Do You Even Know What A Reverse Mortgage Is?
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- Опубликовано: 18 сен 2024
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Why did she even call? She tells them what she is doing which is insane and she totally disagrees with them. If she already made up her mind why did she bother to call?
Exactly
Probably because her husband disagrees and she wanted someone on her side to go along with it
She either knows deep down that it’s a bad idea and wants someone to talk her out of it or she’s trying to win an argument with someone else
She was hoping to hear them agree with her and it backfired
She makes us all feel a little bit smarter
If Ken got irritated, just imagine if Dave would've been there😂😂😂 Man I wish i could've seen it
ᶫᵒᵛᵉ❥ᵧₒᵤ➳ 🤍🤍sᴇɴᴅ🤍🤍ᴍᴇ🤍🤍ᴀ🤍🤍ᴅɪʀᴇᴄᴛτєϰτ🤍±９１９２９５６３７５☝️☝️ ❆࿅࿆👍🏿👍🏿👍🏿👍🏿
Dave has pulled off all his hairs just out of irritation and have gone bald.
Now he is having revenge on the employees that still have hair 😊
Well, you do know that they are wrong telling her not to do it. Right?
This lady is a perfect example of how so many people that make 250K a year live paycheck to paycheck. We always wonder how people that make so much struggle to pay their bills. Well, this call just answered our questions. They spend it all buying crap they don't need and going on expensive vacations.
She’s 61… She probably feels like she doesn’t have a lot of time left and wants to see the world…
To be fair, she had a pretty decent plan. Taking out a reverse mortgage to buy a rental property for added cash flow is actually pretty smart. There are definitely risks there but it’s a solid plan. These 2 are completely against reverse mortgages without real justification.
Does anyone know the risks just listed that nobody listened to for having a tenant? Good God
@@barnabusdoyle4930why go with a reverse mortgage instead of taking out a mortgage, or equity line of credit on her home?
It doesn't appear any different to me than to sell a paid off home to finance another, just doing it one small piece at a time. If the rent isn't high enough to pay the mortgage, it isn't a net positive in her finances.
Unless she is in bad health, she has most likely another 30 years of life.@@MrGuy-xx7ss
Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
Exactly
You have to take out a reverse mortgage before housing crash happens though, or you miss the boat.
The stock market is no different, to maintain profit, you need to have some in-depth knowledge on the market
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
my partner’s been considering going the same route, could you share more info please on the advisor that guides you.
She can’t manage to live on $2k a month with all 3 properties are paid off? Sounds like she has a spending problem.
Nailed it!!!! She's not being truthful. She's in denial. No one at 62 needs to be working having so much paid off.
Property taxes and insurance can eat up a huge portion of her income. My homeowner’s insurance went up over 50% this year from last year . Two thousand a month isn’t much to live on. My medical insurance alone is over $600 , just for me, and it doesn’t have prescription coverage and has a high deductible.
Why won’t she just sell a property? She’s on the final stretch anyway, cash out and be done with it.
The biggest point missed in this call is that Martha said "I need at least another 7 grand" per month. She currently has 2 rentals with a combined value of $480K and said those two rentals net $2400/month, yet she wants to take out a $500K reverse mortgage to buy a rental property to make up the difference in income. The rental will generate only about $2500/month so it won't even come close to meeting her goals.
Her whole situation was so wacky, we can forgive George and Ken for not harping on that part.... They're smart guys and they knew the numbers were bad, but probably didn't want to rake her over the coals too much. Regardless, it's a bad plan that isn't going to work. Sometimes folks see the future through rose-tinted glasses and refuse to imagine what would happen if things don't work out 100% according to their unrealistic plans.
She has probably $2500/month in social security and makes $2400/month in rental income so just needs a couple more grand from a third rental. Her idea actually sounds somewhat decent. She’s not even really going into debt.
@@omnimoeish George very clearly said "on top of Social Security."
@@omnimoeish "Her idea actually sounds somewhat decent" -- No. It is an asinine idea and the only people who don't think so are the scum who work for reverse mortgage companies and the financially illiterate.
I own a rental management company. You don’t get to keep the total $2500, even if there is no mortgage. You have insurance, property taxes, HOA fees, upkeep and maybe management fees. Then of course you pay income tax on that money. All it takes is for the HVAC system to blow or a hot water heater to break or a roof to need repair and you go into the hole, not make a profit. Landlords make far less than the renters think they do.
I’m a French Canadian and George is so right…. A mortgage in French is “un “gage” de la “mort” meaning a pledge of death!
Considering you can also marry dead people in France, it wouldn't get too worked up on it.
Yes. But you forget that it is REVERSE!
It continues to amaze that someone (not in the music, sports or acting business) can be bright enough to earn $200,000/year and own $1.5 mil in real estate… and yet fail to understand very basic personal finance. Imagine what they could accomplish with basic personal finance skills!
We have a severe educational deficit in this country. Basic personal finance and economics should be taught throughout K-12. It is a life survival skill. How can anyone make an informed vote, lacking these basic skills?
It's a combination of both, personal financial knowledge and greed. She literally said she needs $10k a month to live to travel and spend on crap she probably doesn't even need. She wants to go on how many ever vacations each year for another 5 years and spend a lot of money on shopping, then to go into debt to bet on someone staying in her rentals. Her rentals probably have crappy appliances and flooring so she can get as much money out of her renters without putting much into it.
It's the classic Boomer who got theirs and wants others to continue to pay for her lavish lifestyle until she dies. In her mind, the reverse mortgage or whatever will go away when she dies so she doesn't have to pay on it but gets to keep the money from it buying a renal.
It's long past due that we stop acting like personal finance is some black art passed down via the sages. It's simple. Spend less than you make. Save. Be careful about debt. Take advantage of your tax advantaged retirement vehicles. Prioritize those according to the value of the tax advantage. Bet on the US economy because if you lose you were going to be screwed anyway. Sit on your hands and wait.
It's not rocket science. Our problem is the number of "educated" people who are convinced that they can do better.
@@BTrain-is8chhaha, what you claim is “Simple” is far over the heads of the average Joe and Josephine.
Idk. They are in great shape.
Sounds like she's doing pretty well. She must have some finance skills.
Every time someone calls in from Florida I just know it’s going to be something ridiculous.
Florida Man and Florida Woman never disappoints.
The slick thing about reverse mortgages…it’s not just when you die - it’s when you vacate the home. And the vacation clause in them can literally be as short as not occupying for as little as 4-6 weeks. People have gotten sick, gone to an extended hospital stay and come home to find a foreclosure because they’d tripped the clause…then they’ve lost everything. Reverse mortgages are about as predatory as it gets
As someone who specializes in reverse mortgages, this is incorrect. The home has to be your primary residence. Having an extended hospital stay is not a reason you will lose your home on a reverse mortgage. And if you have a "friend" who that happened to, they're not telling the whole story. Is a reverse mortgage for everyone? No. However, there is too much misinformation about the program and we keep taking advice from people who don't have a lot of knowledge about it.
why do you think so many people are against these mortgages? @@patriacabrera4712 I notice these guys want to send her to 'their investor'. Sounds fishy to me.
Thanks for that info
“You have 10 thousand dollars in expenses? With no payments?? “ George Kamal. I’ve been laughing at his reaction for like 10 mins. 😂 😂
Why would she ever consider taking out a reverse mortgage, especially to buy another rental property? Absolutely crazy!!! If you have kids and don’t want to leave them anything, do it. If you are staying in your house until they carry you out in a pine box and you don’t want your spouse to have the house, do it. 🙄🙄🙄 Sell the rental properties and live a little while you can.
She's living a lot right now so a little ain't even her ballpark
Shes louie the 15th. "After me the deluge"
She aint planning on her kids having her home so in that case reverse mortgage is "smart"
Inheritance shouldn't be a consideration. I told my daughter that I, probably, will spend all my money - but she'll get the sentimental, family stuff. Should never live one's life with that inheritance issue.
@CynthiaIvers if inheritance isn't a concern then a reverse mortgage does make sense. You don't default until you die
@@tomassmith2088 In Canada, you have to pay back the amount borrowed plus interest, of course, when you move out of the house. Off to a nursing home? The loan needs to be repaid.
For them to have only a $1,500,000 net worth at 60 with an income of $200,000 they must be spending $100-120k per year to maintain their lifestyle, their current passive income is $28,800 even if she buys another $500,000 rental her passive income will still only be ~$50k per year, she is about to get a serious lifestyle reality check
Again, real estate is not passive income lol. I would hate renting from an old couple. Heck, my current landlord and her husband works and they go to Europe twice a year plus 2-3 cruises.
@@Feelsbad1 pay a few percent for a property manager and it’s close to it, either way it doesn’t involve a 9-5 job and a commute to the office and back. Lots of people have rental properties as part of a retirement income stream.
@@smithersrob
Standard is 10+%. Most in my area is 12%. That's not "a few percent."
@@smithersrobIt is more work than you think. The paperwork and tax accounting is more than you would imagine. It also depends on how many rental you have . The income isn’t what you think it is either after all expenses are paid. I own a rental management company.
Poor George looked like he was about to have a seizure as he was trying to wrap his brain around this bombastically absurd scheme.
I think he looked like that because he doesn't understand reverse mortgages (at all) and was trying to speak intelligently about the product.
I'm not defending her strategy at all, but it is painfully clear that George has no basic understanding of what they are, and how they work. I'm not even in real estate and his questions about it was crazy.
I hope he does 10 minutes of research to educate himself after this call.
@@Run4Ever77 Can you please give an example of something Mr. Kamel said about reverse mortgages that demonstrated a lack of understanding? I am trying to understand better. I keep getting contacted by a reverse mortgage company, and it looks like a bad deal to me.
@@mathematician1234
Sure.
When he couldn't grasp that she would have no payments to make on it, and the other question he asked when she mentioned getting a lump sum ("oh, so you're taking a home equity loan?" Etc...). He just doesn't understand those fundamental aspects of it.
A side note - from 1:35-1:50 he was clearly reading the negative points off his computer. That's troubling from someone claiming to be a financial "guru".
Don't get me wrong - I would not recommend getting a reverse mortgage. They are not a great deal and are rigged for the lenders to win.
@@Run4Ever77 Thank you. I see what you are saying. Yes, it does look like he is reading from a script. He has a recent book out. He may be reading from that.
My parents did a reverse mortgage. They got a lump sum of cash. When they both passed away, we had to sell the house and pay off the loan. Then, my siblings and I split what was left after the reverse mortgage company was paid.
When you do a reverse mortgage, you are passing that debt off to your heirs.
My mom asked me what I thought about her doing it before she did it. I told her it was her house and to do whatever she wanted.
I don't like the idea of a reverse mortgage, but it's not as bad as some of y'all are making it sound. They do give you some time to decide if you want to pay off your parent's loan or sell and pay it off and there was still a profit.
If she wants to travel, she should buy a cheap retirement community property and use it as a home base. $1.3 mil should spin off enough to pay the HOA fees and still leave a nice travel budget. No need to leave a $900k home behind when she’s doing all this traveling.
That’s pretty much my plan with my townhome, even though I’ve got 35 years left before retirement
@@FancyRPGCanada hey it never hurts to have a solid plan ahead of time! 😁
I am impressed that George knew about the "death pledge" origin of the word mortgage. Most folks are unaware of that.
Even more are unaware you can have a posthumous marriage in France, I'd bet.
So, reverse the death pledge.
When I got licensed in real estate in 1996 " mortgage means death" was one of the first things our instructor taught
I've always remembered this, I never monkeyed w/ adjustable rate mortgages & I believe that credibility helped me to make it through the great recession
Adjustable rate mortgages are just killing my peers up here in Canada right now. I’m so glad I went for a 5 year stable mortgage. We will probably go for a 3 year next time because the rates are high right now
is so funny how people be rich and still making stupid financial decisions, because you want to go vacations
Thats one of the main reason we all need a financial advisor. I mean, she definitely going the lane of being broke. The need of a financial advisor is not emphasized enough. So glad BECKY LOU GORDON is handling my investments and over $215k this year
@@EdwinBoettcher you’re right, was about getting one. how do i reach out to her?
You can look her up online, just google her name and her page will pop up
Thank you so much! Found her webpage and left a message. Hopefully, she responds.
@@EdwinBoettcherare you in cahoots with her😂?? You keep mentioning her.
From the website of a reverse mortgage lender...
"One of the great aspects of reverse mortgages is that the proceeds from your loan can be used for whatever you’d like-including purchasing a second home. There are some limitations, however.
A requirement of the reverse mortgage is that borrowers must maintain the home as their primary residence. However, borrowers are still able to live in another residence for certain periods of time, as long as they’re away for less than 6 months of each year. In other words, they must spend more than half of their time in their primary home."
"A fool and his money are soon parted. "
To say she won’t invest bc she doesn’t understand anything about it is asinine and lazy. She knew what she was going to do before she made the call and just wasted their time as well as piss all of us off.
Yeah, it's called hire a financial advisor.
They chose to take her call because it would generate emotions in the listeners. They do screen calls I'm sure.
This lady had a fictitious view of what retirement would look like. Even if she did everything she said on this call she still wouldn't generate $10,000 in income per month . This lady is ridiculous I hope she took their advice.
She wants to keep living the high life she's been enjoying as a real estate salesman well into retirement.
Not likely : /
Somehow she thinks that $2400 net from 1.5 million in real estate is a good deal, and one more rental will give her another $7000 per month? She's wack
I hope she goes broke
@@Excalibur2 Good point. Put it into perspective. If that 1.5 million were in mutual funds at a five percent withdrawal rate, that would be 75k per year or 6250 per month. She is netting much less on those rentals than she should it seems. Then to expect 7k from the investment propery that she wants to leverage from the reverse mortgage is naively optimistic. She's done very well so far building the rental portfolio plus she is debt-free. It seems like she's gone off the rails lately for some reason! She must have house fever for the prospective investment property she has found.
There's a ton of very nice homes for sale in Orlando right now from 500k -600k. Sell her 900k house and have 300-400k to buy another rental.
Thats the common sense answer.
Sadly, to a lot of real estate agents image is everything. Downsizing is probably not an option in her mind.
She's going to blow it all on travel and bad financial decisions 😂
People’s mindset when it comes to “releasing equity” is really interesting to observe. A friend of mine recently remortgaged his home to find money for their wedding. He kept saying he’s “taking some money out the house” almost as if he has a drawer on the side of the building that you can just suck some cash out of. When it reality you’re borrowing 25k to pay for a wedding, you’re taking out a loan to pay for a wedding. It’s especially frustrating when this person easily has enough money per month to save up for it over a year or two, just man up and get saving!
You are right. Take money out of the house, then fold it into your 30 year mortgage. Never do this!!
A millionaire who doesn’t realize it… damn I love this country’s ability to generate wealth
It's baffling why she'd call into this show for advice knowing her expectations and plans for her retirement.
Because she needs the ego rush. It's a stupid call and she could care less what they advise.
This strikes me as a person who got lucky a few times and now just gets to make bad decisions because of their income and real estate. I’ve never heard of someone with over $1mil in real estate but never invested in anything else- that’s insane
Not the caller’s situation, but I can tell you a reverse mortgage prevented my very-low income mother from being homeless. She owned her condo outright but had very low monthly SSA, etc. There were no family members interested in inheriting-not that she had anything to leave!-so my mother lived off the equity in her home. When she died, the loan foreclosed. That would have embarrassed her, but she was charged thousands in loan insurance. In her particular case, a reverse mortgage saved her life and let her die at home, where she wanted to be.
I think they're good for broke people who have paid off homes but no where to move that's cheaper.
Good point!
I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2024. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?
Investing in real estate and stocks might be a wise choice, particularly if you have a sound trading plan that can get you through profitable days.
You're not making any mistakes; the challenge lies in not having the expertise required to profit in a challenging market. In these tough times, significant earnings are typically achievable only by highly experienced experts who went through the 2008 financial crisis
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
There are true professionals at the top of their game; I had the pleasure of dealing with one, and it turned out to be really helpful as they assisted me in restructuring my complete portfolio. Becky Lou Gordon, a well-known professional in her field who you may be familiar with, is none other than my advisor.
I just looked her up on the internet and looked into her credentials. I wrote her a letter outlining my financial objectives and planned a call with her.
Right on Ken! Call her out! necessities vs luxuries the confusion between these 2 has gotten so many people into Debt
I happen to like my reverse mtg. Home is worth $435k; mtg balance is $35k. My reverse mtg line of credit is currently $200k and growing at 7.25%. Line of credit can't be frozen. My home is going up in value (equity); my line of credit is going up over $1k per month. Make payment to mtg balance if I feel like it. The money is simply there to allow me not to have to draw from the stock portfolio is the market is declining....seems pretty simple. The line of credit if let to grow can surpass the value of the home; you could cash in the line of credit and give the house back to the bank if the housing market crashed. This is a non recourse loan insured by the FHA.
ᶫᵒᵛᵉ❥ᵧₒᵤ➳ 🤍🤍sᴇɴᴅ🤍🤍ᴍᴇ🤍🤍ᴀ🤍🤍ᴅɪʀᴇᴄᴛτєϰτ🤍±９１９２９５６３７５☝️☝️ ❆࿅࿆👍🏿👍🏿👍🏿👍🏿
The biggest problem is if she did this and bought another Home even two smaller ones she’s still would not make up nowhere near $7600 a month to live the lifestyle she wants regardless that’s the messed up part about it all
That's exactly what I was asking myself. She said her rental properties only bring in 2400/month. So what house is gonna give her the remaining 7600?
@@jacquesm1553 crazy investment schemes, evidently! 📈🚀( oДo)
She would have to buy a 6 unit building charging 1k/unit
Yeah. She did great not being debt free but she's not the level she thinks she is and that's okay.
@@NoNakersAllowed , $1K/unit less operating expenses looks more like $600k/unit profit: $3600. She's half way there... maybe. And find me a decent 6-plex these days that you can get for $500,000 which is what her reverse mortgage would be. Even in my relatively cheap cost of living area of SW Missouri, a 6-plex in livable condition that's not in a war zone will run $110-$120K per unit, or $660,00-$700,000. And those units will rent around $800-$900/month... not $1K.
.
Unless this gal lives in the cheapest real estate market that also happens to have the highest rents in the USA...this ain't working. After expenses, she's only about 50% of where she wants to be.
Definitely don't like the idea of reverse mortgaging to buy a rental scheme, but the general idea of a reverse mortgage to supplement retirement income is not terrible. For many people, their home is their largest portion of their networth. Many people have zero interest in selling a property they've lived in for 30+ years, and wish to live the remainder of their life in the home they know. Most kids really don't want anything to do with their parents house. Reverse mortgages are an answer to a problem many retirees have - too much liquidity stuck in the four walls of their home.
She's gonna do whatever she wants, this was a superfluous conversation.
1.5 million in real estate, 200 K annual income at 61. She’s in great shape. Just get a little organized but definitely don’t go back into debt with a reverse mortgage. If you’re afraid to go onto the stock market, put it in a CD better than debt lol.
@@sent18inel Yes. She'll have to get a DVD.
cd's are garbage.
@@commonsense-og1gz Yes I know but they are better then doing nothing which is what this woman is doing.
@@thegenxgamerr the rate of property equity is worth more than the cd, it is more than nothing.
@@commonsense-og1gz She is proposing to take 500K of equity out to obtain the next property. She is effectively decreasing her property equity by doing that. If she said she was going to take her 200K annual income to buy another property thats another matter but she didnt say that. So if she doesnt want to invest her 200K income into the market she should be getting a high yield account or CD minimally, or using it to cash flow the property.
While reverse mortgages CAN be scams, this is NOT always the case.
Two years ago, my mother and stepfather called me up and they were upset. Their house needed EXTENSive repairs and they couldn't afford them. I considered just lending them the money but they are financially irresponsible and unreliable. Then I considered buying their house from them at a reduced cost and giving them "life estate". Then they could use the money to do the repairs and live on the rest. When I spoke to a lawyer about this, he said it was a VERY bad idea because purchasing the house at a reduced cost could be considered "elder abuse" if anyone contested it. And it would open me up to felony charges.
The lawyers suggested I give my mother and stepfather a reverse mortgage for the amount I would have purchased the property. That way I am protected both legally and financially.
So now I hold a lien on the property and they have a nice house and some extra cash.
I live like a queen but I've not saved enough to retire like a queen. But I'm a queen so.....😂
This woman is worth $1.5 million but don’t have anything for retirement. Is it my math that is off?
She just proved why the demand for a living wage is superficial. She don’t have a monthly mortgage or car payment but is claiming she need over $7,500 monthly so she can travel. By the way, she don’t even need to buy clothes monthly.
It was that she needed $9.4k or so total a month. And she has a house worth over $900k. So you know for a fact it's big, has a pool, is nice and so on. If you have that big of a house, why on earth are you needing to travel and shop so much? Fricken walk the neighborhood, chill by the pool for a bit, fix yourself some lunch, watch some TV, have some friends or neighbors over for dinner a couple of times a week, sleep, repeat.
Her net worth is tied up in real estate, not savings or stock investments… so she may be worth $1.5 million, but it’s not in her back pocket.
She also sounds like she’s unwilling to sell the rental properties and then invest the cash into savings and mutual funds to cover her retirement expenses (which is what I would do!)
I am worth a million and don't have retirement savings.
I have a $100K/yr government pension.
She she she she the question should be where is her husband???
@@austintomkewitz3981 she’s a strong and independent woman that don’t need no man to tell her what to do! 😂
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
I subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your adviser
Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $485k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.
I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?
Wow, that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
Just sell the primary residence, invest the 900k in the market and go rent at a low price. Problem solved.
These 2 being completely against her plan, the reverse mortgage, while instead advising her to sell her properties to put money into the stock market is just ridiculous. Her plan has merit, though her wanting to have $10k/month in free cash flow is a bit ridiculous, it was probably better then gambling her full retirement on the stock market. This is one of those times where I might have suggested the reverse mortgage could be a good play. It definitely depends on other things such as savings and spending rates, how long they have been landlords and so on. I don’t agree with these 2 at all and in some ways the reverse mortgage is a good play for a lot of older people.
If this is important to her, the plan has her living for her lifetime in a very nice home, taking out some of the house equity to buy another property for cash that may net her $1200. If they take it out as a couple, they may both be able to stay there until they pass away as long as they pay taxes, insurance, and minimal upkeep. They will each have a small Social Security check and three rental incomes.
If the two properties generate only $2400, what will the third one generate? another $1200? With two small Social Security Checks, they will be nowhere near $10,000 but would have more than enough for a middle-class lifestyle. ($6000?) Other than the inherent risk of rentals in general and the three rental properties generating about half of her goal, the plan seems feasible. The kids, if there are any, would inherit the rental properties.
I am not a fan of the uncertain 4% yearly deductions from index fund investments so this is why I don't find her plan completely unsound as long as she lowers her expectations and has someone to manage the properties as they age.
$1,000,000 to 1,2000,000 net after she buys a modest home and sells all properties would only net plus or minus $40,000 using the 4% rule and the stock market may tank for a few years causing her to invade principal. Only one caveat: two modest trips a year!
@@rsg6207 I agree, the stock market has a habit of stealing most of your money especially when you need it most. The whole concept of diversifying your portfolio is this kind of thing in the first place.
Reverse mortgages are not a bad thing. The true risk of the mortgage is if you don’t pay your taxes or insurance, they will foreclose on you like any other mortgage. There is definitely risk with her plan, but it’s not without merit. These 2 shutting down the reverse mortgage makes me really think they don’t understand that product. A reverse mortgage actually has less risk then a regular mortgage because it’s only repaid once triggering events happen. Sell the house, turn 100, both of them go to long term care or they fail to pay for taxes/insurance.
"you know the ins and outs of these deals.... and it still sounds like a good idea to you..." great line
I am a innocent about this stuff. BUT several years ago, I read what it is when I was thinking abut doing it, and I immediately said NO WAY. The fees are outrageous.
George handled this call beautifully plus she got a dose of truth from Ken 😂
"Do You Even Know What A Reverse Mortgage Is?"
Well, not really, they just told me to sign on the dotted line and then I'd get a bunch of money. Kind of like my student loands. ( o.o)
Between "a broad spectrum from sucks to amazing" and Ken restraining himself head in hands, this is a great clip.
She’s probably in better shape financially than most of the people in the comments so the comments bashing her are comical.
This crazy lady does NOT need a reverse mortgage. She’s set for life if she organizes her rentals & savings over the next 3-5 years. I can only wish I had that kind of nest egg in retirement. Damn !!
She’s broke, that’s her problem.
Her rentals are not paid for. She is paying mortgage payments and keeping the difference as income.
@@insideoutsideupsidedown2218It’s funny too because she came in saying she didn’t have any debt, do people not realize what debt is?
@@barnabusdoyle4930 she said, "I don't consider that is a debt"... i.e. a mortgage. She's part of the "my truth" group that attempts to redefine reality. I've met a lot of folks like that in the real estate business: they say, "it's not a debt because the property is worth more than what I paid for it."
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Mmmm....hmmm. Try telling that to the bank's foreclosure department if you miss three payments on your "not a debt."
10k in expenses? Due to travel? Lady. 😂
The reverse mortgage is a wonderful program that can help a lot of seniors plan for retirement. Is it for everyone? No. But all I ever hear is someone is saying the program isn't good with zero knowledge of how it works themselves. I'm a loan officer who specializes in reverse mortgages. If you have questions, I'm happy to answer them.
its amazing to see how some people can be smart enough to have so much money yet be so foolish with it
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It is possible to make enough to fund a foolish lifestyle. But when the pressure is put on, like this caller in potential retirement, her foolishness comes back to bite her.
I’m pretty sure she made several men very unhappy in her earlier lives…
Dave would have hit that mute button about a minute into this phone call.
If you are okay with your home not being part of your estate (i.e., left to your heirs) upon your death, and there are no other strings attached, then a reverse mortgage is probably a better idea than these guys seem to think. I would seek some additional advice on the reverse mortgage. That may be a great option. And no, if you take out "debt" that isn't something you will have to pay back *in your lifetime* -- that is NOT debt.
Boggles my mind that people can know the latest update on the Kardashian's, but won't take a few hours out of their life to read and understand basic financial principals.
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This lady is cray cray!
I just can’t with this madness. Her poor husband.
Husband got what he deserves for allowing her this much control over this much money
We know of a man that did the reverse mortage but did not put his wife on it also. He died and the bank kicked her out and took the house. She had to move in with her daughter.😢
She seriously better off renting out the house that's already paid for. Instead of taking out of mortgage. She could just use the money from the paid off home and use it to buy another home in cash.
A reverse mortgage is a type of loan that allows homeowners aged 62 and older to borrow money against the equity in their homes, without having to make monthly mortgage payments.
Still a loan
I can't even comprehend having that much in paid for assets and an income of 200k. I could easily travel and live comfortably on just the rental incomes!
$2,400 a month in rental income is $28,800 per year, that's not going to pay for much travel after you pay for the necessities of life
But she said they make $200k each year. That's more than enough to live on. What am I missing?
@@brianal7143 that’s their salary, it goes away when they retire and then they have to live on passive income which in their case is rental income and perhaps a little bit of social security
@@brianal7143If she bought a few more investment properties or invested all she could with that $200k until they retired.. (5 years left to retire) they would be doing ok. But she wants to travel and spend all that now.
My plan is to have a few rental properties paid for and live off of that. Along with a very modest Roth 401k. We will be ok. Nothing fancy.
I do not trust putting my money in into the stock market. I do my minimum match. That’s it. I would rather have multiple paid off homes that generate revenue.
Stocks can crash… but people always need a home to rent. With them being paid off.. rent can be lower than competitors to always keep they occupied.
A reverse mortgage is a good idea if you have no one to give your house to when you die. You are selling it to the bank. The bank makes payments to you until you pass away. You're getting a steady stream of money until you die. You stay in the home until you pass away. You are like the bank and the bank is like the mortgagee. Get it? Its the reverse of a traditional mortgage.😢
What a waste of a call. She hasn't thought ahead her whole life and now isn't willing to clean up her mess.
The sad part is she doesn’t even have a mess. She’s in a sweet spot but for whatever reason wants to muck it up 🤦🏾♀️🤦🏾♀️
If I take out a loan, all I have to do is write a check for whatever Im buying its magically "paid for with cash!"
I love people so much lol I totally see why Dave chose to do what he did and still does it now. Helping people like this would be a blast
If you don’t have anyone to leave the house to I don’t see a problem with it. It’s very complicated and probably not the best decision for her, but it can make money.
She's lucky Dave wasn't there he would have ripped her to shreds for being annoying and disrespectful
She wasn’t disrespectful. She was tongue in cheek & playful
No he would’ve given her better and clearer answer. They didn’t seem like they knew much about the topic of real estate
She spent her whole life getting out of problems, now bored, want to get herself back into problems is what this whole thing sound like to me 😅
Reverse mortgages carry interest. Since she wants to take a lump sum and carry the mortgage to death she will be paying interest (above market rates) on 500k from age 62 to death (85 estimation). 23 years on 500k, she may end up paying double the house value in interest. if she purchases another rental property with the 500k lump sum and generates, lets say 2k/mo = 24k/yr, that's 552k in taxable income over 23 years. She is essentially trading her entire house value for the full value of her house. Meaning, if she has kids, they wont be left with much.
If she want's to travel, it may be smarter to sell everything and buy a condo and invest 1+million in a good returning asset through a certified investor. Realistically you will be travelling for maybe the next 15 years max! She just wants to keep her nice big house and show off to everyone while trying to live the high life travelling.
So nothing will be left for the kids. Boo freaking hoo. Taking a reverse mortgage isn't a bad idea, because if the bank goes upside down, it's a no recourse loan. And, she gets the money tax free, because it's a loan and not income.
LOL you are betting on the bank going upside down? you are probably also betting on student loan forgiveness. @@michaelpalumbo4880
If you take out a reverse mortgage, they will be looking at every angle to take your house. A friend of mine stupidly did this and now she's getting foreclosure notices if the grass is too high in one part of the yard!
The hosts don’t understand reverse mortgages! These mortgages(a true regulated HECM) are neither bad nor good, they are a specific financial product that has potential risk and reward like any other.
The ladies financial plans don’t make much sense, and I don’t think that her using the reverse the way she intends solves her problem.
We have a Reverse Mortgage LINE OF CREDIT. The balance is $250, the annual fees are $25, the line of credit is currently growing at 6.7%. For us it is strictly an emergency fund or a way to access tax free funds in case of otherwise needing to draw from a severely down portfolio if the market has a major crash. It would potentially give us access to $500k of equity over the next 10 years if we truly “need” it, with virtually no downside risk.
I generally don't advise borrowing money to invest money, but Ramsey and his staff need to understand the product BEFORE advising callers. The misinformation spewed on this show about reverse mortgages over the years is astounding. I'll ship 10 copies of Understanding Reverse to Ramsey Solutions tomorrow if they'll commit to learning the facts.
Understanding Reverse- Well said. Ramsey Solutions is unwittingly harming older homeowners who may have benefited from a reverse mortgage with incomplete and uninformed commentary. Ramsey fans, please do yourself a favor and always do your own due diligence on any advice given. I believe that's what Ramsey Solutions any sound financial advisor would suggest to their listeners or clients.
They also have no idea what they are talking about in terms of student loan forgiveness programs and give disastrously bad advice all of the time about them. They are so used to dealing with stupid and irresponsible people that they simplify everything to the point of uselessness. People make huge decisions based off of their nonsense. Turns out radio host have no fiduciary duty to their listeners so they just like yelling instead of being rational.
She's already got it all figured out, so why the heck is she calling in?
She wants to keep her properties so that rental income keeps coming in 💵AND take their value out CASH 💰so she can live a very rich lifestyle!!! That’s what’s going on guys.
Idk if she has kids, but she then gets to leave those rental properties to the kids and it’ll be THEIR problem. So if the kids want to keep it….THEY will have to pay their parent’s debt! No joke.
So I am in digital nomad and I travel my monthly income is $1500 a month and you can live like a king in other countries on that unless you’re going to Switzerland or Paris . 1.5 million I can’t even imagine what that could by … but if peores are ready to retire at 62 let them ugh this work 5 more years is so irritating
Woww they are riiich!!! I was only able to take a first and only cruise when I retired, had only 79k in retirement, now I’m living off $1600 pension mthly.. she and hubby are BLESSED 🙌🏿🙌🏿
Wait 1.2 million??? You can invest 1.2 mil .. at 7% interest, you can get 7000/month... that can be the retirement... 200k/year.. work 3 years to get your investments to 1.5 mil... Around 9k/month....
The problem is she probably wants 10K a month AND still live in that nice $900,000 home...
@@shannonrose4916 something's gotta give tho... sounds like she's made up her mind on this reverse mortgage...
If her expenses are $10,000/month, she will need $3 million for retirement according to the 4% rule. Her net worth now is $1.5 million at age 61. If she invests $1.5 million in the stock market, that allows her to live on $5,000/month
I agree - given caller will have no retirement income except
This is the issue with a lot of people they are not willing to adjust their way of living to stay out of debt or get out debt.
But The Fonz and Magnum PI promised I “get to keep my home”
1. I freakin' love George
2. This is one call I wish Dave was on the show for. His reactions would've been priceless.
It's hilarious the attitude with which she responds and the statement that she NEEDS 10k a month to live on. She has a high maintenance lifestyle she wants to maintain.
I have a saying when I'm listening to people bang on about building large retirement funds .........'what are you aiming to get ..... solid or plate .........gold coffin handles"?
It's a silly idea for a bunch of reasons, but the main one is there's an assumption that the additional investment income is somehow going to be more than what she'd get from the reverse mortgage. A better idea would be to take an HECM, live the high life on the income from it directly for a few years, then kick out the tenant of her investment property and live there once the fun times are over. Either way, you're not having your cake and eating it, too.
I would have hung up. This is possibly the dumbest caller I’ve heard since I started watching this. I really wish Dave was the one who answered
I don't understand why the hosts don't take taxes into account. George said you make 200k. In 5 years 1 million has passed thru your hands. I'd say it's more like 600k after taxes.
My husband's uncle always called a mortgage a "death cage".
She doesn't look at this as 'debt' because payments aren't DUE DURING HER LIFETIME. She obviously knows it's a mortgage. Is she thinking this way to justify getting the reverse mortgage...of course!
She wants the right now money and will certainly be moving forward with pulling that equity out, buying properties and living the life she chooses.
They're trying to set her up to potentially get more money longer term.... she's not concerned with 'parking her money's so they'll never get through to her.
She's going to cash out and live it up on her rental income.... hopefully she continues to have paying tenants!
Reverse Mortgage: You sell today, they pay $5K/mo till you die,
they get the house, no payments.
Giving up your house for half price. Most realtors would advise against that.
@@damondiehl5637 You then get to live in the house till you die.
Just taxes and insurance.
Giving up the house implies leaving.
I am blown away that she is a realtor and is set on obvious bad choices. Shows you anyone can pass that test.
This guys don’t even know how a reverse mortgage works for elderly ppl with paid for homes. She’s right of the benefits. Not worth the hassle though. Especially with how they spend money.
These ppl are not financial advisors! Don’t call when Dave is absent! They just know how to read a script. Their expensive lifestyle is more of a risk than the RM. at least they’re investing the RM money. But money goes fast once retired.
I don't believe George understands how reverse mortgage works he hates it because Dave said so. Sometimes reverse mortgage is the only choice for most with no retirement.
“I don’t understand how you don’t think this debt is attached to your name”
Because you don’t pay it back until after you’re dead, George. It’s pretty easy to understand. Take everything after I’m gone, I don’t care. What good is dying with a million in equity?
I like it when Ken gets irritated!!!! That's more along my mindset, when I hear these type of calls. 😀
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Sounds like she would be digging a deep financial hole.
She's been alive this long and has no concept of how to tell the difference between needs and wants.
Don't take out a reverse mortgage: if all else fails, just take out a regular mortgage. Lower fees, better rates. Still not a good idea at this stage in life, but it's a less expensive bad idea.
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The bad news is she's going to do it anyway. The tone of her voice is "Give me validation so I can do what I want."
You have to make monthly payments on a regular mortgage. Not so with a RM.
There's a thin line netween "wants" and "needs".
She aint gonna do it. Bring on the reverse mortgage Tom Selleck!!!
This ain't my first rodeo
Getting rid of the rental properties will lower your stress level during retirement and allow you to enjoy it!
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