Retirement Planning Show

July 19th, 2025. 

Episode Transcript

Speaker 1 (00:00):
The opinions, viewpoints and promises made during the following program
are not those of w g Y it's staff, management
or parent company. iHeartMedia we.

Speaker 2 (00:21):
Have Oh my god, well this is great.

Speaker 3 (00:30):
We just got ago.

Speaker 2 (00:33):
I know, well, I know maybe one two, one two
five to spare here. Oh my god, what a beautiful,
beautiful morning. It is a right well, thank you for
joining us.

Speaker 3 (00:46):
This beautiful Saturday morning.

Speaker 2 (00:48):
I know, July it is. I can't get over the
tap way over. You know, it's been such a blow
well op. For the love of God, I think we
finally broke the record for most consecutive weekends with precipitation.

(01:13):
I want to say, yeah, at least it was. It
was crazy, and we so deserve the beautiful sunshine, that's
for sure.

Speaker 3 (01:24):
That's and today beautiful. We hope it continues. We had
that crazy heat. I'm glad that's over with.

Speaker 2 (01:33):
Wasn't it awesome last night? You could open your windows?

Speaker 3 (01:36):
Beautiful, beautiful.

Speaker 2 (01:38):
Oh I just felt like I was born again. Oh
my god.

Speaker 3 (01:42):
It's funny now. I think in the Northeast we we
go from winter to summer. We kind of missed the spring,
but but I feel like our falls last longer, right,
it stays mild, are longer. No winter extends longer in

(02:03):
the supposed spring months, so I guess that seems to
be the weather pattern these days. My son used to
play baseball for shnnon you know, we'd be playing games
in April May and just freezing, you know, but we
were playing fallball in November and it was fine.

Speaker 2 (02:21):
Oh no, I know. No, I couldn't agree with you more.
I mean, I love this area. I love the Northeast.
I love the seasons. It's not that I'm the happiest
duck in the water in the wintertime, but I just
love the change of seas. Love seasons are beautiful. But
I do agree with you. It doesn't seem like we
get enough of an intro to spring before we're bouncing

(02:44):
right into summer. And boy, when it gets hot, it
gets hot. But nobody's complaining. No this, not this guy.

Speaker 3 (02:52):
Nope, I won't complain. I'm a skier. I enjoy skiing,
I enjoy sitting around on the pool, so I like
I like the change. You know. It's funny some days
when it's ninety degrees, you're thinking, oh, it wouldn't be
great if it's snow tomorrow, just the cool things off,
and then when it's twenty blow zero, you're like, I

(03:14):
wish it was a hot day tomorrow.

Speaker 2 (03:17):
I was sweating my butt off.

Speaker 3 (03:19):
I like the change. I like the change. Everybody talks
about moving to Florida, and I can't do it. Both
my sisters are down there. I know Dave talks about
it a lot, but I need I need the leaves changing.
I need the change. Obviously, I don't like when it
gets dark at four thirty, but I just I like

(03:39):
the change of seasons.

Speaker 2 (03:41):
Are they changing that or did they.

Speaker 3 (03:43):
Change that's a crap shoot, I don't know. I feel
like they talk about it and nothing is definitive. Obviously,
you're gonna upset half the people, you know. For for
people that work like us, Yeah, it's great when you
leave the office and it's not dark at four fifteen,
But at the same time, then you got the kids

(04:04):
on the bus stop it would be dark till eight
in the morning, So I could I could play both
sides of the coin, just because I don't I don't
know what would be better. I mean, for you and I,
it's great we can leave work it's still light out right,
but what about the kids in the morning.

Speaker 2 (04:20):
I'm the same way you are. You know, I understand
both sides. The defense. Yeah, yeah, but you know the
bottom line is, no matter when the sun will set, right,
we only have what nine hours of daylight or whatever
it is. It's a crazy small period of time.

Speaker 3 (04:38):
Yeah, that's the one good thing, you know, January February
March in your in Florida just stays lighter so much longer.
Like that is that is refreshing, you know, it's good
to I think it's good to visit. I just couldn't
live there. I can't deal with the humidity, the bugs,
the traffic, things like that, and no simple things.

Speaker 2 (04:57):
That's another thing. What all the rain we pass up
here this year. I would have thought by now we
will be swarmed with bugs. I haven't noticed them that much. No.

Speaker 3 (05:08):
The only thing I could say recently are those beetles. Yeah,
they're they're they're you know, I don't think they bite
you or anything, but they cling to you. So I
had I had a big family gathering last weekend and
and they were just sprayed for it. And at the
other trick we weren't bothered at all. And I put

(05:29):
up those little mosquito, those mosquito things. Yeah there, it's
not like a zapper. They they are attracted to the
light and then the fans sucks them into a container
and uh and they get to have a party. Yeah,
it's like they say, one's one zapper. I guess can
do an acre. So I bought four. Nothing is more

(05:52):
annoying than getting uh eaten alive when you're trying to
enjoy yourself. Uh you know at nine ten acocks.

Speaker 2 (05:58):
Oh no, I agree. And like you said, now we're
finally getting some weekends. Yeah, well you can have those
parties that you have to worry about mosquitoes because before
we were indoors.

Speaker 3 (06:08):
All right, this weekend, another one, another one, knock on one.
No precipitation.

Speaker 2 (06:13):
So I'll tell you just driving in it just beautiful, beautiful.
You know. I've worked in the business for so long,
and most of my career I made my own schedule.
So but since i've been with Dave for the last
year and a half, I mean I've been a real
traditional at least eight thirty to five guy, and I

(06:35):
love it. But boy, oh boy, by the time the
weekend comes, Yeah, you're ready to chill. You're ready, you're
ready to chill, and you're looking at people with a smile, going.

Speaker 3 (06:44):
Or do radio there you go. Lately, my schedule for
the last it's got to be a good six months,
maybe even longer has been. I can't. I don't even
set my alarm. I'm getting up at three thirty four
in the morning and I'm doing, you know, just like
me time kind of thing to the world. Read the

(07:06):
Wall Street Journal, obviously, look at CNBC economic things, and
it's a very chill time of the day. Because then
you know, as soon as six o'clock rolls around, it's
either Jim, it's running yep, the phone calls, the text,
everything starts flowing in at about seven.

Speaker 2 (07:22):
Yep and decompositive. Well, no, no, this is the because
you're you're a morning.

Speaker 3 (07:27):
I'm a morning thing. And don't don't try to talk
to me after nine at.

Speaker 2 (07:30):
Night than me. Don't talk to me at five oh one.

Speaker 3 (07:36):
Yeah, it's it's funny. And I don't leave the office
till probably six six thirty. So yeah, by eight thirty
nine o'clock, it's it's a full day.

Speaker 2 (07:47):
I can only imagine. Because you are an expert, Dave
waves about you all the time, and I would imagine
your industry is gonna start ramping up when the start
dropping rates.

Speaker 3 (08:01):
I think, yeah, I think it's near. It's it's weird.
You know. You look at the FED, the FED board
right now, and they've factored in basically a zero chance
of kicking rates down next not next week, I guess
the week after July thirty. So the survey is zero cuts,
but they're coming. Everybody's worried about this tariff stuff and inflation,

(08:27):
but that's a one off even if we did get it.
You know, it seems as though it seems as though
right now a third of the price increases are being
passed on to consumers. So down the line they're holding
it in check, the producers and what have you. So
right now it doesn't seem to be a factor. But
I agree, I think that loosen up the market. I'm

(08:49):
starting to see the market loosen up a little bit
right now. It's been very, very active the last few weeks.

Speaker 2 (08:54):
That's excellent.

Speaker 3 (08:55):
Yeah, and that's what we need. We need. We need
more people to put their houses on the market because
there's still a tremendous amount of demand out there and
there's not enough supply.

Speaker 2 (09:04):
And it's not even close. I mean, it seemed like
COVID really set everything back.

Speaker 3 (09:10):
Oh yeah, oh yeah.

Speaker 2 (09:12):
But I think we're coming up on a break in
less than thirty seconds.

Speaker 3 (09:16):
All right, seven fifteen, we have to break right.

Speaker 2 (09:18):
I knew that nothing gets by me, nothing gets by me.

Speaker 3 (09:23):
I have to rely on you because you can see
behind me.

Speaker 2 (09:25):
Well, don't put too much faith in then. But it's
great to be here. You know. I got Bulo and
myself Christopher McConkey with the Retirement Planning Group. We will
be back shortly. Retirement is in a Sunday thing. It's
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(09:47):
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(10:09):
thank you.

Speaker 4 (10:09):
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(11:13):
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(11:35):
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Speaker 2 (11:51):
I think we are back. Welcome to the Retirement Planning Show.
I'm Christopher McCarthy, and I have the pleasure of being
with Drew Illo. Am I pronouncing your last name right?

Speaker 3 (12:03):
Illo? Yeah? Yeah, we always we don't say the A oh.
I tell people it's really three letters. I l O.

Speaker 2 (12:12):
Well, you know, I got my hearing going, so, for
the love of God, if I didn't have my hearing,
add I wouldn't even know what planet were on. But
it's good and it's such a pleasure. I know you
and David been friends.

Speaker 3 (12:24):
For years, probably twenty five years at least.

Speaker 2 (12:27):
Yeah, and he's always rad and I always loved listening
to you guys on the radio, so I was really
looking forward to seeing.

Speaker 3 (12:35):
Yeah. Usually when I'm here and he sits where you are,
I can't see that whole window. It's great that I
can see this view.

Speaker 2 (12:41):
Well, he's a big man.

Speaker 3 (12:42):
His head usually takes up most of those.

Speaker 2 (12:46):
You went the extra miles. I just called him a
big man. I call him big guy, and he is.
I mean, no pun intended.

Speaker 3 (12:55):
That's funny. That's that's what we would do. I think
half the time I'm on his show, we just bust
each other's shops the whole time.

Speaker 2 (13:01):
So, and you know, even the first day when Dave
said I'm on in the radio, I said, okay, So
I grabbed a cup of coffee from Stewart like I have. Now.
Is that where you are? Never for one second was
I nervous? And that's a real compliment to you. To him,

(13:22):
I just feel his home. Yeah, I feel very calm.
There's nothing to be nervous about.

Speaker 3 (13:28):
Just be yourself, yeh, laugh, talk about stuff, talk about
what you do for a living, right, It's not that hard.

Speaker 2 (13:35):
And I think a lot of people, and I'm sure
it's true with you, they feel like they know you
before they even meet you, right at the office, right,
And that's that's got to be huge for the client.

Speaker 3 (13:46):
It's kind of funny. Radio is interesting in the sense
I did it for maybe twenty years and I stopped,
maybe my own show. I stopped maybe twenty sixteen, twenty seventeen,
my son got to be real active with base all
in high school and I didn't want to miss any games,
so I stopped doing it. So that was I don't
know seven eight years ago, and people still say, are

(14:08):
you on the radio. I haven't been on the radio
in years, But that's radio for you.

Speaker 2 (14:14):
You know. I know people in the radio advertising industry,
very close to one in particular, and I never really
fully understood the power of radio until I became affiliated
with Dave in this show, because it's just amazing when

(14:35):
people come in the office and you can tell they're
in a more relaxed state, right and you know, because
whether they hurt us or not, they're sharing their life
with you and the financial.

Speaker 3 (14:49):
And we talk about personal things too, what we do
on the weekends and our families. So in a roundabout way,
our listeners are getting to know us as people, not
just financial people. So yeah, you build a bond. I
enjoy it. I think it's funny you run into people
and they hear you on the radio, and no, it's good.

(15:11):
I always say, oh, you're the one listener.

Speaker 2 (15:13):
Yeah, thank you, thank you. Where do you live. I'll
send your donust there? Oh, I gotta say this. We
had an appointment yesterday. First time. They called in earlier
in the week because of radio Lovely Lovely couple. So
I'm sitting down and talking with him and they said, oh,

(15:35):
we forgot to bring something up for you. What are
you talking about? So well, you'll see. So we met
for our hour and a half. They go down to
the car and they buy us a pie from Smith Farms.
Oh yeah, I mean just so thoughtful. Yeah, that's great.

Speaker 3 (15:55):
It's just but again, it just uh maybe they did
see Dave's headshot and they thought they need to buy it.

Speaker 2 (16:02):
By if they saw the headshot, they would have known
not to buy it. I'm only kidding. I love the ideally,
but just again, we're very blessed and fortunate the people
that walk through the door. Yeah, and I think it's
because again, the video I think shows that we're just

(16:23):
it's down to earth and regular good people like they are.

Speaker 3 (16:28):
We're just small business owners in upstate New York like
everybody else. That's right, you know, just doing our thing.

Speaker 2 (16:35):
Have you entertained maybe picking up a show again?

Speaker 3 (16:38):
Uh not at the moment. You know, I got a
kid down in Tampa and my daughter's still in college
and and maybe once we maybe once we figure out
where everything settles down in a couple of years, maybe, uh,
not sure at the moment. Yeah, I like. I like
being in the mortgage business now thirty years in January,

(17:01):
which is crazy, as they've always talked about. I was
in an investment banking field for a while out in Boston,
then moved back to the Capitol region the end of
ninety four and got into this industry January of ninety five.
So yeah, thirty years.

Speaker 2 (17:18):
And you must have been it was a pretty hot
time when you were getting into the business.

Speaker 3 (17:23):
Yeah, it was rates right eight and a quarter. So
now when people say rates are high, I laugh, because
since two thousand and eight, basically, you know the So
it was funny Thanksgiving two thousand and eight, I was
in Florida visiting my grandparents for Thanksgiving holiday, and all

(17:46):
of a sudden things started to unravel with the bond
markets and mortgage backed securities and things like that, and
we were I remember, it's weird. I couldn't tell you
what I did yesterday, but I remember this. I was
sitting at the kitchen table and I was I was
working with some people, you know, via telephone, and rates
were like six and a quarter, and all of a sudden,

(18:09):
within like two three weeks after the bottom fell out,
the Fed started cutting rates. Interest rates dropped down into
the I think fours or something crazy like that, and
you know, then they popped up a little bit, and
then all of a sudden, you know, COVID hits and
then they drop way down again. So for the last
you know, since two thousand and eight, they've been sub

(18:32):
six percent. That's a long time, and I think that's
what we're all conditioned for right now. And it's not normal,
I think, although you know, I think, actually I think
in the six is probably is normal historically though. It's funny,
over the last forty years, the average interest rate is
about eight percent. So we were you know, when I

(18:54):
got into business, I didn't know any better. Eight and
a quarter, Okay, no big deal. You know, they had
come down, I know, from sixteen eighteen twelve percent, so
eight percent was a bargain. Now you talk aight percent,
people's head would off pop off their shoulders.

Speaker 2 (19:08):
Right, So it's amazing. I took economics in college.

Speaker 3 (19:14):
Me too, me too, I was economics major. I actually
wanted to be a dentist. I was. I was pre
med and that lasted two years. So forget this.

Speaker 2 (19:24):
Well, I'll tell you one thing. Your stint as a
dentist is longer than my career as a viola player.
I think I was about a viola player for about
two point three days. But no, I always was fascinated
by the inner workings, economics so and some for interest

(19:44):
rates so and some for you know. I love it
when people my grandmother used to say, oh, I remember
back in the seventies, in the eighties, I was getting
thirteen fourteen percent for a CD. Yeah, And I said, wow, Graham,
that's great. And then I learned that inflation back in
the day was eleven or twelve percent, right, right, So

(20:06):
you know, everything's relative because, like you were saying earlier,
people we do we work hard trying to minimize and
do the best tax planning job we can do for people.
But historically work the lowest rates are damn close to it.
Right in our nation's history. You know, you want to

(20:29):
talk about high interest excuse me, tax bracket, right, you know,
you go back to the fifties, sixties, and seventies, they
were no cake walk, you know, so when you're looking here,
not that saving money and taxes isn't important. It is,
but it's all relative, like you said.

Speaker 3 (20:49):
Yeah, and so I think, I think interstrates are a
good spot right now. I do see them going lower.
I could see us into the fives. I thought maybe
we would get there this year as an outside chance.
You know, last year hit we hit five and three
quarters for about two weeks. It was kind of strange,
and it's amazing what happens in the markets is that

(21:12):
the floodgates kind of opened for a brief period and
then they closed up a little bit. But consumers know,
they're they're very keen to where interest rates are and
that and how that affects them with their purchasing power.
And yeah, I think, I think I think rates will
get into the fives. You know, there's an outside chance

(21:32):
over the next two years you may hit that four
and seven eighths number. As as a long shot. I say,
on the low end, four and seven eighths. Hopefully in
the high end we're low fives, five percent in that range,
and that will help. That'll help loosen up the markets
right now. You know, if you hold a two and
a half or three percent interest rate, you're not too

(21:52):
eager to give that up and get a six and
a half, right.

Speaker 2 (21:56):
And I can't tell you the number of times BRU
sit with clients and that topic exactly will come up
and we'll say, well, what's your rate and they said, well,
you know, I want to pay off my mortgage. What
what's your rate?

Speaker 3 (22:09):
Right?

Speaker 2 (22:09):
And they'll say, oh, you know three and a half?

Speaker 3 (22:11):
Oh no, no, no, slow down, what's the average S
and P five hundred return exactly? And why would you
do that?

Speaker 2 (22:20):
But even to just mirror what rates are now for mortgage, right,
these these banks and financial institution they want you to
pay off your note, Oh yeah, at three and a
half because they turn right around and right six seven.

Speaker 3 (22:36):
You're going to get your six or six and three quarters.
Where we're hanging out right about now, So we shall
see starting to see I think some some cracks in
the labor markets. We're obviously got a lot of pressure
on the federal reserve right now from the President putting
pressure on him to lower interest rates. But he's he's

(22:58):
holding his own for now.

Speaker 2 (22:59):
He is. And you know, I guess this cycle seems
to be a little different than the previous in that yes,
the President has definitely let it be known. But I'm
starting to hear other people are starting to say it's
time it is, you know, let's start opening that door.

(23:21):
Let's start making positive movement toward dropping these rates.

Speaker 3 (23:26):
This Fed has self admitted, admitted that they are still
restrictive by at least a percentage point. So that's what
they say. So we know we're not neutral at the moment.
And got a minute before the break. But Wallner seems
to be he's a FED governor right now. He seems

(23:47):
to be maybe the front runner to succeed Powell. And
he came out this week, which we'll talk about more
after the break, of course, but he is I think
a break proponent for July thirtieth cut might be one
out of them all. And he talks about the labor market.
He talks about inflation with the tariffs, not a big
deal at the moment. He thinks, even if you have

(24:09):
some inflation with the tariffs, it's a one off, it's
not sustainable. So he's a big proponent of a rake
cut coming up. And he thinks we're restricted by one
and a quarter to one and a half percent over neutral.

Speaker 2 (24:23):
Well, I'll tell you one thing. We're going to take
another break. I got Drew Ayelo and myself Christopher McCarthy
Retirement Planning Show. We'll be back in a couple of seconds,

(24:52):
and we are back. Welcome on this beautiful Saturday morning.
I'm Christopher McCarthy from the retire I am a planning
group and I have the pleasure, honor and all the
other good stuff.

Speaker 3 (25:05):
U I LA, good morning, Good morning everybody, seven thirty
three on this beautiful Saturday morning. It is happy to
be here and thanks for having me on. As we
were talking about earlier then the mortgage business. Now thirty
years branch manager for Fairway Independent Mortgage in Clifton Park,

(25:26):
So that's that's what I do. We talk about mortgages,
reverse mortgages. Obviously, interest rates. Before the break, we were
talking about the Federal Reserve and that front runner FED
Governor Walner is definitely making a push this week because
they It's funny they have their meeting every month, almost

(25:47):
every month. After July, I don't think they meet again
until September, so let's skip August. But they all come
to an agreement collectively on what interest rates to do.
But then after their meeting. You always have all these
fed you know that there's I think there's fourteen of
them maybe is it fourteen or nineteen FED governors. But
they all go and talk throughout the country at different events, lunches, dinners,

(26:10):
things like that, breakfasts, and they voice their own personal
opinions of where interest rates should go. So it's always
it's always kind of interesting. And you know there's some
Hawks and there's some doves. That means that you know,
the Doves are really easy on interest rates and the
Hawks are very tight with their fiscal policy. So you
get the varying opinions. But this Walnert guy, he is

(26:32):
really making a push. He's he's I guess, backing up
what the what the president wants. He thinks that the
tariffs so far are not a big deal in terms
of inflation. If they do, it's a one off. But
you know he's looking at big revisions to the unemployment
numbers last year. If you remember, you know they do

(26:55):
these they do these reports like the first Friday of
the month. The month ends on a Wednesday, They're coming
out with the unemployment report on a Friday two days later.
So it's almost impossible to get that accurate, especially with
how they do it these days. It's so dated with
their technology and their methods. But then obviously the month

(27:16):
after the revision and two months, three months after and
then they know they'll do a revision at the end
of the year. Last year, at the end of the year,
the revisions wiped out half the job gains that we
had for all of twenty twenty four, and you're probably
going to see the same thing this year. So so
Walner says, obviously it's outdated, there's going to be big revisions.

(27:39):
He's worried about the labor markets. You have the jobless claims,
which this week actually was a good week for jobless claims,
but the extended claims, the continuing claims. You know, people
expire the basic benefits and they go on the extended benefits.
Those are pretty high levels, which means once people get
laid off, it's pretty hard to find a job get

(28:00):
back into the workforce. So that's concerning people. You know,
employers are holding onto the workers pretty good, but they're
not paying them a lot to stay anymore like they
used to. The quit rate, which they look at is
very low right now, so you're not seeing the job
jumping like you saw back in COVID days when you

(28:20):
could jump jobs two three times in a year and
make a lot more money. That's that's kind of gone.
But he's making a big push. He thinks that the
FED should definitely cut by at least a quarter. He thinks,
you know, even I've cut a quarter, we're still restricted
by by a point, meaning, you know, to get to neutral.
What they're saying is that the FED should lower the
probably a whole percentage point to get to a neutral stance.

(28:43):
So right now he feels the Fed's at a restrictive
case and or restrictive stance, and you know, we should
definitely lower a quarter percent. But I think he's one.
I don't. I haven't heard anybody else talking like that, so, uh,
I think, yeah, But you look at the survey. I
think he's one out of all of them. There's not
I doubt July thirtieth, we're going to see any sort

(29:04):
of cut, but they're coming, you know, definitely. Uh well,
I shouldn't say definitely, but September I think a lot
of the economists are expecting two cuts by the end
of the year. But I say, but they've changed their
minds very quickly at the FED.

Speaker 2 (29:22):
Yeah, and it's just amazing. We were talking going to
break a little bit, and it seemed like a lot
of the more recent cycles when the FEDS were coming
up to the next meeting, and other than the President,
you didn't hear a lot of pushback, right, But like
you said, this gentleman who's one of the governors is

(29:45):
starting to, I think, be a little more.

Speaker 3 (29:48):
Vocal very right. He was very vocal first time around,
and obviously he's tremendously vocal right now. And some could
say there are some politics evolved at the FED because
Powell's got out of there in May, right, I mean,
he's he's done. He's not going to get reappointed, re
elected wherever you want to call it. So he could

(30:10):
lower a quarter half a percent and it's drop in
the bucket and he's out of there in May. Even
if he up, he's gone. So I do feel like
there is some politics there with with Powell. You know,
I'm sure there's another side of the coin, but but
I wonder, you know, I don't like politics. I I

(30:32):
never knew there's no other occupation where you got a
lie to keep your job, you know, I gotta tell
Chris McCarthy what he wants to hear. Then I got
to tell someone else what they want to hear. And
you know, you talk out of both sides of your
mouth and politics, but but in this case, yeah, I
think there is some politicking involved there, you know.

Speaker 2 (30:49):
And again we're from the school up just do what's right. Yeah,
you know, do the right things. Dave would always say, my.

Speaker 3 (30:58):
God, yeah, we'll look at Powell. Powell says they were
data dependent and looking in a rear mirror mirror. Okay,
Now all of a sudden, he's looking forward to inflation
from tariffs that hasn't happened. So I think he's even
talking out of both sides of his mouth. Are that
independent which is rear view mirror or are we worried
about inflation coming up? I don't know, And you know

(31:20):
he's ah, so you know it'll be, it'll be. It's
so once again we'll have to like navigate through this.
All right, We've got a call, and we got Brian
think Brian Sinkoff. He's a realtor with the sink Off
Realty Group. I was I was hoping Brian would call
in because I want to get his expert opinion on

(31:42):
the real estate market and where he sees it today
and where he thinks it's going. Brian, are there?

Speaker 2 (31:49):
Do I just hit the old lime one?

Speaker 5 (31:51):
Good morning, gentlemen. How are you are you guys?

Speaker 3 (31:53):
Good?

Speaker 2 (31:54):
Good?

Speaker 5 (31:54):
How are you doing.

Speaker 6 (31:57):
Well?

Speaker 5 (31:58):
Enjoyed listening to you guys this morning. Yeah, it's you know,
quickly dovetailing on what you're talking about with the FAED.
You know, we we can certainly look back at how
we got here, and it's hard to predict where we
are moving forward. But I do remember, and Drew you'll
remember this because we used to have this conversation daily.

(32:20):
It was probably in I want to say it was
the spring of twenty twenty two, when Drew and I
would have conversations probably once a day about the interest
rates and I and we all everyone in twenty twenty one,
real estate it was booming. You could make the argument

(32:41):
in real estate sort of save the economy during COVID.
I don't think that's a crazy assumption to say, because
it was one of the few things that was still
regularly functioning during that time. But I would say that
Drew once a week, twice a week, I would say drew.
These rates actually have to come down, they have to
go up. They're too low, right, right, So the rates

(33:04):
stayed down for so long, and we knew why they
stayed down. They had to generate, you know, they had
to generate the economy, and you had to get people
excited about something and get them out and buy houses
and sellar houses and things of that Nature's olius what happened.
But the problem is they stayed low for too long.
So what ended up happening was everyone living in a house.
And think about it. If you're driving around this morning,

(33:25):
you probably already financed during that time. And if you
didn't have a house, then guess what you probably did.
You probably purchased a house during that time. I'm going
somewhere with this guy's bear with.

Speaker 2 (33:37):
You.

Speaker 5 (33:38):
Probably you probably purchased a house at that time, correct,
So you know, you had an influx of people, and
the rate at that time was what it was under
four percent. It might have been four percent, but it
was generally between you know, three and four percent, maybe
even two seven five. So you go back, that's four

(33:58):
years ago, maybe five maybe three. Four years ago, eighty
percent of the market sitting on an interest rate today
that is virtually untouchable. Correct, you got a three four
percent interest rate? Today it's what six and six eight,
give or take whatever, close to seven, you know, something
like that, six and a half to seven. So the market.

(34:19):
So to answer the question about the market, the market
three years later, guys, is still suffering because those rates
were so low for so long. Think about it. I've
always everybody says, well, why aren't people buying and selling? Guys,
The life cycle of human beings didn't stop because the
rates went high. The life cycle of human beings they.

Speaker 7 (34:41):
Still move right, you.

Speaker 5 (34:44):
Know, Kids death, kids move away, people have uhh, we
have twins. We only thought we were gonna have one,
now we got three. So those things are still happening.
The problem is everybody's stuck in their homes because those
rates from three four years ago, where they're at four percent,

(35:04):
they're not going to move for six and a half percent.
So let's let now, how does it factor into today. Well,
the factors in today, guys, because people want to move,
but they don't want to get rid of that sweet,
juicy three percent interest rate. So you have a home shortage.
You have a shortage of people who simply aren't putting
their houses on the market, and that's kind of where

(35:25):
we are today. Still every day, I still seeing that.

Speaker 3 (35:30):
Absolutely, you're still seeing multiple offers and prices go over
asking price.

Speaker 5 (35:37):
I can, true, I can, and you you know this
because you know you're ending up working with a lot
of my buyers on loans. Over the past three four years.
I can probably guys count on one hand the amount
of offers, whether it's me making it as a buyer's
agent or a listing agent on the side, on the
sales side, count on one hand, and since twenty twenty

(36:01):
the amount of offers that I've had in one hand
that have not been asking or above asking price. Right,
you're actually today, you're actually offended if you're a listing
agent and you get an offer at asking price, where
six years ago and I offer at asking price, you'd
be doing backflips. But it's yeah, it's it's still happening.

(36:22):
I mean, I put a house on the market yesterday
in delmar and I got seventeen showings on it, guys,
seventeenings you know by and I got thirty two offers.

Speaker 2 (36:34):
I got to thank you, guys, because this is a
whole part of an arena that I'm not familiar with,
and I love the way you've explained about it wasn't
just COVID and all the setbacks and getting materials building
houses nobody. I love the perspective of what you were
saying about the interest rates and how people are reluctant

(36:55):
to move, and it makes perfect sense if you got
a three percent mortgage. Anyway, we got to take a break.
Buy when you stay with us.

Speaker 3 (37:01):
I hope land line. I got more questions, but we
got to take a break.

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Speaker 2 (39:18):
Hello. Hello, we're back. We're back. Christopher McCarthy with the
Retirement Planning Group. I'm with bou Ayello and we're having
a very informative morning.

Speaker 3 (39:30):
Yes, good morning, good morning.

Speaker 2 (39:32):
Do we still have Brian?

Speaker 3 (39:35):
We still have Brian on the line.

Speaker 2 (39:37):
I'm still here, all right, excellent, Thank you Brian.

Speaker 3 (39:40):
And I have to say Brian did say, uh, which
at the time when Brian told me that it was
like fingernails on the chalkboard, that he thought Rach should
go up, because I was I was loving life with
refinances at the time. Well, but in retrospect he's correct.

Speaker 4 (39:59):
True.

Speaker 6 (40:00):
Why do you say that?

Speaker 5 (40:00):
Because I'll never forget this.

Speaker 7 (40:02):
I was. I can tell you where I was.

Speaker 2 (40:04):
It was.

Speaker 5 (40:05):
We were at a realtor event and I said that
at a table of realtors. It was actually an awards
ceremony and I said that at a table of realtors
and they all looked at me like, like, you know,
like I said, not shut your mouth. Yeah, they were like,
what are you talking about?

Speaker 7 (40:22):
This is great?

Speaker 5 (40:23):
And I go, guys, this is happening for too long
and they said, you're just seeing Debbie Downer. I said,
all right, well, what's going to happen in two.

Speaker 6 (40:31):
Years when no one wants to sell their house?

Speaker 5 (40:34):
And of course they thought I was being negative and
they and then I had a couple of them at
that table have since the apologized to me and said,
we kind of wish we listened to you back then, Bryan.

Speaker 3 (40:45):
And then and as we know, not even you know,
you're looking at it from the real estate viewer, but
you look at it from the economics viewer. And the Fed,
in fact, waited probably a year too long, and then
we got nine percent, right, So yeah, for multiple reasons

(41:05):
they waited too long.

Speaker 6 (41:08):
Well, they had to do it in the beginning to
stimulate the economy, and I don't know that any you know,
when was the right time to drop I just saw
the future and I said, no one's going to want
to sell.

Speaker 7 (41:19):
In two years, three years? You know, the average lights up.

Speaker 5 (41:23):
The cycle of an American living in a home is
three to seven years. So I looked three to seven
years ahead back in twenty twenty two, twenty and twenty five.
It's right now twenty twenty four to well, really it's
twenty three to twenty five, because I said, oh, some
people bought in twenty twenty, twenty one, twenty two. You

(41:43):
just add to three to seven years and you get.

Speaker 7 (41:45):
To where we are now.

Speaker 5 (41:46):
And this is what you know, life cycles. That the
cycle of a human of an American selling is three
to seven years. That doesn't that's pretty much the average
in the last fifty years. And because of that, it's
where we are right now.

Speaker 3 (41:59):
Guys, Yeah, I agree. The market, I mean market is
you know, real estate. Obviously, you can't state enough, especially
in today's world where it's local, local, local, and you
may hear some things in Florida or Arizona or California.
But here in the capital region, which obviously you've been
in real estate now for more than a decade, with

(42:21):
twenty agents on your team, you have a pretty good
pulse of the market. And I still think there's from
what I see, I still think there's way more demand
than supply, and I don't know if that's going to
fix itself anytime soon.

Speaker 5 (42:37):
I mean, you know, again, you can here, but you
can go back to no one wanting to leave, no
one wanted to sell their health.

Speaker 2 (42:46):
You know.

Speaker 5 (42:47):
I don't think if the rates do go down, I
don't think all of a sudden, you know, everyone seems
to think, oh, the rates go to you know, six
and a half percent, and there's going to be an
influx of buyers wanting to sell. I don't think it's
going to be that quick. I don't see it's not
going to be that black fidy at best by guys,
when when the rates go down to six point two

(43:08):
where everyone's going to rush the door and grab a
real or realtor to sell. It's going to be a
gradual thing, you know. And it maybe may go up
ten percent every quarter or something, you know, and but
it's going to take time to level out the playing
field because it's definitely a seller's market. When you're a seller,
you're in the driver's seat. I mean, the best scenario,

(43:28):
to be honest with you guys, is if you're a
seller selling a house for a relative, it's either moved
on or what passed away just because you don't have
anywhere to go. I mean, you don't have to you
don't have to sell a home and.

Speaker 7 (43:39):
Then buy home.

Speaker 5 (43:41):
That's very difficult right now buying a home. We're trying
to sell and buy it at the same time.

Speaker 3 (43:47):
That's the hard part of what you're seeing. Yeah, you
can't make it after these days with a house to sell.
It's impossible.

Speaker 5 (43:55):
No, And what you're seeing is I can tell you
what I'm seeing it because again I don't I always
tell people I don't look at that. I don't look
at newspaper articles or articles on the internet because Drew,
you hit the nail on the head. We talk about
this all the time. Those are very they're not local.
We look at hyper local. I don't look at national trends.
I look at capital region trends and my capital region trends.

(44:17):
Or let me put a house on the market and
see how many offers I get. That's how I judge
how the market is. And you know, when you have
a when you have a situation where you put a
house in the market and you get tons of offers,
that's how good. That's how good the market is. And
and you know, and and and when you have fifteen offers,

(44:38):
that means there's fourteen buyers that didn't get a house.
So there's fourteen buyers for that one house. And those
are just the people that decided to move forward, right, right,
But going back to selling, going back to selling, what
I was going to say, I probably the last three years, guys,
this is kind of a crazy stat when I when
I tell you this, the last three years, i'd say

(44:59):
of third of my sellers have been kids selling their
parents' house they grew up when with grew up in,
or selling grandma's house because they've held on to it
for seven years and there's been you know, it's got
all a grandma's stuff in it and they didn't have
anywhere to and they finally go, you know what, if
we get grandma's house in the market. We've been holding

(45:21):
onto this thing for six years and it's that empty,
it's time to sell it because you know, there's sitting
on a lot of money. So there's a lot of
animals houses that have been sold that in the past.
As you guys know, it's hard to clean out grandma's
house or the house you grew up in. If someone's
passed on right. It's a lot of work, there's a
lot of emotion, there's a lot of you know, stuff involved.

(45:43):
But I think because people are realizing it's such a
seller's market's let's do this now, right.

Speaker 3 (45:49):
I agree, I agree, But I'm starting to see it
loosen up a little bit. I feel like it's been
very active for accepted offers in the last few weeks,
which is great. I hope the trend continues. You know,
another thing you and I talk about a lot is, yeah,
this this week when two thousand and eight, two thousand
and nine hit, couldn't you couldn't sell a house if

(46:11):
your life depended on it. So the builders stopped building,
and then and then they started to ramp up. They
started to get back a little bit to normal, and
then COVID hits, and then once again they're behind the
eight ball. And now from the what I read this
morning in preparation for this program is we're still about
a half million houses short per year on what the

(46:33):
builders need to build to keep up with the growing
household formations is what they call it. So and still.

Speaker 5 (46:42):
Behind the crazy about what's crazy about that status? Drew?
You can you can go you know, you could blame
this on COVID. You can blame it on the race, certainly,
there's a degree that is in terms of just the race,
not necessarily COVID, just the interest rate where they are.
But you really, the genesis of our housing shortage is
because of the recession in two thousand and eight, right,

(47:02):
I mean, that's what's crazy, because for three to four
years people to stop building houses, right, So, you know,
you need houses for people to move if there aren't
any how, I don't mean available houses in terms of
I don't want to sell my house. There's just physically
not enough houses right now for people to live. Forget
the market, forget the economy, forget the politics, forget anything.

(47:25):
If I want to move, there's just not physically enough homes.
And because then that has to go back to the
recession in two thousand and eight. I mean, you're talking
almost almost twenty years ago. We're still being affected, right,
that's crazy to me.

Speaker 3 (47:40):
Right. It takes a while, especially all the regulation, how
hard it is to build, I guess in New York State,
particularly because that's where we are. You know, it takes
years to get a subdivision off off the ground and
build a house it's not easy, but you know.

Speaker 7 (47:55):
What, let's let's put a little bit.

Speaker 5 (47:57):
I don't want to totally, you know, for put salt
in anyone's coffee this morning, So let me let's get
a little sweetener to make everyone feel a little happy. Okay,
let's put them. Let's put the Let's put some splend us,
some sugar, some sugarcane, some sweet and low, and they're
coffee this morning. The good news is, guys, if you,

(48:17):
if you, if you work with and if you work
with a reputable realtor who can navigate the market and
knows what they're doing and knows how to get an
offer accepted, you you really can buy a house. It's
not impossible. I have clients all the time that that

(48:38):
you know, are nervous and whatever, and I got to say, look,
you can't get your toe in the pool. You know.
I meet people at open houses all the time. How
long are you looking? Oh? Two years? Two years? You
have a realtor? No, we just visit open houses. And
I'm like, well, you're never going to buy a house.
Like that's just at that point, you're just you're shopping
at you're shopping for a television and and and you've

(49:00):
got no clue if you want to watch TV.

Speaker 6 (49:02):
Like what are you doing?

Speaker 5 (49:04):
You know, you got to jump in the pool. So
that's the problem. You can't dip your toe in the water.
You got to jump in the pool. And by jumping
in the pool, it's working. The reputable realtor that that
knows the market, that knows the in and out, knows
how to get the things navigated, knows how to get
the offer accepted. That's that's the other issue.

Speaker 7 (49:23):
You know.

Speaker 5 (49:23):
The other issue is if you want to buy a house,
but then getting your offer accepted. But again, not that
we're putting sugar in the coffee now, guys, we're putting
sugar in the coffee. It can be done if you
want to get it done. But you just have to
decide if you want to jump in that pool, and
you can't dip your toe in.

Speaker 3 (49:38):
The water if you do. If you do jump in
the pool and you buy a house, I would think
for the next decade, obviously it's hard to even predict
two years out, but I believe for the next decade
you'll be handsomely rewarded because of the basic economics supply demand, right,
it's you know, we're not going to see ten percent appreciation.

(49:59):
But if we get four four percent appreciation, that's you know,
that's almost ten percent over the next two years alone
in terms of return. So you buy that five hundred
thousand dollars house and you got twenty five thousand dollars
in equity in year one? Right if you put ten
percent down?

Speaker 5 (50:16):
About if you got one absolutely well? Think about I
always a seller. Sometimes a buyer will ask me, what
do you think to get value of the house it's
gonna you know, I say, well, I can't answer that question.
It's impossible. But do I think it's gonna go down?
Probably not? Well, what if it stayed the same. Mean, well,
what if you came to me ten years from for
four hundred, we sell it for four hundred. Well, because

(50:39):
I wouldn't be good, I go actually be pretty good.
It'd be better than you losing. Well, how it's could, Brian, Well,
it's good because you put me right. So you're you're
already at three fifty percent. You put fifty down, you're
paying off your mortgage every year, so you're gonna you're
gonna still make one hundred and fifty to two hundred
grand on selling your house because you've been paying it down, Like, oh,
I didn't think it to think of this. You have

(51:02):
to live somewhere, right, you have to live somewhere.

Speaker 3 (51:05):
And what's the alternative. You're gonna pay.

Speaker 7 (51:08):
Rent a month the.

Speaker 3 (51:11):
Interest rates and renting is one hundred percent correct, So
I agree.

Speaker 6 (51:18):
I mean, that's.

Speaker 3 (51:19):
We we got to take a hard stop at the
top of the hour. I want to kind of button
this up with you. But you've You've been a great insight,
great ally expert in the field. I want to give
you some kudos. Brian Sinkoff sink Off Realty Group in
del mar but obviously covers the entire Capital region, and

(51:40):
I appreciate you calling in and giving us your thoughts
on the real estate.

Speaker 2 (51:43):
Thank you, Brian. God I feel like you're welcome. I'm
at school. Thank you.

Speaker 5 (51:48):
Thanks Hey anytime, anytime. Have a great morning, everyone, and
have a great weekend.

Speaker 2 (51:53):
Everybody, and we'll be back m h or one case

(52:51):
one and something. But you're absolutely right.

Speaker 3 (52:53):
And I think I believe what Brian said. It is
the foundation I think of this of our economy, of
the entire United States. You think about it, you have
a house, what it does for the for the economy.
There's so many subcontractors, supply stores, ace, hardware, home deepo lows,

(53:15):
all the trades, folks. You're talking thousands, thousands of jobs
absolute from home building and building in general. So yeah,
I think it did. It did pull us out of
COVID to a great extent. Uh, because when COVID hit,
it was nobody knew what was going to happen. It
was super super scary at first, right, Like we didn't

(53:37):
know interest rates shot up actually for like two weeks.
We didn't write alone for two.

Speaker 2 (53:44):
Weeks, so it must have been the interest rate shot
up in the market shot down.

Speaker 3 (53:48):
Yes, so we didn't know. It was bizarre. It's like
someone hit a light switch and the room went black,
and then two weeks later they tanked down to you know,
four percent and then three percent. It was really bizarre,
very bizarre.

Speaker 2 (54:02):
Well, you know, just and it almost sounds relok at
that seesaw of that because typically when rates go down,
the market goes up, right and vice versa. Right, So
it's amazing, But it was in such a condensed time period.

Speaker 3 (54:17):
Right, It was so fluid, it was it was unbelievable.
Then rates went down and nobody went to the office.
It was me and another guy in my office were
the only two people there. And I was there seven
days a week for an entire year, just trying to
keep up with the demand. It was, it was, It

(54:37):
was an interesting time. But here we are. The unintended
consequences is obviously there's not a lot of supply on
the market, but it's good for real estate values. I
think values, like I said before the break, are probably
going to be good for the next ten years because
you have the Millennials, which is the largest generation of
our history, and right behind that you have the Gen zs,

(55:00):
which really aren't that much different from the millennials. You know,
it's like seven point three million versus I'm sorry, seventy
three million versus maybe sixty nine million, and still a
large number. And the Gen Z is their average age
right now is twenty. Right, So once again, the supply demand,
we go back to basic economics, like we studied in college,
basic economics, one on one, supplied demand. There's more demand

(55:23):
than supply at the moment.

Speaker 2 (55:25):
What I love about this morning show, talking to you
and buy it is I've always been sold that COVID
was the bench in the engine that screwed up everything.
Blah blah blah. But you guys educated me about oh
eight aren't the mess that was created? And it makes
sense that we have not recovered from.

Speaker 3 (55:47):
Me, I don't think so. Remember eighth nine, they had
that eighty five hundred dollars tax credit, and I think
it went to a ten thousand dollars tax credit. And
what does that tell you? You know, basically giving money
away to try to get people to buy houses, right,
And that was almost twenty years ago. So that's how

(56:08):
that's how much we've changed now. Now when I hear
some of the politicians talk about tax credits the first
time home buar, we don't need that. We don't need
to stimulate the buyers. The buyers are there. We need
to somehow stimulate the sellers to give up that three
percent interest rate.

Speaker 2 (56:27):
That's right, And I think the only way that that's gonna.

Speaker 3 (56:30):
Happen dropping raise because you can mentally think that, all right,
I have a three percent interest rate. I'll give that
up if I can, because I have a tremendous amount
of equity in my house. You know, people that bought
in twenty eighteen, twenty nineteen, they might have a forty
percent gain on their real estate since then, so they

(56:50):
have a bunch of equity in there. They can take that,
they can roll it into a bigger house, and mentally
they could say, all right, I'll give up my three
to go to five something because I have all this
equity of my house. It's an easier road to hoe
if it's than going from three to seven. Right, So
that's what I feel will happen. I think that's that's

(57:12):
really the only thing I can point to. It's not
like there's a there's a silver bullet out there that's
going to fix the supply side, but that will definitely help.
And then I saw I saw this this morning. There's
a Georgia Congresswoman Marjorie Taylor Green. Oh yeah, she's proposing
no tax on home sales. So it's not going to
help the house flippers, but it'll help guys like you

(57:35):
and I. Because if you're a single filer, if you
have a gain of more than two hundred and fifty thousand,
you have to pay taxes on that gain. And if
you're a joint filer, if you have a gain of
more than five hundred thousand, you have to pay taxes
on that gain. So back when this was created in
nineteen ninety seven, the average home back then was one
hundred and forty five thousand. Now it's three hundred and

(57:58):
actually it's three sixty now the median price, So thirty
four percent of homeowners would succeed that threshold and would
have to pay tax out of sale. So that's a
that's a big number. So if they can eliminate that,
that could also help the supply issue, make houses more affordable.

Speaker 2 (58:17):
And just like we talked about earlier, you got to
give a little to get a little, right. If they
can do that and stimulate even that many more sellers
right in bias, it's just going to be good for assault.

Speaker 3 (58:31):
That's that's what we need because because there's a big
obviously a lot of demand, and I think there's a
lot of twenty thirty somethings living in their parents' basements
right now that they're starting to think, I got to
get out of here. The parents are saying the same thing,
I got to get them out of here. And it's

(58:51):
so hard to pay twenty two to twenty three hundred,
twenty five hundred a month in rent, you know, spend
thirty grand a year in rent when you can own
a house. And I think that's one of the big
myths and misconceptions out there is people think renting is cheaper.
It's really not. You know, maybe after two three years
of owning a house, you're way ahead of the game.

Speaker 2 (59:12):
And I totally agree with everything you just said, because
you would think in the beginning, and it probably not
long ago when you're the real estate market was continuing
to skyrocket for all the reasons that we're talking about,
so a lot of mortgages, we're becoming a little more

(59:33):
steep renting, but not today catching up big time.

Speaker 3 (59:39):
I think I saw statistics yesterday and again I don't
know if it's local, it was probably a national number
where rents went up over three percent again in the
most recent numbers, so it's come down a lot, which
is good because that shelter number is a big part
of the CPI report and then also leaks into the
pc which is the Fed's favorite gauge of inflation. So

(01:00:02):
it'll be interesting the end of the month to see
what their PCE personal consumption expenditure is what it's called
for some reason, that's their favorite Fed gauge of inflation,
so we shall see. I think it'll be tough to
make any meaningful gains on inflation between now and the
end of the year, just because they look at this

(01:00:23):
year they compare it to this time last year, and
last year we had relatively low inflation this time of year.
So I think it's hard to make a meaningful move
on inflation the rest of the year. But we have
things like banking regulations. They keep talking about it lightening
the load on the banks, so the banks can buy
more treasuries, it doesn't count against their cap structure. That

(01:00:48):
could lower interest rates. Obviously, the FED could lower interest rates.
So there's some things that that can happen to get
interestrates down the rest of the year that will help
us because we may not get that help from inflation progression, right,
and they can't see it happening.

Speaker 2 (01:01:04):
Well, yeah, like you said, it's so much more involved,
right than just inflation.

Speaker 3 (01:01:09):
Correct, And I think it's I think inflation is probably
close to their target right now. I know you can
you can hash it up seven different ways, but I
think inflation is pretty much where they want to be
at the moment. So I would I would say we're
in a good spot there. I'm worried about the labor market.
That's what they got to look at.

Speaker 2 (01:01:26):
And you know what I hope and pray for the
end of the month, right, is that, like you were
saying so beautifully, there's so many different wheels turning. And
you know, we can't be just staring at inflation at
the only culprit here we need to. Maybe they got
a real firm grip on raising interest rates. Now I

(01:01:49):
think it's time to.

Speaker 3 (01:01:50):
Loosen, loosen a little. You gotta stay ahead of it.
You gotta stay it, have it, you don't. The Fed
is always they're always late. Like you looked at. You know,
we hit inflation in nine percent two or three years ago.
They were a year behind. Great, so hopefully they get
ahead of it.

Speaker 2 (01:02:06):
Well this morning gone by quick will happen. Fun. We're
learning a lot. We're taking a break. We'll see you some.

Speaker 4 (01:02:20):
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(01:04:19):
five eight zero one nine one nine.

Speaker 3 (01:04:20):
Portions of the following program will be recorded.

Speaker 2 (01:04:34):
Hello, Hello, Hello, de morning, we are back. I'm Christopher McCarthy.
I'm with the Retirement Planning Group, and I have the
pleasure of sitting here with du I love, and I'm
going to tell you right now, for the love of God,
I feel like I'm back in college. I have been
getting quite the education and I'm loving every second of it.

(01:04:57):
You know, every week i'm on here, it seems like
the time flies.

Speaker 3 (01:05:03):
It's just yeah, when you think about it, Oh, I
got to talk for two hours, but it's really it
feels like ten minutes.

Speaker 2 (01:05:09):
Yeah, it does. You know. We have fun. We laugh,
but we.

Speaker 3 (01:05:12):
Make fun of Dave. Oh great, well that's the best part.

Speaker 2 (01:05:15):
We could be here for two days. Here's plenty of material.
That's what I love. I love the guy. Oh god,
I love it. The best laugh ever, best laugh ever,
you know it. Just like I said, I've been in
the business forty years and I've worked with some wonderful,
wonderful people in my career. Still do. But the team

(01:05:40):
we have, that retirement planning group, it's special. It's special.
I really think we all compliment each other. Yeah, We've
got people across the board, very professional, very efficient, very
human and down to earth.

Speaker 3 (01:05:58):
Right, you know.

Speaker 2 (01:06:00):
It's uh.

Speaker 3 (01:06:01):
I think that starts from the top down, it doesn't,
you know, because that's how Dave is. And I look
at it. My my industry, which is real estate and finance.
A lot of real estate companies. You know, the owner
of the real estate company has a certain aura or
vision of how his company will be. And if there's

(01:06:23):
any cancers, you got to cut it out so that
the organization stays happy, light and easy, no egos. Everybody
works as a team.

Speaker 2 (01:06:34):
And that's what it is, is a team and another thing.
And if a real compliment today and everybody there we
communicate those open lines, you know, if there's any if
it really doesn't happen often, but it has aired out quickly, right,
and it has to be like you said, you don't

(01:06:55):
want something to become a cancer, all right, you know,
so you got a problem with something. And Dave, as
you know, was not shy.

Speaker 3 (01:07:04):
No, not a wallflower, but you know he he just
has a way.

Speaker 2 (01:07:09):
He shoots from the hip, but he does it with
a smile.

Speaker 3 (01:07:12):
Yeah.

Speaker 2 (01:07:12):
And you know I would rather have someone hit me
with a blessed two buy four right in the forehead
if they got a problem with something. Let's take care
of it now so we can move on. Then to
have it still it just.

Speaker 3 (01:07:28):
That's never good when it when it festers, it's always
good to get it out. And you know, guys are
funny like you and I can have a disagreement. We
punch each other in the face, then would go get
a beer. Yep, it's just the way it is. But
that's the way it should be.

Speaker 2 (01:07:45):
You know what. You know, you're never going to be
on the same wavelength with everybody all the time. Now,
you're going to have some up and downs, but it's
how you resolve them.

Speaker 3 (01:07:54):
Yeah, that's what makes it successful. And that's why he's
been in business for I don't know how. I mean,
I think he's had the retirement planning group. Got to
be like thirty years close to it.

Speaker 2 (01:08:04):
Yep, So yep, you better have it for forty three.

Speaker 3 (01:08:08):
Right, Yeah, So I don't I don't think you make
it that long in the business without doing things the
right way. So, especially in today's world social media and
things like that, it's quickly known if you're doing things
not the right way. So I think it keeps us
all very honest, very in check and the good, the
good survive and excel and thrive. So yes, now you

(01:08:29):
guys have offices all over New York State and you know.

Speaker 2 (01:08:33):
Yeah, it's amazing. I mean you're looking at Marca Albany, Syracuse.

Speaker 3 (01:08:39):
Are you in Buffalo also.

Speaker 2 (01:08:40):
We're working with Yep, Buffalo, and it's just it's fun. Yeah,
it's busy. I mean, you get in you know how
it is.

Speaker 3 (01:08:51):
I know Dave's Dave's you know, retirement planning group. I
I can't see myself retiring because if you enjoy what
you're doing, it really it really just the old cliche.
It really doesn't feel like work. No, right, It's like
I look forward to Mondays. You know, when I was younger,
I used to stress out of it Sunday nights, worried

(01:09:11):
about Mondays. Now I look forward to Mondays, don't. I
don't mind it because the time flies. I feel like
I get to work in the morning and before you know,
at six o'clock at night.

Speaker 2 (01:09:22):
It's like you're repeating exactly what I was thinking. Because
when it comes to Monday morning, I'm always amazed how
quickly it becomes Friday afternoon.

Speaker 3 (01:09:33):
It does.

Speaker 2 (01:09:34):
And it's just like, and like I said, I appreciate
the weekends now more than ever.

Speaker 3 (01:09:39):
Well, I think you leave it all on the field
during the week, right, yeah, speak So sometimes we're limping
to the finish line on Fridays, but that's because you know,
you played hard all week with meetings and running all
over the Capitol region. For you guys, you're running all
over the state. You're in Buffalo, Syracuse. Yeah, it's it's good.

(01:10:02):
I love to see it.

Speaker 2 (01:10:03):
I mean, Dave and Chris flew down for an appointment
in Florida yesterday, right, I mean, you know, we've got
I think we have clients in twenty eight states, So
it's a compliment. I think it's a compliment to the clients.

Speaker 3 (01:10:19):
And and what do you what do you do at
the retirement planning group? Like, what's your specific role or expertise.

Speaker 2 (01:10:26):
In the forty years, I primarily have worked with annuities,
you know. And I definitely Dave keep telling me, you
got to say your retirement income specially, right, you know.
And I'm not one. I don't like to put all
the marquee and all that stuff. I'm pretty you know,

(01:10:50):
shy in a way. But yes, you know, I've worked
with annuities. Annuities, like everything else, has its place, right.
It's not a one size pits all. It's not for everybody.

Speaker 3 (01:11:02):
It's a guy yep.

Speaker 2 (01:11:05):
But my god, I gotta tell you, over forty years,
the evolution of so many of these products is amazing.
I remember back in the two thousand and twenty ten,
some of the companies were offering these products. They stopped

(01:11:25):
selling they had to, and for lack of a better
way of putting it, they were giving away the store.

Speaker 3 (01:11:32):
Right.

Speaker 2 (01:11:33):
I have clients. I have my mentor who just turned
on his third and last annuity with the company, which
is all part of his retirement plan. He is taking
in double his last salary in early retirement income. He's

(01:11:55):
tickled pink. He never thought this day.

Speaker 3 (01:11:57):
Well, when you get the money, I'm sorry, oies tax free?

Speaker 2 (01:12:02):
No, it all depends on the umbrella they're under. For example,
IRA we know is all taxable, WROTH, IRA would be
tax free non qualified annuities. Whatever you invest is the
cost basis what you've already paid tax on, and you

(01:12:23):
have the gain over the years over and above that.
So the different scenarios. That has more to do with
the I R s. But we can use an annuity
to fund I RAYS WROTH non qualified. Gotcha, And it's
interesting you brought that up. Quote. We all know that

(01:12:43):
the government changed the rules about inherited irays because they
used to be able to take them out over the
beneficiary's lifetime. Now they shortened it ten years. The only
vehicle that I know of that can still be strepped
over a person beneficiaries lifetime is a non qualified annuity. Okay,

(01:13:07):
a non qualified annuity can be beautiful whether it's owned individually.
You can also have a trust own it. So if
you have money that you're going to allocate to the
next generation and you want to protect it from creditors
and predators, right, you can put it into attack the
Ferd annuity. Let it grow. If you don't take the income,

(01:13:31):
you don't pay tax on the game. Just let it grow.
And then down the road, when the trust or the
individual passes the way or the trust is dissolved, the
beneficiaries inherit their percentage and they can stretch that game

(01:13:51):
that's incorporated with their inheritance over the lifetime. It's the
only one I think that is left.

Speaker 3 (01:13:58):
If you say non qualified. So you're putting after tax
dollars into it, correct, so when it comes out.

Speaker 2 (01:14:04):
The after tax dollars will not be double tax not
be taxed, right, that is correct, and then spread the game.
We're finding greater and greater popularity for people right looking
to not only protect assets, but you're also doing valuable tax.

Speaker 3 (01:14:24):
Planning right and creating income stream binga which is obviously
the name of the game, and retirement yep, there's all
the different income streams that you can you can maximize, right.

Speaker 2 (01:14:36):
One thing I got to share with you quick. There
is a new sheriff in town. There's a new type
of annuity. And I'll come right out, it's not an
income anuity. However, I think we're onto something at the office,

(01:14:57):
and I think we have a very unique stre ategy
that we're taking something and we might be able to
make it an income annuity.

Speaker 3 (01:15:08):
Gotcha more to be revealed, all right. I like that cliffhanger.

Speaker 2 (01:15:12):
And you know they've called people screaming monkeys. We have
a situation here that there's no cost to the annuity.
The only cost is the fee we get from managing
the money.

Speaker 3 (01:15:30):
Right, that's it, right, I think I think that's a misconception.
A lot of people feel nudies are expensive.

Speaker 2 (01:15:37):
Many depend on the annuity. Now, in all honesty, if
you're going to create an annuity for guaranteed income for life,
just like one of my favorite company reps, he said,
it's not too good to be true, it's too good
to be free. Right, there are costs. So we make

(01:15:59):
that pain fully clear from the start. Look at what
you're getting.

Speaker 3 (01:16:05):
That's that's the thing. It's like you go to a hotel,
you go to dinner, or you go for anything. I
don't mind paying if what I'm paying for is what
I want or expect, right, So I agree, And.

Speaker 2 (01:16:21):
You know, and again, just like anything else, you go
to buy a car, does it are you willing to
pay that extra to get what you want?

Speaker 3 (01:16:31):
Right?

Speaker 2 (01:16:32):
You know, you ensure your home, you ensure your car,
you ensure your life. Why wouldn't you want to ensure
your income?

Speaker 3 (01:16:40):
Right?

Speaker 2 (01:16:41):
And for people that aren't fortunate to have state and
local pension, federal pension, corporate pension, this is something to look.

Speaker 3 (01:16:52):
At, which those are the thing in the past exactly,
So we have to get not creative, but we just
have to look at things differently because we don't have pensions.

Speaker 2 (01:17:00):
And we're going to talk more about again guaranteed income
and maybe how reverse mortgages might be extremely beneficial for people.
We're having a ball on the hour, I know showtime.
We'll see you soon. Hello, Hello, welcome back, Good morning.

(01:17:32):
Christopher McCarthy with the Retirement Planning Group. Honored to be
with Drew I Llo crew. Give us your contact information.

Speaker 3 (01:17:42):
Yes, if you need to reach me, the best way
to I think that's easy to remember Just go to
Drew's Team dot com. Drew's Team dot com and my
cell phone's on their emails on there, call me, text
me family questions, comments, scenarios. UH need to reach out

(01:18:02):
to Brian who was on earlier. Just go to Drewsteam
dot com. Be more than happinesssist and I believe we
have a caller, Tyler from Albany.

Speaker 8 (01:18:13):
Hi, guys, good morning, Good morning Tyler. I gotta say,
mister McCarthy, I could listen to you all day. It's
a pleasure.

Speaker 2 (01:18:24):
I thank you kindly, sir, I thank you kindly.

Speaker 8 (01:18:28):
I'll tell you well, yes, I'm sorry, No.

Speaker 2 (01:18:31):
No, I'm just gonna say it's been a real education
for me today and I'm grateful for the comment, the compliment,
So please.

Speaker 8 (01:18:42):
Okay, So I also apologized I missed. I had to
cut out for the last forty five minutes half hour show,
so I don't know exactly what you guys are talking about.
I do hear it while I was waiting something about
asset protection, but I wanted to I should be a
quick question from you guys. It's been on my mind
for a little while about maybe putting a certain percentage
of and hedging my assets whatever into in gold, and

(01:19:08):
or if it's work better just to take that percentage
and put it into my ross, and said, and I
do recommend a little bit of gold, how much would
you recommend? And you know, just like information like that
real quick.

Speaker 2 (01:19:22):
Well, I've got to be honest with you. This is
the sort of thing. I'd love you to call the office.
Give us a call of five one eight five eight
h one nine nine. I don't know if I'm comfortable
enough right now to give advice about that, but I
know we got Nico, we got Dave, and we got

(01:19:43):
christ That might be a little more of the pay grade.
But I wouldn't want to personally advise you. I'm big
proponent for wrought I raise and Gold obviously has done
very very well. But yeah, give us a call and
you know we can get all of our input on

(01:20:06):
what the best thing might be to do.

Speaker 8 (01:20:10):
All right, that sounds great. I'll stick with the IRA
ron every day for now, and when I do call,
I will be speaking to you mister Gardens.

Speaker 2 (01:20:19):
Well, I look forward to my friend, and you have
a great day, and thank you for calling.

Speaker 3 (01:20:25):
All right, that was Tyler someone else on the line.

Speaker 2 (01:20:32):
Oh, we got Oh Jesus, for the love of God,
I take off my glass. Oh my God, bear with
me just a second. Legoski, No, keep going, just keep going. Okay.
That seemed to have been a false alarm. I was
told to proceed. Okay, so we are proceeded.

Speaker 3 (01:20:55):
You know, one thing Dave always likes to talk about
when I'm on our reverse mortgages and how they how
they benefit a financial plan, and as he always says,
a disclaimer, he gets zero compensation recommending reverse mortgages. That's
something that I do, just like when I refer him

(01:21:15):
a client. There's no obviously financial tie there at all,
which is purely referral based and reverse mortgages. We've talked,
I think a little bit actually during the commercial break
about how they've changed so much over the last twenty years,
where if you're eighty years old, you could actually access

(01:21:37):
about seventy percent of the value of your home, which
on a reverse mortgage after ten, fifteen, twenty years, that
could you could be upside down what's owed versus what
the house is valued at. Nowadays, I think the most
that you can access is maybe forty two percent of
the value of your home. So they've changed a lot

(01:21:59):
so that the safeguards are in place so that it's
still your house. You still got to maintain it. You
still have to pay the taxes, insurance, and upkeep it
still your house. The deed is in your name, it's
not sold to the bank. There's so many myths and
misconceptions on that it's still your house. And then a
lot of people like to, you know, when they pass
or if they sell their house, to still have equity

(01:22:21):
in the house to give to their errors or to
use to buy another house. So now I think the
way they have it structured, it's not the loan of
last resort. It's it's a there's a lot of protections
in place, and there's a lot of there's a lot
of parts to it that can help supplement your retirement plan.
You can help pay the taxes. I'm getting money out

(01:22:41):
of your qualified plans so that you don't have that
big tax bite. It can help offset that. It can
stop the the the drain on your assets if you're
depleting your assets too prematurely. It can stop that. Because
we know right now historically S and P five hundred investments,

(01:23:03):
you know seven ten's it's a beautiful thing in terms
of way to return on assets, and why would you
want to deplete that prematurely if you need to last
long and we're all lasting longer and longer in life,
knock on wood, So we have to make those assets
stretch longer than we ever expected. So it helps one thing.

Speaker 2 (01:23:25):
And I'm so glad you brought that up because we
we did talk about it, and I think I told
you when we first got here that's an arena I
want to learn more about in order to be more effective.

Speaker 3 (01:23:36):
And I think we have Matt Lezowski on the line,
and Matt is a expert in the world of reverse
mortgages that I wanted him to call in today just
to share his expertise and how he uses it. He
works with a lot of financial advisors and planners, and
how it provides a lot of tools. So, Matt, are
you on the line.

Speaker 7 (01:23:58):
I am, good morning, Good.

Speaker 2 (01:24:00):
Morning, Matt. I've been looking forward to hearing you.

Speaker 3 (01:24:03):
Uh so, I don't know.

Speaker 2 (01:24:04):
If you've heard.

Speaker 7 (01:24:05):
I'm so happy to be with you guys.

Speaker 3 (01:24:07):
Good And I don't know if you heard the introduction,
but but it was the damn good one. I was
building you up, Matt, and and it.

Speaker 7 (01:24:16):
I mean, that's a lot to live up.

Speaker 3 (01:24:19):
But you've been on the show a few times and
I think you've spoken directly to Dave, and uh, obviously
there is a retirement planning show. So you work with
a lot of financial advisors and you use the reverse
mortgage as a tool with many financial plans, and I
thought it'd be great to hear your thoughts, your insights,

(01:24:40):
what what you're seeing a lot today in the market
with financial advisors, and how how it's being used to
help their clients with their retirement planning. So I thought
you'd be great to share some thoughts on that.

Speaker 7 (01:24:53):
Lot. Sure. Sure. So. So when when I speak with
financial advisors and I do full blown seminars for multiple hours,
the first thing.

Speaker 5 (01:25:04):
I want them to realize is they have a lot.

Speaker 7 (01:25:08):
Of assets under management AUMs, right, that's the acronym they use,
And what I try to do is educate them. I'm
looking beyond just the typical eras four one case annuities
and looking at the home as an asset class as

(01:25:30):
another tool to build someone's retirement plan and financial future.
And the first thing that we look at is what
can we use their home for their their equity, their
untapped equity. Right, that's the number one thing is trying

(01:25:53):
to expand their mind and using it there. Right. So
for many years, the American dream was to buy a home,
pay off the mortgage, and that's it, and it's become
a sacred cow. But in today's world, sixty six percent
of all Americans will run out of money in retirement.

(01:26:14):
That's one statistic that I've seen over and over again.
And so we need to find creative ways, unique ways
to extend that extend their money. Okay, So with that said,
let me give you one example to kind of peak
your interest, and age sixty two, you can start taking

(01:26:36):
Social Security. So let's say a client has reduced their work,
reduce their incomes, and so now they're going to need
to take that Social Security to supplement their cash flow.
If they do that, they're going to be able to
take seventy five percent of the MAC, so twenty five
percent less, and they're going to get taxed on that

(01:26:59):
Social Security. And if there's a down year where maybe
some of the distributions aren't aren't as big as they
need to out of their iras, they're going to have
to take more. It could be a problem. So let's
say they have a million dollar house, it's paid off,
and they have access to three or four hundred thousand

(01:27:19):
dollars of that equity instead of taking social Security, if
let's say they were going to take twenty twenty four
thousand dollars, they can have access to that equity and
take out let's say the same amount of money. But
the unique thing about a reverse mortgage and the equity

(01:27:40):
is that the FAHA product allows that equity to grow
over time on a balance sheet, on a theoretical balance sheet.
So let's say they take now two thousand dollars a
month out of their home equity, that home equity could
actually grow back the next year year, and they can

(01:28:01):
do that in perpetuity from age sixty two to age seventy,
not touch social security, and then at age seventy stop
accessing the equity in their home and take the full
amount of social security. Now, I know that's high level.
I'm talking you know, fairly quickly, not a lot of detail,
but the one significant point here is now you've utilize

(01:28:24):
your home as an acid class in extending, say social
security distributions and maximizing that. So that's just one prime example,
but there are typically seven or eight strategic ways of
usual utilizing home equity in retirement planning and tax strategies.

(01:28:46):
So that's just one example. I'm you know, I'm happy
to get into more detail, but in terms of this
medium and our conversation, that that's one tidbit for you.

Speaker 3 (01:28:57):
That's great, and that's and that's kind of that's that's
like Dave always says, another tool to toolbox for extending
your retirement benefits and trying to maximize the returns or
income streams that you have during retirement. And that's a
very overlooked thing because I feel like reverse mortgages have

(01:29:17):
gotten a lot of bad press over the years and
it's changed I think one hundred and eighty degrees recently
on what they've done to protect homeowners and to protect
seniors and make it more of a financial tool than
the loan of last resort. So, Matt, can you hang
on a little bit just because we have to take
a stop in ten seconds and then we'll come back

(01:29:39):
after maybe a minute of a commercial.

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Speaker 2 (01:31:54):
Hello, Hello, hello, welcome, thank you for joining us. Christopher
McCarthy here with through Aylo. Then we got mad on
the line.

Speaker 3 (01:32:04):
Thirteen minutes left. That's all we have.

Speaker 2 (01:32:06):
I know we've been had by a bar. People are
bothing down the doors trying to get in here and
have the thumb.

Speaker 3 (01:32:13):
Workpen Uh, Matt, you're still with us.

Speaker 7 (01:32:18):
I am still with Drew, all right.

Speaker 3 (01:32:20):
Wonderful, wonderful UH talking with Matt Lezowski. He is a
reverse mortgage specialist at Fairway Independent Mortgage. He's based out
of Boston, and UH people reach out to me obviously,
UH speak to them up front, gather information and a
lot of times I'll employee Matt's expertise to uh to

(01:32:42):
uh take it over the finish line. UH, just because
I would have to say, Matt, it's a big part
of your practice at the moment with retirement planning and
helping senior homeowners.

Speaker 7 (01:32:56):
It is, it is the the right now. There's a
couple of ways seniors are looking at the reverse mortgage
product by FAHA. One is tapping into their existing home
equity to help improve their lives, whether it be by
cash flow or increasing their retirement asset and balance cheap.

(01:33:20):
And you could buy a home what they reverse mortgage
as well and not have to have a mortgage payment,
which helps a pource cash flow. And there's tax strategies
that go along with that build. So it's and the
biggest real estate market right now, Drew is the senior space.
There are about ten to eleven thousand people today turning

(01:33:43):
sixty something, significant huge market and this is an incredibly
untapped product that most people don't know about. And you
said earlier correctly, really as a negative connotation, but that's
because they're working off of old information. The fah has

(01:34:04):
reregulated it twice over the past about twelve years, and
it's an extremely safe product, extremely safe product, right, And I.

Speaker 3 (01:34:13):
Was telling Chris, nowadays, even if you're like eighty ninety
years old, you really can't access more than was it
forty two percent of the value of your home.

Speaker 7 (01:34:26):
Well, you know that's a you know, it's a great question.
They do it by age, and so the older you are,
the more they like they'll let you borrow. But it's
also having to do with interest rate. So specifically, to
answer your question, if an eighty year old in today's
interest rate market could probably borrow fifty percent forty eight

(01:34:47):
to fifty percent. And if you look at an amortization schedule,
which and assume they don't make a mortgage payment, they
don't have to. Some people do, but so their their
balance is going to grow on the loan, but so
is their home value. The national average of home appreciation
over the past thirty years is four percent. So if

(01:35:09):
you look at a loan balance of say fifty percent
equity in a home and the home value which is
going to be obviously one hundred percent of the value, right,
the home value you really will will not be underwater, right,
and that yes, they're not letting you borrow eighty or yeah, And.

Speaker 3 (01:35:26):
That's that's people's biggest fear. Like when I've been doing
reverses now twenty years and uh, yeah, they used to
lend eighty percent seventy percent of the value of the home,
which you know, retrospect probably wasn't a good thing. Nowadays
with the safeguards in place, that home equity is pretty
secure so that you're not upside down. But even if

(01:35:46):
you were, you're not responsible for a penny of that mortgage.
It's what they call a non recourse mortgage, so the
only thing responsible for paying back and reverse mortgage is
the house itself. Not correct, that is.

Speaker 7 (01:36:00):
That one hundred percent correct? They put in an upfront
insurance policy that's mandatory for people to pay into, but
that's exactly right through. It makes it a non recourse loan,
which means the borrower and where the borrowers estate is
never on the hook for the difference in balance ode
if it is underwater, which most likely it will not

(01:36:24):
be in it. And frankly, if you are still is
your neighbor, because that means the whole housing market is made.

Speaker 3 (01:36:30):
Right right rrect And what are the what are the
main what are the main ways that people are using
the reverse mortgage in terms? I know, you know, there's
a credit line, there's a monthly distribution, there's a lump sum,
there's a combination all the above. But what are you
what are you seeing these days on how people are
drawing that money to supplement their their retirement.

Speaker 7 (01:36:55):
Sure, so you're right, there's many ways. All this bring
up a couple anecdotally speaking right now, in the past month,
I'm dealing with three people going through what I call
a gray divorce, so getting divorced over the age of sixty,
which is you know what is said and there's a
lot of emotion. But then you have to get into

(01:37:17):
the business side of it, where you have, say, a
home that has been paid off for many years and
now you need to split the assets. Seems simple enough,
but most likely one, if not both spouses are now
not working, so they're not bringing in an income to
qualify for a forward or a regular mortgage to refinance

(01:37:38):
because of a debt to income ratio issue, right, and
so we can look at the reverse mortgage as a
wonderful option because those kind of metrics don't matter when
qualifying people at all. Right, And so that's a big
way to use it, right, is get a reverse, get
money out, pay off your spouse, and one of the

(01:38:00):
spouses can stay in the home, which is typically what happens.
So that's that's one way. Another way, I had a
general knowman who's a financial planner, would think on paper
would never get a reverse mortgage his net His net
worth is about ten million dollars, he has a two
million dollar home paid off. He's in his mid sixties,

(01:38:21):
and he got a reverse mortgage for the sole purpose
off the line of credit. As you mentioned, it grows.
It has a growth factor at the same interest rate
as the mortgage. So let's say the entrantrase six six
and a half percent. Let's use six for easy math,
and his line of credit right now, I think is
three hundred thousand dollars. That's eighteen thousand dollars a year

(01:38:42):
in growth, and that compounds annually tax free. Because it's
not income, it's equity. It's equity in your home, right,
So that's another way people are using it. And the
third way is cash flow. Right, maybe a spouse dide
so their income isn't as large as it was and

(01:39:05):
utilizing the home equity and to supplement their task flow
is a life saver. That's just a few bullet points,
but frankly there's probably a dozen, right does in ways
that people use this, right, the themes are are constant,
you know, ten to twelve themes. The details of everybody's
life is different, and this is just a tool to

(01:39:28):
make your life better.

Speaker 3 (01:39:30):
Right. Yeah, that that equity line I think is so
underutilized because that's that's hugely powerful. You know, take it,
think about it. Three hundred thousand dollars line six percent,
So there's eighteen thousand, and then you get another six
percent on top of that three eighteen the following year,
and that is compounding. Whether you need it or not,

(01:39:50):
I think it's good to have it as your safety
net or you know who knows it protects your It
protects it encumbers that asset and essentially, if you ever
got you'll put into a nursing home or something like that,
that assets are already protected by that reverse mortgage because
I think any nursing home lean would go in the

(01:40:11):
second position behind it. So it gives you access to
that money, and I think it protects your equity in
that situation, so that you always have access to the
equity in your home and it grows every year. Then you
use it great, and if you don't, that's fine too.
You don't pay on anything that you don't use.

Speaker 2 (01:40:30):
Hey, Maddie, I got a question, and I apologize. If
you guys go to cover disc what is the minimum
age for the verse mortgage?

Speaker 7 (01:40:42):
So the minimum age to be is the main borrower
is sixty two years It is sixty sixty years old?
It is it is you know. Now, with that said,
go ahead, no, no, you go ahead. So with that said,
just just to clarity, say if you have a couple
where somebody is in their early sixties or sixty two

(01:41:04):
or sixty five, but their spouse is fifty five, that
spouse can be on the mortgage. What that calls a
non eligible borrower, but that spouse is protected. So really
because they're under the age of sixty two and wouldn't
qualify technically by virtue of being married to the qualifying borrower,
and God forbid that borrower dies, that other borrower is

(01:41:27):
still protected and can use that reverse mortgage as long
as they live there and never have to pay. That
they're not they're not forced to refinance, which is one
of the regulations they did a few years ago to
protect the borrow that's big.

Speaker 3 (01:41:42):
That's big.

Speaker 7 (01:41:43):
Two years Yeah, that's huge.

Speaker 3 (01:41:45):
That used to be a big problem from the years past.
Or if you had a sixty five seventy year old
person and married to a sixty year old person, it
would be a crapshoot if God forbid something happened to
the borrowing spouse. So that's a big protection. I did
not know that.

Speaker 2 (01:42:04):
You know another thing. I wanted to just jump in
here real quick because when my mind gets going, I
call it an amusement park. So I got all these
different thoughts running through my mind. Maddie, I know you
made the point. I believe earlier that if a client
wanted to at sixty two defer social Security until seventy

(01:42:27):
and then they could use their reverse mortgage to supplement
their pay and then utilizing a maximum Social Security payout
at seventy. But you could also have a client maybe
defer taking money off their iras Wroth I Rays broke
Wolds account for the same time period, just allow it

(01:42:50):
to grow and supplement later on, and using that reverse
mortgage to bridge the gap of retirement income during that
same time period. Wouldn't you agree?

Speaker 7 (01:43:05):
I absolutely would agree. That's spot on, and I'm going
to add to that. So let's say they need one year.
Let's say there's some serious medical bills or some serious
expenses that would require them to pull more out than
the required minimum distribution or RMD. Right, So now they're

(01:43:30):
lowering their principal balance, which is effectively, depending on market performance,
could significantly shorten the length of how long they're assets
will last. Right. And my hope is as listeners are
airing this conversation, that they are talking to their financial
planner and getting professional advice and professional analysis, and just

(01:43:53):
want to say that and emphasize that. Back to the point. So,
let's say you have this line of credit and you're
just letting it sit for when you need it, and
we have a down year, and if you take out
more money than the minimum distribution, maybe you're going to
shorten how long it will last. You can instead tap

(01:44:13):
into that home equity line of credit from the reverse mortgage.
Pull the money out there. There is no tax implications
whatsoever from doing that. You protect your assets, and depending
on how much you pull out and the interest rate
at the time, that amount of money you pulled out

(01:44:33):
could grow back, if not more.

Speaker 2 (01:44:36):
And again, I hate to cut you short, but we're
just about to break. Everybody, have a great weekend. Thank you.