Planning for the financial future

I work full time and people are not aware of my diagnosis. I am struck with an awkward feeling when people talk about things 30 years down the line or anything beyond a year or so. I receive annual grants of company stock and always wonder if I will be around to see them vest in 3 years or be around to fulfill my next 2-3 year term as a board member of another company. I chuckle when people at work make comments about me being too young to know about menopause, retirement, death issues, etc. I find myself feeling somewhat “surreal" about it. Despite it being nearly 4 years since mets dx and me being on my 5th line of treatment, I still live in the land of denial. I do still contribute to 401k. It will either go to my DH and son or I can always cash it out early due to dx based on IRS rules. Can also cash out life insurance offered through employer if it ever comes to that. I did stop making additional payments into a Roth IRA but have continued all other saving while I am able to do so. One day at a time.

I’ve asked this same question.. I’m in my early 40s and likely will not reach normal retirement age. I save a little because with this dx, one just never knows. I’m working full time now (don’t love my job but it pays well and the insurance is good) but who knows how long that will last. I’m not married so I feel like I need to put something away so hopefully if I do have to go out on medical disability, I won’t have to eat cat food or ramen noodles

As long as you can work, put away as much as you can. And if there is a company match, make sure you get as much of that as you can!

I only stopped working about 16 months ago [oh do I miss it!], but in the seven years that I was metastatic and working I made sure to have enough saved to pay for health insurance for two full years, and then a bunch extra to cover some of the difference between disability and what I used to actually make.

No one has EVER regretted having money in the bank. If/When you apply for disability, you can then start to draw on your retirement savings without penalty to pay for some of your living expenses as needed.

Don't think of this as saving for retirement. That isn't what we will get. It is saving for your future needs

*susan*

I totally get the challenge of planning under these circumstances. I’m 56, no kids, no husband so doing it mostly on my own. I still work full time at a job that I enjoy but must admit that more and more I think about stepping back a bit. While I like what I do, the challenge is carving out “me time” when my plate is so full.

In terms of finances, I do have a strategy. I am fortunate in that I am eligible for LTD and have good extended health. Retirement is likely not in the cards but then, financially, it doesn’t make much sense. I’ll bring in more on LTD than with my pension and they continue to pay into the plan until I’m 65 plus I keep the premium extended health. So, I will keep plugging away until I feel it’s time to slow down.

The planner in me (project manager - sorry) had me take care of the eventualities. I updated my will in the spring, reassigning my pension, my estate and RRSPs to charity. If I live longer great. If not, it will go to causes that mean something to me. The final piece of the puzzle is getting rid of a lifetime of accumulation (my mom was into antiques). Again, I have a plan. Some things go to charity outright (warm weather gear, back packs, sleeping bags etc. for the homeless). I list things for sale and will drop the price but only so far. Once I get to a certain point, again, it goes to charity as I refuse to give things to folks who are just trying to take advantage.

I do pay close attention to the various plans and entitlements. While it may be wishful thinking, I’m looking into options to continue my health coverage past 65. The retirement plan sucks! Big issue is the lifetime cap which, as we all know, we can blow through in a couple of months! Ibrance at $7500 a pop comes to mind!

Sorry, feel like I am rambling. All this to say that I do still plan ahead. There are times when I have trouble relating with concerns about the future but, in my own way, I am able to still think ahead.

Pat.

Of course you're not, Jennifer. You love your children and you're smart to take steps now that will ensure your wishes are respected. Consult a lawyer and do it!

Tina

Blainejennifer, you could consult with a financial advisor before seeing a lawyer. The FA can go over options. Dh and I saw a great one this year and I put it all out there. He said, yes, you can control your money from the grave.


I don’t think you are awful in any way. Why would you want to work your whole life, accumulate wealth along with your dh, regardless if its much or little, only for it to go to someone else’s children who never even knew you? Your thought process is excellent critical thinking, picturing scenarios you hope to avoid. Feel good about being smart like that.

Take small steps but take action. Ask around to find a good FA. Make an appointment. Take it from there. Or make a lawyer appointment. Get things in place so you can forget about them.

Dh and I have a lawyer appt this week. Its not something I feel like doing, but I told the FA I did not want our house to go to a nursing home if dh and I both end up there. He said we could get a life estate deed, so we are going to talk to the lawyer about it. The house can go to who we want on our passing with this type deed.

I told dh I don’t care if he gets married the day after I’m gone, or how much sympathy sex he tries to go after. I said just make sure our money goes to our kids. I said, if you don’t, I will come back and haunt you. I am very serious about that and I don’t feel one shred of awful for feeling that way.

Hi KSkier,

So glad that you're feeling well and able to work. I stopped working/went on disability, following my MBC diagnosis, but I still have some thoughts for you that might help...

...I was always very engaged with managing my finances, doing planning, etc., and this has only increased since my diagnosis. The questions are still the same....given a live expectancy of "X" (which has certainly changed), and a reasonable range around that of + or - "Y", what can I do now and in the future to ensure that my money is working for me and toward my goals....

....you had every reason to be in that meeting, paying close attention. Your 401K can become your income when you decide to stop working, which might be sooner than you think, i.e. while you are feeling well. As someone with MBC, you pretty much automatically qualify for SSDI. You've paid into this system for years, presumably, and you may not be around to collect on the SSI retirement benefit, but you can at least collect the SSDI benefit (which, at least in my case, was larger than my expected SSI retirement benefit..). As someone who is disabled/metastatic, you can withdraw from your 401k without paying the pre-591/2 penalty. Again, this is in recognition of the situation where you are unlikely to have the typical retirement. So you might decide now to put even more into your 401k, perhaps to allow you to retire soon and enjoy life a bit more.

...also, another consideration. Whatever you put into your 401k can be transferred with no tax and no penalty to an IRA when you leave your job. This IRA can be passed along to your children, spouse, etc, as an inheritance. I'm not 100% certain how it would work with a spouse, but I do know that you can pass this along to your children and they can either withdraw it all at once -- and pay lots of taxes -- or opt to do only the "required minimum distributions" (RMD, aka "stretch"), which is based on their life expectancy, as per actuarial tables. If they do the latter, they will continue to benefit from and accrue to the pre-tax contributions that you have made in your 401k savings and pay tax only on what is withdrawn each year. You can find online calculators (IRA RMD) to see how far your savings will go toward providing a life-long source of income for your beneficiaries. This can be the source for a small extravagance, an annual vacation, or a significant income cushion.

So, my point is, your 401k is possibly even more important to you today than it was before your diagnosis. I, personally, derive great happiness knowing that my savings can do wonderful things for me or for those I love, especially in light of my prognosis.

Just wanted to share my perspective! Be well!

Lynn