I came across Dave Ramsey YouTube video where he swears against reverse mortgages. First, I would like to preempt this post saying Dave Ramsey holds no professional license whether it be a mortgage, investment, insurance, or Realtor or Medical or Ph.D. or anything else of that nature. His opinions are his own from his own life experiences, of his own bankruptcies and mismanagement of money. So, this experience apparently gives him the knowledge to teach the basics of getting out of debt…
Understand this, he sells books and refers people to his preferred vendors for a referral fee to support himself and his family and that’s all he is about. It is important to understand that. He has an agenda to sell you a book or enroll you into a course or to pay him in some form or fashion. Why I say this is because no matter what he is against, it is his opinion. It is not a fact (by a long stretch) and should be taken as that and your own investigation through licensed professionals, whether a product, he is unlicensed to recommend, should be the underlying facts of your decision whether it is beneficial for you.
So, let me say this. Dave Ramsey is excellent for people to get out of debt. If you have gotten yourself into a situation and need a “Debt Coach” or some type of “cheerleader” on your side to provide the basic money management through his 7 Baby Steps of living within your means, have a small emergency fund,
not using high-interest credit cards, not carrying a balance, or maybe advice on getting a second job and paying yourself first or don’t lease cars, only buy cars… etc Then this guy is for you.
My issue with Mr. Ramsey is the advice he gives as an unlicensed person. He does not even care (apparently) about his listeners or readers enough to have a licensed professional onset or the radio with him if ONLY to make sure he states facts about a product or service.Please understand, he has an agenda just like everyone else. He wants to sell you something. He has to appeal to the masses to sell lots of his books and courses and quite possibly those looking for Life Insurance that listens to his show SHOULD only buy term insurance and not whole life because it is important to make sure your loved ones are protected in case of death and if your trying to get out of debt then the term is the way to go, temporarily… Hence, the term . Quite possibly, a senior calling in wondering if they should get a Reverse Mortgage who can’t make ends meet should not get a reverse mortgage because they are still responsible for taxes, insurance, and maintenance on the property and could put themselves in danger of foreclosure should they be unable to pay those as every American homeowner would be.
But Mr. Ramsey is not qualified to offer either of these people advice by any professional standard only his opinion. He will refer those to his Licensed professionals who will only give biased advice because of the Dave Ramsey referral. He refers to a term insurance company, Zander insurance, who probably does not know a thing about Whole Life or Equity Index Life or Guaranteed Universal Life. Dave Ramsey refers to a mortgage company, Churchhill Mortgage, who does not even offer Reverse Mortgages (according to their website) and probably does not even know a thing about a reverse mortgage (complete speculation). But even if they do “know of” something, they don’t know it well.
There are things I have no idea about even though I may hold a license for service by no means, means I know every product. Licensed professionals all have specializations or are biased towards certain products. Yes, we are all biased. In my first years in the mortgage business, I knew nothing about a Reverse Mortgage. In my first years in the insurance business, I knew nothing about Whole Life insurance, and I did not even want to learn about either. I was biased to what I was recommending at the time and I only sought out clients that needed that specific product or service.
If you only take one thing from this post. Take this. Take Dave Ramsey’s advice outside of getting out of debt through his 7 Baby Steps as pure opinion in the most basic sense. His statements about insurance, mortgages, and investments are misleading and often, absolutely, completely untrue.
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