Two Rules

Laurie Denker MacNaughton © 2026

Over the years I have come to suspect many of life’s unforced errors could have been avoided by applying two rules. Stating this could presuppose credentials I do not possess, so let me be clear: these are strictly my observations after nearly 20 years as a Reverse Mortgage originator.

Rule 1: Don’t be dumb

Here I’m not talking about people who are inherently low functioning. God knows, this can come with its own brand of suffering, including an increased likelihood of falling into the hands of predators.

No, the kind of dumb I’m talking about is the kind of dumb otherwise smart people fall prey to.

Today a colleague told me about a call he’d taken from a fellow loan officer. The LO said, “The homeowner is 2 years behind on his property taxes and has a credit score in the low 400s. But do you think we can avoid escrowing for taxes and insurance on a Reverse Mortgage?”

No—no you cannot. It’s the law. And the LO knows it’s the law. He’s just being dumb.

Another example of dumb is perhaps more pernicious, if only because it’s easier to fall into. This kind of dumb comes from exclusively listening to one source of information.

If you’re only listening to—oh, I don’t know—let’s say Dave Ramsey or Suze Orman, you’re going to only get a highly-curated, highly-generalized perspective on finances. What these multi-millionaire entertainment personalities will not do is give you a multi-faceted perspective on your options.

And ruling out options without understanding those options is just dumb.

Rule 2: Don’t do dumb things

Doing dumb things is part of life. Not a fun part of life, to be sure—but part of life nonetheless.

One dumb thing I see distressingly often is smart people drawing down retirement savings without expert advice, thus potentially incurring needless taxes and penalties.

Recently I met with a couple who had gone into retirement with substantial savings, including a sizable 401-K. The husband fell sick shortly after retirement, and rather than seeking professional advice on a retirement withdrawal strategy, they took money from whichever account was most easily accessible. Their tax burden became enormous, and this significantly reduced the length of time their savings lasted. They hadn’t looked into a Reverse Mortgage sooner because “Dave Ramsey doesn’t ‘believe in them,’” whatever that means.

I’ll bet Dave Ramsey doesn’t believe in losing a home to foreclosure, either.

I could go on, but you get the point.

A reverse mortgage is not a fit for everyone—no one financial product is. But it’s important to know the FHA-insured reverse mortgage is neither exotic, nor mysterious, nor more complex than any other line of credit. It can, however, add significantly to a long-range financial plan.

For more information on how a reverse mortgage might fit your needs—or the needs of one you love—give me a call. I always love hearing from you.