318: [Ken Pitts] Unlocking the Secrets of Reverse Mortgages
In this enlightening episode, we welcome Ken Pitts, a seasoned mortgage lending expert with over 35 years of experience. Join us as we explore the intricacies of reverse mortgages—a financial tool that can help the sandwich generation support their aging parents while ensuring financial stability. Ken shares his insights on the misconceptions surrounding reverse mortgages, the importance of understanding this financial product, and how it can be a game-changer for retirees looking to access their home equity without the burden of monthly payments.
Quotes from Ken Pitts:
"This is just to let you know, it's another tool that you can actually utilize in your financial toolbox."
Key Takeaways:
- Understanding the difference between forward and reverse mortgages: how they work and who they benefit.
- How reverse mortgages can provide financial relief for retirees struggling with expenses and inflation.
- The importance of age, home value, and current mortgage balance in determining eligibility for a reverse mortgage.
Chapters:
- 00:00 - Understanding Mortgage Finance
- 01:32 - Understanding Reverse Mortgages
- 10:34 - Understanding Reverse Mortgages: Key Considerations
- 16:53 - Understanding Reverse Mortgages and Financial Planning
- 19:31 - Understanding Reverse Mortgages and Client Needs
- 24:33 - Exploring Culinary Passion and Financial Wisdom
Learn more about Ken and his work at:
For more episodes and financial insights, visit https://aboutthatwallet.com
Disclaimer:
The information provided in this podcast is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any decisions regarding reverse mortgages or other financial products.
Episode 318
Transcript
>> Anthony Weaver: This episode is sponsored by
Speaker:kineticwealthbook.com.
Speaker:>> Ken Pitts: Okay, so we're all used to I need to buy a house.
Speaker:I need to get some type of financing to buy that
Speaker:house. We call that a mortgage finance loan. It's
Speaker:going to be a loan that's secured by a home. And
Speaker:so you'll use that. Maybe you're buying a $500,000
Speaker:house and you can put 50,000 down, but you need to
Speaker:finance 450,000 to make the purchase happen.
Speaker:That's called a forward mortgage. And. And when
Speaker:you do a forward mortgage, you're expected to
Speaker:make.
Speaker:>> Anthony Weaver: Welcome everybody back to another exciting show of
Speaker:the about that Wallet podcast. I'm your host,
Speaker:Anthony Weaver, and we are here to help the
Speaker:sandwich generation build strong financial habits
Speaker:so that they can talk about money, spend money,
Speaker:and enjoy their money with confidence. Today I
Speaker:have somebody who has been working pretty much in
Speaker:mortgage lending as long as I've been alive who
Speaker:stressed the importance of understanding the
Speaker:mortgage process and has an awesome book that I
Speaker:think you all would actually like to listen into.
Speaker:And I'm gonna let him take care of that part of
Speaker:it. So welcome to the show. Ken Pitts.
Speaker:>> Ken Pitts: How you been, Anthony? Thanks for having me.
Speaker:Thanks for reminding me how old I am, too.
Speaker:>> Anthony Weaver: Uh, I mean, you know, you've been doing this for
Speaker:so long, though. I mean, I got to give you your
Speaker:props because a lot of people usually give up on
Speaker:their jobs very quickly. Like, you know, the same
Speaker:with, especially with a profession, uh, 35 years
Speaker:in county and county.
Speaker:Okay, so, but one of the things we want to dive
Speaker:into today, which is talking about reverse
Speaker:mortgages, like, I've heard about it, I've seen
Speaker:people get, quote, um, unquote shafted from it.
Speaker:And I just want to hear from your expertise about
Speaker:it, like, what makes it so appealing to you.
Speaker:>> Ken Pitts: And that's a great way to start. I think what I
Speaker:found, Anthony, over my years, both offering that
Speaker:mortgage as a financial tool for folks in
Speaker:retirement, but also hearing a lot of the
Speaker:misconceptions. Listen, when I wrote this book, I
Speaker:didn't angle it just towards my end user clients.
Speaker:I also angled it towards financial planners
Speaker:because they were as misinformed as my clients
Speaker:were. And, uh, it's been an eye opener for them
Speaker:as, as much as it's been for my clients. And I
Speaker:just think it comes from a lot of misinformation.
Speaker:And also I think, you know, any new product that
Speaker:comes into the, you know, into the sphere of
Speaker:financing oftentimes goes through a couple of
Speaker:iterations before it gets perfected. And this
Speaker:product is no different. I would say that in 2014
Speaker:there were major revisions made to the product
Speaker:that made it a much more consumer friendly and I
Speaker:think a lot safer as a product. Um, and when I say
Speaker:safer, it's not so much safer to use, but safe
Speaker:from people in my industry who misuse it with
Speaker:clients. And, uh, I think some of those things
Speaker:have made it a better product. But overall, I
Speaker:really wrote the book just really to give people a
Speaker:good background so they could understand, hey,
Speaker:this is what a reverse mortgage is. Here's how it
Speaker:can apply in your financial plan. Use it, don't
Speaker:use it, doesn't matter. Just wanted you to know
Speaker:it's out there. And I think, and I know that, uh,
Speaker:your, your podcast hits that sandwich generation
Speaker:and that's where a lot of my leads come from
Speaker:because they're trying to figure out how to help
Speaker:their parents and they're like, really?
Speaker:>> Anthony Weaver: I didn't think about that.
Speaker:>> Ken Pitts: What can my parent, you know, my, my parents are
Speaker:running short during retirement and, but they have
Speaker:a house. How can we make that work for them? And I
Speaker:think that's probably one of the more refreshing
Speaker:things that I've seen out of this is that a lot
Speaker:of, a lot of the referrals I get are actually
Speaker:people even younger. I'm 62, they're younger than
Speaker:me. But they're trying to figure out a way to help
Speaker:their parents who maybe are, you know, they're
Speaker:just finding they're not making ends meet with
Speaker:inflation and, and costs of, of goods going up.
Speaker:>> Anthony Weaver: Well, I mean, just keep going. I mean, you already
Speaker:burned it out. Like, how could, how could some
Speaker:people like, like me, who's preparing for my mom
Speaker:to get ready for retirement, help them with this
Speaker:process or at least educate them a little bit
Speaker:more.
Speaker:>> Ken Pitts: Okay, so let, let's talk a little bit about, just
Speaker:in general, how does, how does a reverse mortgage
Speaker:work? Okay, so we're all used to, I need to buy a
Speaker:house. I need to get some type of financing to buy
Speaker:that house. We call that a mortgage finance loan.
Speaker:It's going to be a loan that's secured by a home.
Speaker:And so you'll use that. Maybe you're buying a
Speaker:$500,000 house and you can put 50,000 down, but
Speaker:you need to finance 450 to make the purchase
Speaker:happen. That's called a forward mortgage. And when
Speaker:you do a forward mortgage, you're expected to make
Speaker:a monthly payment. And that monthly payment is
Speaker:going to pay interest and pay Principal towards
Speaker:the loan. Depending on most first time buyers, for
Speaker:example, get 30 year terms because they're
Speaker:affordable. So they'll spread the payments out
Speaker:over 30 years. They are front end loaded with
Speaker:interest. So for the first 15 years you're mostly
Speaker:paying interest and then after that you're mostly
Speaker:paying principal. So a reverse is the complete
Speaker:opposite of that. It's a mortgage, it's secured by
Speaker:a house, but what it's enabling you to do is, is
Speaker:go and grab all that equity that you build up over
Speaker:time and bring it back out. And you can bring it
Speaker:back out in a number of different ways, but it
Speaker:still functions like a mortgage. There's interest
Speaker:that's on the loan. The difference is in the
Speaker:reverse. Instead of making a payment like you do
Speaker:on a forward, that interest gets deferred and gets
Speaker:added to the loan. Um, that loan balance is going
Speaker:to go up over time, but you have no monthly
Speaker:payment for it. But you have access to the money.
Speaker:And that's the beauty of utilizing your house
Speaker:after retirement. You're able to actually tap into
Speaker:the long term equity that you built out in that
Speaker:house and be able to get access to it. And there's
Speaker:real formulas that really govern this loan. And
Speaker:what I mean by that is if you were going to go buy
Speaker:a house, we have to make sure you can afford the
Speaker:monthly payment. And so you have to make payments.
Speaker:You know, can you make the payments of principal
Speaker:and interest, can you make your car note, your
Speaker:student loan, whatever else is out there. In a
Speaker:reverse mortgage you don't really qualify that
Speaker:way. We just need to make sure that you can carry
Speaker:the expenses of the house. That's it. It's called
Speaker:a residual income calculation. And so when we're
Speaker:doing that, it's one of those calculations that is
Speaker:really easy to qualify for. So the reverse is a
Speaker:very easy to qualify for when, which is again
Speaker:opposite of the forward mortgage, which is a lot
Speaker:harder to qualify for. But it was started by the
Speaker:federal government. There were actuarialists and
Speaker:gerontologists who knew people are living longer,
Speaker:they're going to outlive their money. We got to
Speaker:figure out a way to give them some alternative
Speaker:source of income besides Social Security and a
Speaker:pension. And that's what really how it all
Speaker:developed.
Speaker:>> Anthony Weaver: So what that, what does it separate between the
Speaker:reverse mortgage versus a HELOC then?
Speaker:>> Ken Pitts: So a uh, home equity line of credit, if you use
Speaker:it, you will pay interest on it. You're going to
Speaker:have to come out of pocket and make a monthly
Speaker:payment on the reverse mortgage, you never make a
Speaker:payment when you pass away. There's three trigger
Speaker:points on a reverse mortgage. If you die, your
Speaker:house sells, it pays off the loan. No different
Speaker:than a regular mortgage. Exactly the same. If you
Speaker:go into long term care for more than 12 months,
Speaker:you need to sell the house and pay off the loan.
Speaker:Because what we know from actuarials are if you go
Speaker:into a home for 12 months or more, you're not
Speaker:coming back out. Okay. And then the third piece is
Speaker:you got to keep up on your taxes and insurance.
Speaker:Because if you don't keep up your taxes and
Speaker:insurance, and this would be no different than a
Speaker:regular 400 mortgage you're going to get, you're
Speaker:going to have an issue where you could be
Speaker:foreclosed on for taxes. And if that's the case,
Speaker:you've breached, you know, your agreement with the
Speaker:lender because you're not taking care of the taxes
Speaker:and insurance. So those are the three what we call
Speaker:trigger points where you're going to, where you
Speaker:got to do something to pay off the loan. Outside
Speaker:of that, you make no monthly payment. Interest
Speaker:defers over time. And from an actuarial
Speaker:standpoint, they really designed the product so
Speaker:that there's some equity left over at the end and
Speaker:that equity goes to the estate. And that's, you
Speaker:know, your kids, if your kids are named in the
Speaker:estate or um, you know, whatever. But if you have
Speaker:a, you have a couple that are, you know, a husband
Speaker:and wife that own the house and they're both on
Speaker:the loan, if one of them dies, the other one just
Speaker:stays in the house, it just keeps on rolling. So
Speaker:there's. So it's opposite of what we know about a
Speaker:forward mortgage.
Speaker:>> Anthony Weaver: Yeah. And it gets me thinking more questions of.
Speaker:Well, you say there's no payments, but the
Speaker:interest get accrued on the back end. So. But we
Speaker:can make payments if, like as if we wanted to, to
Speaker:go ahead on and pay off whatever we borrowed
Speaker:against the home, if that makes sense.
Speaker:>> Ken Pitts: You're always open to make payments on.
Speaker:>> Anthony Weaver: The loan, but they're going to take some money.
Speaker:>> Ken Pitts: But uh, but the real, the real application is
Speaker:where most people need it. They need it because
Speaker:they're falling a little bit short. Monthly. It's
Speaker:the same they get, they have more month than money
Speaker:and they're using that to tap, they're using their
Speaker:house to tap into the equity to make up that
Speaker:difference. When you're using it in that way,
Speaker:generally speaking, you're probably not going to
Speaker:pay it down, but you can you can. I mean, you
Speaker:know, some people maybe have a spouse, she passes
Speaker:away, leaves you life insurance. You could use
Speaker:that life insurance to pay down the loan and open
Speaker:up that line again, keep using it, you know, so it
Speaker:does give you some flexibility in that regard.
Speaker:>> Anthony Weaver: So what does that allow the, um, the borrower. So
Speaker:say if they want to consolidate it debt, they can
Speaker:go down and use this particular reverse mortgage.
Speaker:But how do you kick it off then? So say if
Speaker:somebody just say, like, hey, my strategy, my
Speaker:financial strategy. This is me. I don't have any
Speaker:of their assets, I don't have any other
Speaker:investments. I really don't want to tap into my
Speaker:401k. But I do have a property have, uh, like
Speaker:least more than 80.
Speaker:Do you need to have at least a certain percentage
Speaker:before you can start this reverse mortgage thing?
Speaker:>> Ken Pitts: M. So typically a reverse. So you have to be age.
Speaker:If you're using the FHA version, for example, you
Speaker:have to be 62 years or older to begin to use it.
Speaker:Generally speaking, it's three factors that go
Speaker:into it, what your age is. So we look at your
Speaker:birth date, we look at the value of the home, and
Speaker:we look to see if you owe anything currently on
Speaker:the house. Those three things will determine
Speaker:whether this product's going to work for you or
Speaker:not. And I. And it probably will make cognitive
Speaker:sense as soon as I tell you the younger you are,
Speaker:the less you can borrow. The older you are, the
Speaker:more you could borrow. Because think about it,
Speaker:this loan's growing over time. So the longer the
Speaker:loan's going to be out there, the more it's going
Speaker:to grow as you're using it and you're accruing
Speaker:interest. So when typically, if you're trying to
Speaker:take it out at age 62, 65, 68, you might get about
Speaker:40% of the value of the house as a reverse
Speaker:mortgage. But as you get into your 70s, and I've
Speaker:done some for folks in their 80s and they're
Speaker:getting more like 40, 45, 48% of the value of the
Speaker:house based on today's interest. So if interest
Speaker:rates drop, they give you more access to more
Speaker:money because the loan's growing slower. So
Speaker:there's. Those are two really important factors
Speaker:outside of, okay, what's the house value, uh, when
Speaker:we look into it. So it's looked at completely
Speaker:different than a forward mortgage. Again, it's the
Speaker:reverse. Everything's based on an actuarial of how
Speaker:old you are, what the interest rates are, and what
Speaker:the value of the house is.
Speaker:>> Anthony Weaver: Okay, does it matter what type of house? Because
Speaker:I'm thinking of like, people who have condos,
Speaker:double wides, um, or if they just have like, say
Speaker:if they left you land and it's just kind of
Speaker:hanging out, there ain't nothing going on with it,
Speaker:but it's paid off. And like, does it matter what
Speaker:type of asset?
Speaker:>> Ken Pitts: Good question. It has to be your primary
Speaker:residence.
Speaker:>> Anthony Weaver: Okay.
Speaker:>> Ken Pitts: It can be a condo. It can even be a, uh, double
Speaker:wide manufacturer, provided you own the land. And
Speaker:single families. I've seen duplexes allowed,
Speaker:triplexes, as long as you're living in one of the
Speaker:units.
Speaker:>> Anthony Weaver: Oh, really? Okay, now you're peeking my interest.
Speaker:Tell me more. Because with the, uh, with the
Speaker:quadplexes, that would be great.
Speaker:>> Ken Pitts: Yeah. So, so if you, you know, I mean, if you,
Speaker:like I've told my kids, and when you buy your
Speaker:first sale, try and make it a duplex, somebody
Speaker:else will pay your mortgage for you, right? So if
Speaker:you were lucky enough to have done that, you're.
Speaker:And you're living in that house that you're living
Speaker:in, one unit, you rent the other unit that works
Speaker:on a reverse mortgage. You know, as long as the
Speaker:numbers make sense, right? Age, interest rate,
Speaker:value of the house, if there's equity there, you
Speaker:can go get it on a reverse. So. And you can use
Speaker:this thing as a financial tool in so many
Speaker:different ways. Like I'll give you three examples,
Speaker:three basic examples. Let's say you're, you know,
Speaker:68 years old, you still have a balance on your
Speaker:mortgage, so you're making a monthly payment. What
Speaker:if I can eliminate the monthly payment? What if I
Speaker:have enough equity, I can knock that monthly
Speaker:payment out. Well, if my principal and interest
Speaker:payment is twelve hundred a month, and I knock
Speaker:that twelve hundred dollar a month expense, guess
Speaker:what? Now goes longer, my Social Security lasts
Speaker:longer. Maybe my pension or my 401k draw. And
Speaker:maybe I don't have to draw as much on my 401k as a
Speaker:result of it. So, you know, those are really nice.
Speaker:You know, just financial twists you can do just by
Speaker:knocking that payment out. Now, I've had some
Speaker:people who have looked at this as a bridge to hold
Speaker:off Social Security. So they were looking at maybe
Speaker:taking Social Security out at age 62 or 65, but if
Speaker:you can wait till age 70, you can almost double
Speaker:what Social Security will give you. So they had
Speaker:all this equity in their house. And what we
Speaker:discussed was, hey, what if you take what you
Speaker:would have gotten at age 62 on Social Security,
Speaker:what If you take that out of the house via reverse
Speaker:mortgage for the next eight years, you don't have
Speaker:a payment on it, but it gets you to age 70. And
Speaker:now you've doubled your. If it's age 62, you
Speaker:almost triple what your Social Security benefit
Speaker:would be. So from age 70 on, they have
Speaker:significantly more Social Security income. I mean,
Speaker:that's, that's called a delay bridge. It's, you're
Speaker:buying time by utilizing the equity in the house
Speaker:within the reverse mortgage to get you there. So
Speaker:that's, you know, that's another, uh, possible way
Speaker:to do it. And the third is a way that a lot of
Speaker:financial planners recommend. They recommend folks
Speaker:have a home equity line of credit on their house
Speaker:for emergency expenses. And I agree with that. I
Speaker:think that's a good philosophy, because you don't
Speaker:want to be smashing into your 401k because you got
Speaker:to get a new car or you have, you know, a medical
Speaker:expense that wasn't expected, and you're hitting
Speaker:your 401k at the absolute worst possible time. You
Speaker:know, markets are down or something like that.
Speaker:You're losing, you know, on both ends, where if
Speaker:you could just tap into your reverse mortgage,
Speaker:pull that money out as you need it now you have
Speaker:options. Maybe you pay that money back when the
Speaker:market rebounds. Maybe you don't pay it back at
Speaker:all. You just let it run and you let the market
Speaker:continue to run. So you have, you have different
Speaker:options available to you with the flexibility of
Speaker:this program. And Those are just three examples.
Speaker:And I could, I could give you 30 clients, mixing
Speaker:and matching them, you know.
Speaker:>> Anthony Weaver: Right.
Speaker:>> Ken Pitts: There's, um, all different ways to do.
Speaker:>> Anthony Weaver: It, but this is really good information for people
Speaker:to let at least know, like reminding everybody
Speaker:like, hey, these are educational purposes only.
Speaker:Because this is just to let you know, this is
Speaker:another tool that you can actually utilize in your
Speaker:toolbox, in your financial toolbox. Because I just
Speaker:don't want you to think of budgeting as your only
Speaker:tool. Like, everything looks like a budget at that
Speaker:point. Like, sometimes life happens and you just
Speaker:don't have your money by the time you're getting
Speaker:close to retirement. Life happens.
Speaker:>> Ken Pitts: And. Yeah, good point. And life does happen. And
Speaker:the best laid plans sometimes get waylaid. Um, and
Speaker:I think that's really important.
Speaker:You know, just real briefly on that whole line of
Speaker:credit versus reverse, reverse line of credit.
Speaker:What a lot of people don't realize, even some of
Speaker:the financial planners I interviewed for my book,
Speaker:you get out of line. If you get out of line, a
Speaker:credit and say you take it out at age 65 and it's
Speaker:going to be your emergency account. You know, the
Speaker:bank doesn't have to keep that open. They can call
Speaker:that line at any time. They can't call a reverse
Speaker:mortgage in once it's open. It's open last year,
Speaker:you know, and, and that's a really. And you don't
Speaker:have to re qualify for it where a line of credit
Speaker:you could be called in to requalify for that loan
Speaker:after five or ten years. Reverse mortgages for
Speaker:life. That's a, that's an important point.
Speaker:>> Anthony Weaver: Now is there just a wonder to understand because a
Speaker:heloc, you only got to pay interest on it as you
Speaker:use it is a reverse mortgage the same way as,
Speaker:whereas like hey, if you have it there, you don't
Speaker:touch it, but it's just there. Do you still have
Speaker:to.
Speaker:>> Ken Pitts: Even better than it. Even better really. Because
Speaker:if you don't touch, whatever portion, whatever
Speaker:portion of the line of credit you don't touch
Speaker:grows and gives you access to more equity over
Speaker:time. Home equity line of credit doesn't do that.
Speaker:Whatever you borrowed, you borrowed. That's it.
Speaker:The reverse is designed to give you access to more
Speaker:equity. Because what we know about real estate is
Speaker:we've had some down years, but over time it moves
Speaker:with inflation. You're going to, you know, in the
Speaker:area where I live, nothing special about where I
Speaker:live, we average 6% a year in this area, you know,
Speaker:so the line of credit is going to, is going to
Speaker:expand out and give you access to more money over
Speaker:time if you're not using it. So like for some
Speaker:people, I put these lines of credit in place and
Speaker:they're like, well, I don't really need it now,
Speaker:but I think I may need it four or five years from
Speaker:now. I'm like, then let it grow. You know, if you
Speaker:take it now, you can let it grow. There's no
Speaker:guarantee of if we do this loan five years from
Speaker:now, how much you're going to get out of the house
Speaker:right now we know and we know what it could grow
Speaker:to. And usually that's, you know, when you start
Speaker:running the math on it. And there's economists
Speaker:like Wade Pfau. Wade Pfau is a very well known
Speaker:retirement economist. He has been a big proponent
Speaker:of this program for years. He, he will write out
Speaker:and tell you if you're in your 60s, you need to
Speaker:get one and just let it sit because you can tap it
Speaker:later and you won't have a payment. You Know.
Speaker:>> Anthony Weaver: Gotcha.
Speaker:For the sake of time, man, like, I have so many
Speaker:questions, but we only got short period of time.
Speaker:But I want to talk about the futures here. Like we
Speaker:talked a little bit about yourself. You've been
Speaker:doing this for so long. You have a love and a
Speaker:passion for it. But why you, why do you keep
Speaker:going? Why is this so important to you.
Speaker:>> Ken Pitts: Particularly this loan for? Look, I'm 62. It's
Speaker:coming on my horizon. Um, which was part of the
Speaker:reason there was both a selfish interest and an
Speaker:interest for my clients to understand this
Speaker:product. You know, when every time that I do one
Speaker:of these products, I can see just the release of
Speaker:stress on my clients. Okay, I have a solution.
Speaker:Okay, this will work. And I have them using it
Speaker:across the gamut of, uh, different options. But
Speaker:when I can see that click, that motivates me to go
Speaker:to the next one. Because a, uh, it's more, it's a,
Speaker:it's a different experience. Uh, the one thing
Speaker:that I find unique is you can't really broad brush
Speaker:everybody's financials. Everybody's a little
Speaker:different. Different things happen to people and
Speaker:puts them in different situations. I just love
Speaker:being able to go in and just work with the client,
Speaker:try and meet their need and say, okay, here's,
Speaker:here's how this will solve this problem and we go
Speaker:forward. It's, you know, as I said, it's. Luckily
Speaker:it's not a one size fits all kind of problem. It's
Speaker:got that flexibility where it can solve different
Speaker:problems for different folks. But the way I look
Speaker:at it is, and as long as, you know the solutions
Speaker:there, you can pull the trigger whenever you're on
Speaker:as a client with me, you know, you, you let me
Speaker:know when you're ready, but I'm going to make
Speaker:sure, you know, all these different options that
Speaker:are available to you with it. And I think that's
Speaker:what motivates me because I can see the solving, I
Speaker:can see that, you know, the solution is there. And
Speaker:that's exciting.
Speaker:>> Anthony Weaver: That's amazing.
Speaker:So we're going to go to this third segment here,
Speaker:which is the futures, like what areas of focus of
Speaker:improvement in your own life or even your career
Speaker:that you feel that you're working on now.
Speaker:>> Ken Pitts: I think I'm, I think I'm always chasing
Speaker:efficiency, you know, making, making sure. I mean,
Speaker:for me personally, always trying to make sure that
Speaker:I'm, I'm doing first things first. You know, as,
Speaker:as, uh, I'm from the Philly area. Jalen Hurts
Speaker:always says it best Keeping the main thing, the
Speaker:main thing. Not getting distracted by things out
Speaker:in the periphery. Keep the main thing, the main
Speaker:thing. And I think that's probably the, that's
Speaker:probably the, the thing that I always come back
Speaker:around. It's a good struggle because as you, as
Speaker:you can perfect that over time you become, I, I
Speaker:just think more efficient but clear thinking when
Speaker:you can, when you can really focus and keep the
Speaker:main thing, the main thing that keeps you, it
Speaker:keeps you very clear minded, I think. And that's,
Speaker:that's been something I've worked on my entire
Speaker:career, not always successful.
Speaker:>> Anthony Weaver: That's a good thing to think about it. I, uh,
Speaker:totally understand.
Speaker:Is there anything you want to leave the audience,
Speaker:the person that's listening right now before we go
Speaker:dive into the final four?
Speaker:>> Ken Pitts: You know, when I was writing the book and it's
Speaker:actually in the book, uh, I try and tell people
Speaker:this all the time. The Internet is a great place
Speaker:to form questions. It's a great place to get
Speaker:information, to ask good questions. It's not
Speaker:always the best place to get answers. And you
Speaker:know, you have to have some, you have to have some
Speaker:trusted professionals in your life that you can go
Speaker:to, but go to them with questions. I, I'm fine
Speaker:with somebody research and reverse mortgages on
Speaker:the Internet and finding out every possible horror
Speaker:story because I, uh, generally can probably
Speaker:explain why those things happened and how the
Speaker:product maybe wasn't applied correctly and this is
Speaker:why it happened or folks weren't, you know, really
Speaker:counseled well in how to use it. So yeah, the
Speaker:Internet, great place to form questions, not
Speaker:always the best place to get answers.
Speaker:>> Anthony Weaver: Awesome.
Speaker:Are you ready for the final four questions?
Speaker:>> Ken Pitts: All, uh, right, here we go.
Speaker:>> Anthony Weaver: Uh, alrighty. Number one, what does wealth mean to
Speaker:you?
Speaker:>> Ken Pitts: I think for me, wealth is security.
Speaker:>> Anthony Weaver: Number two, what was your worst money mistake?
Speaker:>> Ken Pitts: Got into developing real estate and wanted to get
Speaker:out in 2006. Stayed until 2008, took a pretty good
Speaker:beating.
Speaker:>> Anthony Weaver: Right? That's a whole nother episode.
Speaker:>> Ken Pitts: Oh, it is, It's a funny one.
Speaker:>> Anthony Weaver: Number three, is there a book that inspires you,
Speaker:uh, on your journey or change your perspective?
Speaker:>> Ken Pitts: Yeah, I mean, I could tell you that. You know, for
Speaker:me, um, there was a, there's a, uh, a book called
Speaker:Rediscovering Jesus. And I found that one of the,
Speaker:one of the premier books for getting me back into
Speaker:studying the Bible and really looking at it as a
Speaker:way to lead your life. And I found that book was
Speaker:just awesome. If you get a chance to read it, it's
Speaker:fantastic.
Speaker:>> Anthony Weaver: Number four, what is your favorite dish to.
Speaker:>> Ken Pitts: Now, listen, I cook, so.
Speaker:>> Anthony Weaver: Really?
Speaker:>> Ken Pitts: Okay, you know. Yeah, no, you don't have to
Speaker:categorize that question. I'll tell you what. I'll
Speaker:tell you what I got. I'll tell you what.
Speaker:>> Anthony Weaver: I got a Ramsay cooking. You cook it. Okay.
Speaker:>> Ken Pitts: Let me tell you. I'm all I can. I love all kinds
Speaker:of stuff, but I did get into making my own
Speaker:sourdough. And so I make. I make different types
Speaker:of sourdough bread on a regular basis. I make a
Speaker:couple loaves a week. Soft pretzels, bagels, pizza
Speaker:dough, you know, outside of. Outside of bread
Speaker:making, I love it. My nephew got me into it. He's
Speaker:another cook. Nice. Yeah. Between the two of us,
Speaker:we share recipes back and forth and things like
Speaker:that, but there's nothing better than breaking
Speaker:bread with people. And if you make a good
Speaker:sourdough bread, people love it.
Speaker:>> Anthony Weaver: And that's a whole, like, literally breaking bread
Speaker:with people. That's great.
Speaker:So this is the last question of the show, which is
Speaker:where could people find out more about you?
Speaker:>> Ken Pitts: So if you go to my book website, which is
Speaker:Kineticwealthbook, uh, dot com, so you can kind of
Speaker:see it behind me there, kineticwealthbook.com,
Speaker:you'll get all my contact information there. Even
Speaker:though I'm a licensed loan officer in four states.
Speaker:Pennsylvania, New Jersey, Delaware, and Florida.
Speaker:If you're not in those states, call me. Anyway, I
Speaker:would love to answer any questions you might have
Speaker:about reverse mortgages. You know, I'm a real
Speaker:proponent for the program, and, um, you know,
Speaker:anybody has any questions. Great. You can order my
Speaker:book on that site as well. Um, it's a. It's a good
Speaker:read in that it's only 133 pages, so most folks
Speaker:can read it in a. In a day or two, and it'll get
Speaker:you asking questions and seeing applications.
Speaker:That's what it's designed. Yeah.
Speaker:>> Anthony Weaver: And also you can get the first chapter of your
Speaker:book, too. Like on your website.
Speaker:>> Ken Pitts: Yeah. Get the first chapter free.
Speaker:>> Anthony Weaver: There you go. Um, man. Ken, thank you so much for
Speaker:stopping by to share your knowledge to the person
Speaker:that's listening or decided to listen to this
Speaker:episode. And I commend you for everything that you
Speaker:do. And the person that's listening to this, I
Speaker:want you to realize that you've already taken the
Speaker:first step to understanding. Hey, this is a brand
Speaker:new financial toolbox for your family, either for
Speaker:you for when you get older, or your parents, if
Speaker:they still love. And you're supporting them and
Speaker:you just don't know what else to do. You just
Speaker:can't afford to move them into your place and you
Speaker:can kind of retire in place for just a little bit.
Speaker:This is an option for you. Uh but also these are
Speaker:things that you can also talk with your financial
Speaker:planner and this is a great way and thank you so
Speaker:much Ken. I can talk about this a little longer. I
Speaker:wish we had more time but if you the listener
Speaker:think like we have Kim back on to talk about a
Speaker:part two really taking a deep dive in some of his
Speaker:special stories, some of the horror stories and
Speaker:how to get out of it. Please drop something in the
Speaker:I'll just say drop wallet in the uh, in the in the
Speaker:comments on YouTube and or if you listening to
Speaker:this on Spotify. I wish you all the best. Y' all
Speaker:be safe. We out.
Speaker:>> Ken Pitts: Peace. Thank you Anthony.
