(3 Minute Read)
As a financial advisor, your clients look to you for guidance and reassurance that they’re taking the right steps in their money management. But more so than others, your senior citizen clientele depend on you to help them at their most vulnerable time. They’ve reached a new stage in their lives and may be without a steady paycheck for the first time in decades. If they were unable to save enough they could wind up in a very tough position. Whether they’ve just retired or are still planning to do so, there are plenty of creative solutions for increasing their revenue and helping them out of a dire situation.
Home Equity
Unfortunately, it’s unlikely that you or your clients can bank on finding a hidden safe of money somewhere in the walls. However, their homes still have several avenues to produce extra cash. If they’re planning on staying put for a while, they can certainly move forward with a reverse mortgage. Any senior over the age of 62 qualifies for this opportunity to convert the equity in their house into cash. By looking over their spending habits, you’ll be able to advise them whether they should accept the payment as a lump sum or divide it into monthly or weekly payments. And because they’re non-recourse loans, their heirs wouldn’t be put at risk to suddenly face a loan payment in case of their passing.
Lastly, your clients have the option to sell their home and move somewhere less expensive. While this may seem like an easy solution, especially for someone not utilizing the extra space in their home, it is for intents and purposes the nuclear option. Seniors should consider their current life and ask a few important questions. Is your home conducive to your needs? Is the layout or location something you depend on? How will your needs change in the future? While selling the home may be a chance to cash in, your clients’ wellbeing should always come first.
Start a Business
Senior citizens aren’t just looking to sit at a window and stare at the world. These are engaged, inspired, and active people with a lifetime of experience and hidden talents, not to mention a whole ton of free time on their hands. Your client could use the internet to sell crafts, offer services, or even tutor younger individuals. Not only will it help to bring in extra bucks, but it will help them fend off the feelings of isolation and boredom that 43% of seniors experience.
Declutter
Your elderly clients are still living exciting and healthy lives, but they’ve also lived through quite a bit already. Different jobs, moves, children and grandchildren, they’ve seen it all. And along the way they’ve probably gathered up quite a bit of extra stuff. In fact while hoarding is still underdiagnosed in the U.S. it has been suggested that for many, signs of excessive hoarding don’t show up until later in life. But with the availability of eBay and online sales spaces, they can still profit while clearing their clutter.
Life Settlement
Ultimately, the most effective and least invasive method for increasing your senior citizen clients’ income is to consider converting their life insurance policy into a life settlement. If your client has a life insurance policy they no longer need, they can sell all or a portion of their policy for an amount greater than the cash surrender value. Unlike these other options, life settlements are relatively simple. They’ll see no change in life or daily activity, there won’t be a bunch of forms to fill out, and it’s far less laborious than selling their home or unused items. If you want to learn more about the life settlement process, check out our website today.
If you’d like to learn more of the specifics of providing life settlements, download our handy e-book, Serving Senior Clients: Turning High Life Insurance Premiums into Financial Liquidity.
Case Study:
Virginia has been a widow for the past ten years and living alone has worked well for her until recently as her health has continued to decline. Her family has encouraged her to consider assisted living, but Virginia has decided to stay put. Virginia sold her life insurance policy for $72,000 and used the proceeds to hire in home assistance.
