Retirement Wisdom Gems

Did you know you can sell all or a portion of a life insurance policy, even term insurance?

(3 minute read)

It’s no secret that retirement is on many people’s minds. Whether it’s a young professional just getting started retirement planning, a couple nearing retirement age making sure they’ve done all they can, or a retiree budgeting carefully to make sure they stay financially afloat, it seems like everyone has their own thoughts on what retirement means.

The same goes for the great thinkers of our times. As life settlement professionals, we have heard many great quotes about finances, planning, and enjoying one’s retirement years. Let’s take a look at three of the best ones, and how they may bear significance in those golden years.

“It is better to live rich than to die rich.” – Samuel Johnson

When we think of people “living rich,” it’s usually in the style of famous Hollywood actors and musicians, spending big and indiscriminately and letting their accountants take care of the money. But it can also be a form of living beyond one’s means, and that usually indicates problems with credit debt. And it’s not just big-ticket items like cars of vacations that can run a credit score into the ground; rather, it’s the slow and steady descent into debt, as the individual tries to make payments in vain.

There are a few telltale signs that a credit card debt is getting too much to handle.

  • Using credit cards to pay off credit cards.
  • Pattern of making minimum payments
  • Borrowers have a high debt-to-income ratio.
  • Credit cards are frequently maxed out.

When things get to this point, it’s a good idea to meet with a credit counselor or debt consolidation. However, an even better idea is to avoid getting there by practicing sound fiscal discipline.

“As your life changes, it takes time to recalibrate, to find your values again. You might also find that retirement is the time when you stretch out and find your potential.” – Sid Miramontes 

So often, we see the wonderful tales of retirees who simply bloom in these golden years. These changes can come in big or small packages, as well. They find new hobbies and rediscover old passions. They take trips they planned for lifetimes, and they start socializing more around the neighborhood or retirement community. It really is truly inspiring and joyful.

However, it’s not always an easy adjustment. For 65 to 70 years, retirees lived in a specific way, with very clear parts of their life to value: Get a good job. Save money. Provide for their family. Plan for retirement. When done correctly, this routine can be very simple and comforting. On the flipside, however, once those first days of retirement come around, the result can be a little discombobulating. Our advice? Don’t get discouraged or upset. When you give it time, those adjustments will feel more normal before you know it.

“Preparation for old age should begin not later than one’s teens. A life which is empty of purpose until 65 will not suddenly become filled on retirement.” Arthur E. Morgan 

Most of us undoubtedly know that planning for retirement while working is all about maximizing 401(k) contributions, as well as steadily increasing wage or salary levels. That’s all fine and good, but recent studies have shown that many Americans may not have the timeline down as well as they think.

According to stats from Morning Consult, less than 40% of adults in their 20s have begun saving. Retirement may seem far off at that age, but financial advisors aren’t messing around when they say, “Start as early as possible.” According to Schwab, the average American should have saved $1.7 million by retirement age. So, what’s the solution for those who missed the starting line by a decade or more? One answer may be life settlements.

Turn Unused Life Insurance Policies into Cash 

Selling all or a part of a life insurance policy provides immediate and life-changing aid to those with retirement woes. After a simple qualification check, policy holders can get up to four to eight times the cash surrender value for their life insurance policy. Even if you have done a great job of saving, you could always use a little more.

Did you know you can sell all or a portion of a life insurance policy, even term insurance? Selling an unwanted life insurance policy is no different than selling your car, home or any other valuable asset that will create immediate cash. Contact us today to learn more.

Leo LaGrotte
Life Settlement Advisors
llagrotte@lsa-llc.com
1-888-849-0887

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