What is better? Term insurance or whole life?

Couple looks to the future - Photo by Tatyana Kasova/Pixabay

One of the most frequently debated questions as it relates to financial planning and personal finance is debate surrounding what type of life insurance a family should have. Everyone seems to agree that life insurance itself is a good idea. However, when the question becomes whether to go for a term policy, which is only good for a set number of years, or for a whole life or universal life insurance policy that is permanent - well, it was an age old debate when I started working for Merrill Lynch back in the 1990s. More than 25 years later, this debate still hasn’t been settled.

I'm my opinion, the entire term insurance versus whole life debate boils down to two questions that everyone has to answer for themselves. There aren’t any purely right or wrong answers in this debate; only one that is right or wrong for your own unique circumstances.

The first question related to this life insurance debate is:can you afford to buy enough coverage to protect your family with a whole life policy?

If you can afford a whole life insurance policy that provides enough coverage to protect your family adequately, great. A whole life or universal life policy might actually be a good idea for you to consider. However, if you cannot afford as much coverage as you need with a whole life policy then, in my opinion, you have to go with a term policy.

In my professional opinion as an insurance agent who blogs about his neighborhood as a passion project, it is always better to have a term life policy that gives your family the coverage and protection that you need rather than a whole life policy that doesn’t.

The second question that I believe one should ask is: what would happen to your family if you died the day after a term policy expired?

Let’s say, as an example, that you're comparing whole life police and a 30-year term one. If you are confident that 30 years and one day from now, your kids will be on their own, your mortgage will be paid off, your spouse won't need your income, and you're not going to have to get a new policy then, by all means, go with a term policy.

Take the difference between your term and whole life policies and invest it or - if you prefer - buy an even bigger boat.

However, and I cannot stress this enough, having to get a new life insurance policy 30 years from now will be a disaster in the making for you. At minimum, you will be 30 years older and that means your rates will be drastically higher.

Plus, there is also a very real possibility that your health will be worse 30 years from now than it is today. This, in turn, raises the possibility that you won’t even be able to get a new life insurance policy when your term one expires.

And there you have it, the two questions that I believe will enable every American family to decide for themselves whether a term insurance policy or a whole life one is better for them.

These tips are brought to you by the Warrendale Detroit Blog as part of our Tip of the Week series. Please check back next week for more advice on your home, money, and life. The rest of the tips are avilable here.

Please feel free to follow the author Frank Nemecek on Twitter and Instagram as @fnemecek for more great content. 

Merry Christmas, Detroit

Close-up of a Christmas tree

I want to mention that this is the 14th Christmas I have had the pleasure of spending as the publisher of the Warrendale Detroit Blog. While I never thought it would happen, as I look back over the years, I realize that my readers and neighors are some of the best gifts that I could get.

This may seem corny but I'm incredibly serious when I say this. I have met some absolutely amazing people while writing for this blog. I've seen a number of challenges of the past 14 years - from the death of my father to one health scare or another as well as a series of personal and financial crises. In so many of those moments, it's been my friends and neighbors who have helped me through those challenges.

I am grateful for each and every one of you. I truly do consider your friendship to be an incredible gift. If I never had the chance to tell you in person, I want you to know that I am grateful for this gift that I have received.

Thank you. I thank each and every one of you who have gotten to know through this blog. As I prepare to move into my 15th year with the Warrendale Detroit Blog and milestone of one million views, I do so with gratitude and joy.

To each and every person in the Warrendale neighborhood and beyond, I wish you a Merry Christmas. I hope each of you gets to spend time with your friends and family this holiday season. I also pray that each of you receives a gift as wonderful as the one that I have received through your readership and support.

Merry Christmas, Detroit.

Love and laughter,
Frank P. Nemecek
Founder & Publisher of the Warrendale Detroit Blog

Housing market to remain a seller’s market in 2020, experts predict

Key in the front door to a home - Photo by PhotoMIX Ltd/Pexels

The housing market is likely to remain a seller's market throughout the United States, according to a survey of 500 of the top real estate agents across the nation that was conducted by HomeLight. This is largely consistent with other forecasts for the local market in Detroit.

Several other experts predict a generally positive housing market forecast in Detroit for 2020. While some skeptics argue that a real estate crash is imminent, the Warrendale neighborhood and other parts of Detroit simply do not have properties that are overpriced to anywhere near the degree that are cited in their alarming predictions.

The housing market is likely to remain a seller's market throughout the United States, according to a survey of 500 of the top real estate agents across the nation that was conducted by HomeLight. This is largely consistent with other forecasts for the local market in Detroit.

There is one cautionary note in the data released yesterday. While it is still a seller's market, with demand significantly outpacing supply in many parts of the country, there is a danger in overpricing a home that is for sale. No matter how hot a market is, there is always an upper limit to what buyers are willing to pay.

Individuals who are looking to sell an existing home in 2020 still have to balance their own desire to get the highest possible price with a realistic understanding of what the real estate market will bear. This is one of the key areas where the advice of an experienced real estate agent who knows the Detroit market can be invaluable.

With a cautionary note about overpricing duly given, the overall outlook for the housing market in Detroit for 2020 is a positive one. Existing homes that are in good condition and reasonably priced should continue to sell well. Moreover, the prices that these homes are sold for should continue to climb at rates that significantly outpace inflation.

My note about existing homes being in good condition is an important additional caveat. One of the things that the recent data also showed is that, as prices continue to climb, buyers are beginning to insist on more repairs being done to the home before they take possession.

This trend at the national level continues to be seen at the local level. Homes in the Warrendale neighborhood that are in good condition continue to command top dollar. Meanwhile, existing homes that are in poor condition and need many repairs are languishing unsold for months at a time.

Again, one of the things that an experienced real estate agent can help sellers with tremendously. They can point out what repairs are most likely to be an issue for the buyer and where to best invest a home improvement budget.

This, course, is simply a summary of their 43-page report. The full forecast of the housing market for 2020 is available in its entirety here.

Disposing of perscription drugs properly - a guide for 2020

Perscription drugs - Photo by Steve Buissinne/Pixabay

It's a sad fact that one in four teens in the United States, according to data compiled by the Partnership for Drug-Free Kids. To make things even worse, most of these kids are getting their drugs not from shady dealer but from their own medicine cabinet.

Because of this, one of the best ways to stop perscription drug abuse is to dispose of unused, expired, or unwanted medications properly. Disposing of these drugs keeps them out of the hands of teens or anyone else who shouldn't have access to them.

As an added bonus, disposing of perscription drugs properly also prevents them from getting into the soil or water supply. When this happens, the medications that were designed to heal humans become an environmental hazard for fish and wildlife. After all, these medications were intended for humans and humans only.

All of these reasons make it incredibly important for perscription drugs to be disposed of properly.

For those readers who live in the Detroit area, Henry Ford Health Systems has a total of nine locations throughout Wayne, Oakland, and Macomb Counties where people can drop off unused, expired, or unwanted medications. I used their service myself recently when my doctor changed one of the medications that I take; leaving me with a couple weeks of my old medicine still at home.

A complete list of these nine locations can be found on their website. Besides these Henry Ford Health Systems, one can also find several other locations where people can drop off perscription drugs in Oakland, Macomb, Monroe, Washtenaw, and Wayne counties by clicking on the appropriate links. Each of these locations will ensure that the drugs are desposed of properly so they don't become a problem for someone.

Last, but not least, for those individuals who are looking to dispose of perscription drugs outside of the Detroit, many pharmacies have drop boxes nationwide where patients can dispose of them safely. One can find their nearest location by visiting this website and searching by address or by ZIP code.

With this many options for safe disposal available, I hope that we will soon see a dramatic drop in the number of teens who absue perscription drugs that they find in their own homes.

This guide to disposing of perscription drugs - updated for 2020 - is your Tip of the Week for the week of December 23, 2019.

These tips are brought to you by the Warrendale Detroit Blog as part of our Tip of the Week series. Please check back next Monday for more advice on your home, money, and life. In the meantime, please feel free to check some of our previous Tips of the Week.

Thank you for visiting the Warrendale Detroit Blog.

Closing in on one million views

I was reviewing where a lot of things in my life stood over the weekend. Most importantly of all, I was doing some planning for the coming year. It was while doing this that I discovered something that I think is rather cool.

As of this writing, the Warrendale Detroit Blog has received a total of 961,247 unique views since I started it on a whim back in December of 2005. That isn't a bad number for a blog that focuses on one particular neighborhood in one particular city.

In an era when some of the internet giants starting to think more and more about hyperlocal marketing and hyperlocal search engine optimization, a 14-year old blog about one particular is a bit of a trendsetter.

The really cool thing, in my opinion, is where this trend is likely to take this blog. Assuming my math is correct, the Warrendale Detroit Blog should see its one millionth view later this year. In fact, it should happen right around my birthday in August.

One million views.

For a little bitty hyperlocal website.

I can't help but feel that this is really cool. The fact that - with around 5,000 views per month at the moment - the Warrendale Detroit Blog should cross the one million views threshold around my birthday is icing on the proverbial cake.

I want to thank each and every one of the people who have helped and encouraged me in this project over the years. Your awesome reaches throughout the Warrendale neighborhood in Detroit and beyond.

Thank you, everyone!

Mayor Duggan celebrates the Stategic Neighborhood Initiative

Mayor Mike Duggan of Detroit recently commemorated the one-year anniversary of the Stategic Neighborhoods Initiative. This is a public-private partnership to improve some of the neighborhoods in our city, such as Warrendale.
This initiative got a large boost recently. The Ralph C. Wilson Foundation announced a $10 million grant to support the neighborhoods in Detroit. Those funds will go towards citywide development of our ten targetedneighborhoods on streetscapes, commercial corridors, and parks.

"We are improving neighborhoods in Detroit for Detroiters," Duggan commented.
They and our other corporate partners have already made an incredible impact, and it is my hope that others will join us in continuing our mission of creating a stronger Detroit for everyone. Mayor Duggan's team posted a video of his remarks about the Stategic Neighborhoods Initiative to his Facebook page.

I have embedded this video above. I encourage everyone to take a moment to watch it.

Mayor of Taylor among those indicted

Mayor Richard Sollars of Taylor - City of Taylor photo

A 33 count indictment was unsealed this afternoon chargingMayor Richard “Rick” Sollars of Taylor, Michigan, Shady Awad, and Taylor Community Development Manager Jeffrey Baum with conspiracy to commit bribery in a scheme spanning from 2015 to 2019, United States Attorney Matthew Schneider announced.  The indictment also charges Sollars and Awad with seven counts of bribery each, and charges Sollars and Baum with 18 counts of wire fraud.

According to the indictment, Sollars helped Awad’s real estate development company Realty Transition LLC obtain scores of tax-foreclosed properties owned by the city of Taylor.  In return, Awad lavished Sollars with thousands of dollars in cash and over $30,000 in renovations to Sollars’s home, over $11,000 in renovations to Sollars’s lake house, and over $12,000 in new household appliances.  The appliances included a refrigerator, stove, microwave, dishwasher, a $1,600 cigar humidor, a vacuum cleaner, and a clothes washer and dryer.  The free renovations provided to Sollars by Awad include hardwood floors on every level of Sollars’s Taylor residence, hardwood floors at the lake house, a garage door, a new front door, cabinets, and a refurbished lake house deck.  The Indictment also alleges that Jeffrey Baum received bribes from Awad and another developer, in exchange for Baum’s help in obtaining tax-foreclosed properties from the City.

Text messages between Sollars, Awad, and Baum cited throughout the Indictment document the bribe scheme.  In one text, Awad states as follows: “My relationship with Rick is worth $1 million so whatever it takes I’ll pay for it” in telling a contractor to do free work on Sollars’s lake house.  In another text, the Indictment states that Awad told Sollars that Sollars was Awad’s “silent partner” in Awad’s real estate development business.  Sollars, 45, is a resident of Taylor.  Awad, 39, and Baum, 44, are both residents of Allen Park, Michigan. 

The indictment also charges Sollars and Baum with 18 counts of Wire Fraud, alleging that Sollars and Baum defrauded donors to Sollars’s campaign fund in three ways.  First, Sollars would take checks from his campaign account and write them payable to a particular market, purporting to pay for catering for one of Sollars’s events.  Instead, the market owner would cash the campaign checks and give the cash back to Sollars, with no catering provided.  Second, Sollars and Baum would direct Sollars’s supporters to write checks directly to the market for events that never occurred.  Sollars would get cash and scratch-off lottery tickets from the market owner.  Third, Sollars and Baum would solicit and accept thousands of dollars in cash contributions to Sollars’s campaign.  Instead of depositing the funds into his campaign account, Sollars would simply keep the cash and use it for personal expenses.

The Indictment also seeks forfeiture of $205,993 in cash seized from Sollars’s home on February 10, 2019.

Schneider was joined in the announcement by Steven D’Antuono, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

“The unearthing of allegedly blatant corruption at the top levels of government in the City of Taylor should disturb every citizen of our state,” said U.S. Attorney Matthew Schneider.  “Federal law enforcement will continue to aggressively investigate and prosecute any public officials who choose their personal greed over their public oath.”

"Any time an allegation of corruption is brought to our attention, the FBI's Detroit Area Public Corruption Task Force will investigate it thoroughly. Public corruption at any level undermines the community's faith in their elected officials and does long-term damage to government institutions," said SAC D'Antuono. "With that in mind, we encourage anyone who believes they have information about corruption to contact the FBI at (313) 965-4545 or tips.fbi.gov."

The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service.  The case is being prosecuted by Assistant U.S. Attorneys Dawn Ison and R. Michael Bullotta.

An indictment is only a charging document and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.