I Lost All Of My Brother's Money In A Scam

[Music] Brought to you by the Every Dollar app. Start budgeting for free today. >> I'm 68 years old and six months ago I got involved with an online investment group. I eventually borrowed $50,000 from my brother. He invested 110. I retired from my company. I took out all my 401k and pension. And uh last month they ghosted us and froze our accounts and we lost it all. I lost 487,000. My brother lost the 50 I borrowed and the 110 he invested and my brother would like his money. >> Oh boy. >> And and I have a house that's paid off. I live in Texas, so I have a homestead on it. Um I have a $30,000 loan from American Express. So I'm wondering, do I file bankruptcy? Do I tried to get a reverse mortgage, but my house is my husband died, so my house is not uh in is in good enough condition. I'm just lost. >> Okay. Oh, absolutely. Not only you lost, I'm guessing you're just emotionally stunned. >> You know, that's that's an unbelievable. Yeah. And I'm so sorry. Is this scam still out there? >> Um I'm It probably is. I filed with, you know, FBI and all the agencies, but they didn't have a whole lot of hope for me. >> Yeah, it's rare that in these situations you get your money back. So, how much debt total do you have right now? Now, you said you have 30K on an American Express card, >> right? That was a loan. The other two are 2,000 um maybe 3,000 total. So, 33,000. >> So, 33,000. And I know you retired recently. Um >> yes. >> What is your what does the future look like as far as work? Because that's we absolutely have to consider that right now. Listen, your personal data is hanging around the internet like that group text that just won't die. And cleaning up your digital footprint is a part-time job just submitting these opt- out requests. And that's why I use Delete Me. And if you don't want your data out on the clearance rack of the internet, you should be using it, too. Take back your privacy today with DeleteMe. Right now, you can get 20% off at joindeleteme.com/ramsey and use code ramsey at checkout. That's joined me.com/ramsey. Code Ramsey at checkout. What does the future look like as far as work? Because that's we absolutely have to consider that right now. >> Oh, I know. I've been applying, but I'm like I said, I'm 68. I've had my job for 36 years. I did sales, so I can do that, but I'm, you know. >> How long have you been out of the workforce? >> Uh, since May, end of May. >> What about your past company? Have we called them up and told them what's going on? Um, my job once you quit you, you're gone. I'm easily replaceable. >> Okay. >> Wow. Well, bankruptcy, you know, it will clear the American Express debt, but I don't think it's worth >> declaring bankruptcy over this. Yeah. >> Cuz you just you lost your retirement money. You're not going to get that back, >> right? >> And the pension as well. So, you took the pension out as a lump sum, used that in the investment course, took cashed out every dime of your retirement, and threw it into this course. >> Correct. All I have is $2,000 a month social security. Now, >> what is your >> $500? $2,000. I make 2,000 a month. >> And then what was the other thing you were about to mention? 500 something. >> I promised my brother $500 a month. >> Well, the promises are over. I mean, you don't have money. >> Sorry. Brother is on his own. We you both got screwed in this and so you just simply don't have the money to pay him back. >> Okay. >> I mean, he got you into this if I heard you correctly. >> No, I got him. And >> Okay, it doesn't matter. >> Due diligence. >> It doesn't matter. That was just me kind of being on team Kathy. So, I I misunderstood. Uh, but no, you can't take care of brother. Brother's got to take care of himself. You both You both made a poor decision and and now we got to figure out >> You were what the bank would call a risky borrower. And so you borrowed this money and he knew full well he might never see it again. >> Well, he had he had faith in me and he's I've never disappointed him before. So >> I Well, I hope you can pay him back one day, but it's not today. You're not going to be making him payments cuz you got to put food on the table. >> Can you live off of 2,000 a month? Um my my bills really are $800 a month um plus food and then my homeowner's insurance and um uh >> so all in what does it take to run your house for a month include food include HOA every single little thing? >> Yeah, pretty much 2,000. >> Okay. >> Okay. So you're just going to hopefully survive and that's where getting a job is going to come into play. Listen, I'm going to tell you, I'm going to jump in real quick on the job thing because I think coming off of something this emotionally difficult, one of the best things you can do is get to work. Now, I understand that you have been applying, but I think uh you're going to have to take some opportunities that you wouldn't normally think about now. I mean, that's maybe Starbucks, >> Walmart, Target. I mean, you're you're functional. You're a former salesperson. We need income and if we can get some benefits out of that. So, I mean, you're you're doing everything you can and your number one goal right now is to tell everybody your story. Now, this is very difficult. I understand what I'm saying. I I completely understand what I'm asking you to do, which is to share your story. It is a thing that is going to be difficult because you're ashamed, and I understand that. But you aren't the only person who has been duped before. And I think a 60-year-old lady who's a good person, uh, who has lived her life well, I this is where we can't do this on our own. >> We cannot, Kathy, do this on our own. I mean, we No advice that George and I will give you um is going to alleviate that fact. This is the time to go, everybody. I know, here's my story. here's what's going on and and this is what I got to do. And I think that there's nothing wrong with that because you need some kind souls to go, I'm going to help Kathy and I'm going to give Kathy a job. Uh that's what has to happen right now. What is your house worth? >> Uh probably 350 for a flipper. It's on paper that they >> What do you mean for a flipper? you know, if somebody came in and wanted to flip it and make some quick money. >> I'm saying if you listed it on the MLS on the market with a real estate agent, what could you get for it? >> Uh, well, I asked and they said 375 to 425. >> Okay. So, your house is worth about $400,000. I would keep it for now. Try to stay afloat. Try to get a job. And there's a worst case scenario here where 5 years from now, if you're out of options, you're unable to work for some reason. You could sell the house, downsize, and invest the difference to try to create a little bit of a nest egg. >> Well, that was why I was going to do the reverse mortgage route. >> No, but that >> I mean, they will just screw you with all the fees. You're going to lose all the equity in your home. >> Um, you know, it's it's a terrible, horrible financial product and they prey on desperate people like our friend Kathy to try to get them into these. Uh Kathy, I'm going to ask a question to George on your behalf very quickly. >> Um George, I agree with what you said about the house, but I'm sitting here going, if I'm in her shoes at 68, I wonder if it's not a is it a feasible idea to not sell the house now and take the entire proceeds and get that back in the the retirement accounts to try to grow over the next five years? I I as you said that, I just What do you What are your thoughts? Yeah, I mean that was my my initial thought was could we just liquidate the house, invest every penny of it and live off of the growth. There is risk there because we don't know what the market's going to be. >> I don't want to live off of it. >> We don't know how long it'll last. So that's why I want to see right now, can we create enough income and then use that play that card later on down the road when necessary instead of just going to that route and then not working at all. That's my fear. So Kathy, I'm so sorry you're going through this. I wish I had a magic wand and can just get these scammers to give you your money back. But the relationship with your brother, it's not going to be the same. The future you had, the retirement you dreamed of, it's not going to be the same. So, you've got to grieve what was and just create a realistic picture of what comes next. >> Create your free every dollar budget today. 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