June 24, 2025 • 15 mins
In this episode of Your Retirement Guide, Certified Financial Planner™ George Jameson, founder of Capital Wealth Group in Columbia, SC, dives into Part 2 of The 5 Wealth Killers No One Talks About. This one might be sitting in your driveway—tune in to find out!
Welcome to "The Retirement Guide" Podcast! I'm your host George Jameson, owner of Capital Wealth Group, a Fee Only Advisory firm. Whether you’re nearing retirement or already retired, Join me each week as we explore the world of retirement planning and equip you with the knowledge and tools you need for a successful retirement.
Thank you for tuning in to this episode of The Retirement Guide. If you enjoyed this episode, please subscribe & leave a review. If you'd like a free 30-minute retirement review, visit our website at www.capitalwealthplan.com to schedule.
This is for education only.It is not tax, legal, or investment advice. Before acting on any information consult your tax, legal, or investment advisor.
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Visit our Website: Capital Wealth Group
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Capital Wealth Group is a Flat Fee-Only Advisory Firm located in Columbia, SC , serving clients locally in South Carolina and North Carolina and virtually nationwide.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
George Jameson (00:00):
Welcome back to another episode of Your
Retirement Guide.
I'm George Jameson, certifiedfinancial planner and founder of
Capital Wealth Group.
Last week we talked about thenumber one killer of wealth
buying too big or expensive of ahouse and what to do instead.
I.
Today we're on to part two ofthe Five Wealth Killers no one
(00:23):
talks about.
Drum roll please.
Expensive luxury cars, SUVs andtrucks, the price of driving a
status symbol.
A lot of drivers today arerolling around in 70 to$100,000
(00:43):
cars.
Even though the average sellingprice of a new car is just under
$50,000, which seems crazy.
And then most married couplesown two vehicles, which can mean
a hundred thousand to$200,000 indepreciating assets sitting in
(01:03):
your driveway, unless you'reearning well into the upper six
figure range combined, thatextra cost comes at a huge
opportunity cost.
And I'm not here to shameanyone.
I enjoy my car or my truck asmuch as anyone else.
But if you are loading up onpayments and not building
(01:27):
savings, the compounding effectswill quietly erode your wealth.
So let's dive in.
New vehicles lose value fasterthan almost any other purchase.
On average, new cars shed about20% of their value in the first
year, and a staggering 60% overfive years.
(01:52):
So a$70,000 new SUV becomesworth roughly$56,000 in 12
months, and closer to 28 to30,000.
Over five years.
First, let's look at the totalcost of ownership.
Owning a new mid-size SUV nowcosts roughly$13,200 per year.
(02:18):
That's$1,100 per month accordingto AAA's 2024.
Your driving cost, study,depreciation and finance charges
are the two biggest line items,but fuel, insurance,
maintenance, registration, andrepairs all add up quickly.
Now, if you buy a brand new fullsize SUV or a luxury car or a
(02:43):
full-size pickup, they cost evenmore easily between 1500 and
1800 per month once you factorin higher fuel insurance and
repairs.
Now let's look at the smart wayto buy a car.
At least for most of us.
buying used and the three tofive year sweet spot.
(03:07):
Because of steep earlydepreciation, the best value is
often a three to 5-year-oldvehicle.
Depreciation slows to roughly 10to 15% per year, while
reliability remains pretty high,especially for models like
Toyotas and Hondas, which oftenretain over 60% of their value
(03:31):
after five years.
Now let's look at other ways tosave when owning vehicles.
DIY maintenance and DIY oilchanges.
Routine maintenance adds upfast, and oil changes are really
easy to do so if you have thetime, you may want to consider
doing your own oil changes.
(03:53):
You can buy conventional oilplus a filter for about$30 if
you wanna use synthetic you'llpay a little more, but you don't
have to do the oil changes asoften.
Another way to save is when yourcheck engine light comes on or
if there's anything that you seethat's wrong with your car and
you want to save money, skip thedealership.
(04:14):
Pretty much any of the autoparts stores offer free vehicle
diagnostics.
You can scan your codes in twominutes and get a printed report
at no cost.
That way, you know, if it's justa loose gas cap, bad bulbs, or
something more serious beforepaying hundreds of dollars to a
(04:36):
dealer for a diagnostic fee, sohere's a quick story.
Last year, both of my high beamheadlights went out at the same
time.
Normally, if just one hadfailed, I would've bought a
replacement bulb and replaced itmyself, instead, I made an
appointment with the dealership.
(04:57):
They charged me$150 diagnosticfee.
It took forever, but theyfinally told me I simply needed
two new bulbs.
The dealer's repair quote wasover$2,000.
I said, thanks, but no thanks.
I, then grab two bulbs for$35each at AutoZone, you can buy
(05:20):
LEDs for a little more, watcheda 10 minute video on YouTube and
installed them myself in about10 minutes.
So I basically saved$2,000 byreplacing the bulbs myself and
I'm not super handy.
This is a prime example of whyif anything goes wrong or you
(05:40):
see anything wrong with yourcar, go get a free diagnostic at
an auto part shop first andavoid the dealership for repairs
at all costs, unless of courseit's under warranty.
And now here's a quick tip aboutauto insurance that very few
people know about.
insurance claim pitfalls androadside assistance.
(06:03):
On your auto insurance, you hadthe option to do roadside
assistance.
You get a flat tire, you need abattery jump, you lock your keys
in your car and so on.
You think it's just a servicethat the insurance offers, but
it can actually increase yourpremiums, over time.
And even disqualify you fromsome insurance carriers,
(06:27):
depending how many servicesyou've used.
Insurance companies record theseservices as actual claims.
Of course, locking your keys inyour car is not as bad as
getting in an auto accident andfiling a claim, but these can
add up and can dramaticallyincrease your insurance premium.
(06:49):
So instead of using your autoinsurance roadside assistance
option, cancel it and get AAAmembership.
AAA service calls don't leave aninsurance claims footprint.
So your record stays clean andyour rates will stay low.
(07:10):
Now let's discuss my personalfinancing rules or
recommendations that I give tomy clients.
So it's called the 20, 3 andeight rule.
I'll explain in a second.
First, I recommend paying cashfor a car since they are
depreciating assets.
(07:32):
However, I realize that can beunrealistic for many people.
And here's the framework.
20 stands for 20% down paymentto immediately reduce your
financial balance and then thethree stands for three years or
36 month term.
so then you'll own the vehicleoutright more quickly.
(07:55):
And then the eight stands for 8%of gross income, which is the
max on total transportationcosts such as loans, insurance,
fuel, and maintenance.
Please keep in mind this is justa framework however, buying a
new car when the average isalmost$50,000, that is really
(08:15):
tough for the average family todo.
And then you have to includetoday's average new car rate of
6.35% APR.
Let's say you decide to financea$70,000 new vehicle over 36
months.
You follow the rule and you put20% down, which is around
14,000, that yields you apaymnet of roughly$2,200 per
(08:39):
month.
That's more than double my firstmortgage.
Now, if you decided to go out 60months, it would be about$1,350
per month.
But if you can afford it, you'llpay off the vehicle two full
years earlier.
Save thousands in totalinterest.
And free up your cash flow muchsooner for savings, investments
(09:03):
and other expenses.
And the math works the samewhether we're talking about a
$40,000 car,$50,000 car, and soon.
Now let's look at theopportunity cost of buying new
versus used.
let's compare two scenarios forsomeone who can actually afford
(09:26):
the$2,200 per month loan paymenton the$70,000 car.
So the new$70,000 vehicle over a36 month payoff is 2200 per
month.
Like I said, but instead youbought a three to 5-year-old
vehicle at half the price, whichis 35,000.
(09:50):
Same vehicle just used, and youhave a 36 month payoff.
So here you would put 20% downon the used vehicle, which is
7,000.
Then you would finance 28,000 at6.35%, which is roughly 860 per
month.
(10:10):
So your monthly savings isroughly 1300 per month, which is
16,000 per year.
So this is financing a$70,000car versus a$35,000 used same
model car.
Now keep in mind the 70 versus35 may not be exact, but you get
(10:34):
the picture.
Now let's say you invest just75% of that$16,000 you saved.
Which is roughly 12,000 annuallyat a 7% average return over 30
years, you would have roughly$1.13 million in investments.
(10:57):
All from choosing a lower pricevehicle or slightly used vehicle
and paying it off in threeyears.
Let's say we just decided tosave 50% into savings and spent
the rest, you'd still end upwith about$750,000.
(11:19):
I know this doesn't pertain toeveryone, but even if we changed
these figures and went from a$40,000 new car to a 20 or
25,000, three to 5-year-old car,the same math works, maybe it's
not a million dollars you savedmaybe is half a million dollars.
That's still a lot of money.
(11:41):
Smart spending, especially ondepreciating assets, is how you
can hold on to more of yourhard-earned dollars.
Now for your key takeaways andaction steps.
So number one.
Buy a used three to 5-year-oldcar.
Of course, it's important toresearch the model, reliability,
(12:05):
the maintenance cost, and so onof the car or cars you're
looking at to purchase.
In general, brands like Toyotaand Honda often top the list
when it comes to reliability andlow maintenance costs, but most
well maintained vehicles canlast a decade or longer.
(12:26):
And then number two, pay cashfor the car if you can afford
it.
Or finance it short term, whichis three years at the lowest
possible rate of course, I wouldrecommend shopping credit unions
and comparing those to thedealer rates.
And then number three, DIY,basics, if you have the time,
(12:49):
learn to change your oil andfilters.
And I highly recommend using thefree OBD two scans at auto part
stores before paying fordiagnostics and repairs at
dealerships or other repairshops.
And then number four.
(13:09):
Review insurance and roadsideassistance.
Remove roadside assistance fromyour auto policy and instead buy
AAA membership.
And then shop carriers every oneto two years.
And then number five, invest thedifference.
Even saving and investing 75% ofthe monthly difference By buying
(13:34):
a used vehicle, it can turn intolife changing sums of money over
the long term.
Now, next week, we'll dive intopart three of the Five Wealth
Killers No One Talks About.
So stay tuned to find out.
Be sure to share this episodewith a friend or family member.
Write a review.
(13:54):
Schedule a free consultationthrough my website@www.capital
wealth plan.com.
You can also go to ww.capitalwealth group sc.com.
Thanks for listening and have agreat day.
Welcome back to another episode of Your
Retirement Guide.
I'm George Jameson, certifiedfinancial planner and founder of
Capital Wealth Group.
Last week we talked about thenumber one killer of wealth
buying too big or expensive of ahouse and what to do instead.
I.
Today we're on to part two ofthe Five Wealth Killers no one
(00:23):
talks about.
Drum roll please.
Expensive luxury cars, SUVs andtrucks, the price of driving a
status symbol.
A lot of drivers today arerolling around in 70 to$100,000
(00:43):
cars.
Even though the average sellingprice of a new car is just under
$50,000, which seems crazy.
And then most married couplesown two vehicles, which can mean
a hundred thousand to$200,000 indepreciating assets sitting in
(01:03):
your driveway, unless you'reearning well into the upper six
figure range combined, thatextra cost comes at a huge
opportunity cost.
And I'm not here to shameanyone.
I enjoy my car or my truck asmuch as anyone else.
But if you are loading up onpayments and not building
(01:27):
savings, the compounding effectswill quietly erode your wealth.
So let's dive in.
New vehicles lose value fasterthan almost any other purchase.
On average, new cars shed about20% of their value in the first
year, and a staggering 60% overfive years.
(01:52):
So a$70,000 new SUV becomesworth roughly$56,000 in 12
months, and closer to 28 to30,000.
Over five years.
First, let's look at the totalcost of ownership.
Owning a new mid-size SUV nowcosts roughly$13,200 per year.
(02:18):
That's$1,100 per month accordingto AAA's 2024.
Your driving cost, study,depreciation and finance charges
are the two biggest line items,but fuel, insurance,
maintenance, registration, andrepairs all add up quickly.
Now, if you buy a brand new fullsize SUV or a luxury car or a
(02:43):
full-size pickup, they cost evenmore easily between 1500 and
1800 per month once you factorin higher fuel insurance and
repairs.
Now let's look at the smart wayto buy a car.
At least for most of us.
buying used and the three tofive year sweet spot.
(03:07):
Because of steep earlydepreciation, the best value is
often a three to 5-year-oldvehicle.
Depreciation slows to roughly 10to 15% per year, while
reliability remains pretty high,especially for models like
Toyotas and Hondas, which oftenretain over 60% of their value
(03:31):
after five years.
Now let's look at other ways tosave when owning vehicles.
DIY maintenance and DIY oilchanges.
Routine maintenance adds upfast, and oil changes are really
easy to do so if you have thetime, you may want to consider
doing your own oil changes.
(03:53):
You can buy conventional oilplus a filter for about$30 if
you wanna use synthetic you'llpay a little more, but you don't
have to do the oil changes asoften.
Another way to save is when yourcheck engine light comes on or
if there's anything that you seethat's wrong with your car and
you want to save money, skip thedealership.
(04:14):
Pretty much any of the autoparts stores offer free vehicle
diagnostics.
You can scan your codes in twominutes and get a printed report
at no cost.
That way, you know, if it's justa loose gas cap, bad bulbs, or
something more serious beforepaying hundreds of dollars to a
(04:36):
dealer for a diagnostic fee, sohere's a quick story.
Last year, both of my high beamheadlights went out at the same
time.
Normally, if just one hadfailed, I would've bought a
replacement bulb and replaced itmyself, instead, I made an
appointment with the dealership.
(04:57):
They charged me$150 diagnosticfee.
It took forever, but theyfinally told me I simply needed
two new bulbs.
The dealer's repair quote wasover$2,000.
I said, thanks, but no thanks.
I, then grab two bulbs for$35each at AutoZone, you can buy
(05:20):
LEDs for a little more, watcheda 10 minute video on YouTube and
installed them myself in about10 minutes.
So I basically saved$2,000 byreplacing the bulbs myself and
I'm not super handy.
This is a prime example of whyif anything goes wrong or you
(05:40):
see anything wrong with yourcar, go get a free diagnostic at
an auto part shop first andavoid the dealership for repairs
at all costs, unless of courseit's under warranty.
And now here's a quick tip aboutauto insurance that very few
people know about.
insurance claim pitfalls androadside assistance.
(06:03):
On your auto insurance, you hadthe option to do roadside
assistance.
You get a flat tire, you need abattery jump, you lock your keys
in your car and so on.
You think it's just a servicethat the insurance offers, but
it can actually increase yourpremiums, over time.
And even disqualify you fromsome insurance carriers,
(06:27):
depending how many servicesyou've used.
Insurance companies record theseservices as actual claims.
Of course, locking your keys inyour car is not as bad as
getting in an auto accident andfiling a claim, but these can
add up and can dramaticallyincrease your insurance premium.
(06:49):
So instead of using your autoinsurance roadside assistance
option, cancel it and get AAAmembership.
AAA service calls don't leave aninsurance claims footprint.
So your record stays clean andyour rates will stay low.
(07:10):
Now let's discuss my personalfinancing rules or
recommendations that I give tomy clients.
So it's called the 20, 3 andeight rule.
I'll explain in a second.
First, I recommend paying cashfor a car since they are
depreciating assets.
(07:32):
However, I realize that can beunrealistic for many people.
And here's the framework.
20 stands for 20% down paymentto immediately reduce your
financial balance and then thethree stands for three years or
36 month term.
so then you'll own the vehicleoutright more quickly.
(07:55):
And then the eight stands for 8%of gross income, which is the
max on total transportationcosts such as loans, insurance,
fuel, and maintenance.
Please keep in mind this is justa framework however, buying a
new car when the average isalmost$50,000, that is really
(08:15):
tough for the average family todo.
And then you have to includetoday's average new car rate of
6.35% APR.
Let's say you decide to financea$70,000 new vehicle over 36
months.
You follow the rule and you put20% down, which is around
14,000, that yields you apaymnet of roughly$2,200 per
(08:39):
month.
That's more than double my firstmortgage.
Now, if you decided to go out 60months, it would be about$1,350
per month.
But if you can afford it, you'llpay off the vehicle two full
years earlier.
Save thousands in totalinterest.
And free up your cash flow muchsooner for savings, investments
(09:03):
and other expenses.
And the math works the samewhether we're talking about a
$40,000 car,$50,000 car, and soon.
Now let's look at theopportunity cost of buying new
versus used.
let's compare two scenarios forsomeone who can actually afford
(09:26):
the$2,200 per month loan paymenton the$70,000 car.
So the new$70,000 vehicle over a36 month payoff is 2200 per
month.
Like I said, but instead youbought a three to 5-year-old
vehicle at half the price, whichis 35,000.
(09:50):
Same vehicle just used, and youhave a 36 month payoff.
So here you would put 20% downon the used vehicle, which is
7,000.
Then you would finance 28,000 at6.35%, which is roughly 860 per
month.
(10:10):
So your monthly savings isroughly 1300 per month, which is
16,000 per year.
So this is financing a$70,000car versus a$35,000 used same
model car.
Now keep in mind the 70 versus35 may not be exact, but you get
(10:34):
the picture.
Now let's say you invest just75% of that$16,000 you saved.
Which is roughly 12,000 annuallyat a 7% average return over 30
years, you would have roughly$1.13 million in investments.
(10:57):
All from choosing a lower pricevehicle or slightly used vehicle
and paying it off in threeyears.
Let's say we just decided tosave 50% into savings and spent
the rest, you'd still end upwith about$750,000.
(11:19):
I know this doesn't pertain toeveryone, but even if we changed
these figures and went from a$40,000 new car to a 20 or
25,000, three to 5-year-old car,the same math works, maybe it's
not a million dollars you savedmaybe is half a million dollars.
That's still a lot of money.
(11:41):
Smart spending, especially ondepreciating assets, is how you
can hold on to more of yourhard-earned dollars.
Now for your key takeaways andaction steps.
So number one.
Buy a used three to 5-year-oldcar.
Of course, it's important toresearch the model, reliability,
(12:05):
the maintenance cost, and so onof the car or cars you're
looking at to purchase.
In general, brands like Toyotaand Honda often top the list
when it comes to reliability andlow maintenance costs, but most
well maintained vehicles canlast a decade or longer.
(12:26):
And then number two, pay cashfor the car if you can afford
it.
Or finance it short term, whichis three years at the lowest
possible rate of course, I wouldrecommend shopping credit unions
and comparing those to thedealer rates.
And then number three, DIY,basics, if you have the time,
(12:49):
learn to change your oil andfilters.
And I highly recommend using thefree OBD two scans at auto part
stores before paying fordiagnostics and repairs at
dealerships or other repairshops.
And then number four.
(13:09):
Review insurance and roadsideassistance.
Remove roadside assistance fromyour auto policy and instead buy
AAA membership.
And then shop carriers every oneto two years.
And then number five, invest thedifference.
Even saving and investing 75% ofthe monthly difference By buying
(13:34):
a used vehicle, it can turn intolife changing sums of money over
the long term.
Now, next week, we'll dive intopart three of the Five Wealth
Killers No One Talks About.
So stay tuned to find out.
Be sure to share this episodewith a friend or family member.
Write a review.
(13:54):
Schedule a free consultationthrough my website@www.capital
wealth plan.com.
You can also go to ww.capitalwealth group sc.com.
Thanks for listening and have agreat day.
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