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Josh Scandlen
13:4611/25/24
Retirement

She's 71 With No Retirement & This is the Advice She Gets???

11/26/24
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English

A 71-year-old woman with limited income and a modest mortgage faces financial hardship, prompting a financial advisor to recommend a questionable solution. The speaker criticizes the advisor's suggestion to sell the house and move into a condo, advocating instead for the use of a reverse mortgage to leverage home equity, increase income, and alleviate financial stress.

Couple's Financial Situation

00:01:00 A 71-year-old couple in Oklahoma City earns a combined $2,000/month from Social Security, having started at age 62. They have a $250,000 house with a $20,000 mortgage, $25,000 in cash, and a car loan. The wife is the primary income earner in a physically demanding job, while the husband's health or work capacity is unknown, leading to a precarious financial state.

Advisor's Recommendation

00:02:51 The financial advisor suggests the couple sell their house and move into a condo to free up cash and reduce expenses. The speaker criticizes this advice due to potential HOA fees and the likelihood of incurring closing costs. The speaker believes this recommendation is not tailored to the couple's specific circumstances and offers no long-term benefits.

Reverse Mortgage Alternative

00:03:28 The speaker strongly advocates for a reverse mortgage as a much more suitable solution for the couple. It allows them to remain in their house, access tax-free income, and maintain equity. The speaker highlights how a reverse mortgage provides financial stability and avoids the potential issues associated with selling their home and buying a condo.

Financial Stress and Family

00:11:15 The speaker argues that financial stress is a major cause of divorce, ultimately impacting children and society. This woman's financial stress highlights a need for financial planning. Using the equity in their home offers a means to mitigate financial stress and protect families. The speaker suggests considering a variety of strategies to alleviate debt or use available equity, like a reverse mortgage.

Criticism of Advisor's Perspective

00:13:04 The speaker criticizes those who would criticize his advice in favor of the advisor's recommendation. The speaker claims that the couple has made mistakes, but they still have equity that should be utilized to solve their financial problems. He believes in common-sense solutions, such as using home equity, to combat financial issues, especially for individuals facing hardship.