Financial Experts Urge Retirees to Reconsider Selling Assets

Financial experts Laura Redfern and Scott Sturgeon advise retirees aged 57-75 to carefully consider holding onto assets such as stocks, life insurance policies, and homes, rather than selling them, to maximize their long-term value and create a more secure financial future for themselves and their heirs. By doing so, retirees can benefit from tax benefits, charitable purposes, and sentimental value, and avoid potential negative consequences for their loved ones." This description focuses on the primary topic of the article (retirees' asset management), the main entities (Laura Redfern, Scott Sturgeon, and retirees), the context (retirement planning), and the significant actions and implications (holding onto assets for long-term value and avoiding negative consequences). The description also provides objective and relevant details that will help an AI generate an accurate visual representation of the article's content, such as images of retirees, financial charts, and icons representing stocks, life insurance, and homes.

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Financial Experts Urge Retirees to Reconsider Selling Assets

Financial Experts Urge Retirees to Reconsider Selling Assets

Financial experts Laura Redfern and Scott Sturgeon are advising retirees aged 57-75 to think twice before selling off their assets, such as stocks, life insurance policies, and homes. These assets may be worth more in the long run due to tax benefits, charitable purposes, and sentimental value.

Why this matters: This advice has significant implications for retirees' financial security and the well-being of their heirs, as it can affect their ability to access resources and benefits in the future. By considering the long-term value of their assets, retirees can make more informed decisions that benefit not only themselves but also their loved ones.

When it comes to stocks, Redfern suggests that retirees "slow down and consider your other resources first" before deciding to sell. She points out the potential for significant tax-free gains for heirs after death. Sturgeon agrees, noting that assets with large capital gains are ideal for charitable giving, as they can be gifted directly to charities or donor-advised funds, allowing retirees to avoid capital gains tax.

Redfern also cautions against selling life insurance policies, as doing so may prevent heirs from receiving financial assistance and could disqualify them from need-based programs like Medicaid. Instead, she recommends exploring policy features, borrowing from cash value, converting policies, or accessing accelerated death benefits.

When considering selling their homes, retirees are advised to avoid taking out reverse mortgages, which can leave heirs with a large debt. Redfern suggests looking into alternative methods to access cash from homes, such as home equity lines of credit (HELOC) or other lines of credit.

Sturgeon also recommends that retirees gift valuable heirlooms to friends or family rather than selling them, ensuring that traditions and family history are preserved for future generations.

By holding onto these assets, retirees can maximize their value and create a more secure financial future for themselves and their heirs. As Redfern and Sturgeon emphasize, careful consideration and planning are key to making the most of one's assets in retirement.

Key Takeaways

  • Retirees: consider tax benefits, charity, and sentimental value before selling assets.
  • Hold onto stocks for tax-free gains for heirs and charitable giving.
  • Don't sell life insurance policies; explore policy features and alternatives instead.
  • Avoid reverse mortgages; consider HELOC or lines of credit for home cash.
  • Gift valuable heirlooms to preserve family history and traditions.