Single and financial planning

[Deleted]

I'd like to start thinking/planning better for my financial future now based on the assumption I grow old alone

Is there a person that might help me with this and who would that be?  A financial planner? I don't want help with investments (I don't have much to invest) or for this person to sell me anything - but rather to direct me if I need to purchase or adjust something.  More of my overall plan including things like

*if I get sick, what do I need to have in place as far as care?

*is my current retirement savings on track, should I make any adjustments?

*should I have life insurance

*estate planning with no heirs

[turkletsmom]

I've never used a FP, so not sure of their scope, but as far as life insurance goes, I've always heard that if no one is depending on your income, then you only need enough to bury you. So like $10-25k in a term life policy which should be pretty cheap.
I loosely follow Dave Ramsey and I find that his website has some useful investment and retirement calculators that I play with to see if we are on track.

[mich1]

A friend of mine is single, makes an excellent income and has a financial planner. I think with a financial planner, you can define the purpose of their use so if you do not want them to help you with investments, then that is your choice. We have a FP to help us with cross border tax issues. Even though we have the option of using him for investment advice, we do not do so.

[Deleted]

Thank you for the responses.

Does life insurance pay off any debts? I have a mortgage and a car lease so I'd need to know how to cover those, no other debt.

I'll start asking around for a FP.

[mainelyfoolish]

Sept 24, 2020 15:44:18 GMT -5 @cajunshrimp said:

Does life insurance pay off any debts? I have a mortgage and a car lease so I'd need to know how to cover those, no other debt.

Unless you plan to leave those assets to someone else, you don’t need to worry about paying for them after you die. The bank will sell the house to satisfy the mortgage and the car dealer will get the vehicle returned. 

[Deleted]

That is good to know. Who gets the equity once home is paid off, assuming nothing in place? I probably have about $100K of it. Yet another reason I need to talk with someone

[Accountingcat]

You need a certified financial planner. This link breaks down some of the lingo you might hear while looking for one and how to check their credentials: www.nerdwallet.com/article/investing/types-financial-advisors

As for equity, it would go to your next of kin in most states. Example: You die tomorrow and have a $100k mortgage on a $200k house. The bank will sell the house for $200k and the $100k would go to your estate. Next of kin definition varies on state laws for someone with no heirs. I'm not a lawyer but this link explains NC laws I think: www.carolinafep.com/faqs/what-happens-if-a-person-dies-without-a-will-in-north-carolina.cfm#:~:text=can%20review%20the-,North%20Carolina%20Intestate%20Succession%20Laws,pass%20to%20the%20living%20parent.

[wanderingback]

Sept 24, 2020 16:51:36 GMT -5 @cajunshrimp said:

That is good to know. Who gets the equity once home is paid off, assuming nothing in place? I probably have about $100K of it. Yet another reason I need to talk with someone

Do you have any family members?

[sadlebred]

Make sure you find a financial planner that is fee only and is a fiduciary. That means that they have to act with your best interests in mind.

[Deleted]

Yes on family members - parents, sibling, and extended. So it sounds like state law would distribute to family unless I've specified otherwise.

My concern is leaving anyone with unintentional debts and then a long-term care situation for myself if needed (e.g. dementia or something like that).

I appreciate the input here.

[Wallflower]

Look into long-term care insurance. The policies can help you stay in your home or help if you need nursing home care. (There are recommendations depending on your age. You may not want a policy yet if you're under 50.)

[kershnic]

Sept 25, 2020 8:15:33 GMT -5 @cajunshrimp said:

Yes on family members - parents, sibling, and extended. So it sounds like state law would distribute to family unless I've specified otherwise.

My concern is leaving anyone with unintentional debts and then a long-term care situation for myself if needed (e.g. dementia or something like that).

I appreciate the input here.

If you care about who gets your money, or about saving stress for family members, have a will in place.  My uncle passed away with no spouse or children, and it turned into a whole legal mess where based on state law the estate had to pay for an investigator to look for missing relatives.   He had recently relocated to a different state, after living in one state for like 40 years, so he definitely had no awareness of state law.  After a lot of legal fighting a deceased half sibling's children (much elder, from a previous relationship of my grandfather), who had literally never met my uncle or any of the rest of the family, got 1/4 of the estate.  He died in his early 60s with significant retirement savings, home equity, and a life insurance policy, so it was not an insignificant amount.  

[melmel48]

I have a financial planner through Ameriprise. She has never tried to sell me anything.

I also just did my estate planning with a lawyer earlier this year. I have no heirs right now, so I have my parents and then my cousin with the instructions that if my cousin inherits my $$ it is to be used for her son. If I am still single when he is 18, I will change it to him and not his mom.