If Cash is King, a Life Settlement is His Crown
April 21, 2020 by Allison Bell
Having sufficient liquidity will be the defining economic issue of 2020. Now more than ever, cash is king.
As millions of retired seniors witnessed the value of their retirement portfolios plummet amid the COVID-19 crisis, financial advisors were urging them not to take withdrawals that would lock in losses. This same reasoning was behind a provision in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) which waived the required minimum distributions (RMDs) in 2020 for seniors age 72 or older.
But seniors who had been relying on portfolio withdrawals for a variety of financial needs are now looking to their financial advisors for creative ways to fill the cash flow void.