He Got Scammed Out Of $500K Retirement Savings And Borrowed $250K More. Now At 75 And 72, They’re Working Two Jobs Each. ‘I Worry About Taxes’
- Personal Finance
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- 8 minutes read
A 75-year-old woman from Salt Lake City says she wakes up every day worried after her husband lost more than $500,000 of their retirement savings in an online investment scam and then borrowed another $250,000 trying to fix it.
“I wake up every day worried,” she said. “I worry about taxes.”
A Retirement Nightmare Unfolds
The woman, Mary, called into “The Ramsey Show” to explain how things spiraled out of control. About a year and a half ago, her 72-year-old husband got involved in what he believed was a legitimate investment opportunity pitched by someone he used to work with.
“He gave away all our retirement,” she said. A little over $500,000 was liquidated from their retirement accounts and funneled into what turned out to be a cryptocurrency scam. “We got two jobs each,” she added.
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When problems started, the scammers told him he needed to pay additional fees and taxes to unlock the funds.
“They kept saying, ‘You need to pay these fees and you need to pay this tax,’” Mary said. “He kept borrowing money and giving it to them, thinking it was getting him out of this scam. But in reality, he was just giving them more money.”
The additional $250,000 came from multiple sources. There were personal loans, $88,000 borrowed from their son, money taken from lending companies, and eventually a reverse mortgage on their home to clean up part of the damage.
Mary said they reported everything to federal authorities, but she does not expect to recover the money.
Now, at 75 and 72, the couple is back in work mode.
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Their Social Security brings in a little over $5,000 per month. On top of that, they both work part-time jobs, earning several hundred to about $1,000 more monthly, depending on the season. In winter, they work at a resort for extra income. Mary even held a garage sale the morning of the call.
“I just got $218 this morning,” she said. “All of that goes to paying charge cards, bills.”
Her biggest fear right now is the IRS.
The retirement funds were liquidated in 2024. She said they paid their federal taxes and even received a federal refund, which they used to pay their state taxes. But she is unsure whether more tax trouble could be coming.
“I just keep worrying the other shoe’s going to drop,” she said.
The hosts did not brush off her concern. They told her that if the retirement withdrawal happened in 2024 and the taxes were filed and paid early last year, the largest tax hit may already be behind them. But they stressed that she needs proof.
“I would want to see documentation here on out from him,” co-host Rachel Cruze said, urging her to confirm exactly what was withdrawn, what taxes were paid and whether anything is still outstanding.
They told her to meet with a tax professional immediately to sort through the loans, the reverse mortgage and the full scope of the damage.
“This is way more than we can unravel in these few minutes,” co-host Jade Warshaw said, pressing her to accept outside help.
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They also emphasized strict budgeting. With retirement savings gone and debt piling up, every dollar matters. The hosts encouraged her to track her spending closely and build a clear plan to attack the remaining balances.
At the same time, they offered emotional encouragement.
“You are a gangster,” Warshaw told her. “Your attitude in all this is stellar.” She praised her for going back to work, running garage sales and refusing to give up.
A Warning For Other Retirees
The broader warning to listeners was frank: if an investment sounds too good to be true, it is. The hosts said cryptocurrency scams are everywhere and often target older Americans.
For households earning $100,000 or more and looking to avoid financial disasters like this, professional guidance makes a big difference. Domain Money offers personalized financial planning for people who want to make smarter, more confident decisions about their money. They offer free strategy sessions for those who qualify.
“Please just be boring,” Cruze said, urging people to stick with steady, traditional investing instead of chasing flashy returns.
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