Aging & Financial Fragility: How Seniors Can Use Their Experience to Survive & Thrive Through Giving

By David Kottler

“Good judgement comes from experience…unfortunately experience comes through bad judgement.”

These  words of wisdom came from my father, a depression era baby who was very pragmatic. He constantly tried to guide me to protect myself in what he called a “dog-eat-dog” jungle out there. Certainly, seniors need to be very aware and cautious of “get rich quick” schemes and the proliferation of people and organizations actually preying on seniors.

Seniors face many financial risks. Running out of money is probably every seniorΓÇÖs greatest fear. Another is not being able to enjoy the golden years in a manner that is affordable and enjoyable. Being proactive and doing some careful budgeting and planning in advance is critical. As the old adage goes, ΓÇ£an ounce of prevention is worth a pound of cure.ΓÇ¥

What can you do now?

In the budgeting process, be aware of what your prospective annual costs are and estimate your life expectancy. Match your planning needs to accommodate your unique retirement goals (hobbies, travel, family, fitness, etc.) ItΓÇÖs also important to start building up a financial ΓÇ£war chestΓÇ¥ now to meet your budgeted needs.

Some ideas to expand your financial ΓÇ£war chestΓÇ¥ include:

• Delay Social Security until age 70 to maximize payout (if possible.)

• Delay taking retirement account distribution to 70.5 years.
• Consider moves to lower tax states like Florida.
• Consult with a tax expert to make sure you are getting maximum benefits.
• Plan for a part time job after retirement to augment retirement funds. Almost 22% of Americans 65 and older expected to have a part-time or full-time job by 2026.
• Balance your needs with taxes, death, legacy goals.
• Manage your debt.
• Consider life insurance as an asset class which can diversify your portfolio and provide tax-free growth and protect against market volatility.
• Explore the value of your life insurance policy as it may be a source of hidden cash

Thousands of individuals have life insurance policies they are not aware of and billions of dollars in life insurance benefits stemming from long neglected or unknown life-insurance policies are everywhere. Too few understand they may be able to cash out with a ┬á”life settlement,” or sale of an existing life insurance policy to a third party.┬áUse this┬áLife Value Calculator┬áto estimate how much your life insurance policy will be worth when you sell it.

LetΓÇÖs say you get lucky selling your policy. How best to utilize what may be a windfall profit:

We all know the adage, ΓÇ¥It is better to give than to receive,ΓÇ¥ These simple words have a very profound impact. Why is giving so important and something that should be incorporated into your daily life? The reasons are many, and there are so many books available that measure the actual bodily and mental benefits that giving provides the giver. One study demonstrated that for every $100 worth of charity the donor gave, it resulted in additional income of almost $400 specifically related to that giving. This financial benefit pales in comparison to the mental and spiritual health benefits that researchers have discovered.

 Countless studies have been done by psychologists, social psychologists, and others to buttress this claim. How can we find ways to give creatively with assets that may be going to waste?  Here is a great idea…

If you have a favorite cause or organization you would like to help (and have an existing insurance policy you donΓÇÖt feel you want or need anymore), consider selling that policy and gifting the cash to that cause or organization. Not only does the charity get an immediate benefit of cash, there are no appraisal fees, and there is an immediate tax deduction for the donor. A win/win all the way around!

My dad always instilled in me the win/win philosophy.  It has been very meaningful for me to incorporate that into my daily life and generating “found money” that everyone enjoys, and then giving back some portion or all of it exemplifies this philosophy and also fights the taxman, another cherished goal of my dad’s.

David Kottler is a national speaker,┬áauthor, and entrepreneur who┬ácombines his legal and business┬áexperience to help his Americans fulfill their life mission both philanthropically and financially.┬áAlso known as “The Insurance Dr.” Kottler draws on his 24 years of financial┬áplanning experience to create┬ágame-changing results for his clients┬áthrough his innovative ΓÇ£True┬áValueΓÇ¥TM┬álife insurance review┬áprocess. Over the past few years, he┬áhas generated over $30 million┬ádollars in cash and tax benefits for┬áhis clients.┬áKottler is the author of two books. His┬álatest book, The Best Kept Money┬áSecret in Your Insurance Policy,┬áwas written to empower his clients┬áand other financial professionals to┬áget the most out of their life┬áinsurance policies in their portfolios.┬áDavid explains how to use life┬ásettlements, financed life insurance, and his expert analytical review┬áprocess to find and protect hidden┬ávalue in life insurance policies.┬á ┬á

• Website: ┬áhttps://lifeinsurancedr.com/
• Linked IN: https://www.linkedin.com/in/david-kottler-1665b745/
• YouTube: https://www.youtube.com/channel/UC4GBKlSrIYb2SbKb4eZERXA