George Kamel - 16 Minutes of Parents "Making" Their Kids a Millionaire

Episode Date: May 29, 2026

🎧 Check out my audiobook Breaking Free From Broke.   I recently discovered that finance bros love making TikToks about everything they’re doing to turn their kids into millionaires—and most of their “strategies” are profoundly stupid. So today, I’ll be reacting to the best of said TikToks.   Next Steps: • 🎥 Watch my video These Viral “Investment” Plans Don’t Work. • 💵 Start your free budget today. Download the EveryDollar app! • 📈 Are you on track with the Baby Steps? Get a free personalized plan. • 👉Enter the Ramsey May Cash Giveaway! $500 weekly prizes and a $10,000 Grand Prize. Daily entries increase chances of winning.    Connect With Our Sponsors: • Get up to 20% off Cozy Earth with code GEORGE. • Get 20% off when you join DeleteMe. • Go to Boost Mobile to switch today!  • Go to FAIRWINDS Credit Union for an exclusive account bundle!   Explore More From Ramsey Network: 🎙️ The Ramsey Show 🍸 Smart Money Happy Hour 💸 The Ramsey Show Highlights 🧠 The Dr. John Delony Show 🪑 Front Row Seat with Ken Coleman 📈 EntreLeadership   Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices

I recently discovered that finance bros love making TikToks about everything they're doing to turn their kids into millionaires. And most of their strategies are just a wolf in Patagonia Vest clothing. So today I'll be reacting to the best of said TikToks, or maybe the worst, and give you wealth advice for your kids without a vested interest. I'll be here all week. And so we'll delete me our channel sponsor. Let's get into it.

I'm a 13-year-old is going to become a millionaire. Number one. I'm going to be an entrepreneur and own my own business. Number two. I'm going to build multifamily properties like my parents. Number three. I'm going to own a lot of rental properties and create a lot of passive income. Hudson, how much money do you have saved up now? I have $12,000 saved up. The mindset and strategy, this guy know right now, he's going to become a meaner faster I did myself.

Okay. First of all, blink twice if you're okay, bud. Dad looks like he forced you to memorize that. And what, the Mercedes in the background? Really trying to flex. Really trying hard. So let me get this straight. He's going to start a business. this build multifamily properties, own a bunch of rental properties, and become a millionaire faster than his dad. Maybe. I mean, this is great in theory, but it's very pie in the sky, and it's going to take a lot of debt leverage for a young man like this to get there. Now, I am really proud of him for having 12 grand at 13 years old. That is insane. 13 years old, 12,

how? How? How? Mowing lawns? It wasn't from real estate. Ooh, Mark coming in hot in the comment section. Money, check, childhood. I do feel that. Some of these parents and some of these kids, they get obsessed with this adult stuff and they sort of miss out on just being a kid. You know, why do you have to own seven multifamily properties by the time you're 15? Why can't you just play video games? Play some basketball with your buds. Let him play video games, bro. L-O-L. He made his son do that. See, I told you. It wasn't just me thinking that. All right, I feel good about that. Well, clearly, these guys are not subscribed to this channel, which, by the way, is also true for almost three-quarters of the people watching.

So why not change that by hitting the subscribe button so you don't have to hope the algorithm magically serves you up the latest and greatest George Camel YouTube content? Go ahead. I'll wait. All right, we don't have a lot of time, so just hit it on our system. Oh, a little Facebook video. It's about time. Forgot videos were over there. This is my daughter, Maddie.

Hi, Maddie. We're at a car dealership right now, and she's about to buy her first car. Tell me how you're buying your first car. the bank. I got my first car loan. I qualified for $15,000. At what interest rate? 3.5% with the money that I have saved up, I have $7,000 in cash. I'm going to invest that into an Airbnb property and get 14% interest back so that way I can use that money to pay off my car loan. So basically, kind of getting a car for free. Wait, Maddie, can you explain that one more time, a little more simply? Yeah. So it cost me three cents to borrow a dollar

from the bank. And then I go and take that dollar, not my dollar, and I give to someone for 14 cents. And then so 14 minus 3, 11, so I keep the difference in the middle. Wait, what's that called? Archabash. Boom. You buy assets that then cash flow and pay for your stuff. That's the dumbest thing I've ever heard. Hey! Not a thousand.

I'm so glad that it wasn't the original poster. A guy uploaded that to react to and then said it's the dumbest thing I've ever heard. So took the words right out of my mouth. I heard the word arbitrage and a puppy stop wagging its tail. Why are we teaching our kids arbitrage? Okay, and I don't believe that her Airbnb was $7,000 down is returning 14% perfectly every. It's just not how it works, okay?

There's a ton of risk. There's a giant mortgage attached to that. And this is a full-time business. You're running a bed and breakfast as a third. I just don't buy it. I don't buy that your kid is doing this. I think it's a lie. Dad's doing this for some life.

and even if he is not good parenting. And just to be clear, here's the definition of arbitrage, if it hurts your brain to hear a big $10 French word. Arbitraise, trading that exploits the tiny price differences between identical or similar assets in two or more markets. I don't even know if she's doing that at this point. That doesn't even sound right, but yeah, you're trying to leverage one thing to then use that money

to make money off another thing. And there's a lot of risk involved, and people like this, their risk meter is no way. to be found. And all it takes is one slip up, one thing to go wrong to destroy this child's life. Good luck. Excuse me. What do you do for a living? Gosh. This is insane. Appreciate it. Thank you.

Funny story. Back when I was 11 in 2017, me and a few buddies actually downloaded some NFTs. Really? Yeah. Yeah. Someone told me actually like, yo, these are worth a lot of money. Wait, what NFT? Cryptopunks. What? You heard of that? Yes. You heard of them? Yeah.

I had a bunch when you were 11? I had about a dozen. And when are you doing them? You're just chilling with them? So most of them I sold. I still have a couple, a few of them left. And what did you sell them? I sold them about peak.

2021. What? Yeah. Right now I just her 17. What? Did you drive a black series? I'm driving. Do you look, a bunch of cars?

What the hell? Yeah, 29 cars, but. What? Okay. Wait, did you sell like any for like a little three. I'm so confused. Not like specific ones. We're going for a million or anything?

Uh, a couple went over a million. What? Like a wizard. I appreciate it, man. I appreciate it. Okay, okay, I bought it. Thank you. Okay, if this is a parody video,

you guys need to work on your content creation skills here. Okay, can we work on a better microphone? How, wait, were you in a windstorm when you recorded this? That was some of the worst audio I've ever heard in my life. And I've listened to an entire Nickelback album. That is wild behavior. This can't be real. I don't, is this his actual account?

It's Daniel Mack, never heard of this guy. What do you do for, oh, he's the guy. that interviews these guys, which means I can't trust anything they say. And looking at his profile, anybody who's like into this, like your dream is to drive a brightly colored sports car by the time you're 22, you need better dreams, okay? I don't know how your parents raised you, but it wasn't right if this is the one thing you're aiming at is just swaggy jewelry and accessories and fancy cars. Gosh, this is, this is exhausting. This is an entire generation. I don't believe this guy. Whoever it is, don't believe them. NFT is my butt.

$450,000 car. I don't buy it. Well, listen, you don't need a $450,000 car to treat yourself. You just need Cozy Earth, a sponsor of today's video. I've been rotating through their brush bamboo joggers and their men's everywhere pants for months now. Wore them to the office Monday. War them while I grilled on Saturday. War them while I chilled on Sunday. To be fair, I also wore them to the couch on Sunday, and possibly Thursday, and every other day of the week. They're soft, they're durable, and they're actually worth the money, which I don't see. say lightly. And right now, Cozy Earth is offering my audience up to 20% off. So get the discount and bless yourself and those you love by going to CozyEarth.com slash George and use the

promo code George at checkout. And before we get back to the hairbrain money advice from over-enthusiastic parents and children, allow this appropriately enthusiastic parent to give you some sound money advice. Who you bank with drastically affects your ability to win with money. And that's why I love Fairwin's Credit Union, a sponsor of today's video. They've got a high-yield savings account with a competitive APY in zero sneaky fees, which means your money stays with you and actually grows instead of just sitting there judging you. And you can open one alongside a fee-free checking account

in mere minutes on your phone by going to fairwins.org slash Ramsey. That's fairwins.org slash Ramsey. Oh, I've seen this guy before. Listen, unless you're George Clooney, let's button it up, bud, okay? Do you want to know the secret how the rich make their kids automatic multimillionaires

with only $20,000? Two ingredients, a trust, and an annuity. buy each of their children a tiny annuity, generally 20 or 50 grand, and name them only as the annuitant. Then they make the trust, the owner, and beneficiary. The child doesn't have rights to dispense the funds. Only the owner, that's the trustee, generally a parent or a legal contingent, can release these funds at their discretion. Specifically, they elect a no-fee equity index annuity to hedge inflation. Because it's an annuity, it eliminates timing risk and stock picking. So it's future proof. The best part is the kid can't blow the money on spring break

in Mekanos and in the unlikely event that the child should pass, the funds revert back to the trust. These funds become two to five million bucks in 30 years. It's like giving a baby a house instead of a stuffed Pikachu. Not bad for 20K, huh? Okay. Well, you buried the lead there. When you find out at the very end, this is just an ad for the insurance company that sells the annuities. So, hard to trust this guy with financial advice at this point. Revise insurance group LLC distributes insurance products issued by multiple carriers for further view. Yeah, this is insane. and he just used a lot of big words. And I'm immediately skeptical of anyone who uses the word annuitant.

Never heard that word in my life. I never want to hear it again, to be honest. And annuities are a very expensive, complex product. It's a contract with an insurance company that guarantees payments. There's variable annuities and all kinds of others, and your kid does not freaking need one. Okay, wealthy people rarely need one. Now, wealthy people do often use trust for estate planning and investments for growth,

but they don't rely on annuities to build wealth. Because the truth is, annuities have really crappy returns, thanks to caps on returns, high commissions, surrender charges, insurance fees, management fees, extra rider fees. I digress. Needless to say, ignore everything he said. Right away, sir. Do you want your kids to be filthy rich? It's surprisingly simple. And tax-free. Hey, could I invest $6,000 for my son? Yes, I would love to take your money. Let's invest some in some safe mutual funds.

Well, mutual funds have high fees. I want to make him rich, not you. Darn, then I guess you want to buy index funds? Correct, and I want to buy these in a custodial Roth IRA account for him. Wow, your son is going to profit tax-free because of that. Yeah, if I keep doing this, he'll have over 10 million in his retirement account. All tax-free, follow to learn more. Okay, so $6,000 turns under $10 million. I'm trying to follow it.

Maybe if you just let it ride until retirement and do that every year? I don't know why the hatred for mutual funds. I mean, index funds are a type of mutual fund. What he's getting at is actively managed mutual funds, can't have higher fees because they're actively managing it versus a passively managed index fund. But the logic around it is correct. I'm not super mad about this in general with a custodial Roth IRA that you can invest on your child's behalf.

And I do invest on my child's behalf through a 529 plan for education. And then I have a brokerage account outside of retirement to invest for my kids as well. That way it's flexible. I can take the money out before retirement. And once that child is working and has income, I will definitely be investing that amount into their IRA. So that's a great strategy overall, and Roth does mean tax-free, so there will be tax-free withdrawals when they go into retirement, which I also love, because you already paid Uncle Sam once. Don't have to ever pay him again. Keep his grubby hands out of there.

Take that, Uncle Sam. Listen, I'm a huge fan of investing for your kids, but the problem is many people aren't even investing for themselves. So as the parent, you've got to be investing first. Put on your own oxygen mask before you try to help your kid. Otherwise, you could become a financial burden to them when you retire. broke. Don't love that. So the primary goal, let's get them through college debt-free if college is the path, make sure they remain debt-free through adulthood, and they're probably going to be fine, especially if you start investing for them at an early age.

How old are two- and six-year-old become millionaires? Super simple. I'll show you a real quick. Because I set my daughter up with an IUL policy when she was two. I put $500 a month into this for her. When she turns 21, this is when I'm going to transfer this to her tax-free. You know, if she wants to go to college, she can go to college. If she wants to be a business owner and start getting into real estate, this is what I'm going to do for her because I have an IUL as well. Her first rental property. We're going to take out 75,000. The life insurance company's going to take it from here. They're going to give her the 75,000, while this all still continues to grow. I'm going to teach her the business model to put the money back into the policy so that loan gets paid off quicker,

and then she can recycle and do it all over. So by the time that your kids are probably out of college, she will have a couple passive income streams generating over a million dollars a year. And with all that passive income. When my daughter goes to retire, she's going to be receiving $120,000 tax-free for the rest of her life. I put $90,000 into this for my daughter. Let's say she lives for another 20 years. We'll have $2.4 million tax-free. 90,000 put in, but my daughter gets $2.4 million for the rest of her life. Make sure you're following to learn more ways to use the IUL in real life. Goodness gracious. I don't know how this guy sleeps at night. IULs are indexed universal life insurance policies, which are a very complex form of

permanent life insurance and it's peddled by guys like this who are like, it's a wealth strategy for your children. No, you're just expensively making someone else a whole lot of money. These IUL salespeople, they could be making 100 to 140% commission off of this product. And you know what they don't make doing? Selling you term life insurance, which is a much better option for life insurance. So don't mix to do. Do not mix insurance or investing. That's how you get into this trap right here. Ah, yes, step one be rich. Step two be rich. No, you don't need to understand how an IUL works. It's a rip-off. Read your policy. Boom, roasted. Not an IUL, no. I'm glad people are getting hip. Dow terrible IULs are. What about all the fees? That's what he's not telling you. If you just stuck that amount in an index fund, they would be so much wealthier than the returns you'd get from these policies. No, thank you. I would seriously love to learn more about this. It's all they confuse you. Yeah, they confuse you on purpose to make you think, well, you just don't understand. Just trust me, bro. Bro, trust me.

Look at all my red lines. I got this. No thank you. As per usual, producer Alex has selected a pallet cleanser video for me to enjoy, which may or may not involve making your kid a millionaire. Let's find out. Not this guy again. He was using his chin, now he's using his head? That...

Not the cat! Oh, that's disgusting. Oh, gosh. Why did I get spooked by that? That poor cat. Not an apple. You can't do that. This man is unwell. Beautiful cake, why you ruin it? Oh my god.

Okay, that was satisfying. No, not the egg. That's disgusting. Whip? Is it open? Did he break through it? Oh, gosh. Two eggs. A strawberry? Did you do this in one sitting? This guy needs to go see an emergency room.

The most impressive part is the circuit. is the circular breathing to keep that noise going at the exact same tone and pitch. How is he upside down and putting his full weight? That's what I truly do not understand. Like, he can't be doing this. Is he being held and dropped? Who can carry that guy?

I've so many questions. Okay. I'm being told by my producer there is a part two that I must watch. I'm so intrigued. Are you worried he's going to cheat on you? Nope. They're behind this.

Okay, he really is just leaning over. That is impressive. The man truly, it's a strong man. He's got a strong skull. I mean, an apple with your skull just heads down? He's a legend. I'm disturbed and impressed at the same time, and I needed that. That actually was a better video than all of the other ones combined.

Well, back to the matter at hand. If you want to know the full truth about IUL policies, I made a video breaking down how an IUL policy caused a NASCAR driver and his wife to lose over $8 million. And sadly, everyday people are falling for this trap. So click here to watch that video next or use the link in the description. That's it for today. Thanks for watching. We'll see you next time.