance. It is wise to have a plan for the worst case scenario. It is forward thinking to listen and heed warning. It is loving to selflessly sacrifice for one's family. Hopefully, Brad comes to accept his family's financial reality.
@@JonKrueger You make excellent points! I hadn’t thought of what he did as avoidance until you put it like that. I really appreciate you taking the time to share your thoughts. One of the things that I love about Ramit’s podcast is the opportunity to look at financial decisions from a psychological perspective. I learn as much from him as I do from the comments, so thank you!!
The first episode made me think she’s so demanding and unappreciative of how hard he has worked over the years. But after hearing about the oil fracking investment - it seems he’s making a desperate attempt to get rich quick which will likely end with them losing most of their savings so now i understand her fears.
I think they are both at fault. She always wants more money so she can reach this mythical place where she feels 100% "safe". He is impulsive and wants to get rich quick, and tells himself "the system is rigged" to justify taking major risks with his family's money.
I am not at the end so maybe this gets covered, but I think Sandra’s problem with the oil dividends is that she doesn’t view the monthly return as additional income over the base investment. To her it feels like they have given away 1M of their savings, and they’re getting it back piecemeal every month in $20,000 increments that they are then, in turn, spending on toilet paper. Emotionally, to her, it’s no different than using their savings for monthly expenses. Her husband’s perspective is that they still have 1M dollars, it’s just working for them in the oil business and successfully generating an extra 20k per month. The latter perspective is very different from the former, and I don’t think that (so far) that has been addressed for Sandra. How Investing works doesn’t automatically make sense to the average person, and I think this is the case for Sandra. I’m wondering if she would “feel” better about the oil if time was taking to explain it to her. Now, granted, there are a lot of other issues at play here, but it feels like this one has so far gone unaddressed
That's exactly what's happening in her mind and i kinda agree with her because until they get all of their $1 million back, they're spending their retirement on day to day living. She doesn't trust themselves to invest those returns so to her the money has been lost until all of it comes back. Gas prices going down during an election year could almost bankrupt them.
Sandra has a point. Getting that million dollars back is not guaranteed, and it’s certainly a risk that the business collapses and they get nothing. As opposed to say real estate, or bonds, or the S&P500 where it’s almost impossible not to recoup your losses over the long term
I wish that had been addressed too. What's the resale value for this investment? If they wanted to bail from the project completely and sell their share to one of the other investors, how much could they get for it? It seems like Sandra is assuming that it's $0, and Brad is assuming that it's $1 million. I suspect that the truth is somewhere in the middle - this isn't like putting $1 million in a bank account or CD, where you can take the principal back out whenever you want, but on the other hand, a stake in an oil well that's paying $20K/month (for now) must be worth something to somebody.
Makes sense. Yes, to her it could be a repayment of initial investment and only payments after they have that back - can be view as a return. But to him. It's like he's bought shares in an oil company. And each month he gets a dividend. This also makes sense.
He teaches accounting and his wife is struggling with the bookkeeping, why is he not doing it since he is only working part-time?? Then he can understand the monthly cash flow and why his wife is a nervous wreck.
Great point. He should be handling the money if he only works part time. However, with his ego, I'd be afraid that he would hide any losses until it was too late. He feels the need to save face with this oil stuff. But, I agree, that maybe he doesn't worry sufficiently because he's removed from the numbers.
13:29 This sounds like a ponzi scheme. They are giving him back his money in increments at the same time they are using the remainder for whatever reason. He has to pay taxes on that money. Do they know anyone who invested in that company. When they given him back the equilivant of 1 million they will cut him loose or file bankruptcy. Brad wise up! He makes me nervous and I'm not married to him. He's too much of a risk taker. It makes her feel financially insecure. I would too.
I worked in reservoir engineering for oil and gas which is basically finance, so I’m very familiar with this. This is actually exactly how these investments tend to go. Slow repayment typically based on the performance of the well.
oil companies have a portfolio of wells in different basins and the fields or wells are in partnerships with other companies (rarely individuals) to share further the different risks (oil price, reservoir risk, operational risk,, cost escalation, tax regime change, regulation, environmental, etc), costs and liabilities. It is a business that can give very good returns but it is a numbers game is underpinned on probabilities and technical competence because you can seriously hurt a lot of people/environment as you are working with heavy machinery, reservoir pressure, hydrocarbons, challenging and complicated technical procedures and dynamic systems. I would be very weary of any operator being comfortable accepting small piecemeal investments from private investors given the potential liabilities associated with the oil and gas business
Remit, I'll bet it was hard to hear that he "felt attacked" after you listened, gave such good advice, and were so gentle with someone doing something so unusual and risky. You did a great job. I pray to God this oil thing works out for them. I can understand how she doesn't see the money she gets from the oil as income. This is retirement/investment $! Of course she feels weird living on it while he isn't working.
It’s really sad to hear that Brad felt attacked and refused to continue this process. It sounded like they made some enlightened discoveries and progress during the interview podcast. But I can understand Brad simply wants to be appreciated for all of his work trying to appease to Sandra's money worries. It was hard to hear that they tasted the high life when they made $80k/month, and they couldn't accept their current reality of not making as much monthly. I’m curious to find out if their marriage will survive this, especially if Brad had already considered divorce.
I was actually shocked to hear he felt attacked. Ramit was so kind and provided him with constructive feedback and the truth. I think it’s his own ego getting the best of him and letting his emotions take over. Hopefully he listens to what Ramit said because I felt that by the end they all came to a positive way to move forward regardless how the oil thing falls out.
i was too but then again you have to remember men can be fragile especially about providing. and especially on the internet and being a finance teacher. then having the finance god tell you that you were a "mark" for wall street like 'doctors and dentist'. its a hard pill to swallow and especially if the "investment" is already failing
Pretty disappointed in Brad's sour grapes for not doing any sort of follow-up. Even he admitted he overcompensated from poor oversight over their market investments with the financial advisor by swinging for the fences with the oil project. It's great he feels he did his due diligence on the oil project but Ramit was simply stating a fact that the oil project is far more risky than index funds. Unlike what Brad said in the previous video about 401ks and the like, it isn't those financial instruments that are bad it was he and his wife being asleep at the wheel. I was optimistic Brad and Sandra were making significant progress toward getting on the same page but it appears maybe Brad has too much pride. I wish them the best.
"I discovered you needed licenses to become a teacher and it's really complicated." Good grief....did he really think he could decide to be a teacher in July and be hired by September?
Also, it’s really not that complicated. I mean I guess a little bit more complicated than just applying and getting a job but getting a teacher certification is pretty straightforward in my states.
Why is Brad acting like the million investment should be used for cash flow? People don't use the dividends for their index funds and retirement accounts as monthly cashflow. No one should be taking his finance course. He's clueless.
Because didn't you hear, the oil execs promised its going to be like 5x return! turn your 1 milly into 5 milly over the course of a handful of months!! 🤦
@@4thand133 yeah retirees are supposed to do that. These people have no retirement accounts it sounds like, just this. If they fail to make long term investments they won't have dividends to pull from in retirement.
When Brad took that $1M and made that investment in an oil project, he didn't realize that he was taking a high risk gamble. As such, you should stick to gambling rules. Never put in more than you are comfortable losing. I guarantee that those larger investors are getting recouping losses from the project before Brad if the whole thing goes south. If they lose that money, they're gonna be broke in retirement, that's what the numbers said, so no, he can't afford to lose that money and that's what makes his gamble a bad decision. That he feels attacked because he was called out on risking the family's life savings and told the reality of the situation is just immature. You can make risky decisions, but you need to CYA. Brad did not. Brad made a bad decision. Ah well, maybe his "health and wealth" ministry will reimburse him for his tithes if it goes off the rails... 🤦♂
I’m sorry, this episode is ridiculous. The money coming back is not income if they put the ONLY savings they had into it. The returns are desperately needed to be saved or reinvested in index funds. The thing not being talked about is that these two people are NOT compatible. They have so much animosity towards each other that they are literally irritating to listen to, and truly I don’t mean that in a malicious way. Being with someone we’re incompatible with can bring out our worst sides. She said she saw that he’s doing that for her. Obviously I’m not in there life but that seems wildly off base. He’s doing it because he wants to. If he wanted to “make her feel safe” then he would do safe investments, NOT throwing the only money they have into a black hole (lol) hoping for the best. They both come off like caged birds that only the other can free. I hope they can find ways to live in alignment with their own selves, regardless of if that’s together or not.
My heart breaks for Sandra. Is it too much to expect a spouse to work full time if they have four kids and she is working? Brad seems like a well-intentioned guy, but he needs to make better decisions. There is a HUGE teaching shortage. Why can't he find a full time teaching job? And why is he so surprised that teachers need to be licensed?
Exactly. It’s one thing if they have multiple kids that are younger than school-age, but that’s doubtful. It never came up that he was home taking care of kids-it was mentioned that SHE works from home AND tends to the kids. He literally could have any basic steady job while he looks into other ventures. He’s a dreamer. Dreamers aren’t bad! But at some point they have to be practical if their fixed spending is overcoming the working spouse’s income.
Rich Dad, Poor Dad had left so many on the get-rich-quick path. Kiyosaki just gives bad advice, and currently he's even more harmful talking about the world economy collapsing to peddle his gold/silver securities.
I don't understand why Brad would feel "attacked"... my theory is that behind that statement he can be excused on doing anything he agreed to here and will continue his risky behavior as he always wanted to
"that's my contribution. it's worrying about it." boom - that's a hell of an insight. regardless of whether they decide to stay committed to each other - i commend BOTH of their abilities to reflect and acknowledge things about their behavior/mentality that has not been serving them well. i hope they each continue to stay curious about why they are behaving the way they are wrt finances/spending.
The older I get, the more fascinating it is to me how some people can understand from a young age that money is just math and they can take the simple math of spend less than you earn and boring-invest the rest and they’re just fine in life, and then there’s the rest that get emotionally twisted with it, trying to use money to compensate emotional holes like not feeling good enough so spending too much becomes a habit and coping mechanism that never actually solves the emotions. Brad was never good enough (in her eyes, perhaps also his own), so in a desperate bid he seeks out this risky investment. But never defining enough, or what is good enough led to the risky math, and I don’t shame or blame him for that, but I am saddened he didn’t feel like he learned from Ramit’s exercises enough to do a follow up and just own he made an emotional decision and now it’s about moving forward and trying to make the best of it.
I lost $200k in bad investments which sunk me. Don’t think we will ever get ahead now in our 50’s. I blame Robert Kyosaki and the $30k we spent in his seminars. Many bad investments came after based on his advice. Much love to Remit
You blame the guy who wrote a book in which he shames his own father by calling some rich guy "another dad"? Surely, you are a master of your own fate?
There was a time when I was consuming all of Robert Kyosakis free content online. One time I attended a „free live seminar“ were he introduced a young guy presenting his business idea to us. After 20 min it was clear to me that was some kind of „ get rich quick scheme“ because even after 20 min. it was not clear what the product was, that we were supposed to sell. Since then I last all my respect for Robert. There are a few of his sorties from the book I still remember and I liked but that’s it. I am sorry, you lost your investment.
Blaming other people for your mistakes. That was your choice, robert didn't force you to trigger the button. You have to make your own diligence. I did lose some money as well. But don't fire at Robert's or other book
Ramit did an excellent job on this one! So much progress. So sad Brad felt that way after the call though. He was being very coachable! Ramit was right, if you even use Brad's probability of 20% that the oil venture goes bust, that's way too high a likelihood to bank your entire savings on. As bad as it is though, it was sadder to hear all the pressure Sandra puts on him. So good of Ramit to take her to task on her bad money habits and her over-criticizing of Brad. That sounds so stressful to have in a relationship. Hard to think of what Ramit could have done differently to help Brad. Maybe he could have validated Brad's motivations? Isn't there some truth to Brad's contention that he's making these money decisions to try to meet Sandra's huge income demands? And isn't it true that his risky investment is currently accomplishing that? But really a great job. I hope the tough talk will help them avoid divorce and get on the same team in terms of money. Even if Brad's pride took a hit on this one.
And he did validate Brad's feelings about the pressure and the way she talks to him. It seems Brad does not want to hear that he has any part in creating that pressure
My wife and I started our financial journey together relying on Ramit's advice and it has made a huge difference! We still have to work hard to pay down debt and be disciplined, but we're a team and talking about money is never contentious, it's all about deciding what we want for our family and what we think the best way to get there might be. It's definitely do-able!
@@TheDoggmom Yeah that's true, if you aren't a zealot. I think finding someone who follows the path proposed by Ram here is probably possible. However finding minimalist and not the trendy kind but the sacrifice significantly is probably not going to happen. I don't know I just see the way this guy is getting beaten up even those he's freakishly successful and I can't imagine going through that.
Nah it makes me grateful to have a supportive and loving partner. Not everyone is toxic and stuff like this. If anything let these be red flag markers for future partners.
So let me get this straight, he provided for the family for all his life and the moment things turned on him, Instead and of being a good wife and supporting him, she spits on his face and drags him through the dirt. You think this is ok? It makes sense why alot of men are marrying women from other countries. They know what tough times look like and they ride or die to the end.
I just listened to this latest episode of the podcast, and, as someone in the oil and gas industry, I found it particularly captivating. The discussion about Brad’s investment choices was intriguing, yet I was left a bit unclear about the specifics of his investment. Was he becoming a minority working interest owner in the wells, or was his investment directed towards a fracking rig, essentially a service company? This distinction is crucial because if he’s investing in the rig, it’ll continue to generate revenue as long as the rig operates for another operator. If oil prices drop below $60, many drilling operations will cease, beginning with fracking rigs. Like all investing, particularly in the oil and gas sector, diversification is key. Relying too heavily on one investment, incredibly as risky as this, is something even seasoned professionals would think twice about. Best of luck to Brad, but this episode reminded us of the high risks when you swing for the fences instead of just trying to get on base.
Been looking for someone to call this out as a scam. This weird thing where he invests $500K, gets a relatively decent payout with promises of more, then drops the other $500K... I guarantee they'll be trying to get them to reinvest all the profits. This sounds so much like some sort of pyramid scheme that is just going to go "poof" at some point. The break even price of $30 a barrel seems like a very optimistic number.
Brad swallowed the hook whole. He was flown to the site by helicopter, shown samples, made to feel he was getting a special privilege by being allowed to invest so small an amount as $1 million...
I said the same thing. If someone tells you the average investor has $50M in a project, but they're willing to accept your $1M, either they're lying to you (the average investor in the project has far less than $50M) OR you're definitely in the wrong investment. You don't match the profile of any of the other investors in the project - they can afford to lose $50M and you'd be wiped out by losing $1M. Unless you're getting some sort of friends and family situation and you know/like/trust who you're investing with very well, you're likely being scammed. I'd avoid oil drilling projects at ALL costs - Ramit is right that the payments will dry up quickly and the $1M will be gone. I'm a Wealth Manager by trade and I can verify that
It looks to me as if Sandra would be fine if Brad had a full time job. She wants a steady income that covers their costs and leaves some over. I don't believe that Brad leaps into the get-rich-quick schemes to placate Sandra. If he wanted to placate her, he'd get a steady job. There's no reason he couldn't get a full time job now despite the current oil dividends. It can take many months to get a job! What are Brad's qualifications and experience? What makes him so sure he could get a middle management job if he doesn't have a good solid track record? Or walk into a teaching position?
Hates talking short about the numbers but loves telling the story. Seems to be in line with the sales background and the underflow of the prosperity gospel they admitted to last episode.
@@adamzioriophotographyhe took the entire million and invested it into a very high risk business. The likelihood of him losing it all is very high. It would have been better had he just dumped it in a savings account, given his distrust of retirement funds / index funds
Appropriating the savings his wife helped build and then take credit for putting her money to work? Not saying he didn’t help build that, but if I save up 500k and my husband makes a cashflow returning investment using that money, is he really the one producing the income?
The ending of Brad disengaging shocked me - but only for a minute. Denial ain't just a river in Egypt. If all of your stuff gets put under a microscope and outside observers don't see what you know to be true, then you put your fingers in your ears, close your eyes, and la-la-la-la-la till all the people who don't agree with you go away. For Sandra, i hope she can find a way to rely on herself and trust herself - whatever way that works for her. She doesn't need Brad to swoop in to "save the day." It's romantic, but not practical or realistic. Still, good for them for having the courage to come on the podcast.
So weird how this was handled. Ramit berated Sandra for not wanting to think of the $20K dividends as income that's available to be spent...and then later he basically acknowledged that she was right, that as much of that money as possible needs to be plowed into index funds immediately, because otherwise they could be left with nothing. And then Brad is the one who feels attacked? Sandra may be a natural worrier, but her worries on this are justified, from what I see.
Berated? I heard none of that, he simply told her its not a smart investment but the dividends are definitely income. When did he berate? He then agreed with her that they should be investing in index funds. There was no disconnect between counting the income and also investing in index funds. I dont understand how this comment is this highly upvoted, did we watch the same video lol?
Can we spell”Ponzi”, boys and girls? I always thought I was a “ swing for the fence “ kinda girl… but not like this. Not our whole savings in something illiquid
Returns for oil wells are highest in the first few years and then dwindle as supply dries up. Their investment is probably tied up for like, 10 years plus, so in years 6-10 they’re probably making more like 2-4%, and can’t get their $1M back. They are playing a game that revolves around current oil prices, and they have to pray oil prices don’t fall through the floor during their few good years.
@@leahmanderson298in that case, let's say the first 4 years, they get $20k per month. So after 4 years, $980k. Then, the last 6 years, 2-4% per yr. So, 40k per yr for 6 yrs = 240k. 980k + 240k = 1220k... So their 1M returned 220k in 10 years. How is that better than VOO??
I think you hit the nail on the head. Once the $1M is invested, it's likely substantially gone for good. So the oil well "dividends" aren't pure profit - they're a little bit of profit mixed in with a lot of return of capital. I think Sandra was right to question if the monthly distributions should truly be counted as "income". Of course the money is flowing into their account, but most of it is just a return of their own money. If I had $1M portfolio and I was liquidating $20k per month to cover my fixed lifestyle expenses, I certainly wouldn't consider that a recipe for success. @@leahmanderson298
$60M investors more than likely have $100's of millions so they can take a painful loss. He invested their only million. If they lose, it will not only be painful but devastating
As a mom of little kids - of course she is seeking security for her kids. He seems like a snake oil salesman. Why would you put your entire nest egg into some sketchy investment. I feel worried along with her.
I don't think I would call him a snake oil salesman. He is a mark, the very person to be fooled by the snake oil salesman. I do agree that she is right to be worried. This man is going to destroy them financially.
If she keeps complaining about not having enough money, she basically forced him to gamble and win big to make her happy. It's a get money quick scheme because she spends so much and wants big money now. Cause and effect from my perspective
@meejmuas8686 This was my thoughts from part 1. He was bringing in 80k a month before and she wanted to stay that way. He get high thinking he is providing and making his wife happy so he jumps at any scheme that comes his way. I can see where they're both coming from. I can see them working through it
@@ignitionSoldier It reminded me of the old saying that if you are playing poker, and you look around the table and can't figure out who the sucker is, it's you.
Cudos to them. It takes a lot of courage to come on, but I'm disappointed that he felt attacked on the call. It seems like he refuses to acknowledge a realistic scenario where things aren't the best case and plan for it. I also see similar signs with this oil investment and the financial advisor. “More Knowledgeable/wealthier people” are involved, so he feels safe. I'm not sure why he is so resistant to doing a job he “loves” that gives him the summers off to do something he also “loves.” Doing this would prepare for the worst-case scenario and also reassure Sandra.
I could not imagine selling our home and then investing the entire amount which is the bulk of their net worth plus some into a single risky investment. I am glad that Sandra is finally putting her foot down. I think that is more than fair for her to say she wants to invest 50% of the dividend for long term retirement planning. It’s interesting that she considers herself financially conservative yet is married to someone who is such a risk taker … that alone would make a relationship / marriage tough.
She said in the end that she is more like Brad than she thought. If she was conservative they would have more than 1.25 million after 3 years of 800k/year income and 20 years of marriage.
@@RB-gq2zy it is a common pattern, lile the other couple calling themselves simple even though they had a champaigne taste lifestyle. Or the guests who keep insisting that they don't know anything about money, even though they do
“The system is rigged” if he put that $1,000,000 in the S&P500 ten years ago it would be worth $4 million today. Look im all about being skeptical about stocks, and spreading your investments around elsewhere, but to put 90% in one business is CRAZY
The first risk is the oil price which is impossible to predict. Oil companies diversify by having many wells in many different basins with different qualities of product that go to different markets. It is a risky business, oil price, tax regimes, operational and environmental risks, reservoir risk, liabilities etc
Thanks for another great episode. It was great that they figured out their financial advisor was screwing them over and they got out. But made the exact wrong conclusion on what to do next. It's sad he felt attacked when you clearly and empathetically laid out the likely scenario with the oil investment. He's going to be in a bad situation no matter what happens. If it works out it will only encourage him to take bigger risks until he blows up his account. If it fails he and his family are in a real bind as you showed them. Hopefully it lasts long enough to raise their 4 kids.
I felt this was a very constructive conversation with both of them. Sandra can engage with Brad more constructively, encouraging him and building him up. Brad can see where his wife is coming from, and was given better advice how to handle their money. I get Brad feeling attacked, because of his decisions but its warranted to make him see that he can make better financial decisions. They both can. Good luck to both!
Some people are just programmed like that: if you don't work 9-5 you are not living up to your potential. I am with Brad here - peace of mind is worth a lot more than what he'll gain from a job, post taxes.
I like them but the oil well is too big of a risk. Even if it works out for them, I guarantee the next risk will be larger and perhaps more risky. Few people control themselves with this behavior.
He’s has a masters degree and is underemployed. He spent a lot of time defending the oil investment. That’s draining. The oil income/dividends/return of capital on the CSP: It’s not income but it’s going into savings. But how can you save money that never came in?
There is too much drama here.( "I moved heaven and earth to become a teacher".) Really? They need some longterm counseling. I hope they get it as there are children involved. This makes my heart sad.
Yeah. Moved heaven and earth for two months. Absolutely no clue and no respect for teachers who have put in the time for education and licensing. The arrogance is astonishing. If he enjoys teaching, then that’s great! Get trained and certified. He may end up being great at it, but approach it with a little less ego.
I think this was one of the deepest conversations on this podcast. I can see how Brad may have felt. There were some intense confrontations, but he also had incredible take aways. I do feel like that this couple was VERY vulnerable and got some great solutions.
This one was just painful to listen to. Sorry Ramit, but it is really unlikely that these two’s money dynamic will change. She’s too to passive and his ego is too fragile. It’s really hard for people to change after decades of past mistakes. Appreciate your effort though, you were clear and honest. Kudos.
If I'm not mistaken Brad did this investment opportunity to replace an income. She thought this would be an investment for more security....They're not on the same page. I hope they can work it out.
I feel more like she consent to the investment to not be à show stopper but she desagrees on it ... she accepted that 1M $ can disappear., but she needs her husband to have à mitigation plan when he wants to not work solely counting on the oil rig.
Can someone explain to me why he counted $20,000/month as income but also counted the 1M invested. Aren't they both the same money? Like at least initially, he's just getting back his $1M , right? Am I misunderstanding?
I believe Ramit counted it as Income to appease the couple & then turned around & told them to invest most of it in the market. Essentially, getting them to do exactly what he wanted all along.
I wonder if he got offended and is not willing to engage further because the monthly dividends for his oil investment are starting to plummet. If everything was going well $20,000+/ month passive income he would have been happy to make a video and gloat. Guy has some pride and insecurity issues.
I would only put 5% of my portfolio into speculative investments. It sounds like the husband socializes with wealthy people with more money to speculate, i.e., lose, but they are not at that type of wealth.
Yeah if he had put that million in the S&P500 ten years ago, it would be 4 million today. I’m all about diversifying outside of the stock market, but putting 95% of your portfolio into a single business is crazy
Yeah, my husband would have never made such a risky investment. If were her, I’d want to save that $20,000 too! That’s rainy day money for when the investment falls through.
Hmm. The person who used the phrase is Brad. This could easily be his interpretation of what she actually said! She might have said that he should get a better job. Besides, "under-employed" is a very common term.
Ya I agree i think it is a common term and he is underemployed… but that is a choice so no shade with that to him. Cuz I think he has the right to choose a lesser paying and less stress job after providing so much so far
The wife will be okay, no matter what, because she's willing to own her mistakes and make changes. The husband will only be okay if his gamble pays off. If it doesn't, he'll blame other people. He already blamed her for it, saying he only did it to make her feel more secure (by investing every penny they had saved into something she doesn't agree with? Really?). Since they have 4 kids, I hope they work it out. But I think she'll have a better future if she just goes out on her own and collects the child support.
Maybe I misunderstood but I thought the oil money was repayment of the investment, not a dividend. Wouldn't this investment plan dilute their net worth?
I feel these two have a lot of underlying resentment they need to work through. Expecting to never need to work outside the home on Sandra’s part seems unfair to Brad, and changing to a low paying part-time job and taking risky investments on Brad’s part seems somewhat reactionary to that but also unfair to Sandra and their family. I was surprised their living expenses weren’t dissected and cuts discussed like usual. Multiple times Ramit said they were still spending like they earn much more but adjusting their expenses to match their income didn’t come up. Perhaps it was a time issue for the podcast? I’d have been interested to hear about it even if it did mean a third part. I also agree that the dividends vs return of initial investment for the oil should have been clearer. If they definitely get their 1M back when the oil dries up, awesome, but if they only get dividends for an estimated 4 years then the dividends cannot be counted as income. I’m still unsure about the answer to this, I know nothing about how oil investments work.
I call bull on Brad taking risks to make enough money to keep his wife happy. He’s doing it to feed his own ego and to try to recapture the wealth he lost. It’s a classic gambler’s mindset.
She also blames the lack of money on him not making enough money while she spends it all freely. It's not that easy to compete in the outside world for income.
Wow, did not expect that at the end with the follow up. Not entirely sure if this applies to the situation but it seems like the sunk-cost fallacy at play.
I like to make home run investments, so I get where Brad is coming from, but Ramit makes a good point, for the fracking investment to keep paying 25%+ dividends long term, it might be the greatest investment ever. Not super likely.
I was very taken aback by Brad's perception of being "attacked ". It’s interesting because I thought Ramit was actually super supportive and balanced. This really shows how damaging being entrenched in your own perception can be- because when you are closed off you will not hear valuable advice and you will be focused on defending your sense of self rather than opening yourself to other possibilities. I wish this couple the best and I hope they are able to eventually reflect on their experience with open eyes- I know I benefitted from their story and I hope they will too.
@@JulianSloman Yeah. Even if it's based on an actual oil well, at some point I'd assume it will run dry, so there would be no way to sell his stake for the original $1mm at that point.
I respect this couple; 20 + years of marriage with major wins and long low seasons and they are still working on it. I understand that Brad felt attacked, but he kept his cool throughout, he was respectful and has continually tried to make things better for his family.
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Please remember: These are real people who had the courage to come on my podcast and ask for help. Would you be willing to come on this podcast and share every detail of your financial life? Feel free to leave comments based on what you think, but remember that we are here to help in a supportive way, not to demean and criticize.
Hi Ramit. Just a question that stood out for me which is unrelated to the point of the video, about term life insurance versus the expensive ones with cash value. I'm trying to find more information on this. Would love to hear your point of view on this please! Love your content! Thanks 😊
I agree & I apologize Ramit if I have made any comments that could be construed as mean-spirited or harsh. It does take courage to go on your show & reveal your shortcomings before the world. I applaud them both for their bravery…& I pray it works out for the best for both of them.
I would love to know. Where do I start investing? I have set a financial goal to start investing my money but I don't know where to put it.
read Ramit’s book…index funds…with Vanguard is who he likes
@@feliciawilliams5720 Thank you
I could tell that half way through, Brad just gave up and decided to agree with Ramit on everything. He faked being a team player and taking advice just to get off this call.
Amen. Typicall christian white guy vibes
100% - I feel sad for this couple
100% no one getting him off the delulu train
Facts
It was so noticeable when he disengaged
While I absolutely appreciate the courage it takes to come on this podcast and open yourself up to the world, I am completely taken aback by Brad’s attitude. He wants to teach personal finance and yet doesn’t understand it for himself. He wants to have businesses instead of working even if what his family needs now is some stability. He wants to continue to invest in get rich quick schemes instead of a new, full informed and boring approach. I can see why his wife is anxious. There is no balance in this approach. It is all risk.
I know! It's, "you want security and stability, so I am going to risk it all!!!"
I cannot get over that he teaches personal finance. HE BARELY KNOWS WHAT LOW-COST INDEX FUNDS ARE OR HOW TO INVEST IN THEM!?!? I'm more qualified to teach this class than he is.
I'm no Brad defender, but he teaches accounting, which is pretty different. Agree on the other points!
@@Capycorghe said he wanted to teach accounting in the future.
It’s pretty normal for people who are bad at things to teach them sadly. Life coaches, personal trainers, and therapists also tend to not be great because they typically got into their field because they were bad at it and wanted to work on it and then they tend to think they fixed their problems long before they truly did.
I really hope that Brad researched the oil venture and this new business venture a lot more than he investigated how to be a teacher.
Brutal.
he doesn't like being told what he doesn't want to hear.
😂😂😂😂
he felt fracked, i mean, attacked
Two finance mistakes I see here.
1. Brad's oil investment is NOT paying dividends - it's returning his own capital, a small amount at a time.
If Brad decided to get out of the investment immediately, he would not get his $1MM back. He would only get the payouts he received until the day he gets out, not a penny more.
This is where the real risk comes in ... if the oil company crashed, or Brad left after collecting $600k, he would have a LOSS of $400k or 40%.
2. I've seen several videos where people don't understand that an IRA, 401(k), 529 is NOT an investment - it's an account type that can hold different investments and has different restrictions and tax consequences.
You can put crap investments (penny stocks, junk bonds) in a Roth IRA and lose money.
I think Ramit should emphasize this a bit more.
FYI, I'm an old Boomer lady with an MBA in Finance currently working as a web developer at a major investment house. I started reading personal finance books before Ramit was born. His advice and psychology is some of the best I've ever seen.
Shoutout to Ramit for having the patience to deal with this couple. They’re both triggering each other’s buttons in the worse way. It’s stressful and exhausting as a viewer, can’t imagine what it’s like to help them dig themselves out of this delusional hole.
Ramit really did an awesome job.
I kept thinking if Dave Ramsay did this call instead “ya broke!!!”
It was hard to listen to, makes me sad but so grateful for my marriage and people who care about me. Like I won’t ever have their money, but I cannot imagine having a partner like either of them.
I’m not stressed at all. It’s like an advanced psychology class that doubles as a soap opera and a finance class too lol.
It is wild to me that Brad felt attacked and didnt even care to write the email himself-- it's especially wild to me after listening to eps with guys who have been in more dire straits (overwhelming debt, repeating unhealthy patterns with money, lower incomes over adulthood, both partners are unskilled with money), but those dudes were able to own their mistakes or at least get curious about it getting the same level of truth speaking thrown at them by Ramit. The truth wasnt "nice" but it was KIND. Brad is a conventionally attactive white guy and probably has rarely if ever been in positions where his worldview is directly challenged. He said in the previous ep that he thinks those that are righteous get blessings, so probably to him in his mind, who is this guy Ramit think he is to challenge that? Especially when these oil guys make him feel like he's one of them, temporarily in jeopardy, but a multimillionaire in the making, bc no risk, no reward, #amirite?. He needs to own that he makes emotional decisions driven by wanting to be the white knight/hero/savior to keep up appearances trussed up by his ego. If that all feels threatened by some advice he got for free, he's got some work to do.
I love what you’ve said. I agree completely.
Agreed until you brought his race into it. Smh. But I guess you're just a conventional black person... oh wait, sounds racist doesn't it?
Agreed- if anything, Ramit was quite critical of Sandra’s outlook and decisions. I thought more critical than he was of Brad
I totally agree. The constant eye blinking when he was speaking about the "doomsday" scenario spoke volumes to me about his arrogance around his "go all in" oil investment. It's almost like Remit offended his "smart" decision to invest. I actually finished the episode and see that Brad refuses to engage further. Kinda proves my suspicion.
What was the need to call Brad a “conventionally attractive white guy?”
I wish both Sandra and Brad the best - - together or apart. This episode felt like watching a marriage falling apart. Brad talks about leaving Sandra throughout the episode - - - I wonder if the divorce he threatens with will be a catalyst for Brad to get a fulltime job? I was also shocked that Brad put the weight of his risky investment decisions on Sandra's need to feel safe. I truly hope he can listen to his words and see that his high risk tolerance is the opposite of what his wife is looking for.
Brad talking about leaving Sandra is a manipulation tactic. Clearly she'll be just fine financially without him. He's playing her emotionally to shut down the money conversation.
I can see why Sandra doesn’t feel the $20,000 per month is income. If $1mm of investment was used for the oil rig venture then the $20K per month is just refilling that investment bucket. Anything over and above that original capital could be considered income. This is a super risky investment that can go to $0. It’s not like putting $1mm into a Vanguard fund.
I agree. I would see this as retirement income and making sure it’s going back into my investments to ensure we’re compounding. I would be making sure it’s going directly to an ETF.
No frack well last 4 years. He will loose his investment
Just to edit : saw at 50min he does recommend what I did comment.
I completely agree and I'm shocked that Ramit doesn't see that money as untouchable. By using the $20k to use as living expenses, basically means they took a reverse mortgage. There is no way I would ever let my husband make a decision to put the bulk of our money into a super risky business and not diversify it.
@@JenJenANDChrissythis is far worse than a reverse mortgage
As a teacher it’s insulting when people view teaching as a cush, semi-retirement job.
It’s a tough job, and a stable paycheck + time off isn’t enough to keep most people in it (or to make you an effective teacher for your students).
I have seen 2 men in their late 40s/early 50s start teaching at my school; a former engineer and a former lawyer. Neither made it past the first year, and I witnessed both crying at some point in the year due to the cruelty of the students, or overwhelming amount of work.
I would caution Brad against pursuing a career change to education, there are easier ways to make ~50k/year.
Wow, it's valuable to hear from a teacher on this!! Especially the lawyer... You know he was likely working bad hours before. Sounds like teaching was more difficult.
Hard agree, Virginia! I was driving home to work on a lesson plan for my undergrads listening to the podcast and was like... you wanna make 10k a month teaching without having no credentials and just your wife's faith in you and your ego as your backup? Naw, Brad.
Agreed. I couldn’t do it…it looks hard
Teachers only make $50k in the US? That's a shame. They make more in Canada.
@@debbielockhart7762in my state they can make 113k. Plus health care. Plus fully funded retirement, which they add zero dollars, plus do not pay into social security, and only work 183 days out of 365.
What Brad doesn't seem to understand - if this investment average investor has $60M in the project, why the heck would they allow him to invest with $1M?? A general partner in an oil drilling project wants to deal with as few investors/partners as possible, and unless Brad has some special deal or is a friend or family member, why cut him in at $1M when the average investor has $60M?? Brad is being scammed and he doesn't even know it. I have a feeling it isn't the final time Brad will be involved in some sort of scam - Sandra needs to completely take the reigns on the money before Brad puts them under
I didn't know the upfront investment was a red flag in these ventures. How could he lose all his money? Is he being scammed on the dividends? I'm a boring investor so I have no idea how this stuff works and I'm genuinely curious.
@@2snipe1 upfront investment isn't the problem. The flag is that you should be leery when your profile doesn't match the profile of the other investors in a project. Sure there are friends/family investments where partnerships will take on some investors with little capital. When you don't match the other investor profile, you're taking on considerably more risk. A $1M loss would wipe him out. A $1M loss on someone with $60M invested would be a blip. The general partner is running the investment with the $60M person in mind - not the $1M
The second flag is oil ventures - there are two types - drilling and exploratory oil ventures. These are only for sophisticated investors with high net worth. These investments have low liquidity and low transparency and is often being managed by a general partner. You have a chance for a big payday, but more often then not the venture ends up running out of money and the team leading the disaster closes up shop and creates a new venture and lures in investors. These investments are rife with fraud and mismanagement. It sounds like they paid out a few months with hopes of getting this guy to invest more. Once they've gotten all his money, the pay structure peels back or totally stops
@@2snipe1 There are many ways this could be a scam. Or it could be for real. He just has no way to know.
It could be a con game where he gets a taste of his own money back to induce him to reinvest more, or just to delay his suspicions when they eventually steal his money. It could be a Ponzi scheme where he's getting his "returns" from subsequent marks who buy into the scheme. It could be an actual oil royalty trust, but they've misled him about something, like the realistic range of outcomes, or what oil price they truly need to break even.
To me, the deal has many of the hallmarks of a scam, including their insistence that he see the actual oil (I just feel like that's designed to create an illusion), their emphasis that he's getting a special deal, and their appeal based on political affinity. They are also doing far too much hard selling, considering that this investment, if genuine, would be attractive on its own terms to most investors. Of course, none of this is conclusive, and it could be for real, but if you're going to invest your family's life savings, you need stricter standards than "It might not be a scam."
@2snipe1 I have no idea either, but I imagine the oil operation was well under way, the initial investors got their money back and then some.. now they want to bring in as many smaller investors as possible, selling off their portion, as the oil is likely running low.
I'm just guessing though.
@@chriso6042 gotcha, I appreciate your hypothesis. That seems to make sense that it's a pyramid scheme
She works full time and another part-time job and is a Mom to 4 kids, and she needs to tiptoe around him to make sure he doesn't get mad?? Does anyone else see the discrepancy?
Yep. It’s absolutely insane. He made a ton of money and squandered it (and is blaming her) and now they have little to show for it. Now she is carrying everything including his hurt feelings.
Yes. He has zero empathy for his wife. It's glaringly obvious.
I am so glad SOMEONE said it! He’s resisting working full time when she has 2.5 jobs. And he felt attacked?! I honestly thought Ramit was much harder on her than him- he *is* underemployed and choosing to be so for his lifestyle, at her expense. I feel awful for her.
Are we even watching the same episode? I see a man whose face is twitching under the pressure of a wife who has the same scarcity mentality no matter how much he makes, puts constant pressure and put-downs on him, constantly telling him he could do better, but is perfectly happy to spend it when it’s there. She said she doesn’t feel she’s contributing unless she is worrying, and her worrying takes the form of pressuring him without understanding how it comes across. “How would you feel if he said xy to you?” “Oh yeah, I guess that would feel bad.”
@@JasonF_1985 Agree 100%. Most of their marriage husband was sole provider while wife was SAHM. Wife is stuck on the 2 years husband earned $800k, that is what she really means when she said "he is underemployed". She also makes pie-in-the-sky comments about needing $5million+ to retire in 17 years. Husband has been & still is under tremendous pressure to meet her fantasy expectations. Personally think he needs to re-evaluate what would he like to do professionally for next 17 years, instead of putting up with the emotional grindstone he dealt with for 25 years of marriage.
As incredibly difficult as it must be to put all this out on the Internet, there has to be a level of embarrassment on the husband’s part. Remit was totally on point, kind and did not attack at all. it makes complete sense to run best and worst case scenario. That investment is terrifying. I would not be able to be as kind as she is with this level of risk & lack of ambition. Wishing them both well.
If I may ad to it. Ramit spend (from what we saw) a lot of time as well talking to Sandra about her behaviour and what needs to be off the table. So that is something that was a concern for him. It's not easy to be confronted with the reality, so I hope he comes around.
He didn’t even try to shame Brad by showing him how much they’d have gotten from the house amount if they’d put it all into low-cost index funds.
That’s because you missed the first episode where she pushed him to make extreme decisions.
He called his investment "dumb money''. That was perhaps enough to offend him
I can see that the husband felt attacked, but Ramit was just giving his opinion on how much risk he was taking. The wife didn't want him taking all that risk so he shouldn't have invested all of THEIR money.
It’s one thing to risk all of your money, probably a low-ish amount, when you’re 25. Altogether different when you’re 50 and have a decent amount. And even more risky when both are not taking a regular job.
Probably tough to be told publicly that you made a bad decision. The guy’s main argument was that wealthier people were also investing in the oil well and they know what they’re doing. Thats flawed thinking. Rich people often lose money as well. I hope the oil well works out for them but fracking wells can dry up very quickly. And to “re-frack” the well, costs money.
I thought calling it "dumb" money was a bit much. The money's already invested and he can't take it back. Yes he should think about the downside scenarios, but I think many of us would shut down if we're being called dumb.
She should have said something before he did it 🤦🏾♀️
@@simonyang4562he said…that’s just what they call it. He didn’t call him dumb. Take your feelings out of it….it money
Securing a full time position at a university or community college is very very difficult, even in business, marketing, or finance. I speak from experience as I was on a community college hiring committee for a full-time business instructor position and there were more than fifty resumes submitted and 8 brought in to interview and provide a teaching demo. And the person ultimately hired started out at 60k a year, which is about half of what Brad claims he can easily secure. I’m in a middle to high middle cost of living metro area. There have been other couples on this podcast who think securing academic positions are well within reach. They are not.
Yeah, my impression is that you have to be willing to move to where the job is. The jobs just don't open up that frequently.
Yeah…they need to lower their expenses….
The higher income figure he spoke of was if he was forced to get a corporate middle management job, not teaching.
@@YIWOTY Corporate middle management jobs only comes easy if you have enough connections (top b-school or being the Harvard club or the likes) and family reach. Else you are sol thinking you can just land mid level manager job at F500.
If they had put their $1.25M into index funds, assuming 8% CAGR, they’d be at almost $4M in 15 years.
Which is what she needs to feel secure. This is the true tragedy in this whole scenario.
But then Brad wouldn't be able to say he's "earning" 20k a month so he doesn't have to work full time.
Heck, if they put that in schd or some other dividend etf… assuming 5% price growth and 8% dividend growth, they’d be making 160k+ per year forever after 15 years
The true tragedy to me is how that oil shit happened. A sales person masquerading as a financial advisor. Shit should be illegal . Non fiduciary is absolutely criminal
Thanks to Sandra and Brad for their participation. Brad mentioned several times that there are people investing tens of millions in the fracking group, which helped to provide security in his mind. Perhaps those people have hundreds of millions in the bank, so that amount could be an appropriately diversified investment for them. Percentages matter. I hope the investment works out for them.
I thought the same thing. If you’re a billionaire, investing $50 million isn’t that big a deal.
A lot of people invested with Bernie Madoff and still they all lost
It's a pretty common logical fallacy. If you see other people doing it, it must be a reasonable thing to do.
Agreed. I feel it won’t but hopefully she stays & keeps working with him. She was very pretty.
@@angelikalaser7778 sad but true
I think Ramit was fairly gentle with the reality of risk here for this couple's financial future.
It struck me someone could have replaced the oil investment with a timeshare and it would have been the same thought-process to buy into the scheme. Something I have noticed is that as people start to heal on their life journey the illusion of "get rich quick" becomes less and less appealing.
God bless Ramit for his knowledge and heart to help people with his financial wisdom.
Did not talk enough about them needing to reduce spending. They are spending over $100k / year on fixed expenses alone. National median household income is $75k. They are spending 33% more than the national median average income. They simply don't need to be spending that much money. The hand wave of "once you've made a lot of money its hard to go down in lifestyle" simply doesn't work. People need to confront their spending and actually be willing to move down in car, or move down in house, or in some cases send kids to public school, to make their finances work. "Make more money" is a nice idea, but they are already making plenty of money, its the spending that is the problem.
Reducing spending could be a real solution! That's why it's so important they get on the same page with their goals. Maybe they'd both be fine with spending less so they can both have the careers they want. Sounds like Brad hasn't even been given that option. His mandate is to make bookoo bucks and the pressure is too much.
Thought the same thing!
Their spending will not dig them out. It looks like aside from the rent and the car they don't spend anything.
He needs to frigging work.
@@benchristensen1526but that’s the issue neither wants to accept that reality. He doesn’t want to work a real job and she can’t accept that he’s not bringing in what he used to. They got used to this life and can’t get rid of it now. It’s unfortunate but this is what happens to people.
I appreciate every couple who has the courage to open themselves up to scrutiny by being on this podcast. Even so, the fact that Brad left feeling attacked is surprising. I wondered what it was about him that gave me pause, and then I realized that, in this episode, his behavior reminded me of religious people I grew up with who presented themselves as being humble and willing to listen, but possessed deep wells of arrogance rooted in emotional fragility and pride. I’m trying to be very specific in my language by saying that he came across this way in the episode because 2 hours of a UA-cam video aren’t enough to say, definitively, who a person really is. But that is what he reminded me of during said episodes. Usually I watch these and have some hope that the couple will change, but it’s hard to maintain that stance in light of Brad’s response.
Your insight is powerful .
@@christinaslate1865 Thank you so much. That’s very kind of you to say. 🙏🏾
I agree.
Good analogy 👏🏾
I know they have to count the $20 k as income but it’s literally not. They had a huge lump sum to work with. The fact that they gave it to the oil people who now give it back to them in bits and pieces as they are being taxed on it as dividends and now they have to live off of it and then invest the rest when they haven’t even recouped their initial investment is mind blowing. They could have skipped all this and just invested to begin with. I would feel insecure too up until I recouped that investment…which, if they’re lucky, is several years from now. Not a great feeling.
Yeah I disagreed with Ramit on that one. It's not comparable to a dividend fund if you can't sell the position. To spend that is closer to pulling from savings.
Worst… fracking wells don’t last 4 yesrs
Right, whatever the return on that investment is, if they're not saving or re-investing the dividends they're essentially withdrawing their retirement in their 40s.
@@funginimp Calling it "income" honors what Brad wants (respect for his choices) and puts it in the bucket of "money that should be distributed into responsible investments," which is what Sandra wants. So it actually takes something contentious and turns it into a win-win.
Ramit threw them a bone Ruth that one Lolol
Not surprised Brad's a big baby and felt attacked. Ridiculous. In my opinion Ramit was harder on Sandra and actually helped Sandra see Brad's side. And I really thought that Sandra's position was more relatable.
Totally agree. He’s a good looking guy who’s taken risk for years and wheeled and dealed his way through life and it’s catching up with him AND his family. I’ve been where she is on a lesser $ scale. It’s mentally exhausting to feel like you are carrying all that responsibility and dragging another child along. He needs to get a job. Any job.
Couples like this , make me so thankful I’m single and financially responsible for myself
THIS!
Me too!
Definitely does make things simpler. That being said, good luck raising a family on your own if that’s in your future.
@@aaronf.186 this may be shocking to you …..not everyone wants to raise a family or even get married .
@@aaronf.186she literally said HERSELF. She’s single with no family. Duh 🙄
Oof… make £1million in a house sale and investing ALL of it into one risky investment - he thought about divorcing HER?? Surely it should be the other way around?
The fact that he felt attacked after the call too is surprising - Ramit gave them all the solutions to resolve to the mess they are in. He should be thankful for a way out.
He is feeling attacked because he doesn’t want to admit that he might actually be wrong.
Right? I’m like girl leave his crazy ass but the problem is she wants that money too and doesn’t want to work. He’s a massive problem, but she’s at fault too. Super toxic relationship and people to listen to.
My thoughts exactly. If I were her I would have said this is where we draw the line on this marriage. Split the 1.2 million and go their separate ways. She definitely would have to work, but (to me) that would be preferable to losing everything down the line. What I see is that he makes all the financial decisions regardless of what she thinks/feels and he wants to divorce her for nagging him. Give me a break.
Putting your whole nest egg into one incredibly risk venture is insane. I can totally understand her anxiety and stress. I would not have been comfortable even putting $50k into fracking let alone $1million. It’s too much to lose in one investment when it’s all you have.
He doesn't want to work that is why he is so triggered by her questions.
But neither does she!
@stacyagosto2425 But she is. Most of us don't "want" to work - but we do.
Man, I was feeling hopeful that the couple had made a breakthrough on seeing each others' perspectives, but the follow up email about Brad feeling attacked and not wanting to engage further seems pretty concerning for whether they'll execute on the plan as discussed.
Ya I agree. So interesting because he was taken it pretty well in the interview. Now I do feel Ramit did attack a bit but in the end still had some good stuff and should have focused on progress he made with his wife. Not responding is a cop out and not cool
I think Ramit lost him with the dumb money label. I mean, we all know that was a dumb decision but it’s another thing to be labeled as such in front of your wife and everyone.
I wouldn’t count that as income if I were her either. So with her on that. I’d treat it as my principal and invest it wisely.
Not sure if he would follow through either. I got some of what Ramit calls “dreamer” vibes.
Yep, Brad seemed to take the dumb money phrase well but then a little later in the call, he started getting angry and spat “it’s not dumb money.” You could tell that phrase was really eating at him. It was unfortunate because Ramit’s point was completely valid.
Yeah you can tell Brad basically shut down after that. He responded positively but was very short and just agreeing to get the call over with. He didn’t want to be on there anymore
It sucks that Brad is likely not going to change course on the oil investment, but you just could tell he wasn't gonna switch to index funds and was just saying their are good investments to placate Ramit.
Sandra, for all her many faults, abandoned that "get rich quick" mindset while Brad is still stuck in it.
Ramit using the term "dumb money" might have backfired on him, but it 100% fits this description. Brad's feelings are valid (cause Ramit was attacking him) but he deserves it (or at least to be called out for it) for willfully ignoring the major risk he's taking with almost 100% of the family's net worth.
Lastly... totally not surprised that they read and bought into the ideas from RDPD.
Constructive criticism is different than attacking.
@@JonKrueger I agree but also agree with Chukwuemeka. I think that the phrase “dumb money” activated Brad’s defensiveness. What I liked about Ramit’s approach is that he didn’t call him dumb; he just used a phrase that others in the investment community might use.
That oil investment is downright foolish. He needed to hear that truth, even if he’s too stubborn and proud to accept it. I hope that it works out for Sandra’s sake and that of their kids. I don’t think it will, though. 🫤😔
@@aic0809 Brad's defensiveness came out in the form of avoidance. It is wise to have a plan for the worst case scenario. It is forward thinking to listen and heed warning. It is loving to selflessly sacrifice for one's family. Hopefully, Brad comes to accept his family's financial reality.
@@teeeteee000 Some adults choose to apply a more mature reaction to constructive criticism than other adults.
@@JonKrueger You make excellent points! I hadn’t thought of what he did as avoidance until you put it like that. I really appreciate you taking the time to share your thoughts. One of the things that I love about Ramit’s podcast is the opportunity to look at financial decisions from a psychological perspective. I learn as much from him as I do from the comments, so thank you!!
The first episode made me think she’s so demanding and unappreciative of how hard he has worked over the years. But after hearing about the oil fracking investment - it seems he’s making a desperate attempt to get rich quick which will likely end with them losing most of their savings so now i understand her fears.
I think they are both at fault. She always wants more money so she can reach this mythical place where she feels 100% "safe". He is impulsive and wants to get rich quick, and tells himself "the system is rigged" to justify taking major risks with his family's money.
Especially after they mentioned 23 old rentals & commision based real estate 🤦🏾♀️
@@4thand133I agree. He’s entitled and thinks he can make money poof out of his ass and she has unrealistic demands because they’re living in the past.
His reasons for becoming a teacher were basically for summers off and a good pension. Please don’t become a teacher…🤦♀️
Yes he has no business teaching anyone
imagine he is teaching your kids
He should become a teacher at some business college. He'd fit right in with the other MBA dudebros...
No. I think it's because he gets to hear himself speak. (not effective teaching, by the way)
You can’t expect much from a Christian couple who supports fracking lol
I am not at the end so maybe this gets covered, but I think Sandra’s problem with the oil dividends is that she doesn’t view the monthly return as additional income over the base investment. To her it feels like they have given away 1M of their savings, and they’re getting it back piecemeal every month in $20,000 increments that they are then, in turn, spending on toilet paper. Emotionally, to her, it’s no different than using their savings for monthly expenses. Her husband’s perspective is that they still have 1M dollars, it’s just working for them in the oil business and successfully generating an extra 20k per month. The latter perspective is very different from the former, and I don’t think that (so far) that has been addressed for Sandra. How Investing works doesn’t automatically make sense to the average person, and I think this is the case for Sandra. I’m wondering if she would “feel” better about the oil if time was taking to explain it to her. Now, granted, there are a lot of other issues at play here, but it feels like this one has so far gone unaddressed
That's exactly what's happening in her mind and i kinda agree with her because until they get all of their $1 million back, they're spending their retirement on day to day living. She doesn't trust themselves to invest those returns so to her the money has been lost until all of it comes back. Gas prices going down during an election year could almost bankrupt them.
Sandra has a point. Getting that million dollars back is not guaranteed, and it’s certainly a risk that the business collapses and they get nothing. As opposed to say real estate, or bonds, or the S&P500 where it’s almost impossible not to recoup your losses over the long term
Sandra's right. They loaned money instead of investing it.
I wish that had been addressed too. What's the resale value for this investment? If they wanted to bail from the project completely and sell their share to one of the other investors, how much could they get for it? It seems like Sandra is assuming that it's $0, and Brad is assuming that it's $1 million. I suspect that the truth is somewhere in the middle - this isn't like putting $1 million in a bank account or CD, where you can take the principal back out whenever you want, but on the other hand, a stake in an oil well that's paying $20K/month (for now) must be worth something to somebody.
Makes sense.
Yes, to her it could be a repayment of initial investment and only payments after they have that back - can be view as a return.
But to him. It's like he's bought shares in an oil company. And each month he gets a dividend. This also makes sense.
He teaches accounting and his wife is struggling with the bookkeeping, why is he not doing it since he is only working part-time?? Then he can understand the monthly cash flow and why his wife is a nervous wreck.
Because he’s a fraud
Great point. He should be handling the money if he only works part time. However, with his ego, I'd be afraid that he would hide any losses until it was too late. He feels the need to save face with this oil stuff. But, I agree, that maybe he doesn't worry sufficiently because he's removed from the numbers.
Because he doesn’t want to work and thinks he’s entitled to a shit ton of money.
Sounds more like her actually@@mrs.quills7061
13:29 This sounds like a ponzi scheme. They are giving him back his money in increments at the same time they are using the remainder for whatever reason. He has to pay taxes on that money.
Do they know anyone who invested in that company.
When they given him back the equilivant of 1 million they will cut him loose or file bankruptcy. Brad wise up!
He makes me nervous and I'm not married to him. He's too much of a risk taker. It makes her feel financially insecure. I would too.
Best comment!!!
You are way too optimistic saying that they will give him the equivalent of the 1M.
I give them 1 year to go bankrupt.
I worked in reservoir engineering for oil and gas which is basically finance, so I’m very familiar with this. This is actually exactly how these investments tend to go. Slow repayment typically based on the performance of the well.
@@allisonwanderlust3998so it’s a loan? What interest rate is he getting?
oil companies have a portfolio of wells in different basins and the fields or wells are in partnerships with other companies (rarely individuals) to share further the different risks (oil price, reservoir risk, operational risk,, cost escalation, tax regime change, regulation, environmental, etc), costs and liabilities.
It is a business that can give very good returns but it is a numbers game is underpinned on probabilities and technical competence because you can seriously hurt a lot of people/environment as you are working with heavy machinery, reservoir pressure, hydrocarbons, challenging and complicated technical procedures and dynamic systems.
I would be very weary of any operator being comfortable accepting small piecemeal investments from private investors given the potential liabilities associated with the oil and gas business
Remit, I'll bet it was hard to hear that he "felt attacked" after you listened, gave such good advice, and were so gentle with someone doing something so unusual and risky. You did a great job. I pray to God this oil thing works out for them. I can understand how she doesn't see the money she gets from the oil as income. This is retirement/investment $! Of course she feels weird living on it while he isn't working.
It’s really sad to hear that Brad felt attacked and refused to continue this process. It sounded like they made some enlightened discoveries and progress during the interview podcast. But I can understand Brad simply wants to be appreciated for all of his work trying to appease to Sandra's money worries. It was hard to hear that they tasted the high life when they made $80k/month, and they couldn't accept their current reality of not making as much monthly. I’m curious to find out if their marriage will survive this, especially if Brad had already considered divorce.
YESSS this one needs an update!!!!!!
I doubt they'll give an update since Brad didn't want to engage further with the podcast...@@wendyp3613
If the oil investment doesn’t pay for a month they are most definitely getting divorced
I was actually shocked to hear he felt attacked. Ramit was so kind and provided him with constructive feedback and the truth. I think it’s his own ego getting the best of him and letting his emotions take over. Hopefully he listens to what Ramit said because I felt that by the end they all came to a positive way to move forward regardless how the oil thing falls out.
i was too but then again you have to remember men can be fragile especially about providing. and especially on the internet and being a finance teacher. then having the finance god tell you that you were a "mark" for wall street like 'doctors and dentist'. its a hard pill to swallow and especially if the "investment" is already failing
Big respect to both of them for being so vulnerable with their situation. Learnt loads
Pretty disappointed in Brad's sour grapes for not doing any sort of follow-up. Even he admitted he overcompensated from poor oversight over their market investments with the financial advisor by swinging for the fences with the oil project. It's great he feels he did his due diligence on the oil project but Ramit was simply stating a fact that the oil project is far more risky than index funds. Unlike what Brad said in the previous video about 401ks and the like, it isn't those financial instruments that are bad it was he and his wife being asleep at the wheel.
I was optimistic Brad and Sandra were making significant progress toward getting on the same page but it appears maybe Brad has too much pride. I wish them the best.
"I discovered you needed licenses to become a teacher and it's really complicated." Good grief....did he really think he could decide to be a teacher in July and be hired by September?
Also, it’s really not that complicated. I mean I guess a little bit more complicated than just applying and getting a job but getting a teacher certification is pretty straightforward in my states.
Also, he figured this out AFTER he “moved heaven and earth.”
@@ThomasJarred-fl9uf And yet he apparently did a ton of due diligence on the oil project. Call me a bit skeptical.
That's nice speak for he failed the exam
Yeah that’s what he thought 🧐
Why is Brad acting like the million investment should be used for cash flow? People don't use the dividends for their index funds and retirement accounts as monthly cashflow. No one should be taking his finance course. He's clueless.
Because didn't you hear, the oil execs promised its going to be like 5x return! turn your 1 milly into 5 milly over the course of a handful of months!! 🤦
People do use dividends as cashflow but yeah yeah this oil thing is certainly dubious.
Plenty of people use dividends for cash flow, I know several early retirees who basically live off the dividends their portfolios throw off.
@@fanban2926 usually only when they also have long term investments for retirement and the like.
@@4thand133 yeah retirees are supposed to do that. These people have no retirement accounts it sounds like, just this. If they fail to make long term investments they won't have dividends to pull from in retirement.
When Brad took that $1M and made that investment in an oil project, he didn't realize that he was taking a high risk gamble. As such, you should stick to gambling rules. Never put in more than you are comfortable losing. I guarantee that those larger investors are getting recouping losses from the project before Brad if the whole thing goes south. If they lose that money, they're gonna be broke in retirement, that's what the numbers said, so no, he can't afford to lose that money and that's what makes his gamble a bad decision.
That he feels attacked because he was called out on risking the family's life savings and told the reality of the situation is just immature. You can make risky decisions, but you need to CYA. Brad did not. Brad made a bad decision. Ah well, maybe his "health and wealth" ministry will reimburse him for his tithes if it goes off the rails... 🤦♂
I’m sorry, this episode is ridiculous. The money coming back is not income if they put the ONLY savings they had into it. The returns are desperately needed to be saved or reinvested in index funds. The thing not being talked about is that these two people are NOT compatible. They have so much animosity towards each other that they are literally irritating to listen to, and truly I don’t mean that in a malicious way. Being with someone we’re incompatible with can bring out our worst sides.
She said she saw that he’s doing that for her. Obviously I’m not in there life but that seems wildly off base. He’s doing it because he wants to. If he wanted to “make her feel safe” then he would do safe investments, NOT throwing the only money they have into a black hole (lol) hoping for the best.
They both come off like caged birds that only the other can free. I hope they can find ways to live in alignment with their own selves, regardless of if that’s together or not.
The whole "I'm doing this for you" bit struck me as blatant gaslighting. I was shocked the wife and ramit went along with it
My heart breaks for Sandra. Is it too much to expect a spouse to work full time if
they have four kids and she is working? Brad seems like a well-intentioned guy, but he needs to make better decisions. There is a HUGE teaching shortage. Why can't he find a full time teaching job? And why is he so surprised that teachers need to be licensed?
My state has “emergency licenses” for teachers. People with bachelor’s degrees can start teaching while they earn the license.
Exactly. It’s one thing if they have multiple kids that are younger than school-age, but that’s doubtful. It never came up that he was home taking care of kids-it was mentioned that SHE works from home AND tends to the kids. He literally could have any basic steady job while he looks into other ventures. He’s a dreamer. Dreamers aren’t bad! But at some point they have to be practical if their fixed spending is overcoming the working spouse’s income.
I say lower the expenses…..
Rich Dad, Poor Dad had left so many on the get-rich-quick path. Kiyosaki just gives bad advice, and currently he's even more harmful talking about the world economy collapsing to peddle his gold/silver securities.
I've been watching lots of these videos. I've learned more about relationships than anything and I'm seeing the correlation.
I don't understand why Brad would feel "attacked"... my theory is that behind that statement he can be excused on doing anything he agreed to here and will continue his risky behavior as he always wanted to
"that's my contribution. it's worrying about it." boom - that's a hell of an insight. regardless of whether they decide to stay committed to each other - i commend BOTH of their abilities to reflect and acknowledge things about their behavior/mentality that has not been serving them well. i hope they each continue to stay curious about why they are behaving the way they are wrt finances/spending.
The older I get, the more fascinating it is to me how some people can understand from a young age that money is just math and they can take the simple math of spend less than you earn and boring-invest the rest and they’re just fine in life, and then there’s the rest that get emotionally twisted with it, trying to use money to compensate emotional holes like not feeling good enough so spending too much becomes a habit and coping mechanism that never actually solves the emotions. Brad was never good enough (in her eyes, perhaps also his own), so in a desperate bid he seeks out this risky investment. But never defining enough, or what is good enough led to the risky math, and I don’t shame or blame him for that, but I am saddened he didn’t feel like he learned from Ramit’s exercises enough to do a follow up and just own he made an emotional decision and now it’s about moving forward and trying to make the best of it.
I like them. “It was fine until we started” 😂.
I lost $200k in bad investments which sunk me. Don’t think we will ever get ahead now in our 50’s. I blame Robert Kyosaki and the $30k we spent in his seminars. Many bad investments came after based on his advice. Much love to Remit
You blame the guy who wrote a book in which he shames his own father by calling some rich guy "another dad"? Surely, you are a master of your own fate?
Ouch, I feel ya. But even in your 50ies you can recover, just to some financial piece of mind.
$30k? I had no idea he was taking so much for his advice! I thought he just sold books. Sorry, man
There was a time when I was consuming all of Robert Kyosakis free content online. One time I attended a „free live seminar“ were he introduced a young guy presenting his business idea to us.
After 20 min it was clear to me that was some kind of „ get rich quick scheme“ because even after 20 min. it was not clear what the product was, that we were supposed to sell. Since then I last all my respect for Robert. There are a few of his sorties from the book I still remember and I liked but that’s it. I am sorry, you lost your investment.
Blaming other people for your mistakes. That was your choice, robert didn't force you to trigger the button. You have to make your own diligence.
I did lose some money as well. But don't fire at Robert's or other book
I’m guessing Brad stopped getting the dividend payments.
Ramit did an excellent job on this one! So much progress. So sad Brad felt that way after the call though. He was being very coachable! Ramit was right, if you even use Brad's probability of 20% that the oil venture goes bust, that's way too high a likelihood to bank your entire savings on. As bad as it is though, it was sadder to hear all the pressure Sandra puts on him. So good of Ramit to take her to task on her bad money habits and her over-criticizing of Brad. That sounds so stressful to have in a relationship.
Hard to think of what Ramit could have done differently to help Brad. Maybe he could have validated Brad's motivations? Isn't there some truth to Brad's contention that he's making these money decisions to try to meet Sandra's huge income demands? And isn't it true that his risky investment is currently accomplishing that?
But really a great job. I hope the tough talk will help them avoid divorce and get on the same team in terms of money. Even if Brad's pride took a hit on this one.
And he did validate Brad's feelings about the pressure and the way she talks to him. It seems Brad does not want to hear that he has any part in creating that pressure
Some relationships that are shown here make me want to stay alone forever.
My wife and I started our financial journey together relying on Ramit's advice and it has made a huge difference! We still have to work hard to pay down debt and be disciplined, but we're a team and talking about money is never contentious, it's all about deciding what we want for our family and what we think the best way to get there might be. It's definitely do-able!
If you marry, or pair up when you’re a fully formed adult, and you make sure your partner shares the same values about money, you will be fine.
If you marry, or pair up when you’re a fully formed adult, and you make sure your partner shares the same values about money, you will be fine.
@@TheDoggmom Yeah that's true, if you aren't a zealot. I think finding someone who follows the path proposed by Ram here is probably possible. However finding minimalist and not the trendy kind but the sacrifice significantly is probably not going to happen. I don't know I just see the way this guy is getting beaten up even those he's freakishly successful and I can't imagine going through that.
Nah it makes me grateful to have a supportive and loving partner. Not everyone is toxic and stuff like this. If anything let these be red flag markers for future partners.
Yall are feeling sorry for Brad and I DONT! I would never understand a mindset like his and I'm praying she gets the security she's looking for
I knew you were a woman based on your comment. I didn't even have to click your picture LO. L.
Wrong
So let me get this straight, he provided for the family for all his life and the moment things turned on him, Instead and of being a good wife and supporting him, she spits on his face and drags him through the dirt. You think this is ok? It makes sense why alot of men are marrying women from other countries. They know what tough times look like and they ride or die to the end.
@@jonathangonzalez1810Wow dude, this went off the rails quickly! 😂
Brad is an adult with a wife and 6 kids. He needs to grow up.
I just listened to this latest episode of the podcast, and, as someone in the oil and gas industry, I found it particularly captivating. The discussion about Brad’s investment choices was intriguing, yet I was left a bit unclear about the specifics of his investment. Was he becoming a minority working interest owner in the wells, or was his investment directed towards a fracking rig, essentially a service company? This distinction is crucial because if he’s investing in the rig, it’ll continue to generate revenue as long as the rig operates for another operator. If oil prices drop below $60, many drilling operations will cease, beginning with fracking rigs. Like all investing, particularly in the oil and gas sector, diversification is key. Relying too heavily on one investment, incredibly as risky as this, is something even seasoned professionals would think twice about. Best of luck to Brad, but this episode reminded us of the high risks when you swing for the fences instead of just trying to get on base.
I thought he mentioned $30 as the price where their "dividend" zeros out. That number seemed awfully low.
How does he know the average investor in this project is 40-50 million? Dude is getting scammed
Been looking for someone to call this out as a scam. This weird thing where he invests $500K, gets a relatively decent payout with promises of more, then drops the other $500K... I guarantee they'll be trying to get them to reinvest all the profits. This sounds so much like some sort of pyramid scheme that is just going to go "poof" at some point. The break even price of $30 a barrel seems like a very optimistic number.
Yes $30 breakeven is really low. Especially in the united states.@@CliftonHamilton
Even if true, it definitely isn't the only $50million that person has invested.
Brad swallowed the hook whole. He was flown to the site by helicopter, shown samples, made to feel he was getting a special privilege by being allowed to invest so small an amount as $1 million...
I said the same thing. If someone tells you the average investor has $50M in a project, but they're willing to accept your $1M, either they're lying to you (the average investor in the project has far less than $50M) OR you're definitely in the wrong investment. You don't match the profile of any of the other investors in the project - they can afford to lose $50M and you'd be wiped out by losing $1M. Unless you're getting some sort of friends and family situation and you know/like/trust who you're investing with very well, you're likely being scammed. I'd avoid oil drilling projects at ALL costs - Ramit is right that the payments will dry up quickly and the $1M will be gone. I'm a Wealth Manager by trade and I can verify that
It looks to me as if Sandra would be fine if Brad had a full time job. She wants a steady income that covers their costs and leaves some over.
I don't believe that Brad leaps into the get-rich-quick schemes to placate Sandra. If he wanted to placate her, he'd get a steady job.
There's no reason he couldn't get a full time job now despite the current oil dividends.
It can take many months to get a job! What are Brad's qualifications and experience? What makes him so sure he could get a middle management job if he doesn't have a good solid track record? Or walk into a teaching position?
I don’t get how people can go on this podcast without having read ramits book 😅
Because if they read the book, they wouldn't need to go on the podcast lol🤣
lol but they know he is going to ask! It’s like going to class without having done your homework
He seems reckless and impatient.
Hates talking short about the numbers but loves telling the story. Seems to be in line with the sales background and the underflow of the prosperity gospel they admitted to last episode.
Look what he’s accomplished ! Kudos dude!!
Sooo he’s got more than 1 million, what’s he doing wrong exactly?
@@adamzioriophotographyhe took the entire million and invested it into a very high risk business. The likelihood of him losing it all is very high. It would have been better had he just dumped it in a savings account, given his distrust of retirement funds / index funds
Appropriating the savings his wife helped build and then take credit for putting her money to work?
Not saying he didn’t help build that, but if I save up 500k and my husband makes a cashflow returning investment using that money, is he really the one producing the income?
The ending of Brad disengaging shocked me - but only for a minute. Denial ain't just a river in Egypt. If all of your stuff gets put under a microscope and outside observers don't see what you know to be true, then you put your fingers in your ears, close your eyes, and la-la-la-la-la till all the people who don't agree with you go away.
For Sandra, i hope she can find a way to rely on herself and trust herself - whatever way that works for her. She doesn't need Brad to swoop in to "save the day." It's romantic, but not practical or realistic.
Still, good for them for having the courage to come on the podcast.
So weird how this was handled. Ramit berated Sandra for not wanting to think of the $20K dividends as income that's available to be spent...and then later he basically acknowledged that she was right, that as much of that money as possible needs to be plowed into index funds immediately, because otherwise they could be left with nothing. And then Brad is the one who feels attacked? Sandra may be a natural worrier, but her worries on this are justified, from what I see.
Berated? I heard none of that, he simply told her its not a smart investment but the dividends are definitely income. When did he berate?
He then agreed with her that they should be investing in index funds. There was no disconnect between counting the income and also investing in index funds.
I dont understand how this comment is this highly upvoted, did we watch the same video lol?
@@paulwall142watch til the end paul.
I agree with you I was thrown off by that.
$1,630 on car cost....damn...we Americans have a car loan problem..
So this oil investment gives a 24% annualized return? I really hope he is seeing the books from that business.
Can we spell”Ponzi”, boys and girls? I always thought I was a “ swing for the fence “ kinda girl… but not like this. Not our whole savings in something illiquid
Returns for oil wells are highest in the first few years and then dwindle as supply dries up. Their investment is probably tied up for like, 10 years plus, so in years 6-10 they’re probably making more like 2-4%, and can’t get their $1M back. They are playing a game that revolves around current oil prices, and they have to pray oil prices don’t fall through the floor during their few good years.
@@leahmanderson298in that case, let's say the first 4 years, they get $20k per month. So after 4 years, $980k. Then, the last 6 years, 2-4% per yr. So, 40k per yr for 6 yrs = 240k. 980k + 240k = 1220k... So their 1M returned 220k in 10 years. How is that better than VOO??
@@leahmanderson298 Well at this rate it's less than 5 years to make a profit, but still, wild stuff.
I think you hit the nail on the head. Once the $1M is invested, it's likely substantially gone for good. So the oil well "dividends" aren't pure profit - they're a little bit of profit mixed in with a lot of return of capital. I think Sandra was right to question if the monthly distributions should truly be counted as "income". Of course the money is flowing into their account, but most of it is just a return of their own money. If I had $1M portfolio and I was liquidating $20k per month to cover my fixed lifestyle expenses, I certainly wouldn't consider that a recipe for success. @@leahmanderson298
$60M investors more than likely have $100's of millions so they can take a painful loss. He invested their only million. If they lose, it will not only be painful but devastating
As a mom of little kids - of course she is seeking security for her kids. He seems like a snake oil salesman. Why would you put your entire nest egg into some sketchy investment. I feel worried along with her.
I don't think I would call him a snake oil salesman. He is a mark, the very person to be fooled by the snake oil salesman. I do agree that she is right to be worried. This man is going to destroy them financially.
If she keeps complaining about not having enough money, she basically forced him to gamble and win big to make her happy. It's a get money quick scheme because she spends so much and wants big money now. Cause and effect from my perspective
@meejmuas8686 This was my thoughts from part 1. He was bringing in 80k a month before and she wanted to stay that way. He get high thinking he is providing and making his wife happy so he jumps at any scheme that comes his way. I can see where they're both coming from. I can see them working through it
@@ignitionSoldier It reminded me of the old saying that if you are playing poker, and you look around the table and can't figure out who the sucker is, it's you.
Cudos to them. It takes a lot of courage to come on, but I'm disappointed that he felt attacked on the call. It seems like he refuses to acknowledge a realistic scenario where things aren't the best case and plan for it.
I also see similar signs with this oil investment and the financial advisor. “More Knowledgeable/wealthier people” are involved, so he feels safe.
I'm not sure why he is so resistant to doing a job he “loves” that gives him the summers off to do something he also “loves.” Doing this would prepare for the worst-case
scenario and also reassure Sandra.
Used to made 800k a year and only saved 1million life saving
The way I understood it last episode is that they made 800k/y for around 2 years.
@@maxinoume even so. 🤷♂️
I could not imagine selling our home and then investing the entire amount which is the bulk of their net worth plus some into a single risky investment. I am glad that Sandra is finally putting her foot down. I think that is more than fair for her to say she wants to invest 50% of the dividend for long term retirement planning. It’s interesting that she considers herself financially conservative yet is married to someone who is such a risk taker … that alone would make a relationship / marriage tough.
She said in the end that she is more like Brad than she thought.
If she was conservative they would have more than 1.25 million after 3 years of 800k/year income and 20 years of marriage.
Good point. She should probably say that she’s conservative in certain areas instead of using a blanket statement which is inaccurate.
@@RB-gq2zy it is a common pattern, lile the other couple calling themselves simple even though they had a champaigne taste lifestyle. Or the guests who keep insisting that they don't know anything about money, even though they do
“The system is rigged” if he put that $1,000,000 in the S&P500 ten years ago it would be worth $4 million today. Look im all about being skeptical about stocks, and spreading your investments around elsewhere, but to put 90% in one business is CRAZY
Let alone oil fracking. Like that hasn’t been done before.
All it would take is a random environmental issue and the whole thing shuts down
The first risk is the oil price which is impossible to predict. Oil companies diversify by having many wells in many different basins with different qualities of product that go to different markets.
It is a risky business, oil price, tax regimes, operational and environmental risks, reservoir risk, liabilities etc
System is rigged... then he names a bunch of things that actually benefit average investors (IRAs, 401Ks, etc.)
Thanks for another great episode. It was great that they figured out their financial advisor was screwing them over and they got out. But made the exact wrong conclusion on what to do next.
It's sad he felt attacked when you clearly and empathetically laid out the likely scenario with the oil investment. He's going to be in a bad situation no matter what happens. If it works out it will only encourage him to take bigger risks until he blows up his account. If it fails he and his family are in a real bind as you showed them. Hopefully it lasts long enough to raise their 4 kids.
I felt this was a very constructive conversation with both of them.
Sandra can engage with Brad more constructively, encouraging him and building him up.
Brad can see where his wife is coming from, and was given better advice how to handle their money.
I get Brad feeling attacked, because of his decisions but its warranted to make him see that he can make better financial decisions. They both can. Good luck to both!
All this woman wants is for her husband to have a 9-5 that pays 100-150K . She has that in her head and nobody will take it out.
Some people are just programmed like that: if you don't work 9-5 you are not living up to your potential. I am with Brad here - peace of mind is worth a lot more than what he'll gain from a job, post taxes.
@@glitterstarbeau Neither. She is just risk averse. There is nothing wrong with that but she needs to accept that he won't be happy doing that.
@@raheelakhtar7 yep. He can do that but he will feel miserable while doing so.
@@segredosdotiosam9989 Nothing about him leads me to believe that he could do that.
And because he’ll feel miserable doing that, their marriage might not last more than 5 years if he goes that 9-5route
I like them but the oil well is too big of a risk. Even if it works out for them, I guarantee the next risk will be larger and perhaps more risky. Few people control themselves with this behavior.
He’s has a masters degree and is underemployed.
He spent a lot of time defending the oil investment. That’s draining.
The oil income/dividends/return of capital on the CSP: It’s not income but it’s going into savings. But how can you save money that never came in?
There is too much drama here.( "I moved heaven and earth to become a teacher".) Really? They need some longterm counseling. I hope they get it as there are children involved. This makes my heart sad.
Yeah. Moved heaven and earth for two months. Absolutely no clue and no respect for teachers who have put in the time for education and licensing. The arrogance is astonishing. If he enjoys teaching, then that’s great! Get trained and certified. He may end up being great at it, but approach it with a little less ego.
Moved heaven and earth = made a few of phone calls
I think this was one of the deepest conversations on this podcast. I can see how Brad may have felt. There were some intense confrontations, but he also had incredible take aways. I do feel like that this couple was VERY vulnerable and got some great solutions.
This one was just painful to listen to. Sorry Ramit, but it is really unlikely that these two’s money dynamic will change. She’s too to passive and his ego is too fragile. It’s really hard for people to change after decades of past mistakes. Appreciate your effort though, you were clear and honest. Kudos.
What if the oil "investment" is a ponzi. distributing their own principle 20k/month till they want to pull out ?
If I'm not mistaken Brad did this investment opportunity to replace an income. She thought this would be an investment for more security....They're not on the same page. I hope they can work it out.
I feel more like she consent to the investment to not be à show stopper but she desagrees on it ... she accepted that 1M $ can disappear., but she needs her husband to have à mitigation plan when he wants to not work solely counting on the oil rig.
Can someone explain to me why he counted $20,000/month as income but also counted the 1M invested. Aren't they both the same money? Like at least initially, he's just getting back his $1M , right? Am I misunderstanding?
You’re not misunderstanding anything .
I believe Ramit counted it as Income to appease the couple & then turned around & told them to invest most of it in the market. Essentially, getting them to do exactly what he wanted all along.
Why is everyone in the comments so negative/mean? Kudos to them putting themselves out there and trying to do better.
I can speak for myself only, but I am angry about him not seeing how he is getting scammed. More ab8ut scammers than him though
Wow, there's some real sketchy things brewing under the surface with this one.
I wonder if he got offended and is not willing to engage further because the monthly dividends for his oil investment are starting to plummet. If everything was going well $20,000+/ month passive income he would have been happy to make a video and gloat. Guy has some pride and insecurity issues.
I would only put 5% of my portfolio into speculative investments. It sounds like the husband socializes with wealthy people with more money to speculate, i.e., lose, but they are not at that type of wealth.
Yeah if he had put that million in the S&P500 ten years ago, it would be 4 million today. I’m all about diversifying outside of the stock market, but putting 95% of your portfolio into a single business is crazy
Yeah, my husband would have never made such a risky investment. If were her, I’d want to save that $20,000 too! That’s rainy day money for when the investment falls through.
“Under employed” that’s a family law term. She’s talked to a divorce attorney 100%
nah. Anyone who went to college knows what under employed is.
Hmm. The person who used the phrase is Brad. This could easily be his interpretation of what she actually said! She might have said that he should get a better job.
Besides, "under-employed" is a very common term.
No, it's a common term these days. He's the one who contrasted divorce. Ramit said that in the intro.
Ya I agree i think it is a common term and he is underemployed… but that is a choice so no shade with that to him. Cuz I think he has the right to choose a lesser paying and less stress job after providing so much so far
The wife will be okay, no matter what, because she's willing to own her mistakes and make changes. The husband will only be okay if his gamble pays off. If it doesn't, he'll blame other people. He already blamed her for it, saying he only did it to make her feel more secure (by investing every penny they had saved into something she doesn't agree with? Really?). Since they have 4 kids, I hope they work it out. But I think she'll have a better future if she just goes out on her own and collects the child support.
Maybe I misunderstood but I thought the oil money was repayment of the investment, not a dividend. Wouldn't this investment plan dilute their net worth?
I feel these two have a lot of underlying resentment they need to work through. Expecting to never need to work outside the home on Sandra’s part seems unfair to Brad, and changing to a low paying part-time job and taking risky investments on Brad’s part seems somewhat reactionary to that but also unfair to Sandra and their family.
I was surprised their living expenses weren’t dissected and cuts discussed like usual. Multiple times Ramit said they were still spending like they earn much more but adjusting their expenses to match their income didn’t come up. Perhaps it was a time issue for the podcast? I’d have been interested to hear about it even if it did mean a third part.
I also agree that the dividends vs return of initial investment for the oil should have been clearer. If they definitely get their 1M back when the oil dries up, awesome, but if they only get dividends for an estimated 4 years then the dividends cannot be counted as income. I’m still unsure about the answer to this, I know nothing about how oil investments work.
I call bull on Brad taking risks to make enough money to keep his wife happy. He’s doing it to feed his own ego and to try to recapture the wealth he lost. It’s a classic gambler’s mindset.
She's in denial about her "frugalness"... which she is not. She just spends it all at once with large purchases.
She also blames the lack of money on him not making enough money while she spends it all freely. It's not that easy to compete in the outside world for income.
Did Sandra buy Brad's ATV collection? Did Sandra force Brad to buy the house they live in? Did Sandra buy the oil investment???
@@SuzanneU
He was earning 800K/Yrly she wasn’t complaining or working then, she was spending.
Watch the previous episode….
Suzanne- I know- I mean , holy sh-, the dude provided man- kudos!!! Jeez, acknowledge fully that this dude has kicked a-
Well, they both are in error on many things, so it takes 2 to Tango.
Wow, did not expect that at the end with the follow up. Not entirely sure if this applies to the situation but it seems like the sunk-cost fallacy at play.
I like to make home run investments, so I get where Brad is coming from, but Ramit makes a good point, for the fracking investment to keep paying 25%+ dividends long term, it might be the greatest investment ever. Not super likely.
I was very taken aback by Brad's perception of being "attacked ". It’s interesting because I thought Ramit was actually super supportive and balanced. This really shows how damaging being entrenched in your own perception can be- because when you are closed off you will not hear valuable advice and you will be focused on defending your sense of self rather than opening yourself to other possibilities. I wish this couple the best and I hope they are able to eventually reflect on their experience with open eyes- I know I benefitted from their story and I hope they will too.
I hate that Brad wasn’t honest about feeling attacked. Instead he pretended to be engaged
I was on the edge of my seat for this episode!!! Great job Ramit.
I'm a bit confused on the investment. Is the $20k coming in actual dividends, or is it "repayment" of the initial investment?
you mean like ponzi - is he getting his own money back bit by bit?
@@JulianSloman Yeah. Even if it's based on an actual oil well, at some point I'd assume it will run dry, so there would be no way to sell his stake for the original $1mm at that point.
Did Brad not watch any of the previous videos of other couples? I felt Ramit was lighter on Brad than on some previous guests.
Can't lie, I'm team nobody on this one. Everyone is wrong and right.
I respect this couple; 20 + years of marriage with major wins and long low seasons and they are still working on it. I understand that Brad felt attacked, but he kept his cool throughout, he was respectful and has continually tried to make things better for his family.