59 year old Client. Need Help!

Steve20

Expert
I have a husband and wife. Husband has a business, of course his income fluctuates. Good months, bad months, but overall makes a good income. He has no retirement savings. He's on two blood pressure meds, other than that he's healthy. He's also eating better to kick the meds. Wife is overall healthy. Customer wants something with a savings plan attached, something he can start saving for retirement. What would you suggest for client to help him? I thought about WL? They're married, but their kids are grown, so he doesn't need to leave kids anything and they own their house free and clear. He's worried about retirement. I just don't think he can afford a Annuity. Or am I over thinking it? What would you suggest?
 
I'd look at a GUL and leverage the house through a reverse mortgage line of credit when both homeowners are a minimum age of 62.

Is he a business owner - meaning that the business would continue on without him? Or is he self-employed - where if he stops working, so does his income?
 
Whole life of any sizeable amount is probably out of the question. The BP if stabilized is not that big of a deal. Most likely a standard rating. I agree a GUL is a good option to look at. As far as a need, he certainly has one. He has no retirement funds and a wife. He may not be able to really retire as he has nothing set up and is 6-10 years away.

A reverse mortgage turned into an immediate annuity (w cost of living rider) may also be a good choice. These situations are tough. We run into far too many of them.
 
I'd look at a GUL and leverage the house through a reverse mortgage line of credit when both homeowners are a minimum age of 62.

Is he a business owner - meaning that the business would continue on without him? Or is he self-employed - where if he stops working, so does his income?
He's self employed. If he stops working he has no check.
 
I was only curious to see if the business had any value to it where he could count on selling it (or perhaps some of the business assets) in the future.
 
How would a GUL help this person for retirement? GUL is life insurance with little or no cash value? It appears in the post that the guy has no need for life insurance. Why not a SEP, Simple, etc. Annuity would also work. Why not sell biz, if possible? Reverse Mortgage, maybe? GUL, WL are you kidding me?
 
How would a GUL help this person for retirement? GUL is life insurance with little or no cash value? It appears in the post that the guy has no need for life insurance. Why not a SEP, Simple, etc. Annuity would also work. Why not sell biz, if possible? Reverse Mortgage, maybe? GUL, WL are you kidding me?
Why not entertain different options? Are you kidding me? My clients asked for life insurance. If he pass away his wife has no income! Is that not what life insurance is for? Also he's concerned about retirement. We're the licensed professionals? This is what we do, we find the right products to help our clients.
 
How would a GUL help this person for retirement? GUL is life insurance with little or no cash value? It appears in the post that the guy has no need for life insurance. Why not a SEP, Simple, etc. Annuity would also work. Why not sell biz, if possible? Reverse Mortgage, maybe? GUL, WL are you kidding me?

A GUL would help the surviving spouse have more cash because they have no other retirement assets but their paid-off house (per the OP).

Debt is a reason to buy life insurance. Better to get it while they're working and can afford it. GUL is generally going to be the lowest premium to secure a given death benefit. The coverage will be "leased" - meaning you can't skip payments and there will be no cash values.

A reverse mortgage line of credit can continue to grow the unused or unborrowed portion by a stated interest rate year over year. So if they aren't planning on retiring until age 70 or so, that reverse mortgage line of credit will continue to grow until they use a portion of it. Then that portion is CHARGED interest, but the remaining available credit continues to grow - irrespective of the home's value.

The fact is, is that we can leverage FAR LARGER ASSETS for retirement planning. This guy, per the OP has nothing but a paid up house. You're talking about starting him from scratch. I'm talking about leveraging his assets for pennies per dollar per year and protecting/passing these assets on to his spouse. It's far better to leverage larger assets when possible, than to start from scratch with small dollars to earn interest.

$10,000 per year going in to a SEP-IRA is nothing compared to the premiums on life insurance and leveraging retirement income through a reverse mortgage with the same dollars.
 
The guy is 59 years old with no retirement savings and he is going to save enough money in a life insurance product to retire, but he can’t afford to fund an annuity? It makes absolutely no sense. Now to be fair, he could use a GUL for a death benefit for the spouse, but you stated he wants something “HE could start saving for retirement” you did not say he wants to provide a DB for the spouse. You also stated “he doesn’t need to leave the kids anything” Again, life insurance death benefit will only help spouse retirement, not his retirement. I think this guy needs social security planning, possible reverse mortgage planning, possible sale of business, downsizing, possible working longer. It appears to me this guy missed the boat for CV life insurance along time ago... Also, states he makes a good income, but no retirement savings... Keep it simple, maybe Roth IRA, maybe SEP and maybe term or permanent life insurance for the benefit of the spouse.
 
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The guy is 59 years old with no retirement savings and he is going to save enough money in a life insurance product to retire, but he can’t afford to fund an annuity? It makes absolutely no sense. Now to be fair, he could use a GUL for a death benefit for the spouse, but you stated he wants something “HE could start saving for retirement” you did not say he wants to provide a DB for the spouse. You also stated “he doesn’t need to leave the kids anything” Again, life insurance death benefit will only help spouse retirement, not his retirement. I think this guy needs social security planning, possible reverse mortgage planning, possible sale of business, downsizing, possible working longer. It appears to me this guy missed the boat for CV life insurance along time ago... Also, states he makes a good income, but no retirement savings... Keep it simple, maybe Roth IRA, maybe SEP and maybe permanent life insurance for the benefit of the spouse.
Your opinion about clients are so judgemental. Alot of people are in the same boat as this person. I run across this all the time. I got in business to help people, not to judge them on their life mishaps, or just not knowing how to financial plan for retirement. I appreciate all the real input from others. Thanks!
 
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