These are 10 Things A Veteran Financial Planner Would Never Do

TikTok has a lot of interesting, but sometimes bizarre, videos. However, many content creators use the platform to share some really helpful advice.

After sharing the top 10 wealthiest things he has ever done, one financial advisor took center stage in this unstable economy.

Russell Maltes is a Representative of an investment advisor or certified financial plannerSince 1999. TikTok videos provide financial literacy tips, including this two-part series that details the ten worst things he has ever done.

Don’t:

  1. Use debit cards for online purchases.
  2. Purchase a car for the next 6-12 month.
  3. Pay credit card interest—don’t live beyond your means.
  4. Miss out on your employer’s 401K match (it’s free money!).
  5. Borrow money for depreciating assets such as cars or vacations.

Also Don’t:

6. Get more life insurance that you don’t need.
7. Celebrate big tax returns (plan better instead).
8. You can either get student loans to pay for your undergrad, or you can go out of the state. It is difficult to start your life with debt.
9. Wait to buy a home until you have a 20% down payment (don’t fear PMIs).
10. You can’t live another day without a financial and retirement plan or an estate plan.

His Advice Attracted Mixed Reactions

Financial advisors are by definition good at managing money. TikTokers, however, are opinionated and many of his followers responded with a range of different responses.

Positive feedback was received for many items on the list. Maltes received overwhelming support for the recommendation that young people take out loans to pay for college.

One user commented: “To #8 I think vocation, trade & blue collar jobs are severely underrated and passed up on too much these days.”The sentiment was confirmed by the financial advisor. “I know several ‘Blue Collar’ guys earning $100k+. You are absolutely right.”

Commentators were less agreeable when it came to credit card interest payments. “You don’t use credit cards? What if your roof needs replacing or your AC goes out? Or you have big medical bills that you have to pay?”One user stated. To which he replied, “Part of having a good financial plan is having an emergency fund for the unexpected. When something bad happens like what you’re talking about, I don’t want to compound the problem by paying interest on those unexpected expenses.

RELATED:A financial planner shares the top reasons most people fail to budget

The PMI (private mortgage insurance), point was also very well received by many homeowners and home buyers. “Wait wait wait. I can just call my lender and ask for PMI to be removed if I have enough equity?? Tell me more!”One user was disbelieving. Maltes was happy to oblige, declaring, “In some instances yes based on equity. It can’t hurt to ask.”

Others highlighted the difficulties of not having enough money to purchase a car. One user even said Maltes could operate according to his own rules because he’s rich. He quickly clarified his position: “Trust me, I’m not rich. Please watch my video paying cash is a worthy goal. I pay cash because I don’t buy fancy things.”

One comment was so difficult and spicy, it received a video response. “Stupid advice really. Like most people can buy vehicles [with] cash. You’re only talking to people with hundreds of thousands of dollars in their checking account.”

Maltes laments the consumerist society. He claims that the social media posts of people showing off their extravagant purchases are not real life but only a highlight reel. That’s what you get. “keeping up with the Joneses”When you can be building wealth, your mind will keep you in financial debt.

It’s tough to digest this advice when you feel you can’t make ends meet—especially if you’re already breaking some of these 10 tips. But it’s important to evaluate your budget, see where you can chip away at debt or other financial burdens, and start paying in cash more often, even if it seems impossible now.

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