A common decision that faces nearly all seniors at some point is when to begin “downsizing” for retirement. Many older Americans who have lived in the same house for decades eventually conclude they just don’t need as much room in retirement as they needed while raising their families — and in fact the extra space isn’t worth the expense and time required for its maintenance. The fact is that downsizing isn’t a concept limited to the size of your house or the amount of possessions sitting in boxes.
In previous generations, it was common for an American to land a job at a stable company, work for that same employer for decades, then retire one day with the proverbial gold watch and a nice pension to supplement their monthly Social Security checks.
(NAPSI)—Anyone who has ever seen a retirement account take a hit during a recession or stock market correction knows firsthand that it takes a mental and emotional toll. New research, however, has discovered that it also makes you sick.
A recent Harris Poll survey, conducted on behalf of Purchasing Power, found that 87 percent of American adults are at least somewhat stressed about their current finances, with nearly one in four (23 percent) indicating they have either “quite a bit” or “a great deal” of financial stress. In spite of the healthy U.S. economy, 39 percent of full-time employees revealed that their stress level has actually increased in the past 12 months.
The passage late last year of a new law that includes sweeping changes to the tax code — the Tax Cuts and Jobs Act of 2017 — was welcome news to business executives, who saw their corporate tax rates cut significantly, and to many American consumers, most of whom will see more money in their paychecks as they pay lower federal income taxes this year.
After an unusually tranquil and steady climb higher in 2017, U.S. stock markets have reminded us this year of how volatile they can be at times. Dow Jones MarketWatch reported this month that so far in 2018, the S&P 500 stock index has gained or lost more than 1% in a single trading day on 32 days. One day that many retirees in particular can recall was February 5th, when the S&P 500 dropped more than 4% — a one-day negative swing that we had not experienced in nearly seven years.
Her bags are packed, but there's one thing left to do. Ruthie checks her smartphone and confirms that the dog sitter is scheduled to come by today to feed Bella. As she's browsing her dog sitting app, she receives a text message that the Uber her grandson sent for her has arrived. She locks the front door and gets into the car as her driver kindly puts her suitcase into the trunk. Ruthie's adventure has begun. It's time for the trip of her lifetime: a cruise to Alaska with her children and grandchildren.
As life settlement brokers, we know that seniors age 65 and older are leaving huge amounts of money on the table in lapsed and surrendered life insurance policies. That’s why we work so hard with financial advisors to help seniors sell their life insurance policies. A life settlement can provide much needed liquidity for some of life’s most burdensome expenses, like long-term care or medical costs.
The choice about where to live in retirement is one of the most crucial decisions that a senior makes. It’s not just a major financial consideration, it’s also a highly emotional issue as a retiree’s home is often the anchor to their golden years.