Experienced financial advisor Darcy Bergen specializes in retirement planning and risk management. As the president of Bergen Financial Group, Darcy Bergen advises clients who are undergoing major lifestyle changes, such as retirement and downsizing.
Downsizing is a good option for retirees looking to simplify their lifestyle and reduce their financial liabilities. Buying a smaller home in a planned community can also remove maintenance responsibilities, which can bring peace of mind to older homeowners. In certain situations, downsizing can leave homeowners mortgage-free with more money to invest.
However, downsizing doesn’t always mean a smaller space or a less expensive home. For example, people who want to retire in the city center may pay more for a smaller space that comes with more convenience and less maintenance. Additionally, some retirees may move to a more expensive area to be closer to other family members or to live in a warmer climate.
Before downsizing, homeowners should work closely with a financial advisor to determine the advantages. In some cases, rather than downsizing right away, homeowners may be better off paying a high mortgage for a few years and selling in a better market. Moving costs, realtor fees, and other expenses should also be considered.
A fiduciary with a Series 65 license, Darcy Bergen serves as the founder and a managing partner of Bergen Financial Group. Possessing extensive experience with risk management, income planning, and social security planning, Darcy Bergen assists clients with a wide variety of financial planning needs.
As the baby boomer generation reaches retirement age, many are facing the prospect of rising long-term care costs. The median cost of long-term care support services rose about three percent from 2017 to 2018, which exceeded the U.S. inflation rate, according to Genworth’s 15th Annual Cost of Care Survey. For example, the annual median cost for a home health aide is $50,336, while an assisted living facility costs approximately $48,000 per year, and a semi-private room in a nursing home costs nearly $90,000 per year.
In order to afford the expense of long-term health care, many retirees are looking into hybrid whole life, hybrid indexed universal life (IUL), and hybrid annuities as alternatives to stand-along long-term care policies. Hybrid policies are less restrictive and don’t usually have a “use it or lose it” approach to benefits. In fact, some hybrid policies offer a death benefit if the policyholder does not use the long-term care benefits.
Possessing more than 20 years of experience in the financial services industry, Darcy Bergen serves as founder and president of Bergen Financial Group in Peoria, Arizona. Holding a certified retirement financial advisor credential, Darcy Bergen shares his knowledge with a large audience through hosting a live radio show called "Smart Money" and the television show "The Money Doctors.”
As you near retirement age, a financial advisor can help you navigate complex tax laws to make sure you get the most from your money. For instance, once you turn 70.5 years old, you must begin taking required minimum distributions (RMDs) from your retirement account. Once you start withdrawing those tax-deferred funds, you may land in a higher-income tax bracket with a higher percentage of earnings going toward taxes. Consulting a financial planner can help you complete careful tax planning to compensate for the impact of RMDs on your taxable earnings.
Insurance coverage is another financial planning topic to seek professional advice about, once you reach retirement age. Purchasing permanent insurance or annuity policies can help you and your family plan for long-term care expenses, as well as supplement retirement income and provide funds for spousal survivorship.
The founder and a managing partner of Bergen Financial Group, Darcy Bergen has experience in trust management and wealth-transfer strategies. A member of the Million Dollar Round Table, Darcy Bergen delivers experienced financial advice to high-net-worth individuals who are planning for retirement. As you reach age 65 and become eligible for Medicare, it’s important to know in advance the limits of the government health plan, so you can plan accordingly.
First, enrollees must pay a Medicare premium, which is deducted from their Social Security benefits. In addition, Medicare Parts A and B do not cover vision care, eyeglasses, hearing aids, dental care, foot care, or long-term care. In addition, the benefits for physical, occupational, and speech therapy are limited. Consult an advisor about planning for these healthcare costs according to your individual needs. Options may include purchasing a Medicare Part C, Medigap, a hybrid long-term care policy, or another healthcare plan to ensure you have coverage for necessary vision, hearing, dental, and physical therapy services.
A successful financial executive, Darcy Bergen serves as the founder and president of Bergen Financial Group in Peoria, Arizona. Darcy Bergen draws from over 20 years of experience to offer professional advice on matters related to retirement planning, wealth management, tax planning, income strategies, and estate planning. He also focuses on life insurance.
Life insurance is a type of contract between a policyholder and an insurer wherein the latter makes regular payments or premiums to the former in exchange for a guaranteed death benefit to designated beneficiaries. One common type of life insurance policy is known as term life insurance.
A term life insurance policy offers pure death benefit protection for a specified term, which is typically 10, 20, or 30 years. Insurers are allowed to renew their policy annually until the age of 95. Insurers don’t receive a return on what they paid for the insurance at the end of the term. If the insurers die before the term is over, the beneficiaries will receive the full life insurance benefit.
Generally, the insurance premiums are low and affordable while insurers are young. However, the premiums tend to increase as much as 300% when the insurers get older and become more susceptible to serious illnesses. For this reason, it is highly recommended to sign up for a policy with a longer term.