Dave Ramsey Tells Wisconsin Couple Their Advisor Sold Them Outdated Tax Strategy

Core Insights - The strategy of borrowing against a home for tax write-offs is outdated and often financially unwise, as the cost of debt typically outweighs the tax savings [1][3][4] Group 1: Financial Advisor's Recommendation - A financial advisor suggested a $260,000 Home Equity Line of Credit (HELOC) against a fully paid-off home for tax deduction purposes, despite the limited value of such deductions post-2017 tax reforms [2][6] - The couple, with a combined income of $225,000 and $1.6 million in retirement accounts, is also managing $150,000 in debt, including a $50,000 student loan [2][5] Group 2: Critique of Financial Strategy - The recommendation to use a HELOC for tax deductions is criticized as a misalignment of financial priorities, where real costs are incurred to save theoretical tax dollars [3][4] - The couple's financial strategy of contributing $50,000 annually to retirement while carrying consumer debt is seen as flawed, as it prioritizes uncertain future returns over eliminating guaranteed costs [5][6]