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 the saving with Steve show where we talked about the ins-and-outs of money pretty much everything to you having a healthier happy relationship with money my name is Steve sex and I want to thank you for joining us today weather over 600,000 listeners here in the United States<br>dial solicitors over sheep we are just so thankful for you for you sharing this with your friends and family associate now today we've got some wonderful gas and wonderful information you know what one of the thing that's been lighting up our viewers line is this to cystic about divorce during a covid are people trying to figure out he would have weighed do how do I handle this with the tax situation you know what don't worry we have bread Casper's of Northern California law firm and you know what she's going to be discussing the incident with a cool things about Brent is his subject matter is he's a CPA and he's a family law attorney so he's going to be able to answer all those questions how what do I got to do how do I get started how do I minimize costs how do I prevent the impact or reduce the impact of my business what if one of my employees is getting divorced how do I deal with that lots of good stuff there<br>hey I'm going to be talking about estate planning 101 what are the documents you need to have and you know what the last but not least we're going to get started you know what I just want to say this you know how many seniors are wondering if they had enough money to last through retirement and you know quite frankly they're leery of going into a retirement communities now it's even more so because of what's transpired with this and so many fingers can't get long-term care insurance due to come in many of the singers may not realize that their home equity lightly represents a large portion of their net worth in fact Homer's age 62 plus saw that the collective housing wealth increased understanding how to strategically and tax official incorporate the wealth into a comprehensive retirement income strategy may be the key to protecting you or your relatives from prolonged and prolonging their nest egg with sponge that they might need for long-term care now we have Steve's last you know what<br>he's been written up in Forbes and many other magazines you seem on social media he's here to help us out with that so this next segment is very very significant why because of our 600 plus thousand listeners may have had so many people email in because they either know a friend or family member that been going through this covid issue they're going through a divorce now and they have no idea what to do there like a deer in the headlights they know they need to make the transition and they don't know how to get start and it it's notice prize that you know divorce is skyrocketing as you know you'd stick to people that weren't getting along in the first place in the same room for a long. Of time. Could not get along even further if you're considering divorce what are the steps you need to take how do you minimize cost how do you handle taxes during the proceedings and once your divorce is actually final<br>the cool thing is we have bread Casper's breads a managing partner and founder of Casper lugay LLC they have a unique skill-set well-dressed unique skill set is he's not only a family law attorney he's a CPA now this combination is really your knee because it brings a wide range of skills to people who have had two people regular worth in this inside brings big benefit to all of his clients and everybody listen today so bread welcome to the show we appreciate your being here thank you Steve glad we're always like to ask I don't know too many CPA attorney so I'm curious how you went and got started you know our viewers love to hear why you know what why would somebody get started in the profession that there in probably going to be one of the more you know<br>short story on this day was my mom was an accountant so I felt like hey you know my private in a practice that I just did not like accounting so I went through got the CPA exam and said hey there's got to be something else better out here decided that I want to go to the hospital I got hey will this will be a good you know a good lunch Runway here for three years where I can actually figure out what I want to do and so I just kind of combined the two disciplines got out and started practicing tax litigation for a law firm in San Francisco and realized that was kind of boring you know it was intellectually stimulating but taxes just not you know it's not great to talk no talk to do while people talk to you about wanted to get back into something where I could actually help you know people you know it sounds hokey to say but I'm from a small town in Oklahoma and I felt like<br>I like the adversarial sit you no scenario of going to court no trying to win but I like the I like the idea of helping people and being able to talk to the insurance companies that have tax problems are tax problems there are not very fun to have a cocktail you know where talk about the issue is really how I got into it I guess it's kind of like water going down a hill trying to find the path of least you know that's I guess how he ended up doing this but quite pleased that you know I backed into this I think it's wonderful here about a half a cake cuz they're all different so it's got to go hey if you found your superpower that's the way it was a reason why you're on the show so first question somebody is considering divorce okay what did they need to do to prepare what's the big real first step that somebody should take a should say and I mean I'm not here for my firm or you know<br>I think they should consult with a with a family law attorney I think that's one thing we realized when we started do you know where we started our practices a lot of the people that are considering a divorce and want the initial consultation haven't discussed it with anybody any anybody in their internal Circle and your mom or your dad and you know it's humbling and so I think go and have a consultation you know what at least one attorney to see what you're up against you know some of the things that attorney will tell you is a look it's a methodical it's a methodical process statutorily there's a lot of you know there's a lot of hurdles and roadblocks you know as far as disclosures and things like that so nothing's going to happen fast I'm going to slide out the cracker eat the other side's not going to run away with the you know the money and leave you high and dry could be methodical the keys really are sort of trying to keep things as amicable as possible<br>and trying to mitigate you know mitigate drama and keeping the emotions in check in this regard to do you know depending on the weather kids involved whether there is no cheating involved all of those things to sort of contribute and biggest thing is to try to compartmentalize and keep your life on track don't pick up bad habits such as drinking or drugs Witcher easy for people to do that are going through allopatch and that's that's really what I tell people when people step back usually what's the secret sauce what do I do do I know I need money do I move money you really got to play with your cards faceup best part is near the best thing that I can recommend just try to keep things as amicable as much as possible and you know try to keep the emotions look<br>okay so if somebody's talking to an attorney what type of questions should they be asking what I should be asking you know how big is the practice I mean how many attorneys are in your do they have parallel running a pretty you know I'm we were running to plenty of opposing counsel that our sole practitioner was it a great attorney they just don't have the bandwidth to deal with very many kids so it's hard to get them on the phone so you want somebody that you can contact whether it be the assistant the paralegal no one you know is it a reasonably decent size firm to do they have some sort of financial expertise some knowledge about finances a lot of lawyers go through law school because they they weren't good at math and you know that's kind of a big factor when you're starting when you talk about dividing assets and they made a law but they may struggle with that component of it so if it's a complicated case for you're talkin about a closely-held family business you're going to have to involve forensics<br>and this person may not have the ability to utilize that so I think those are the questions to ask straightaway I think you know do they practice in the you know jurisdiction where that were the case it's cuz there's family law attorneys all over California I think it's good to have someone that you know knows the court system in the county that you're you're practicing so we have about 30 seconds real quick before I have to go to break how important is to know the court system in the jurisdiction<br>I didn't get it depending if it is pizza like Los Angeles County I don't think it's as big of a deal if it's if you're talking about you know Napa County I think it's a bigger deal because he knows people know each other they're the judge I just know know the attorneys are practicing so I think it sort of depends on that the population size for me right back<br> 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 does 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 sex and out of 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<br> hey welcome back to the shaving with Steve shall we talk about the ins-and-outs of money if you'd like to go check out all of replacing go2www dating with Steve. You as if you're enjoying the stories of helpful information and insight on saving with Steve you can always go to our website at saving with Steve. You as I also encourage you to subscribe to your YouTube channel or Spotify channel on Google Play and hey check out a few more feel like it's a UK help radio BBS radio talk radio in New York City e360 TV and more all these networks are dedicated to empowering you to solve problems uplift your spirit and live a life of personal financial Freedom so if you'd like to join us on Facebook you can always to go to the shaving with Steve. You ask and if you have questions like the questions I'm going to be asking Brett right now have come from yours at 7 with Steve. Us and you know what people are going to get their questions answered all you got to do is go to that website or that email a few hours at saving with Steve. Us<br> and ask a question will find your subject matter expert okay so Brett welcome back to the show thank you for being here they still good to be here again biggest question is cost how does somebody go about minimizing fees during a divorce cuz you're sort of bound at the hip even though you're going through the divorce you're dividing assets the cost of a function of really how all the parties can work together to come to an agreement the quicker you guys can count the quicker the parties can come to an agreement the cheaper it's going to be there was less work for the attorney the attorneys or drugged into a trial you can imagine there's a lot more there's a lot more billable work for the insurance so you can't control everything you do you know laterally what you can't control though is when the attorney reaches out to you make sure you're providing quick responses<br> we have clients that I have to reach out to four or five times and I charge them for each time I try to you know talk to them and so that's that's the way you can unilaterally control your cost but the frustrating thing is if the other side is being in a contentious it's hard to it's hard to be able to control everything okay there's a lot of emotion in there and then emotion plus money for standing taxes<br> you know what you're still married you're going through divorce how should somebody looking at the taxes in the next question that follows that is hay the divorce is final now you know what what should what should you be paying attention to when it comes to attack put me on the seat of the CPA had here six months to be no 15 years so you could be going through that process for what so you can file married filing separately or married filing jointly those are your two options with parties during a marriage that's going well. They'll file married filing jointly cuz you get better tax deductions and you know better tax benefit by doing that now what I told clients when they're going through a divorce is hey are you concerned about the other side's you know how are they running closely-held businesses are they being overly aggressive on deductions things where the IRS could come back into the picture and add them<br> do you know what you were wrong on your taxes you owe us penalties and interest if that's the case if you're concerned about that then I would highly recommend filing married filing separately during the pendency of the divorce because your server will be liable for taxes if you file married filing jointly do if you're concerned about that now when you're either you know you're either single head of household you know you don't have the option to file married anyway so it's sort of your cards are dealt to you there now what I would recommend a lot of people have the concern that you know one of the spouses is the financial you know provider for the for the unit and they make all the decisions you know who this EPA has who the investment bankers are a lot of people do that<br> you know the kind of what I recommend you to forget I get a different professional service provider in that you know you're not so you don't have your old CPA looking over your books in your ex-husband's or your ex-wife books that's that's that's great because I dealt with a few clients who've been through a divorce and they did keep the CPA or the it in or the attorney and after a period of time they just brought themselves to the realization they sell felt like somebody was looking over their shoulder because they knew their husband was with that firm Are there ex-husband was with that firm so they just felt more comfortable moving on so you know the truth be told I mean CPAs have their own at school you know governing bodies that they have to deal with two so I don't really think you're going to be taken for a ride or you're going to be that you know sold up a lot of people feel like they feel empowered actually to be able to go out and you know pick a person that maybe their spouse wouldn't allow them to do it because the spouse was making all the decisions and I think it can be<br> but I wouldn't be overly worried about it but those are things that people do look at him sometimes I think that's talking okay so how to prevent your divorce from impacting your family business this is a big question cuz we have a lot of female business owners on their listeners and you know what this this is one of the ones that really came through the line a few times in many different form for an hour so I'll try to list down all right so if you have a business before the marriage and that the Ocarina business at the time of the marriage is separate property in California now you know hopefully this is you know I don't know where the viewers are viewing from but I really can only really speak to California law so I should have said that initially<br> but the the equity in the business or the Goodwill and business before marriage is separate property after the marriage if there's not a prenuptial agreement in place in the business storage continues to grow the spouse is not part of the business actually accrue an interest in the business so if you're really wanting to protect that business going forward then what you would need is you need a prenuptial agreement you know our business is our incomes or separate property going for and that would preclude sort of the the amalgamation of the community property in the the proprietor of the business is working and they're giving away part of their selves to keep this business going you know so the other spouse is not seeing them as often as frequently and so they get a benefit you know that the spouse is not written business<br> for the other spouse's business because that spouses away from that room the other spouse was presumably handling the chores and details and things of that nature so that's why there is sort of a community property in truth they could grow that way I think a prenuptial agreement is the best way to deal with that that's excellent advice okay so what about this is another question and I know LJ provided this to me but this isn't another question that we're seeing from employers how to prevent an employee's divorce from impacting your business where this would come up you know if it's the employee not at all they're going to be emotionally they're going to it's going to impact their work their life like it would everyone else and you know I think the the owner for the employer has to be cognizant of this<br> you know hopefully there's an open dialogue some employees don't tell you everything that's going on in their life but you know there is I think the employer has to be cognizant of that and you know someone who maybe had covid right they're going to need some down time and I think that's going to be something that you're you know you're going to have to be cognizant of if you're in a player now it it's not going to really impact your business other than that employee maybe not be fully available you know I'm working as hard as they used to but I mean there's not going to be any repercussions for the funeral for the business other than the employees real effort okay so here's one of the other can watch this it came through this is one person I won't mention names or anything but she has a number of rental properties that were inherited<br> prior to the marriage<br> and you know they were they've been married for about 78 years or looking at going through divorce will she be able to keep those or does she have to split them with that the husband out how would that work is General premise in California Inherited property inheritance is there always a property doesn't matter if it happened before the marriage during the marriage you know it's it's separate property the problem that people run into for instance if you're talking about something fungible like cash they got cash from your your mother when she passed away well it's two separate property but now you've told me with it in a community bank account now you're if you're talkin about real property like you know real estate so I would say that she has a very strong argument that is also a property all the way through okay perfect okay perfect I'm on the real estate real quick<br> you yeah you Inherited property and then oh well this property needs to be and I need to do kitchen so then you use Community funds to repair the kitchen and now you've created a you know a asset and a community property interest in that separate property is so that's where it gets a little convoluted for some people LOL oh well that's great okay so the next one is a question if somebody is considering divorce the nice thing about my my viewers line as you know it doesn't matter who it is it's nobody knows<br> husband has a night while she has an IRA and she's considering divorce she's the money the money earner and she's likely to have to split things provide alimony and all that stuff how does it work if she's splitting her Ira or 401k will it be a tax impact how does that work in divorce well there's there's no way it's typically John is there's a qualified Domestic Relations order that's after the after the towels are done and you're determined what you want to divide say for instance in California you have 200,000 and a 401k and all of that was so husband's entitled to 100,000 wife is entitled does a qualified Domestic Relations order where you file with the court the court says okay granted and that under that order you can separate that without any sort of tax ramifications<br> if you don't file that and you don't go through that step and you separate well yeah you're going to have a early withdrawals and all kinds of tax penalties and things that you just do it on your own you've got to have that qualified Domestic Relations order in place of the Court which is really easy to get I mean it's just a step in a lot of people don't consider it's kind of like you know the wealthy parties that know what they're doing that get along well and they say okay well you know what I'll keep the house I'll take out you know I'll take out the a million dollars for my IRA and you can have it today and then they should realize no cable there's a lot of tax problems because they did that they didn't follow that qualified Domestic Relations order insured if you do if you go through the protocol and there's no tax there's no tax implications as long as you roll it over into another Ira for the other person I want to thank you for being here today we've come to the end of our time now if somebody wants to get a hold of you at your firm at Casper and lugai how do they go about doing that yeah the best way to get it is just through our website w.w.<br> love you. Kaspar lugai. Calm and it'll it'll directly to our phone lines and you not working hey I want to thank you for being here read the information and provide as in value to your listeners and I know they appreciate it cuz we're going to get some feed back here real soon so thank you very very much and you know what I'm looking forward to seeing you in the future and possibly having to be on again actually Steve is my pleasure was Brent Casper's from Casper and lugai by the way if you need help. Understand what's going on with the divorce or you just want a second opinion look him up get ahold of them there's no reason why you can't go to the website at the dating with Steve. You asked and rinse and repeat the segment over and over again so you can get the information to Pearls of Wisdom you need to make your life or your transition a little bit easier now you want to want to stick with this will be right back where did you talk about<br> estate planning 101 and then when you have Steve / right after that do hold on we'll be back in a moment<br> 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<br> hey welcome back to the shaving with Steve shall we talk about the ins-and-outs of money I'm going to be going through a bunch of stuff that is very important okay then we're one<br> estate planning 101 what are the documents that you actually need to make your life work okay first things first you know what in being in the business that I meant as a Financial Consultant I've seen many times at least once or twice a year maybe more where we have<br> family members of clients or family members at our clients come to us for help with the relatives in the first ask for help typically comes when they're beginning to take over one of their relatives you know bills expenses because you know they're 85-86 they started having medical issues or losing faculties and I mean that's just a fact of life but if you're getting involved with helping somebody I mean paying their bills making sure they get to the doctors making sure you have to have all the right documents for that in order to do that you need to know where those documents are so the very first step is to start making a list of where things like a birth certificate is a marriage certificate your wills and trusts<br> okay where are the bank accounts I mean just where are they located okay Dan you want to make sure you have your financial advisers name and phone number your account name and phone number your will and Trust attorneys name and phone number because if somebody needs something they can typically go to one of those professionals and they will likely have it now that's the first step the next step is to accumulate those documents so bank account insurance policies investment accounts all of those things need to be listed on where somebody can find them a location where somebody that it will be able to be your Advocate has the ability to get into your passwords once you have those you want to make sure that they're in a safe place or you provide them to somebody who might be your durable power of attorney over your health care of your finances<br> or that successor trustee so if you pass away or become incapacitated they can take over the management of your truck now one of the things that I recommend if you're looking for a last will and testament okay you want to make sure you have this document especially if you have kids under the age of 18 because it's going to tell who raises those kids when they get money okay you get a list of you know what your personal property in there who it goes to write on your 401k if you want to make sure you have the beneficiaries this is very important because in a 401k they have a primary beneficiary which is the primary person that gets all your stuff and a contingent beneficiary which is the person who get your stuff after that primary beneficiary is not in the picture anymore<br> and you know what the best way to mess up things is to not have that done or have the wrong person you know what I just came into my office today talk to an accounting professionals and somebody that person used to go out with almost three decades ago had listed her as the primary beneficiary is opposed to his kids to receive everything and that nuts and guess what she got a call from the gentleman's daughter and a Gentleman daughter says hey I need to get this information the whole shot in fact you're the person I was talking to didn't even know that hadn't changed okay so obviously she plans to Advocate or roll and say hey look this guy owed me this much money I want that after eating have everything else so it'll make it very very easy but you know what if you have a 401k or IRA or insurance policy a life insurance policy or pension<br> those things are irrevocable when somebody passes away so if there's no beneficiary for that pension okay just let nobody gets it if the ex-wife is on that pension as opposed to the new wife guess what the s y ex-wife gets it not the new why same thing for the life insurance same thing that was 401K the IRA the annuity so you want to make sure your beneficiaries are correct that you just met with somebody yesterday that we're going to have to change all the beneficiaries because they just have one person but don't have the child sitting as they did the contingent power of attorney this is really important hey I'm in the state of California if you don't have a power of attorney in are not able to make health care or financial decisions on your behalf and you don't have one guess who gets to do it the state of California if you love the way there and it managed in the state of California<br> no problems but if you don't you probably want to have somebody who loves you who is open to making those decisions to help handle your finances pay your taxes if you're not able to<br> he also have a power attorney over your health care now the reality of you get carded in an ambulance it's going to be the doctor in the insurance company's going to making your health care decisions for the ones you love<br> not a good thing if you're incapacitated could you the state of California along with your insurance companies and the doctor's now if you have a power attorney over hell and you have to be brought into a crummy Hospital a person is a power of attorney can have you moved to a good hospital they can fight with the insurance companies the doctors are getting you the best possible treatment to save your life K-C want to make sure you have those documents now and you want to make sure that means you want to have a trust a will a power of attorney and durable power of attorney now other things that are really important your proof of identity such as Social Security marriage birth divorce certificates prenuptial agreements that also needs to be in a place that people get you okay so these are some things that you're going to need to have to make your life easy if you're like a complete with you going to want to go to the shaving with Steve. Yours website look for this episode this is episode number 65<br> and you know what they will be a link there where you can get it estate planning checklist okay so can you look that's it for this segment I want to thank you for being here today we've got another segment coming up we got Steve's last he's the reverse mortgage ask for you going to teach people how they can leverage or maximize the equity in their real estate to stick with this we're going to be right back with some Steve Celeste<br> 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 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 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 of the saving with Steve show again we're talking about the ins-and-outs of money all replays are available at Jamie was Steve. You asked if you're enjoying the story that's helpful information inside I'm saving this deep encourage you to go to Spotify R YouTube R Google Play channels so you never miss an episode check out a few of our affiliate that UK help radio DBS Radio Talk Radio in New York City e360 TV AM FM 247 all these networks are dedicated to empowering you to solve problems uplift your spirit and live a life of saving with Steve Saxon join insiders Club guest gifts backstage stuff to really cool and you know it take your experience to the next level are next up<br> is Steve's last now here's the biggest thing many seniors are worried about making things happen next a blast when there is fires one of the biggest concerns everybody has you know what would Steve been able to do is he's been able to help people or educate people on how to get the most out of the equity in their home expecially now since the values going up we've had the same thing for people can't qualify for long-term care because covid issues the whole shot so Steve is going to help us through Steve has nearly 20 years of mortgage industry experience including 13 years devoted to reverse mortgage he's one of the few reverse mortgage festivals to have earned the cltc the certified long-term care designation demonstrating that he has acquired the knowledge to educate the industry she has become a leader in the industry by educating people through seminars videos of media fevers that go to house wealthsource for 2021<br> according to Yahoo Finance in fact he was named the reverse mortgage Game Changer by Yahoo finance OK Google like wise thank you for having me stay at the great to be with you I just want to say this once we let people know that you were coming on the show our view or email just started blowing up before we jump into this I know you were in regular mortgages for a few years and you've been into reverse mortgages for about 15 tell us your little story why did you transition into the reverse mortgage World business. She's about twenty years ago now and spent the first few years of 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 game<br> washing down what was I going to do right 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 what 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 15 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 it's a noble service you provide the key here is what I really<br> I can look at your videos 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 you know Steve what we teach 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 they're already short of their retirement income needs however a new report came out about a couple months ago there is over 9 trillion dollars in untappd equity of folks 62 and older in America / 9 trillion dollars and so that money is it 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 tax efficiently with a reverse mortgage loan<br> and 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 there 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 can say hey well in my bed does it work what there's two different types of reverse mortgage there's a Peckham 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 there's also now Steve been a lot of innovation on their proprietary reverse mortgage size<br> 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 requirements so 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 on<br> the funds are exhausted there's also a term pay out 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 is 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 your 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 every year the line of credit is in place so when you talk about cuz this is one of the questions might be harassed 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 partial grows provide<br> you haven't take money out from that or the line of credit has a 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 so as you draw funds out obviously you don't get any growth on the funds that your pool but any funds that you leave and let sit in the line of credit we call it a standby line of credit cuz you can just park it put it reserve 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 this wonderful I think one of the big things there is that it can't be taken away it can't be reduced<br> so that means if once the foreclosures and all that stuff comes to beer in the market values go down even though somebody got a reverse mortgage today say a their equity line is 200,000 and maybe their house is only worth $200,000 a can take that away it's not like a credit card where they redo they can reduce your your your credit limit back Steve 2008-09 when the housing market crash 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 me borrow that money anymore and that wrecked a lot of people's retirement plan that cannot happen 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 there's bidding wars on homes you know<br> in some cases homes don't even make the market and there's a bidding war already and so values are storing you can take out a reverse mortgage line of credit today and lock in 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 Bingham to lock that line of credit in and do it at today's value not future values and know that that value was guaranteed see that's what this is great information we're going to take a quick break. I stick with this we got to pay some bills will be right back with more Stevens less<br> 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 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 hey welcome back to the saving which TV show is truly thank you for tuning in I appreciate you letting your friends family and Associates know about the show if you're enjoying the stories of helpful information inside on saving with Steve then I encourage you to subscribe to her YouTube channel Apple play in Spotify Channel a check out a few of our affiliate that you can't help radio DBS Radio Talk Radio in New York City e360 TV 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 with Steve sex if you like some more financial tips so here we 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<br> I think 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 be a downside there 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 the other downside and it's not necessarily A downside it really depends on what your Viewpoint of this is reverse mortgages are loans that had negative amateur ization 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<br> 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 is what the home is a low growth potential asset if you have a financial advisor that is managing your money and that money is well Diversified it's in the right Market it's invested well chances are that advisor is you wanting you to know 7 to 10 to 6 to 10% returns right now historically the home appreciates at 1 to 4 % 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<br> can somebody lose their house with reverse mortgage you cannot lose your house because you have a reverse mortgage that that's a huge misconception and if we have time for 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 with the result was you had a lot of folks that were 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 if 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 you got to maintain the home if you default on any of those requirements you will lose your home but that<br> no difference if you have a regular mortgage or even know mortgage at all Steven you don't pay your taxes you're going to get foreclosed on you're going to lose your home but by having a reverse mortgage you cannot lose your home simply by having the lump the other question what happens for example we've got the market screaming up right now with the housing market everybody wants to buy and 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 or slots non-recourse means there is no recourse and there's no debt pass to your heirs or your estate that 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 owed on the reverse mortgage than what the home is worth they can walk away and Dean on<br> recourse component kicks and be happy on 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 covered 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 heirs can simply walk away or they have the option to buy back at 95% of the reasons why I asked that is back in 2008 one of my clients who had a reverse mortgage passed away and the reverse mortgage is actually like $450,000 and after 2008 live house value when they appraise it with a 195,000 when The Heirs were looking at just dumping it they hate mine but when I explained to him and said you can get a house for a hundred ninety five<br> $10 and let it grow and they went oh my and basically they bought the house for 195 and sold it 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 divorce rates in California at 50% if it's a second divorce and they're older than 55 it's at 72% what's the effect of reverse mortgage and somebody receiving end, if there's a guy want to say gray hair silvery divorce I love that questions to you so we have a partnership with the idsa The Institute for divorce financial analyst we're working with financial analysts that specialize 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 you<br> reverse mortgage as a tool to divide the marital home and and use that equity for one person to remain in the home while the other leaves the hot were also using it Steve we just had a case like this not too long ago where a 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 and it's one that we are deploying quite a bit as we work through the institute for divorce financial analyst to help their clients he's that 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<br> 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 their 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 they're going to have more than enough to do it and they're so thankful that I said hey look at consider getting a reverse mortgage cuz this is what you need so they were able to prolong their life all 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<br> the bottom line is there's / 9 trillion dollars of senior housing well that is 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 since until you're in your 90s and some and so often times it makes 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 one of the things that I have found is a recent lot of people are in situations like in States like California Illinois New York<br> the cost of living Scott pretty expensive there only options are to selling down side or move out-of-state or they look at getting that reverse mortgage just a free of that money that they need to make their life works 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's sad 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 there looking for absolutely appreciate the opportunity so my firm's name is the Stephan J / group to Stephen Jay Sledge group we are the reverse mortgage division for Primary Residential Mortgage we have branches in all 50 states throughout the country you can reach us by phone or number is 410-814-7575 to 410-814-7575 or online at us less group the s s l e s s group<br> cam 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 Steven Jace less 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 first thing at learning anything new is getting an education but got a great resource at the slash group.com so you want to go out there and look at it you're looking to get a hold of Steve definitely go to that website I want to thank you for joining us hey stay stay stay healthy we have a lot more questions didn't get an answer 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 Steve I appreciate it I will look forward to seeing you next time thanks so much for sticking with us today<br> 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>