Saving with Steve, February 8, 2022
Saving with Steve with Steve Sexton
Guests, Wayne Winegraden and Steve Sless
Saving with Steve
The Save With Steve Show, hosted by Steve Sexton will help you with ins and outs of money. We talk about financial issues that that could be costing you thousands of dollars and keeping you up at night.
We talk about “money”… tax reduction, saving more, how to spending less and get more, 401k’s, risk management, retirement, and everything under the sun that relates to you having a healthier happier relationship with money.
everyone has their own unique views and needs when it comes to financial success if you'd like to leave your financial woes behind and live a life of Financial Freedom you've come to the right place welcome to the saving with Steve show hosted by Steve Sexton the show will help you with the ins and outs of money we talked about financial issues that could be costing you thousands of dollars and keeping you up at night we talked about money tax reduction saving more spending less 401K risk management retirement and everything under the sun that relates to you having a healthier happy relationship with money now here is your host of saving with Steve Steve Sexton hello welcome to saving whiskey where we talked about everything under the sun to release you having a healthier happy relationship with money my name is Steve sex don't want to thank you for joining us today hey we have a wonderful lineup at first I want to thank our affiliates<br>khop radio BBS radio talk radio New York City we also want to thank AM FM 247 for Distributing our show or will over 600,000 listeners instruments year in the United States we have well over fifty thousand people here and abroad and Europe and the Pacific Rim so we're very very excited about that we definitely are talking about money today now many seniors are worried and wondering how do I have enough money to last through retirement and they're very leery about going to those retirement communities now more than ever because of Coban sound singers can't get a long-term care insurance you to covid many of the seniors may not realize our home equity is likely to represent a large portion of their net worth in fact Homer's a 62 plus saw there were Active Home wealth increased significantly here in 2021 understanding how to strategically in tax-efficient incorporate this wealth and income for a retirement<br>can make a big difference in protecting your long-term retirement income now that said we have Steve's last it'll be joining us today later in the show has been named the reverse mortgage Game Changer from Yahoo finance this year I'll be talking about how to reduce cost in 2021 expecially since we seen a lot of inflation talking about him keeping a watchful eye on how to get into consumer prices have impacted Americans of all incomes but especially the poor in the working-class research is disproportionately hurting less affluent people threatening me Captain yo mr. Biden's Administration he cannot make Justice agenda and many low-income families are feeling the impact of rising prices all too much for this holiday season I mean you got gas you got everything now I'm a lot of people think that's 5 trillion dollar government spending that money on the pandemic would help<br>the reality to help us understand this we have doctor Wayne Winegard Albus understand what inflammation means for hard-working American family we would like to think that the 5 trillion dollars the government spend on the pandemic he did help us but it has it that's why we have dr. Wang Winegard to help us understand what inflation means the hard-working American families now dr. Weingarten is a senior fellow in business and economics at the Pacific Research Institute he explores the connection between microeconomics policies and economic outcomes with a focus on fiscal policy I know it's a lot but basically he's got the background to help us understand what's going on right now how long it could be lasting and the moves that you know what government policymakers are making and how it would affect or possibly affect you negatively affect what's going on the economy which means bottom line your dollars so Wayne welcome to the show thank you for being<br>great to be here that people I'm start time we're going to talk about economics we got somebody coming in or do I got to ask I know you been you know obviously your doctor you know what what got you into studying economics do you know if that's a good question that I've been doing it for so long I think it's just one of those things is one of those questions that you have went when I started seeing it asked it just spoke to me that the idea of how do we make ourselves as a society wealth your how do we bring up the top and the bottom in the middle and you know to me these are some of the fundamental questions that are just so important in life and I think I've been blessed to be able to but then my career doing<br>we start by talking about how what do everybody understands this is supply and demand type situation but could you go into a why do we have the inflation why is it a 30 or hi you know what are the prospects for you know what is the current course is in a public policy course is whatever we're going down if it stays that way how long is it likely to last this is when I think of the very pressing public policy issues that we have and it's interesting because if you're going to 40 or under you've never experienced this before this is something from the history books and it is seems like an academic issue that you know people at University should be worried about not everyday people but you here we are again in many ways it's very very complicated but in most basic form write the government through the Federal Reserve which is our central bank right they the people who manage our money supply and in it is sensitive created too much money and it gets very<br>complicated very quickly and how they did it in understanding how much they should put the bottom line is we created too much money and when you create too much money in that gets out in the economy getting placed its you know that that is a fundamental economic kind of cause and effect and we made that fundamental mistake it's very difficult to measure these things very complicated but it's centrally we made a policy mistake we have the money supply going way too fast that has cause inflation that's now kind of getting intertwined with all of the supply bottlenecks that you hear voice of California have can unload the ships because there's no place to put the containers do things are impacting as well you bring all of that together and what you see is you know the value of our incomes are getting a row to day by day by day okay so basically what you're saying is every time they gave us a stimulus every time they did the payment<br>when do businesses to support them are the five or $10,000 that they gave everybody that's more money being put into the economy and the more that gets into the economy the more people spend on certain items in those items because demand more more beer consumed in because more more be consumed there's less and less and therefore you're seeing price is right you don't even need that was perfect because you know what when you look at it see I'm aging myself here but I remember the you know your license plate on an even day when you get gas you know what it was 16 years old my folks like yeah you're not going to drive for nothing but the interesting thing back then and gas was a dollar 25 a gallon and now we're almost at 5 bucks so it's it's a pretty pretty steep rise there so I get that but<br>now that we see that what is the prospects of you know what are we looking for the middle of the year and the year of 2022 to start seeing some of this website or think actually catching up or are there some things that have been put in place from fiscal policy standpoint meaning the things that the government is doing that would prolong that or Kratos floor recovery from that so that does that make sense what happens with a policy environment right now it seems very unlikely that throughout all the 2022 we're still going to be worrying about inflation about supply shortages because first I must fight perspective it does not look like the supply chain will be fully come back to normal utilities late 2022 the Federal Reserve is late and moving slowly to go in that the beginning to slow down right that's a good thing but they're continuing to do to do the dispatch<br>Mary policy that's not going to be so a contractionary policy if you even want to call it that isn't going to occur to Layton to 2022 advance from a 2022 and these things happen you know the policy doesn't automatically do a change right away implement the policy and then things slowly start happening over time that was delays mean that it seems very unlikely it was so much already baked in that we're not going to still be struggling and talking about inflation and prices rising throughout all the 2022 and leave the thing that also I think people misunderstand is it in please create a fake earthquake price distortions what we mean is you don't really know why something prices are rising and prices rise at different levels Iran right that's going up all of these factors can actually slowed down the economy of the inflation itself creates a risk especially all the policies with implementing that we could end up with what was called stagflation which means you have slowed<br>economy and inflation happening at the same time and the risk of that is is growing and throughout 2022 we're going to really see those with rise it will really in a very precarious position by economically from but growth continued and the furnace is effects from inflation looking at Jimmy Carter number to go to speak and on top of that if we have so much inflation in the scary thing is just popped in my mind was you have somebody who's buying that $600,000 home and they are just being a right at the edge of their Ford ability for them and you still have some inflation with house value now he's going down you know what they could be in a very precarious spot like we saw with many people in 2008 when that debt that hit so I can see I could see that everything coming to a point there and seeing a bit of a bubble so now<br>I'd like to lie into this everybody<br> after I clean a wine Garden stick around for more Wayne will be right back more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevents you from living a life of Financial and personal freedom hi I'm Steve sex and post of the saving with Steve show where did he talk about the ins-and-outs of money those financial issues it could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending on your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton we talked about the ins-and-outs of money by the way all the rebates are available at w.w. Stand with Steve. You asked if you're enjoying the joys of helpful information and I'm sitting with Steve and I encourage you to subscribe to your YouTube channel Google play Spotify a check out a few of our fuel at UK help radio BBS radio talk radio New York City e360 TV located to empower you to solve problems uplift your spirit and let have you live a life of personal and Financial Freedom and you can also follow us on Facebook and saving with Steve at us and now we have doctor which doctor Wayne I'm going to call him dr. Wang you like Swain better I won't I'm just sorry we just finished<br> I hate things are probably going to last through 2022 until 2023 we have the possibility of seeing a couple Bubble Witch would be something for Curious whether the housing or stocks and someone now when we're looking at a recovery from this inflation what is the impact of Taxation regulations that it meant her ministration is looking to put on business is rather small or large what would be the impact that the government of course you guys are you aware there's a lot of very important services at the cover a ride but just like any good right the more something you have less value you get out of it the first funeral the first hamburger you eat it's great you're hungry lots of value as you eat you tent hamburger not so great and we're we're about at that point with it with it with a federal government so it's theirs<br> wasting resources just to get you to come too big or too unaffordable to go back to that term and so when you add up more taxes on top of the burden that were already at you basically transferring resources away from a more productive private sector into the public sector that Jandy grow and grow right you're saying the reason why I'm not tripping or starts a Business and Entrepreneurship is so cute to kind of get in the car going because that one that wear lots of Innovations come from but the next great idea comes from small businesses typically we may get bought out by large fish especially but the Innovation comes from small business Pathway to the middle class for low income people so important but the after tax return is what matters too much right because if you have to pay taxes will that doesn't go to compensate for the risk you can't pay your car. You know you can to bring it home as income to support your family<br> it is going to the government and you raise taxes new decreasing that return and with all the risks that I'm from North go into if you're going to make the return to a small you just going to discourage people from doing it with regulations are regulations to take time away from your business name so you have to not just spend the money complying with regulations same time you know you already working 10 12-14 hour days now you need to know another 2 hours to email to deal with the regulations it's just overwhelming it's stifling to comply with their creation Advantage for baby Lisa's relative dismal and just to make this real simple for my son will bring it is pretty much like hey I got $100 that's what I earned 30% of that goes to the tax man because it was used to be 10%<br> what's 30% of taxes went up and because we already have the situation I've got to spend $60 of my hundred dollars on food clothing and all that cuz that went up and I only have $10 left when last month or the previous month I had $30 left which means I can't really say much and that puts me in a position where I either have to you know save that for emergencies or wait if inflation goes up further it needs way on my $10 that I can save and pretty pretty soon and I'm in a position where you know I'm living paycheck-to-paycheck and and if you're an entrepreneur you know what I'm going to have to make Thirty or forty percent otherwise this isn't go to be worthwhile because I got to pay taxes and all those things and then on top of the regulation side as a small business owner myself totally understand that it's just to deal with regulations I have to hire additional person I wish it was but it makes things much more expensive so what you're really saying is the more and more they pile on this essentially say hey we're doing this for other<br> it's reducing the ability for people or want desire to actually go develop a business create a new technology because they won't have the have the money they needed order to supply their lives secondly they won't be paying for those cars which employ people or Bing for his much food or going out to support waiters waitresses and so on so the whole economic distribution that keeps going downhill so to speak won't be there and ask such it constricts the economy is that right<br> even if I go over entire year right now that you have enough money if the regulation do the taxes have cost to that you just breaking even at the wrong time you can create a cash flow problem and if you don't have the other quiddity even if you have a solid business that you can just hang around for another year you'd be fine but you may not have the cash flow to do that and that's sometimes with like a regulation that delays you from starting up right cuz you have to comply with everything before you can even open your door as well you may not have it the ability to the last at 12 months to get it started we even if it's a good idea is that liquidity issue that also is very very important in terms of crime to cost the taxes in and regulations imposed at the end of the day unless government is better because you're have the ability to develop and grow business without having one hand behind your back so to speak<br> value in anti-government you know that you found the size of the government relative to the economy that right now we're at about 30% actually we used to be my 20-something percent and the growth enhancer level is 15% of our national income of that were the size of the government and again obviously focused on those value-added if you know contributions of public goods that is the optimal size of a government-issued that's really my view where we should be pushing toward how do we shrink the economy so that is 15% of our national income in that way government focusing on those things that matter will be promoting growth mode in the National interest in providing the public goods that we need which by the way include a solid safety net for those who are struggling and I'm at least but it is a dozen more efficient way and in his ways to achieve that<br> right now just the size of the government the composition of the government and the wastelands of the government are very very troubling<br> talk about this<br> the government go about what we have six hundred thousand people listening right now so when I get when I talk about this people are listening what can they do you know how how how do they need to promote things to their congressmen and senators and so on to create an environment where it's a win for the economy which is a win for everybody having their first things we have to do something instead which I think is what he said your government spending is government taxation spending and by doing that right and I am not we need to not be partisan about it right to the Republicans have been just as bad on spending as the Democrats for you to show me we need to hold politicians accountable in terms of I stopped selling Bay City programs at a cost-free stop saying you're going to spend 1.75 trillion dollars on build back better which is really for trillion<br> which you say is not going to add to the debt you owe doesn't cost anything these days that you know we need to do to get past these games because we really do have very pressing physical problem is he the same with the first thing we do we need to start recognizing that fact Social Security is not funded Medicare is not funded we have unfunded Pollock paintings at the state and local level those are trillions of dollars does are going to overwhelm the physical state of the government is a we need to recognize and demand reforms of those programs so that we can make him financially sustainable it's it's hard to pretend that we have these programs that are important that are the a tended their financially viable when they're not that that's a very dangerous and very cruel position to take we then need to then move into kind of your other things are the government I think the first thing is we're going to Rising you just raised in the Deep threat that has two housing market is also a huge threat to the government fiscal position<br> interest rate if interest rates go up to 45% interest on the debt will become the biggest expenditure item in the budget would think about that yesterday than any other service that we're providing public goods and we're riding today and that's where we're heading towards until we need people who can do look at the at the balance sheet as a liability how can we bring down the debt being created in order to put ourselves into a fiscally sustainable position until I think you know in terms of what we should do we need to recognize that the financial house is not in order and that the person you need to do is bring that in order in the entitlement Social Security Medicare public pensions at the local level and then the debt focusing on those first bringing those into balance and then worry about rightsizing the rest of the government and in addressing how do we do things more efficiently<br> our time is gone like that which is really cool because that means we had a good segments everybody this is Doctor Wayne Weingarten when is it okay if we get your paper promoting economic recovery three entrepreneurship not government and put it up on our website but you have an understanding of what's going on what's Happening and some of things that way just said or I go to in there I love the Milton Freeman statement that's okay no Wayne is her you know what you I don't know much about your business other than do you consult with people how how do you how do you work or you just work for the Institute senior fellow at The Institute and I also do Consulting for it for some businesses on the side as well<br> wanted to get in touch with you to utilize your services of how would they go about doing that but you did great way to work I do a specific research.org Twitter at Wayne Weingarten that's a great way to I to get in touch with me as well perfect thank you for being with us today I mean you opened up I know there's a lot of people you open up their eyes cuz they didn't quite get it now they do which is wonderful and I know that stuff for an economist at again I want to thank you please stay safe place healthy and you know what I'd love to have you back in about a year to talk about how everything's going and what we can look for in 2023 or I would love it thank you nephew have a great day we'll see you say everybody happy holidays<br> right back in and talk to you about how to reduce costs in 2022 to specially with this inflation to stick with this will be right back more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevents you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the ins-and-outs of money those financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve sexton in the nails of money we just had a wonderful segment with Wayne Weingarten he's a doctor research at the Pacific Research Institute his Consulting you go there and get a hold of him if your medium to large business and you need his help but I recommend you go to our website and will you want to take a look at his paper and breaking down barriers opportunities the number five paper promoting economic recovery through entrepreneurship not government now let's just talk about our next little segments now today we talked about inflation we are going to be dealing with a lot of inflation moving Florida's doctor Winegard talked about so let's talk about how we can legitimately in 2022 but still do much of the things we are<br> then you do know you probably noticed everything these days cost more and has been like that for the last year we'll probably see it go up a little bit we need to talk about gas it's almost $2 here in California from a year ago about problem is is this a blind man issue we seen recent raids of inflation rapidly increase increase and you don't we sell pretty quick prices increasing the scary thing about inflation this potentially drives you into debt specially if you're holding true of you living paycheck-to-paycheck any more money to fall back on financial struggles in the near-term here a couple tips for fighting back against inflation know what are the things I'd like to talk to you about it is first of all you want to take a look at fighting for a higher cost of living raise some companies give raises based off Mary my other gifts blanket Rises I get 3% to reflect the cost of inflation in a normal year a 3% cost of inflation<br> typically suffice is because it usually ranges between about 1 and 3 and a half no big deal well<br> this year you could be losing purchasing power if your employer gets out a 3% raise across all employees this year rally your fellow colleague and fight for a higher position pay when you do that you're right a group letter to your management team explaining that require regen inflation has made painter essential more difficult and acid the respect we could be considered addiction what your next thing you could do is you can boost your income by getting a side gig but inflation runs rampant hey one of the ways to make sure you keep it black is get a side gig I've got people who are being a tutor after work hours or more 5 hours a day they're looking at being a tutor they get page 1 to $30 an hour if they have a degree sunburn English math a science all do different things different topics restaurant that you know what they need<br> as they need drivers hey you know what's 16 $17 an hour Starbucks in the evening Rideshare program Consulting on the side I talked with many people that have you know when their thirties in their forties over the last year and sometimes in their fifties and they're looking for different ways and I give him those examples and they've gone out and taking their continued with their current job ever 20 hours a week or ten hours a week they're making an extra 30 2030 $40 an hour which adds up to offset inflation now next thing is you want to take a look at cutting bad expenses expenses there an honest answer when the cost of groceries and gas rise consumers have no choice but they seek me to pay up cuz you need to stop to live but there are many things you spending money on technically aren't needed or you can buy the same thing but I don't know where cost okay<br> ways to stop stay occupied and pay for entertainment and how any little help you mentally cuz it keeps you get your mind off everything but on streaming services you may need to cancel one or two take a look at the streaming service has it's your pride we did this a long time ago in fact we didn't realize it but we had 5 streaming service has not but when we took a look at the ones were actually using we realize we only needed three of them put that savings was $30 a month so think about that it's $60 a year at 6:30 bucks but thirty bucks is a difference in what you're paying in a tank of gas now it could be the difference in your grocery bill the increasing your chili Bill hey couple things to get start a comparison shop we had Lisa Thompson on from coupons.com a couple weeks back you want to go revisit infected go to coupons.com we're going to grocery steals.com<br> basket you know what you're going to find discounts going to find coupons you're going to find cash back and it doesn't cost anything one of the other things you could do is check out smarter okay so how you pay matters if you spend a lot of certain items like gas restaurants groceries consider opening a rewards card that gives you points for 5% cash back on those items okay be sure to stick your budget make sure you pay off the credit card at the end of the month because you don't want to lose what you're gaining because of Interest you're paying K other things to pay cash okay and gas has much of a bite more pain and swiping a card so you're less likely to overspend think about reducing and reusing things let's talk about reducing there's a couple things that you can do here first of all look at what you're doing how you're living your life many people who are looking for ways to reduce their spending I always say hey what are you eating out okay how often do you weigh<br> sometimes we have people we find out there's been three hundred bucks a month on coffee out somewhere so I recommend go to Starbucks. Starbucks go to Costco and buy a Keurig box you know what your 30 bucks for 100 cups of coffee K9 you get some creamer for five bucks you just paid $40 instead of $300 for coffee sit down and just use the Keurig Cups has the money that's a lot of money you can spend save money on eliminating or changing your cellular plan you know what there's top three or four carriers AT&T T-Mobile and so on you know what they have power but are you can find other carriers that might not have the same rate still have Lori's we did this we save $80 a month on four people so that's a significant savings take a look at when you going shopping at the store you have prepackaged salad you have free pack mini thing if you don't look at a pre-packs up and prepare your dinner using the raw materials<br> just buying lettuce by seed or not spying salad dressing or cheese you can spend a lot less let me give me an example we took a salad a $4 a day * 3220 what is dressing croutons cheese and salad we save yourself $35 a month and every little bit adds up hey it could make sure you know every little bit could pay for the gas and other things also put you in a position where you can pay off things subscription I talked with many people over the last year something people are saying hey you know I've never realized how much I've been spending I tell him to go get your debit card in your credit card statement and list everything you know what they're finding out they have memberships where they do the jazzercise or Fitness club or whatever even paying for decades but never going you so get rid of those wine club membership that you signed up on that day but never used it in so long to pick up the wine or you have a subscription service to a delivery<br> another streaming service whatever get rid of the ones you don't need to look at your cable bill you know what strip it all the way down to just the internet services and look at getting a couple streaming statements we did that we went from two owners Thomas 270 $250 a month save us a ton of money look at your Auto Insurance homeowner's insurance if you're buying them together with most Carousel give you a discount if you look at adding coverages shop around you might be able to save yourself a whole bunch of money and get the same covered there's many ways you can do this next when it comes to buying a you could save yourself a whole bunch of money as much as 25% but you need to check their per price per unit price versus the sticker set price to see whether a boat fuels really worth it next or some other things you could do shaving at the pump you know what go to gasbuddy.com it's in a few get those show you where the cheapest gas is<br> frankly right now I go to Costco station. Fifty cents a gallon no no don't no doubt of their housing if you haven't looked at refinancing this would be a good time to do that so you know I have some plans that have been paying on the same mortgage for almost thirty years I mean I actually almost 20 years and their their balance is really low but their payment is really high so what we did was then why don't you refinance on a 15-year mortgage for what you have right here and when they did that their mortgage rate that went down to 2% from 4 and they actually saved $1,500 a month on their mortgage and what they're doing is they stood there be adding an extra $500 to the balance but you know what they're going to be able to pay off their house in less than nine years but they're going to be paying less so there's many things you could do to reduce eliminate these expenses so it's really important to look at us especially during these Economic Times and ask her doctor Winegard indicated for probably looking at seeing if we<br> what does a dog coming 2022 Impala and a 2023 you know what that might mean your budget needs an overhaul cutting expenses negotiating regular bills and being mindful. Energy usage at home could have a lot more savings so you know what you want to think about that and we talked about how to manage the equity in your home so stick with the more expert advice for having a happier relationship with money still to come on the savings Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the in an ounce of money those financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money so if you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune into the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton Sexton I want to thank you for joining us we talked about the ins-and-outs of money next week I'll be talking with Steve's lest he is known as they reverse mortgage Game Changer by Yahoo finance he was given that title in 2021 that's this this year he's going to be talking to us how to hack sufficiently distractedly utilize the equity in their homes for the wealth we have in our homes to live continue our retirement dreams take care of things like long-term care of things like that so with that I'm going to welcome Steve's last two are show sing welcome to the show likewise thank you for having me stay with you I just want to say this once we let people know that you were coming on the show argue or email just started blowing up before we jump into this I know you were in regular mortgages for a few years and you<br> friends are reverse mortgages for about 15 tell us your little story why did you transition into reverse mortgage world yeah I got about 20 years ago now and spent the first few years of my mortgage career doing what most mortgage professionals do and that's Cash out refinance has purchases at that point there was a big subprime market and we were originating those loans as well and I had to make a big decision 2007/2008 when the housing bubble Came Crashing Down what was I going to do it at that point the company that I work for was not able to originate FHA Loans in that left me really unable to perform the business that I've come to know and love and I had to make a very strategic decision at that point and I had start researching reverse mortgages at the time but I was in my young twenties and I had a lot of doubts that I would be able to engage with an older demographic but through my research and through my studying Steve<br> I found was the reverse mortgage she's such an incredible tool to protect and prolong one's retirement and I jumped in head first fifteen years later I haven't looked back in retrospect it's the best career decision that I've ever made I've dedicated myself to reverse mortgages and helping folks to live a better and more comfortable retirement ever since and very grateful for making that decision a while back I think it's a noble service you provide the key here is what I really liked when looking at your videos as you educate people a lot of people are concerned because they've been doing the same thing for decade and a reverse mortgage is something new I have a lot of questions but I would love for you just to briefly talk about how does a reverse mortgage work more than anything else is the concept of integrating housing wealth into a comprehensive financial plan Steve for 74% of folks that are 62 years old and they're already short of their<br> targeting companies however a new report came out about a couple months ago there is / 9 trillion dollars in untappd equity of folks 62 and older in America / 9 trillion dollars and so that money is dead equity and it's not working for those folks it's not doing it it's just sitting there dormant what we teach Steve is how to incorporate that Equity strategically and taxes patiently with a reverse mortgage loan in use those funds is in most cases the clients largest asset use them proactively instead of reactive Lee and the result is were able to extend their finances were able to extend the longevity of their investment portfolios were able to allow them to enjoy a better and more comfortable retirement and we're able to make their money last longer because we're leveraging what is their largest asset and that's the equity in their house but it comes to a reverse mortgage everybody's trying to figure out he will it work for me and my good candidate for this you expand on that so people must<br> hey what why am I fit does it work what there's two different types of reverse mortgage there's a hekim a home equity conversion mortgage those are government-insured reverse mortgage loans and I would say probably 95% of every reverse mortgage originator today is a heckin government-insured product in a lot of innovation on a proprietary reverse mortgage size so private lenders non-government insured are now rolling out reverse mortgage products and most of these loans are jumbo reverse mortgages they are for a higher net worth clientele we can land on a jumbo reverse mortgage up to three million dollars in cash for homes valued all the way up to 10 million dollars reverse mortgages work like this you got to be at least sixty plus you got to own your home and you got to have roughly 50% equity for folks that have pay mortgage one of the biggest benefits is we can replace their traditional mortgage with a reverse mortgage and eliminate the mandatory mortgage payment<br> by doing that were able to extend their cash flow were able to free up cash flow free up finances and we can also if they have enough equity to qualify we can release funds to them from the equity in the home and that can be done in a variety of ways folks can choose to take a 10-year pay out which is basically your home send you a check every month until the funds are exhausted there's also a term where you just say hey Steve I need x amount of dollars and I need it for x amount of. Of time five years 10 years 15 so on and so forth you can take a lump sum from your home equity or the most effective strategy as you can take out a reverse mortgage line of credit and a reverse mortgage line of credit is very different than a traditional line of credit Steve won their federally insured they can never be suspended reduced or frozen you regardless of what the economy does or what the market does that's big these lines of credit also have a guaranteed growth rate attached to that until you're able to borrow more of your home equity<br> every year the line of credit is in place so when you talk about cuz this is one of the questions my viewer as they know that your line of credit will grow by a certain interest rate each year is it based off the equity that you have that is available to be with Ron and that partially grows providing you have it take money out from that or the line of credit has a a set growth rate and what's important to point out to is this is a growth rate it's not interest so think of it as a credit card where your limit is being increased each year on the line of credit is 5% over the interest rate on the loan so today's interest rates on reverse mortgages are about two and a half 3% off figure the growth rate is going to be three to three and a half percent on any unused portion of the line of credit as you draw funds out obviously you don't get any gross on the funds that you're pulling but any funds that you leave and let sit in the line of credit we call it a standby line of credit<br> just park it put it reserved put it on standby those funds grow over time and you just treated no different than any traditional line of credit and you draw from it if and when you need one of the big things there is that it can't be taken away it can't be reduced so that means if once the foreclosures and all that stuff comes to bear in the market values go down even though somebody got a reverse mortgage today say their equity line is 200,000 and maybe their house is only worth $200,000 can't take that away it's not like a credit card where they review they can reduce your your your credit limit exactly NSYNC back Steve 2008-09 when the housing market crashed you had a lot of folks a lot of these folks were over 60 they had traditional home equity lines of credit they thought they had access to a hundred $200,000 or more in some cases in the back came back and said you know what no we're not going to let you borrow that money anymore and that wrecked a lot of people's retirement plan<br> not happening with reverse mortgages because the line of credit is federally insured it is guaranteed you're also Steve able to borrow on today's market value in a booming housing economy right now I mean his bidding wars on homes you know he don't even make the market and there's a bidding war already and so was values are soaring you can take out a reverse mortgage line of credit today and locking today's value you and I were talking about this before the show came on its in all likelihood values are going to at least level off if not go down so too is the market the economy and so it's a great hedge against future Market Corrections being added a lock that line of credit in and do it at today's value not future values and know that that. He was guaranteed see that's why we're going to take a quick break. I stick with this we got to pay some bills would be right back with more Stevens less more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the in an ounce of money those financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton hey welcome back to the truly thank you for tuning in appreciate you letting your friends family and Associates know about the show<br> you asked if you're enjoying the stories of helpful information inside of saving with Steve and I encourage you to subscribe to our YouTube channel Apple playing Spotify Channel a check out a few that you can help radio DBS Radio talk radio New York City III 60gb Las Vegas TV networks all these networks are dedicated to empowering you to live a life of Financial and personal freedom also you can follow us at Facebook at sitting with Steve sex if you like some more financial tips so he would come back with Steve's last we've got a slew of questions here so we're just going to get started there's pros and cons to anything what's the downside of a reverse mortgage what's the concert it really starts in the beginning it's all about suitability and so when somebody comes to us Steve and they say hey I'm interested in learning about a reverse mortgage theirs first and educational Journey that we need to take them on we're also trying to figure out ourselves are they suitable first question we asked you was how long do you want to live in the home for if somebody were to stay 3 years 4 years it's probably not a great fit and so there would be a downside<br> I think the barrier to entry the cost to take out a reverse mortgage loan is probably too great at that point if you're only going to be in the house for a few years this is a long-term solution to living a comfortable retirement and doing so aging-in-place in the comfort of your own home another downside and it's not necessarily A downside it really depends on what your Viewpoint of this is reverse mortgages are loans that have negative amortization which means that if you make no payments and Steve you can treat a reverse mortgage no different than a traditional mortgage if you want to make payments you certainly have the right to be able to do so but a lot of folks choose not to make monthly mortgage payments and if you choose not to make a monthly mortgage payment your balance each month is going to increase a lot of folks are fearful of that they're fearful of their balance increasing what we teach Steve's is what the home is a low growth potential asset if you have a financial advisor that is managing your money and that money as well Diversified it's in the right Market<br> rested well chances are that advisor is using you you know 7 to 10 to 6 to 10% returns right now historically the home appreciates at 1 to 4% per year and so we teach use the home equity first instead of using the retirement assets first and combine all of your assets but a lot of folks are a little hesitant because they're fearful of their balance rising over time and look at that point you have to become educated you got to become empowered and ultimately you got to make the best and most astute financial decision for you let's clear up some of the misinformation you cannot lose your house because you have a reverse mortgage that that's a huge misconception and if we have time to Eva a quick backstory so prior to 2015 if you are over 62 you had equity in your home and you had a pulse you had blood pumping through your body you could get a reverse mortgage there was no credit qualifications there was no income qualifications and so what the result was you had a lot of folks that were<br> already of destitute they had already run out of money and they were using the reverse mortgages a last resort the reverse mortgage just prolong the inevitable and prolong their ability to remain in the home but it was inevitable they were going to lose their home because they just couldn't afford it didn't have enough income to pay the taxes and the insurance those are the qualifications of the reverse mortgage got to pay your homeowner's insurance you got to pay your property taxes and he got to maintain the home if you default on any of those requirements you will lose your home but that's no different luck if you have a regular mortgage for even know mortgage at all Steven you don't pay your taxes you're going to get foreclosed on you going to lose your home but by having a reverse mortgage you cannot lose your home simply by having the loan what happens for a we've got the market screaming up right now with the housing market and bring one to buy in all the supply line issues I get a reverse mortgage it's a $600,000 reverse mortgage the market goes down in my house is actually worth $300,000 and I pass away<br> what do I have to do my heirs have a great question so all reverse mortgages are non-recourse loans non-recourse means there's no recourse and there's no debt pass to your heirs or your estate did they have to come out of pocket and pay so at the time of your death your heirs are going to have the option to buy the house for 95% of the appraised value at the time they can also walk away if there's more 01 the reverse mortgage then what the home is worth they can walk away and be non-recourse component kicks at the heck I'm reverse mortgages have government reverse mortgage insurance on them that insurance policy that is on all these reverse mortgages will settle Thomas like gap insurance for your car seat for you total your car you owe $20,000 the insurance company cut you a check for 15 that's $5,000 Gap is cover reverse mortgages work the same way so you can have the Peace of Mind of knowing that you can take a reverse mortgage out and if at some point there is a market correction and you do owe more than what the value of the home is at the time of death your error<br> can simply walk away or they have the option to buy back at 95% of the 2008 one of my clients who had a reverse mortgage passed away and the reverse mortgage was actually like $450,000 and after 2008 the house value when they appraise it with a 195,000 when the air is were looking at just dumping it saying hate fine but when I explained to him I said you can get a house for $195,000 and let it grow and they went oh my and basically they bought the house for 195 and so do a few years later for twice that much so they were in a wonderful position when that occurred in it's a great option one of the questions I do have is this in this world you have divorces okay and this question is come up probably I probably have 30 of these questions the horse race in California and 50% if it's a second divorce and they're older than 55 it's it's 72% what's the effect of reverse mortgage and somebody receiving<br> if there's a guy want to say gray hair so we're divorced I love that question see you so we have a partnership with the idsa The Institute for divorce Financial analysts we're working with financial analysts expect she lies in senior divorce and we're helping them use reverse mortgage loans to navigate their client's Financial woes while they're going through these divorces and so were using the reverse mortgage as a tool to divide the marital home and then use that equity for one person to remain in the home all the other leaves the house we're also using it Steve we just had a case like this not too long ago where the couple sold their home for $300,000 they both put down $150,000 on two separate $300,000 homes and they bought those homes with a reverse mortgage you can actually use a reverse mortgage loan Steve to purchase a home in retirement most folks don't even realize that post Realtors don't realize that a very effective strategy<br> we are deploying quite a bit as we work through the institute for divorce Financial analysts to help their clients ease the financial difficulties of grey or silver divorce but I just want to add this over the years there's a number of clients that have come to me and they've come to me because they're trying to find a way to make retirement work and I've overspent or over help the child or something like that and we've got in contact with a reverse mortgage specialist for the primary reason and in one case the couple actually took out a jumper reverse mortgage but they were able to eliminate their current mortgage payment which is a little over $2,500 which was the Gap they needed to make the retirement work for the rest of their life and then they had an equity line left over that they were going to use in case some health issues ramped up on them and they're just going to let that grow until it was there that was probably 12 years ago and they let that thing grow I think it's like little over a half million dollars and they started tapping into it because of Home Care needs so there<br> Morgan has to do it and they're so thankful that I said hey look at considering getting a reverse mortgage cuz this is what you need so they were able to prolong their life by the retirement that they want and now being able to take care of somebody just because they looked at what you talk about strategically tapping into that asset which is their house Equity not being used right now reverse mortgage is just one way to use it there's other options there's traditional mortgages there's traditional home equity lines of credit however the difference with the reverse mortgages there's no mandatory payment obligation to if you're in your sixties when you're in your seventies and you're looking to take funds from the equity in your home would you rather do it and not have to pay those funds back not have a mandatory mortgage payment or would you rather be saddled with a 15 20 or 30 year mortgage payment and have to come out of pocket with that payment every month until you're in your 90s and Sunday until oftentimes it make<br> more sense to take out a reverse mortgage but again it's all about education and it's about weighing the options and what works for some may not work for others and that's where we come in to help them figure that out a lot of people are in situations like in States like California Illinois New York where the cost of living's got pretty expensive there only options are to selling down side or move out-of-state or they look at getting that reverse mortgage just the free of that money that they need to make their life work I think what you do is Noble I think what you're doing right now with educating everybody is very very important and is needed and that said we're about to wrap up our segment with you could you tell us how people can get ahold of you how they can go get your videos so they can get educated and get the help they're looking for Farms name is the Stephan J / group is Steven J Sledge group we are the reverse mortgage division for Primary Residential Mortgage we have branches in all 50 states throughout the country<br> reached by phone or number is 410-814-7575 to 410-814-7575 or online at the Sledge group. / sless group.com on YouTube is where all our videos are as well and we have a lot of educational content on there if you just go on YouTube and search the Stephan J / group you pull up our content if you get there I'd appreciate if you'd like the videos and if you want to be notified when we put out more content just subscribe and hit the bell at the top and every time we release a new video you'll get to know the first thing about learning anything new is getting education but got a great resource at the slash group.com do you want to go out there and look at it you're looking to get a hold of Steve definitely go to that website if I want to thank you for joining us stay safe stay healthy we have a lot more questions than it answered so we're probably going to circle back in a few months and have you back on is that okay I love to I appreciate the opportunity you're doing great work see if I appreciate it<br> the great Amy have some time thanks so much for staying with us today thank you for joining us for the Steve show hosted by Steve Sexton to learn more about the show and how to become a guest or sponsor visit saving with Steve. Us that's saving with Steve. Us join us again next time as we continue to talk about everything under the sun that relates to you having a healthier happier relationship with money this has been the saving with Steve show hosted by Steve Sexton<br>