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Last Updated on March 29, 2023 by Mark Ferguson

I have been an agent and investor for almost 20 years and I have seen many market cycles. A lot of people think we are due for another housing market crash because housing prices have skyrocketed, people cannot afford homes, and there could be economic problems. Besides these factors, there are many things that drive the housing market. What really drives market prices is supply and demand, which is impacted by these factors and many more. The last crash that occurred in the United States from 2006 to 2012 was the worst in the history of the country, it was worse for housing than the great depression. It took extraordinary circumstances to create that crash and it will not easily happen again. Could it happen? yes Will it happen? Maybe. When will it happen? No one really knows. Even with Covid-19 causing chaos, there is no guarantee a crash will happen.

What caused the last housing crash?

I started my real estate career in 2002 before the last housing crash. I could see something was off in the real estate market but I was young and did not know what all the signs were indicating. It was not uncommon to see:

  • Loans that were 120 percent of a house’s value
  • Investors buying multiple properties with nothing down
  • People with no income buying houses with a no money down loan
  • People simply stated what their income was to get a loan with no proof
  • 6-month ARMs with the payments doubling soon after buying the house

Something seemed off to me but everyone seemed to be happy! Then the bottom dropped out of the market. The banks realized that many people could not pay back their loans and there were too many houses being built for the people who could actually buy a house.

Crazy lending guidelines caused overbuilding and when the party stopped, there was a crash. Prices dropped and more foreclosures occurred because many people had no equity. Banks panicked and tried to sell all their distressed properties at once.

It was the perfect storm and the worst crash in the history of the United States housing market. The big question is can that happen again? I personally do not think so and I will tell you why below.

Are there really too few houses?

Supply is affected by foreclosures, homeowners’ willingness to move, new construction, and many other factors. Demand is driven by the economy, lending guidelines, potential homeowners’ confidence, wages, and much more. I believe the supply and demand affecting today’s housing market is much different than what drove the last housing boom. While prices could level out or decrease in some areas, I do not think we are in for a nationwide crash.

In order to have a crash, we need an oversupply of homes or the demand for homes to disappear. I do not see either scenario happening, even if the economy loses steam or crashes. Some of the stats I show in this article will show you how different the supply side is right now than it was prior to the crash.

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How many housing crashes have there been?

Many people believe that because of the huge increases in prices, a crash is imminent.

“Just look at what happened in the mid to late 2000s. Prices are so crazy now that a crash has to come soon!”

The first thing you have to realize is that the last crash was the worst crash we have ever had. It was worse than the great depression. Those crashes do not happen over and over again. An increase in prices does not mean a crash is coming. Prices can increase or decrease, but that is what happens in a healthy market. A crash is much different from a down market. Other countries have seen increasing prices for decades without a crash. Just because prices go up does not mean they go down. In fact, due to inflation prices will continuously increase over time and they have increased over time.

There are also a lot of people trying to sell books, products, and coaching based on the impending doom that is coming. Be careful buying into what people say based on their motives. Look at the data!

The chart below shows the median sales price in the United States since 1959. As you can see, prices can fluctuate but in the long run, they have always gone up.

Won’t a recession cause a housing crash?

The last crash was the biggest in recent memory and if you look at the data further back it is the same with small adjustments. A lot of people will also tell you we have a housing crash or recession every 10 years. If you average them out we have recessions every 18 years, but not always true for the housing market. The dot com recession did not affect housing much at all. Sometimes we have a recession 5 years after the last one and sometimes we have it 25 years after the last one. Even if we did have a recession every 18 years we have a long time to wait since the last recession was ten years ago.

The chart below shows unemployment in the US, which is a great indicator of recessions. https://fred.stlouisfed.org/series/UNRATE

You can see from the chart that recessions are not every 18 years, but all over the place.

There are also a lot of people who have been predicting a crash for many years. There are people on YouTube promoting their gold and silver businesses by talking about how real estate will crash. One of the big marketing messages they use is that they predicted the last crash! Well, if you look at their predictions they have been predicting a real estate crash every year for the last three decades. They were bound to get it right one of those years! I was an REO (foreclosure) broker during and after the last crash and there were many people talking about how there was going to be a double-dip recession in 2012. We were going to have a tsunami of foreclosures and it would be much worse than the crash we just went through. Well, it never happened, in fact, the opposite happened.

No one knows for sure what will happen to the housing market. It could go up, it could go down, it could crash. But just because it crashed before when prices were high, does not mean it will crash again.

The video below goes over the possibility of a housing crash as well:

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Will Covid-19 cause a housing market crash?

Many people are now saying that coronavirus and its impacts will cause a housing market crash. The interesting thing is that since the coronavirus started, housing prices have increased in many areas! The supply of homes has decreased because many sellers took their homes off the market. This caused prices to increase because the demand for homes has stayed relatively stable. There are the same amount of buyers fighting for fewer homes.

It is true that many people let their mortgages go into forbearance or are behind on rent. The CDC halted most foreclosures for the rest of the year. There has to be a crash right! There will be so many foreclosures being dumped on the market and that will cause prices to drop.

Foreclosures do not cause a housing market crash. Every healthy market has foreclosures. The last crash was caused by millions of foreclosures coupled with too many houses being built. Foreclosures by themselves can cause a downturn but not a crash.

It is also important to remember that Covid-19 will not automatically cause a flood of foreclosures. The government will do everything they can to stop foreclosures and in some states, it takes years to foreclose. Many people also have equity in their homes which means they can sell them instead of letting them default back to the bank.

Home mortgages are harder to get than ever

One of the main reasons people say there will be another crash is that loans are easier to get again!

In 2005, subprime loans were rampant and as a result, the country over-leveraged itself. Subprime loans, the riskiest loan type given to borrowers with low credit scores, totaled more than $620 billion. Now, subprime originations are only 5 percent of the mortgage market and add up to $56 billion. Compare that to 2005 when subprime origination made up 20 percent of the market. This represents a 91 percent decline from the height of bad loans that set up the economic crash.

Source: Inside Mortgage Finance; Equifax

Not only has subprime lending seen a major decline, but mortgages have also become much harder to attain due to stringent lending standards. Loans are still very hard to get compared to before the last crash. This is greatly due to the type of borrowers able to qualify for loans. The current average credit score for borrowers being granted mortgages is 739. In October 2009, the average FICO score was 686, according to Fair Isaac. The lowest one percent of mortgages issued have credit scores averaging 622-624. Compared to the average range in 2001 of 490-510, the standard to get financing has risen substantially, and as a result, the likelihood of default has dropped. Lenders have done this to ensure the economy doesn’t again become propped on bad loans like it was leading up to the Great Recession.

The chart below shows that loans are even harder to get than right after the housing crash. https://www.urban.org/policy-centers/housing-finance-policy-center/projects/housing-credit-availability-index

As you can see, it is not easier to get a loan, in fact, it is harder!

Investors have even stricter lending guidelines and must put 20% down. There are stricter debt-to-income levels for investors and some banks even limit the number of loans investors can have. It is much tougher to get a loan now than almost any other period in the last century.

Is the United States housing market unaffordable?

Another reason people say the market will crash is that housing is not affordable for most people and it has to crash.

It is true that the affordability index continues to be stacked against potential home buyers. As housing and rental prices steadily increase, wages continue to stay relatively stagnant. Historically, the average income-to-housing cost ratio in the U.S. has hovered near 30 percent, but in some metro areas, that number is currently closer to 40 and even 50 percent! This strips away the opportunity to save money as a significant portion of a person’s monthly income is going to keep a roof over their head.

Source: U.S. Census Bureau

However, the United States is still much more affordable than in many other countries. Many of those countries have not seen a huge crash. People tend to find ways to buy homes, even when they are very expensive. Affordability in itself will not cause a crash. Although, it could cause a slowdown.

https://www.domain.com.au/money-markets/as-australias-house-prices-fall-watch-the-bottom-pickers-start-to-emerge-20180426-h0z7g2/

Some of these charts are a few years older, but it’s tough to find updated information. As you can see there are many other markets that have higher prices than the US (even after our last rise) and did not have a housing crash, or they recovered very quickly after a smaller crash. Simply having high prices does not mean a crash is coming.

Why is supply so low?

The biggest factor causing the housing market to increase today is low inventory. The last crash was caused by horrible lending guidelines and overbuilding. We will continue to have low inventory until building picks up, and it simply has not happened. I cannot see another crash occurring until we see more new starts.

The graph below shows new building starts in the United States and as you can see there was a record low building for many years after the crash. We just got back up to the average number of new builds when Covid-19 hit and it dropped again.

There simply are not enough houses for people.

This is why prices continue to increase in the United States. The population is growing and there are not enough houses to meet the demand for everyone who wants to buy a house.

We could absorb a lot of foreclosures and still have a healthy market, a more healthy market than we have now. Having an increase in foreclosures will not crash the market. We would also need an increase in new builds which is not happening at the pace of market demand.

Will migration and population cause a crash?

Another popular theory is that baby boomers will die off and there will be too many houses for those still alive. This idea was pushed back in the early 2000’s by Robert Kiyosaki. While there were a lot of baby boomers born, there are currently more millennials than baby boomers. The millennial generation is actually increasing thanks to immigration. There are fewer people being born now, but those people will not be of house buying age for decades. It is predicted the US population will keep increasing for decades. Other countries have had decreasing populations and have not seen decreasing prices.

This article goes into more detail on baby boomers and a housing crash.

Will interest rates cause a housing crash?

Another prediction is that interest rates could rise and cause a crash. This theory is based on nothing but a guess as rising rates have never caused a crash in the past. Interest rates were 18% in the early 1980s and there was not a crash. While it seems logical that prices decrease when rates increase because houses get less affordable it does not happen. The mortgage rates on a house are typically locked in for many years. If interest rates go up it will cause fewer people to move which will decrease inventory even more! The video below has more details on this.

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Why are others predicting a crash?

A lot of people are predicting a crash, but why? If the data shows that a crash is most likely not going to happen why would they predict one?

Here are some of the people who are predicting a crash:

  • Gold and silver sellers who want people to invest with them and not in real estate
  • Stockbrokers who want people to buy stocks and not real estate
  • Real estate investors who are selling coaching programs about how to survive a crash
  • Anyone who is trying to get their name in the news or create a catchy headline to sell something
  • People who want cheap housing prices so it is easier to invest.

Not everyone who is predicting a crash has an ulterior motive but many do. Some very smart people are predicting a crash who may not know exactly how real estate works either. You have to be very careful who you listen to when it comes to real estate and predictions.

What can we predict?

I buy a lot of house flips and rental properties. One of the most important rules of thumb I work by is to never base my purchases on what housing prices might do. If I am flipping houses or buying rentals, I never assume prices will go up. I base my investment strategies on today’s prices. I also have a plan in place if the market decreases. Yes, we have seen huge price increases, but that does not mean prices will keep going up or that they could not go down. One of the easiest ways to get yourself in trouble is to invest in real estate because you think prices will increase.

I do not try to predict the market and most economists will not predict it either. There are too many variables to know what will happen and predicting when it will happen is even harder. If someone says they know exactly when a crash or downturn will happen, they are probably trying to get attention or sell something!

The market could go up or it could go down. The great thing about real estate is you can make money in every market if you know what you are doing.

Conclusion

The factors that caused the last crash do not exist in today’s market.

  • There is not overbuilding, in fact, there is too little building.
  • There are not loser lending guidelines, in fact, there are more strict lending guidelines.
  • While foreclosures may increase, there are much fewer than before.

Rising prices and unaffordable housing do not cause a crash. They could cause a downturn or cause prices to level out, but a crash is much different than a downturn. If you are waiting for a crash to invest or buy, you may be waiting a very long time!

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Source: investfourmore.com

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Your local public library is much more than a great place for books. It can save you big bucks, help you with a career or education transition, and even hosts many activities for kids, teens, and adults.  Here are the reasons to check out the library near your apartment.

Save money by borrowing books

Books typically run $12-$25 in a retail setting and also cost a few dollars to download. However, borrowing from the library is free (as long as you turn your book in on time and don’t have to pay late fees). The local library makes it easy to find a book from whatever genre you want, and you’ll discover books you weren’t aware of. Be sure to check out their audio and e-book selection. It’s a great way to save money and read your favorite books.

Hot Tip: Many libraries have what’s called a “Friend’s Room,” where gently used books are for sale. These books have been donated by friend of the library and their sale boosts the library’s operating fund. You can find wonderful hardbound books for only a dollar or two, and magazines can even be free.

Save money by borrowing music and movies

The library has CDs in many musical genres. See if your favorite artists are there. You can borrow the CDs without having to purchase them. The same goes for movies. Borrow movies you like, and watch them without ads. You’ll have a week or two to watch and return your favorite films, including old classics which are hard to find on TV.

Save money  on magazines

Did you know that local public libraries often have magazine subscriptions to all sorts of magazines?  From fashion to sports and news to science, you can read your favorite magazines without having to pay the subscription rate to have them delivered to your apartment.

Hot tip: Magazines are typically not allowed to be checked out, but libraries place comfy reading chairs near their “periodical” section, which is where you’ll find the magazines.

Save money with free internet

Most of us do several things online, from downloading music to shopping. But having internet at home is pricey, and restaurants often shut theirs down during mealtimes, to free up tables. If you don’t want to live in a Starbucks, the library is a pleasant, clean and comfortable alternative . . . with free internet. You can either take your own computer and use their wireless code, or use a computer they have at no extra charge.

Work on your education

Libraries have a desire to help those in education. Some sites will offer GED classes and do school supply drives for those in need. Public libraries also often offers tutoring opportunities for those who need help in class. Looking to learn a foreign language? The library has you covered, and typically owns full sets of expensive language DVDs that you can borrow for free. It’s also a quiet place to study, and conference rooms can be booked for free.

Get help with research

The library is a great place to get research information for your class paper.  From science to history to old newspaper articles and historical documents, libraries can give you what you need or point you in the right direction. Larger public libraries will even have a dedicated research librarian on staff, who can find answers to tricky questions, all at no charge to you!

Looking for a job?

Job searching is tough work. It can be hard to know where to start. Many libraries have job and career resources that can help you find that dream job. Not computer savvy? The library offers resources to help you learn computer skills.

Great for kids (and grandkids!)

Your local public library does many things to get the young kids into reading. It is a lot of fun, and the library has classes especially for toddlers. They know kids that age can’t sit still for too long, so they create programs that incorporate movement with reading. For babies, some libraries even have baby yoga classes that incorporate reading and yoga. Many libraries offer online kids’ books and educational options like animated talking picture books, puzzles, music and much more.

Special Events for All Ages

Many libraries have special events for the kids and the adults. Events for kids are often during summer or school breaks. Adults can enjoy guest speakers, book signings and educational or networking opportunities. Check your library’s calendar of events. Often, they will print out a monthly calendar, which you can take home to your apartment.

Hot Tip: Placing this calendar on your refrigerator will remind you of all the free events coming up.

The local public library has so much to offer. All you need to do is be a local resident and get a library card, which is free. There’s something for everyone at the local library. It is so much more than just books it is a great service to the community.

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Regardless of your age or your employment status, life insurance can be an integral part of your overall financial planning. Why? The proceeds that are received from life insurance, which beneficiaries can obtain free of income taxes, can be used for a multitude of purposes:  the payoff of debts, the supplementing of income for ongoing expenses, or for ensuring that other promises are kept, such as paying for the future college education of a child or a grandchild.

When you are in the process of purchasing life insurance, there are several things to keep in mind. These include making sure that you have the proper type and amount of insurance coverage. It is also essential that you review the carrier you are considering purchasing your coverage through, to determine whether it is secure and stable financially. 

The History of Guarantee Trust Life Insurance Company

Guarantee Trust Life has been in the business of offering its products and services to individuals, families, and businesses for more than 80 years. During that time, the company has grown and expanded.

Today, Guarantee Trust Life offers a broad range of products that can help its customers to build and protect wealth. 

For over eight decades, the Holston family has directed the operations of Guarantee Trust Life. The company believes in integrity. Guarantee Trust has a consistent track record of success, and in maintaining the confidence that its employees and policy holders place in it.

Guarantee Trust Life Insurance Review

Guarantee Trust Life posted record operating gains in the year 2016, making the company’s overall financial condition the strongest that it has ever had in its 80+ year history. The company grew surplus by 10% and assets by 11%, while increasing its reserves by 12 percent, and achieving net premium of approximately $219 million.

At the end of 2016, Guarantee Trust Life held more than $500 million in assets, of which $523 million is invested. The company has $445 million in total reserve for insurance policies and contracts.

The company also holds more than $77 million in net surplus – making it a prime candidate for being able to pay out its current and future policy holder claims. Guarantee Trust Life offers its products to 49 of the U.S. states, as well as in the District of Columbia. The primary headquarters of Guarantee Trust is in Glenview, Illinois.

Insurer Ratings and Better Business Bureau Grade

Due to its stable financial footing, Guarantee Trust Life has been rated as a B++ (Very Good) by A.M. Best Company. Also, even though Guarantee Trust is not an accredited company via the Better Business Bureau (BBB), the company has been given a grade of A+ by the BBB. This is on an overall grade scale of A+ to F.

Over the last three years, Guarantee Trust Life has closed out 19 customer complaints – of which three were closed out within the previous 12 months. Of the total 19 customer complaints, 11 had to do with problems with the company’s products/services, four had to do with advertising/sales issues, two were related to billing/collection issues, and another two had to do with delivery problems.

Life Insurance Coverage Offered Through Guarantee Trust

Guarantee Trust Life provides a variety of different life insurance coverage options. Unlike many other insurers that provide essential, individual term and/or permanent coverage, Guarantee Trust offers some other types of niche life insurance coverage alternatives. These include:

  • Critical Provider
  • Juvenile Life
  • MultiLife – Group Term Life Insurance

With the critical provider coverage, policy holders have the option of obtaining a ten or a twenty-year level, renewable term life insurance policy, along with a critical illness accelerated benefit rider. These plans offer death benefit coverage only, with no cash value build up – which can help to ensure that the premium is kept affordable. This is particularly the case when the insured is in good health at the time of policy application. The critical provider plan can be issued to qualifying individuals who are between the ages of 0 and 60.

These policies will pay a benefit upon the death of the insured or will pay out a “living benefit” if the insured is diagnosed with a covered health condition while his or her policy is still in force. If this is the case, the critical provider plan will pay out a lump sum benefit directly to the insured. These funds may be used to cover direct and/or indirect costs that are associated with the insured’s condition, as well as any other needs that the insured sees fit. The money that is received can help to replace lost income, to pay bills that are not covered by one’s health insurance plan, and/or even to take a recuperative vacation.

The critical provider plans also can be converted over to a permanent form of life insurance. This means that there will be both death benefit protection, as well as cash value build up. There will also no longer be a “time limit” on the coverage, provided that the premium continues to be paid.

The cash that is in the cash value component of a permanent life insurance policy can grow tax deferred, meaning that there is no tax due on the gain of these funds unless or until it is withdrawn.

Guarantee Trust Life also offers the Great Start juvenile life insurance plan. While nobody ever wants to think about the passing of a child, the reality is that unanticipated illnesses and injuries can and do occur. If this is the case, having the financial protection that is needed can be helpful, and it can provide one less thing to worry about at an already stressful time in life.

The Great Start life insurance policy offers life insurance that can grow with a child over time. This modified premium whole life insurance policy offers not only death benefit protection but also a cash value that builds up money on a tax deferred basis over time. These funds can be used by the child in the future for things such as the down payment on a home, funding the cost of college education, purchasing a new vehicle, or any other want to need.

Also, because this is a whole life policy, the amount of the premium will be locked in – guaranteed never to increase, even as the child becomes older (and even if he or she were to contract an adverse health issue).

With the Great Start plan, life insurance coverage may be attained for $5,000, $10,000, or even $20,000. There is no medical exam as a part of the approval process, and there is no waiting period before coverage begins. There are only three simple health questions on the application for coverage – and, all children who are under the age of 25 have just one set premium. When the child / insured turns age 31, 34, and 37, they will have the option to increase the amount of their coverage. The Great Start plan can offer an excellent opportunity to lock in a low rate of premium now, and to make sure that a child has the life insurance coverage that he or she needs – no matter what.

There is also a MultiLife group term life insurance plan that is offered via Guarantee Trust Life. This plan covers two people, and it provides death benefit amounts that are as high as $500,000. If both insureds should die within a period of each other, the death benefit can help family members with the financial needs that they may have.

The MultiLife group term is an all-risk coverage, which means that the benefit is paid out by the insurance carrier for any cause of death – including illness or accident – with only just a few exceptions. The interval periods (i.e., the amount of time in which both insureds on the policy must pass away for the death benefit to be paid out) include 30, 180, and 365 days.

There is also a single life benefit of $15,000 that can be added to this plan for helping to cover the cost of a funeral and other final expenses if one of the insureds on the policy dies before the other.

The MultiLife plan can help with providing affordable life insurance coverage that can help with protecting loved ones who may depend on one or both insureds for their financial support.

The Advantages of Guaranteed Issue Products

Typically, when you apply, you’ll have to wait to schedule the medical exam, wait for the paramedic, wait for the results, then wait for them to go through the underwriting. The process can take several weeks. With the guaranteed issue plans, you can get life insurance coverage in a fraction of the time. With some policies, it could be a matter of 24 hours.

Another advantage is that these plans can give life insurance coverage to applicants that wouldn’t be able to be accepted otherwise. A lot of people can’t get coverage before of their health or some pre-existing conditions such as severe diabetes. This is where no exam coverage can be beneficial.

Cost of Guaranteed Trust Life Products

Guaranteed Trust Life is a great company for those that have some sort of high risk addition and can’t get approved for traditional underwriting.  Without having to take a medical exam and essentially getting approved with no medical exam whatsoever, makes the cost of these products that much higher.

It is clear that shopping for life insurance may not be pleasant.  However Guaranteed Trust Life will make it easy for you.  If you are chronically ill you may want to look at a Guaranteed Issue Life Insurance or Guaranteed Acceptance Life Insurance policy.  These plans will help you to manage these expenses without burdening your loved ones.

Other Products and Services Available

In addition to life insurance coverage, Guarantee Trust Life also offers an extensive list of other goods and services from which to choose. These include the following:

  • Hospital Compensation
  • Critical Disease
  • Cancer, Heart Attack, & Stroke
  • Short Term Care
  • Accident Coverage
  • Group Gap
  • Association Gap
  • Group Accident
  • College and University Sports Coverage
  • College and University Accident Coverage
  • K – 12 Student Accident, Sickness, and Athlete
  • Child Care Facility Accident Coverage

How to Get the Best Premium Rates on Life Insurance with Guarantee Trust

If you are in the process of looking for life insurance coverage through Guarantee Trust Life – or from any other insurer – it will be helpful to work in conjunction with an independent insurance agent or broker. That way, you can compare the available policies and premium prices more carefully. Once you have located a price point, you can settle on which one will be perfect for you.

When you’re ready to see which life insurance policies and premium rates are open to you, we want to assist you. We are an independent life insurance brokerage, and we can help you with finding all the essential details that you need for making a wise buying decision. We will do this for you very promptly and smoothly – all directly from your computer. Therefore, if you are able to get started, all you need to do now is just merely click here and fill out the quote.

We know that buying life insurance coverage can be stressful. There are so many different plans and companies to choose from – and of course you want to move in the right direction. This can be done much easier if you have someone like us to help you. So, reach out to us – we’re ready to support you.

Source: goodfinancialcents.com

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Protecting the people and the things that are important to you is an indispensable part of your overall financial planning. One way to lock in financial protection for those who you are about is through life insurance.

The funds from life insurance are received income tax free by beneficiaries, and the funds can be used for mostly any need that the individual(s) sees fit, such as the payoff of massive debts (including a mortgage balance), the payment of everyday living expenses, and/or to ensure that a child or a grandchild will have the money they need for their future college education.

Before committing to purchase life insurance, it is vital to make sure you are going with the right type and amount of protection. It is also essential to review the insurance company that you are planning to purchase the coverage through so that you can ensure that it is secure and steady from a financial standpoint and that it has a good, positive name for paying out its policy holders’ claims. One of the insurance companies that meets these criteria is Esurance – an Allstate company.

The History of Esurance Life Insurance

Esurance was initially founded in 1999 – and it is one of the very first companies to offer insurance policies to consumers via the Internet, rather than requiring in person meetings or phone calls with an insurance agent.

Over time, the company has been acquired more than once – first by Folksamerica Holding Company (a subsidiary of While Mountains Insurance Group) in 2000, and then again in 2011 by Allstate.

Esurance is owned by Allstate Insurance Company – which is the oldest publicly held personal lines insurance carrier in the United States. Allstate has more than 80 years of experience in working with policy holders to protect assets, wealth, and other things of importance. Allstate is a Fortune 100 company, and it holds assets that exceed $130 billion. (Allstate is headquartered in Northbrook, Illinois).

While Esurance is part of a large company, this entity of Allstate can offer more of a small company feel – which includes more personalized customer service. Esurance also offers reliable insurance products that are combined with smart, cutting edge tools that can help its policy holders with managing their insurance whenever, wherever, and how ever they wish. The company’s primary headquarters is in San Francisco, California.

Esurance Life Insurance Review

Today, Esurance has more than 3,000 associates across the United States, with 17 offices around the country. The company offers its products in 43 of the 50 U.S. states – and to date, the company has more than 5.2 million vehicles insured.

The company participates in a vast amount of consumer advertising, as well as in the sponsorship of sporting and other events. For example, its tagline is “Insurance for the Modern World,” with its primary target being families and professionals who are in the 25 to 49 age group. Just some of the sports teams and events where Esurance can be found as a sponsor include the U.S. Open tennis tournament, as well as with the San Francisco Giants, and the Golden State Warriors. In the spring of 2015, Esurance also announced a multi-year sponsorship with Major League Baseball, where Esurance will be the exclusive auto insurance partner for the MLB.

Esurance prides itself on its customer service – which includes the timely payment of its policy holder claims. The company offers 24 / seven claims service from dedicated reps, and in most cases, it takes ten days or less to settle vehicle damage claims.

Over the years, the company has earned numerous awards and accolades, including:

  • PR Daily’s Video Awards in 2015
  • Bay Area’s Healthiest Employers in 2015
  • 2015 InformationWeek Elite 100
  • NJBIZ Best Places to Work in New Jersey (in 2015)
  • J.D. Power award for Highest Customer Satisfaction Among Auto Insurers in California

Insurer Ratings and Better Business Bureau Grade

Due to the company’s financial strength and its ability to pay out claims, Esurance has earned high ratings from the insurer rating agencies. This includes the receipt of an A+ from A.M. Best Company.

Allstate, the parent company of Esurance, is rated as an AA- from Standard & Poor’s (which is the fourth highest rating out of a total of 22 categories), as an A+ by A.M. Best Company (which is the second largest out of 16 total categories) and as an Aa3 from Moody’s Investor Services (which is the fourth highest rating out of a total of 21 possible types).

Also, while Esurance is not an accredited business through the Better Business Bureau (BBB), the BBB has provided Esurance with a grade of A+ – which is on an overall grade scale of A+ to F. In the previous three years, Esurance has wrapped up a total of 362 customer complaints – of which 33 were closed out within the last 12 months.

Of the over-all 362 customer complaints, 197 had to do with problems with the company’s products/services. 69 were related to billing/collection issues, 61 regarding advertising/sales issues, 26 were about delivery issues, and regarded guarantee/warranty issues.

Likewise, Allstate has been given the grade of A- from the Better Business Bureau, and this company has closed out a total of 1,519 customer complaints within the past three years (with 138 being closed out within the previous 12 months).

Of these 1,519 complaints, 900 had to do with problems with the company’s products and/or services, 320 were related to billing and/or collection issues, 144 were related to delivery issues, 137 had to do with advertising and/or sales issues, and 18 were referred to guarantee / warranty issues.

Life Insurance Coverage Offered Through Esurance

While Esurance is primarily known for offering auto and other types of vehicle insurance coverage, including some of the best insurance for young drivers, the company also provides the ability for consumers to purchase life insurance. Esurance offers quotes on term life insurance coverage – which provides death benefit only protection, with no cash value or savings build up. Because term life insurance is the purest, a basic form of life insurance coverage can often be quite affordable – especially if the insured is young and in relatively good health at the time of policy application.

With term insurance, as its name suggests, coverage can be purchased for a set time – or term – which can typically be anywhere between one and 30 years (depending on the plan). In most cases, the amount of the term life insurance coverage – as well as the sum of the premium that is due – will remain level during the allotted time frame.

In some cases, a term life insurance policy that is purchased via Esurance can be converted over to a permanent form of life insurance coverage. This can allow the insured to obtain life insurance for the remainder of his or her lifetime (provided that the premiums are paid). It can also provide the ability to build up cash value in the cash component of the insurance policy.

With permanent life insurance, the cash value can grow and compound over time on a tax deferred basis. This means that there is no tax due on the increase in the contract until the money is withdrawn. Funds that are in a permanent life insurance policy’s cash value can be either borrowed or removed by the policy holder for any purpose, such as supplementing retirement income, paying off debt (typically higher interest debt such as credit card balances), purchasing a new vehicle, paying for a child or grandchild’s college education, or for going on a long-awaited vacation.

While the funds that are borrowed from a permanent life insurance policy do not typically have to be repaid, if they are not, the shortfall – plus interest – will be charged against the amount of the death benefit that is ultimately paid out to the policy’s beneficiary. (If the policy is canceled before the insured’s death, then the amount of the un-repaid cash value can be considered as a taxable distribution, and then taxed accordingly by the IRS).

Esurance offers its life insurance quotes directly online, which can be very convenient for consumers. The company provides these quotes via Efinancial. The life insurance coverage is not underwritten directly by Esurance, but rather by other insurance carriers in the market place, such as:

  • Prudential
  • AIG
  • Transamerica
  • Fidelity Life
  • Protective
  • Legal & General of America / Banner William Penn
  • North American Company

Because the life insurance that is offered through Esurance is done so by various insurance carriers, the products, rates, and the time that is required to purchase a policy (such as underwriting procedures) can vary from one company to another.

To obtain renters insurance quote, or any quote for that matter, a consumer must provide the following information via the Esurance website:

  • Name
  • Date of Birth
  • Gender
  • Height
  • Weight
  • Zip Code
  • Primary Phone Number
  • Email Address
  • The answer to whether they have been treated for any significant medical conditions (and if yes, provide additional details)
  • The answer to whether they have used tobacco products within the past 12 months (and if yes, provide further details)

If a consumer finds a policy that they are interested in pursuing, then it is possible to apply directly for this policy on the Esurance website.

Other Products and Services Available

In addition to life insurance coverage, Esurance offers an extensive list of other products and services, including the following:

  • Health Insurance
  • Pet Insurance
  • Cell Phone Insurance
  • Home Owners Insurance
  • Renters Insurance
  • Condo Insurance
  • Flood Insurance
  • Umbrella Insurance
  • Car Insurance
  • Motorcycle Insurance
  • Boat Insurance
  • PWC (Power Water Craft) Insurance
  • RV (Recreational Vehicle) Insurance
  • Travel Trailer Insurance
  • Snowmobile Insurance
  • Classic Vehicle Insurance
  • Commercial Auto Insurance
  • Scooter Insurance
  • Segway Insurance
  • Golf Cart Insurance

How to Get the Best Life Insurance Premium Rates on Coverage with Esurance

If you are seeking the best life insurance premium rates on coverage through Esurance – or any other provider of life insurance – then it may be to your advantage to work with an independent life insurance agency or brokerage. That way, you can compare, side-by-side, life insurance policies and prices, and from there you can determine which one may be the best for you.

When you are ready to see which life insurance plan(s) you may qualify for – as well as the premium rates – we can help. We are an independent life insurance brokerage, and we work with many of the top life insurance carriers in the industry today. We can offer you this information swiftly, simply, and expediently – all directly from your home computer. We also have experts available who can answer any of the additional questions or concerns regarding life insurance that you may have. If you are ready to proceed, then all you should do is just simply fill out our quote form.

We know that the purchase of life insurance may seem a bit overwhelming. There are many variables that you need to consider. However, this process can be made so much easier when you are working with an ally on your side. So, contact us today – we’re here to help.

Source: goodfinancialcents.com

Apache is functioning normally

By Peter Anderson 3 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited April 3, 2014.

Up here in Minnesota summer usually doesn’t arrive until a little later in the year than many places, but when it gets here, it comes in with a vengeance. The last two days have been in the low to mid 90’s here in our area, and today there were tons of traffic problems all over town because the roads were buckling from the extreme heat.  They expect more of the same today, and temps may top 100 today!

With the heat comes air conditioning season.

Our electric bills go through the roof as we enjoy having a nice cool home, and don’t mind paying for it. This year, however, we quickly realized over the last two days that our AC unit wasn’t functioning as it should.

Despite the fact that we were setting our thermostat to the low 70’s, the AC unit was struggling to keep it below 76 or 77 in the house. In the upstairs the temps were probably closer to 80 or so.

Calling In The AC Repairman

We decided on Sunday night that we would call the AC repairman on Monday morning to come out and fix our unit.  The temps in the house were just a little too high.

We called the heating cooling folks and were promptly told that we’d be put on a list, and that someone would be out later in the afternoon.  At 3:45 no one had shown, so we called them back.  They said the person was still coming, but that since it was such a hot and busy day, they were going from call to call and coming as quickly as they could.

Finally at around 9pm the repair guy shows up at our house.  He inspected our condenser outside, checked connections and then proceeded to inspect the inside of the unit.  After looking at the coils on the unit he announced that he was reasonably sure that the coils on our unit was just really dirty, and that cleaning them off would fix our issue.  He told us to come watch how he did it so that the next time we could save ourselves the house call, and the $172 that we paid to get our AC humming again.

First he unplugged the unit from the box next to the condenser on the wall.  After removing power from the unit he hooked up the hose, and proceeded to gently spray the coils. Sure enough they were exceedingly dirty, and the dirty water started pouring down.  After hosing the unit down thoroughly on all sides, he reconnected everything and plugged it back in.  It fired right up and when we walked in the house the temps were already starting to feel more livable. Within the next half hour the temps had dropped 5 degrees, and were at the desired temp within an hour or so.

Try These Simple DIY Fixes For Your AC Unit Before Calling The Repairman

Sometimes we take the easy route out like we did at our house this week, and we neglect to try and find our own fixes to problems just because we think that the problem might not be very easy to diagnose, or that only a professional could handle it.

In many instances, however, even a non-handy homeowner like myself could easily fix their home maintenance and repair problems with just a simple Google search.  For example, on our AC system “repair” last night, we ended up having to pay almost $175 for the guy to essentially hose down our AC unit.

If I had done a simple Google search before calling the professionals I would have found countless websites talking about how this is one of the most common reasons why an AC unit stops pumping out the cool air.  There are even countless videos on how to do it if you’re so inclined. Here’s one in case you want to make sure your own AC unit is clean and maintained.

[embedded content]

Cleaning Your Own AC Unit

In case you want to clean your own AC unit and save yourself the hassles we went through and the money we spent, follow these simple steps shown in the video above.

  1. Remove power source from AC unit:  Usually there will be a box mounted next to the unit where you can open it and unplug the unit from power.  Barring that you can turn it off at the breaker box.
  2. Unscrew the grate/fan assembly on top:  Take off the grate on top, usually by removing several screws around the perimeter.   Remove the grate and the fan assembly carefully. Make sure not to bend the blades on the fan as this can cause problems later on.
  3. Remove any debris from inside unit, and from around outside:  You’ll usually find leaves, twigs and other plant debris inside the unit. Remove what you can see inside the unit, as well as removing any plants getting too close to the unit outside.
  4. Hose off the coils around the unit, removing dirt and other debris: Once you’ve cleaned out other material, hook up the hose and hose off the coils around the exterior with a slow steady stream of water. Make sure you’re not blasting the unit with high pressure water, however.
  5. Put it back together, plug it in and enjoy the cool air!:  Once you’ve removed all the debris, and dirt from the coils, put everything back together, and plug  the unit back in.  It should resume normal operation, but now with increased efficiency and much more cool air!

Another thing the average homeowner can check on their AC unit before calling professionals is the filter on their unit, usually found by the furnace inside the house.  If that filter gets too dirty it can impede the free flow of air and cause problems as well.  Change the filter regularly.

Next time we know we can try a few simple fixes like this – before calling the repairman. He told us yesterday that probably 1/2 of his calls during that day had been simply dirty coils – an easy DIY fix.

Other Simple DIY Fixes We’ve Done

We’ve had at least one other easy DIY fix lately that saved us hundreds of dollars.  Last month our washing machine started overflowing water in our laundry room.  Luckily we didn’t have a flood as some others have, but it was perturbing nonetheless.   Before we either called a repairman or bought a new washing machine, I decided to do a Google search for our make and model and see if there were any common and easy to fix issues that might cause overfilling like we had.  Turns out that there was a piece on the unit that tells the machine when to stop filling with water called the “fill switch”.  If it gets plugged (as sometimes can happen), the machine might not realize that it’s time to stop filling.  The site we found had another helpful video, which we watched to see how to disassemble the unit and find the part.  Sure enough, the piece was plugged with gunk.  After removing the debris we had a fully functioning washer again. Easy fix, and we saved hundreds on either a service call or a new machine.  Of course we’ll still be keeping a close eye on this machine for now as we don’t fully trust it… yet.

Lesson Learned: Simple DIY Fixes Can Save You Hundreds

The point I’m trying to get across here is that you don’t have to be handy in order to do your own home repair and maintenance tasks, at least the easy ones. In this day and age it’s pretty easy to find good instructions and tutorials online on how to diagnose and fix your problems without the help of an expert.  Just make sure you take all the necessary safety precautions, and don’t stray from the instructions, and in many cases you’ll be able to save yourself a ton of money!

Have you done your own repairs or maintenance in order to save money? Tell us about the last time you saved by doing your own DIY projects, and how much you think you saved in the comments.

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Source: biblemoneymatters.com

Apache is functioning normally

I thought that I would switch it up a little bit on the blog today and share one of the videos that I did for my other site Soldier of Finance. You did know that I another site, right? Consider yourself informed. Here’s one of the many videos I’ve done. Enjoy…..

Today I want to talk a little bit about failure. A lot of people are afraid of failure. They are just terrified of it. They are afraid of trying something new. They’re scared of attempting to change something about their life so they just don’t do it at all. As much as I talk about success, whether that be on the Soldier of Finance blog or my Good Financial Cents blog, the one thing I am not afraid to admit is that I have failed. I have failed many times.

I wanted to give just few different examples of how I have failed, but more importantly what I’ve learned from it. It’s one thing to fail, but what you learn from that experience, what you take away from it and how apply it to your life going forward is the most important part. Failure is almost a necessity to success just so you can learn how to tweak and change the things that you are trying to accomplish and how you can improve those.

Example of Failure

One of the first things in my life that I failed at, which just shocked the crap out of me, was in basic training. Our very first PT test, that was our physical training test and we had to do max pushups, max sit-ups and a two-mile run. The first time that I took the PT test in basic training I failed the run. I think our cut off was somewhere in the 16-minute mark for a two-mile run, and I ran it in the high 18s. I was 21 years of age and to fail a two-mile run when I was working out, I thought I was in decent shape, it was a truly eye-opening experience and really a gut-wrenching feeling because in basic training that is not the place where you want to fail, especially around your peers, around your drill sergeants, etc.

My take away from that was don’t have this false sense of accomplishment, thinking that maybe your all good when in all actuality you need to work and to change and to improve on some of those skills. What I did was just kept doing the PT, kept doing the running, kept trying to improve on myself and my PT score and sure enough by the time basic training ended I was running it in that 14-minute mark. Still not excelling of all the other guys, but I have never been a runner in my life so just the fact that I passed and passed with a decent score I was pretty well content.

It’s Not a Pyramid Scheme….

Let me give you another example of how I failed. One thing you’ll learn about me is that I love to try new things, whether that be going out and trying new restaurants, going out and visiting new locations, or in my business life I love trying new business ventures. One area of my life where I failed not just once but twice was multi-level marketing. If you’ve heard about multi-level marketing a lot of people refer to those as pyramid schemes. I tried two different multi-level marketing businesses and both of them failed.

The take away that I got from those two experiences, those two failures was that if you’re going to start a business no matter what it is, make sure it is something you’re passionate about. Make sure it is something you believe in 100,000%. With these multi-level marketing businesses that I went through, I was sold on this dream, this vision of passive income and having all this extra money coming in. I was more focused on the money then the actual business, the actual passion that was presented in front of me. It sounded like a good idea, but I wasn’t in it for the right reasons. That was my biggest take away. I don’t mean to down all multi-level marketing businesses. I am sure there are some that have a decent business model, but the ones that I was a part of, I didn’t believe it, and I couldn’t sell something I didn’t believe in.

Now with my financial planning business, with my blog with Soldier of Finance these are all things that I believe, I’m passionate about. I want to give everything I’ve got into this hoping that I can help people, whether that’s changing their life financially or give them the sense of encouragement and accomplishment they need to succeed in their own lives.

So you’re probably thinking, “Wow, these are some pretty big failures.” And they are. These are things that I had to learn from. It was an eye-opening experience on both those occasions. These are just two examples. I promise you I have several other examples of where I have failed, but the take away, as I said earlier is what I learned from them. That is the most important part because you have to learn.

Just Like Riding a Bike

Whenever you were riding your bike for the first time, unless you were just a bike-riding animal most likely you fell. I remember I fell hard my first time, scrapped up my knee. My grandmother and my dad were there to support me and pick me back up and I was scared. I didn’t want to get back on. After getting on again, I think I fell a second and third time, but I kept trying and kept trying and learned from those experiences. Next thing you know I am riding my bike like every other kid was. You have to fall every once in a while, but don’t get discouraged. Pick yourself up, dust yourself off and learn from it and then apply it. You’ll move on and get on to the next step.

Thanks for stopping by. Be sure to check out the blog, soldieroffinance.com and we’ll see you next time.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.

Source: goodfinancialcents.com

Apache is functioning normally

When putting your home up for sale, the waiting game is one of the hardest parts. Regardless of the reason behind the decision to sell your property — be it because you’ve already found your dream home, want to move to a new city/area, or simply downsizing — earning money from the transaction as soon as possible is always preferable.

Plus, it’s never easy saying goodbye to a place you’ve called home, where you and your family have spent wonderful moments together and that will be forever etched in your memories. So why prolong the melancholic goodbye?

Fortunately, there are things you can do to improve your home’s chances to sell fast without having to shell out a considerable amount of money. Often times, doing things in the right order can help us save lots of time and effort, not to mention unnecessary stress. It isn’t much different when selling your home.

So to make it easier for you, we’ve turned to industry professionals for a little guidance on how to prepare your house for selling. Here’s what most of them agreed would speed up the sale of your property.

#1 Work with a Realtor

Sure, it’s the age of the internet, and every service can be accessed online, who needs a real estate agent to hold their hand? But as most industry professionals will tell you, that may not be applicable in the case of real estate transactions — especially when selling your home, which is arguably your biggest financial asset.

Pricing your home, listing it, distributing the listing to make sure it appears on websites people actually use when looking up homes, scheduling property tours, and handling paperwork are just some the biggest aspects of a home sale. The list goes on an on, so better put it in the hands of a professional that will know to pay extra attention to crucial aspects of the deal.

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Realtors know the ins-and-outs of the industry and have inside knowledge of your area. Real estate agents have already built up their contact list, from potential buyers to contractors who can help you do minor repairs in your residence, and will easily manage all the paperwork involved in the sale.

While some real estate agents require a deposit for their service, most realtors go by a commission-based payment system. This means that they’ll only get paid when you sell your home, which motivates them to help you find clients and close deals quickly — and for the highest $$$ amount possible, as that will lead to a higher commission for them too.

#2 Enhance your home’s curb appeal

Curb appeal pertains to the attractiveness of your home from the outside. It extends to the entire front of your house, including your lawn and how other trees or bushes frame your residence.

The point of enhancing your home’s curb appeal is to make the exterior more tempting to potential buyers. After all, it’s their first interaction with what could be their future home, so you’ll want your house to make a great first impression. The idea is to make it appeal to them as soon as they make the curb.

A few tips to boost the curb appeal of your property include:

  • Adding some greenery – One of the best ways to enhance the exterior of your property is to plant some flowers and plants. You don’t need to overhaul your lawn and start a garden. You can draw potential buyers’ eyes toward windows and entryways with planters and window boxes.
  • Tend to the lawn – Never has maintaining a well-kept lawn mattered more. Make a point out of regularly mowing the grass, raking off any unwanted leaves, and pulling weeds out when planning to put your home on the market, as it will significantly increase its curb appeal.
  • Clean the gutters – The gutters are a visible yet often neglected part of the home. When putting up your property on a listing, make sure that you give these attachments a little TLC by clearing up debris and scrubbing the outside.

#3 Improve the front door area

We’ve already established how important first impressions are when selling your home. And your front door plays a huge role in landing that great first impression. If you don’t think it’s sufficiently appealing already, know that it doesn’t take all that much to upgrade your front door.

You can do this by coating your front door with fresh paint, adding some décor, and even putting a welcome mat right with a memorable message to welcome buyers.

For the interior, you must clear the entryway and draw the eye of clients inward through strategically placed furniture as well as accessories.

#4 Declutter and de-personalize

One of the top ways to increase the value of your home is to free up spaces in key areas of your residence. This includes the living room, kitchen, bathroom, and even the bedrooms. Declutter and get rid of all extra items that don’t add to the aesthetic appeal of your property.

Depersonalizing your space is also a crucial aspect of home-selling. The buyer must be able to envision themselves living in your residence, which is difficult to do if they see your pictures and other personal items lying around.

#5 Stage your home

Home staging is the process of restyling and refurnishing your property to boost its attractiveness in the eyes of potential buyers.

More often than not, the furniture and other things that you’ve accumulated through the years show off your personality. However, as mentioned above, you should depersonalize your space to let the new potential owners imagine themselves living there, which might mean changing up the position of furniture and even replacing some of it with items that have a more unified design.

Tips to keep in mind before selling your property

1. Partner with an investment property buyer 

Remember that sellers have the financial responsibility to pay closing costs such as state and property tax, and real estate agent professional fees. By partnering with an investment property buyer, you can sell your home for a non-deducted or full cash offer. 

2. Avoid common home selling mistakes 

Sellers usually make the following mistakes when selling their homes: 

  • Getting overly emotional: Of course, your lovely home is now for sale, and it’s okay to feel bad about it. However, don’t let your emotion ruin your selling tactics. Just imagine how motivated and excited you were when you first saw your dream home, and your potential buyers might also feel the same. Staging your home or changing its appearance can create an emotional distance since the house looks less personal. 
  • Not hiring a real estate agent: While you want to avoid paying an agent commission, hiring a real estate agent is the best way to get the best deal for your home’s value. An experienced real estate agent will prioritize your best interests and make sure that your house will have a competitive selling price. 
  • Poor listing photos: Good listing photos will draw potential buyers to check your house for sale. Take clear and crisp photos with plenty of natural light to show your home’s true beauty using a wide-angle lens. Hiring an experienced and professional photographer is a good idea to highlight the best features of your home and also get expert advice on how to stage the rooms for better viewing. If you’re working with an agent, this is something they can coordinate for better results, especially since they probably already work with professional photographers that specialize in listing photos (and can include drone shots of your home).

3. Set the right price

It’s tempting to set a high price ceiling for your home. After all, it’s the fruit of years of hard work. However, you have to consider the price point of houses in your area, the features your house offers, and its strengths and weaknesses. If you want your house to sell fast, set a competitive price for your home, instead of a higher price that potential buyers can negotiate. Remember that price is one of the key criteria home buyers use when searching for listing online, and if your home is out of their budget, they won’t even get a chance to considerate it.

Final thoughts

You can sell your home fast by working with a professional realtor who can guide you throughout this journey. Enhancing the curb appeal of your house, improving the front door area, decluttering, depersonalizing, and staging your residence are just some of the ways to help you get your property listing off the market quickly, but covering these crucial aspects of your home sale will make the process go smoother and will likely result in a faster sale.

More tips for your fancy home

Hearing Colors? Here’s What Colors to Choose in Your Home Based on Your Taste in Music
These are ‘Queer Eye’ Bobby Berk’s Top 6 Choices for Wall Décor
10 of the Most Stylish Minimalist Wall Clocks You Can Buy on Amazon
6 Smart Home Devices to Keep Your Pets Safe, Well Fed and Entertained While You’re Away

Source: fancypantshomes.com

Apache is functioning normally

I saw a headline today stating “Most People Don’t Understand Life Expectancy Data”…which means they don’t understand the fundamental aspect of retirement planning. A 20-year retirement is drastically different than a 30-year retirement.

See?

So let’s answer: how long will you live?

As of 2020, the average American male lives for 74.5 years, and the average American female lives for 80.2 years. But wait! There’s more.

Imagine you’re 55 years old and planning your retirement. How long should plan for? If you’re male, about 20 years, right? The average death age (74.5) minus your current age (55) yields 20 years. For females, the answer would be 25 years.

Nope! That’s the wrong approach!

Because the average death ages – 74.5 and 80.2 years old – account for all deaths at all ages, including all the unfortunate deaths occurring before age 55. Once you’ve hit age 55, you’ve already avoided those premature deaths. Meaning your most likely age of death will be above average!

We can look at the Social Security Administration’s actuarial data to see this truth in action.

The average 55-year-old male will live another 24 years, to age 79. That’s 5 years beyond the average of all males.

The average 55-year-old female will live another 28 years, to age 83. That’s 3 years beyond the average of all females.

Maybe you haven’t planned much and now you’re sitting down at 65 years old to figure out your retirement. You have, on average, 17 years (male) and 20 years (female) left to live. That’s 82 years old for males and 85 years old for females.

Every year matters in retirement planning. The difference between dying at 74 and 79 and 82 is huge.

Not only that, but you might live longer than average. For example, a 55-year old American male has the following death age probabilities:

  • Age 75: 64%
  • Age 80: 48%
  • Age 85: 30%
  • Age 90: 13%

13% is nothing to ignore! That’s a 1-in-8 chance.

In short, don’t look at the average life expectancy of all people. Instead, look at the average life expectancy of people your age. Then bake in some conservatism on top, because there’s 50% chance you’ll live longer than average.

It’s a simple – but vital – financial planning tip.

Thank you for reading! If you enjoyed this article, join 6000+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.

-Jesse

Want to learn more about The Best Interest’s back story? Read here.

If you prefer to listen, check out The Best Interest Podcast.

Source: bestinterest.blog