Tag: Retirement

Where Should I Live in Retirement?

Posted on by Patti Goldfarb

Where to live in retirement sounds like a simple question but ask anyone what criteria they would consider if they were going to move to a condo/home in retirement, and you will likely get a blank stare or “we haven’t thought about it yet”. I did a quick internet search on what to consider when choosing a place to retire, and here are the factors that came up.

Family and Friends

Location

Transportation

Accessibility

Evaluating Needs

Floorplan

Medical Care

Senior Living Culture

Social Activities

Cost of Living

Financial Considerations

Safety Features

Community, Dining and Nearby Amenities

Within each of these categories are multiple choices, so this is no small task to figure out. Today I want to explore the one thing that I notice most couples do not consider at all. What happens if/when one of the spouses dies or has a serious health concern? Anyone that’s been there knows your world will change right then and there. When a spouse dies typically 50% or more of the monthly income disappears overnight but most of the household expenses remain.

As a retirement mortgage specialist, I encounter this scenario a few times per month. When it’s a case of one spouse needing medical attention and they want to remain in the home, sometimes there is enough value in the home that can be released to support in-home healthcare, however that’s not always possible. When there is a death, the surviving spouse often wants to remain in their home but cannot afford the monthly costs of being there. More often than not it’s financially best to sell the home and relocating to an area where homes are less expensive to purchase and the carrying costs to live there are lower than the current home.

I have also observed that most individuals and couples are unaware of their monthly expenses. Getting a handle on this before an unexpected illness or death occurs will allow a clearer picture and less anxiety about one’s options when this happens.

Contact me to help you or a friend, family member or client to get the clarity necessary to successfully navigate one of the most impactful decisions about your retirement.

Mark Richards
NMLS # 254317 Fairway Independent Mortgage Corporation
Phone / Text  201-679-2734 Email mrichards@fairwaymc.com
Hackensack, NJ Reverse Mortgage Planner – Mark Stephen Richards (fairwayreverse.com)

What?  I Can Sell My Life Insurance Policy?  Why?

Posted on by Patti Goldfarb

Yes, you can sell your life insurance policy!  2.5 million seniors a year will lapse or surrender their life insurance policies…walking away with little or nothing.  Why?  Because they no longer want the policy, no longer need their policy, and don’t know they can sell their policy for cash.  All types of policies can be sold, including term policies…yes, even term policies.

Selling a policy is done through a life insurance settlement, which simply put, is the sale of a life insurance policy to a third party (usually an investor group.   The benefit is that clients receive a lump sum payment that is 3 – 5 times greater, on average, than the surrender value of the policy. 

So, now, why would anyone sell their policy?   People purchase life insurance for many reasons – to pay off a house, pay estate taxes, give a spouse or loved one an income – if something should happen to them.  And, sometimes, the reason a policy was purchased 5, 10, 20 or even 30 years ago, is no longer a concern.   A client may have retired and their home is now paid off, the kids are now out on their own, a term policy is nearing the end of the term, a business has been sold – making the policy unnecessary.   Premiums can also become too expensive to maintain the policy.  Whatever the reason, the policy is no longer needed or wanted.

But, is it legal?  Yes!  Surprising to most people, it has been legal in the United States since a 1911 U.S. Supreme Court decision called Grisgby v. Russell.  But, not much happened until the 1980’s.  Today, the life insurance settlement market is highly regulated by Departments of Insurance across the country.

Once a client receives their settlement money, they can do anything with it they like:   save for retirement, donate to charity, pay for home care or assisted living, take that dream trip….anything!  90% of surveyed seniors who have let their life insurance policy lapse would have considered selling it had they known a life insurance settlement existed.  We can help.  If you no longer need, no longer want, or can no longer afford your policy,  consider a life insurance settlement.  We can help.