Hi, everyone!

Now that I'm out of debt, and have a retirement account set up that I can manage (with alot of eduction), I have a question. I'm in the not-so-unique situation of trying to plan out a good retirement while living with a chronic disease (too many people in this world don't think ahead while they have a chance with chronic issues like mine- too busy wallowing in pity). That will NOT be me. =)

Is there anything I need to work into a plan that consists of an IRA, a brokerage account, and a savings account? I'm putting what I can into all of the accounts at this time, and still managing to pay my bills.

I know this board is about strategies, and I need one to ensure that I won't ever have to rely on the government to give me money, and decide if I'm disabled or now. =) If I'm not in the right board, let me know where I can post this =)

Thanks in advance!
Heather

Hi Heather,

Insurance is key, if you can get it. But some types of insurance may or may not make sense or even be available for you, depending on the specific chronic illness you have. Is it a chronic illness with an eventual death sentence attached, or is it a chronic illness that can be controlled such that you can live a relatively normal life, aside from the treatment?

Check at work - you may find that your work can offer you life, health, long-term care, disability, and perhaps some other insurance as well, at an affordable group rate and with the less stringent underwriting often associated with group plans.

Additionally, because you know you have chronic health issues, it is doubly important for you to save as much as you can while you can. If your health forces you into taking early retirement, yet you cannot get disability insurance that will cover you, it means your nest egg will have that much less time to compound, and in addition to covering 'typical' retirement, it will also have to cover your medical costs. Do you have a 401(k) and/or 403(b) plan, or other employer sponsored salary deferral plan? If those plans have matches or employer contributions, participating will help you compound dramatically faster. What about a pension?

Best of luck to you,
-Chuck

This is a chronic illness (MS) that can't be a guaranteed track, as it affects everyone differently. It's NOT terminal, it's managed by a therapy that my insurance company makes me pay a 20% copay on. And yet, it is disabling, without treatment, although there are people who have this thing, and are running triathlons.;)

I have a health insurance plan that I pay for out of my pocket, and I look to have a "healthy" tax return again for 2004. *sigh* As a contractor, it pays for me to keep my insurance separate, as I tend to switch companies when a good position opens up.

I work in a specialized career (technical writing for pharmaceutical companies), and we're mostly all contract-based. I have a plan to get a full time job, but I can't make it known at the company. The moment you say you want to go full time = no way, jose.

I at least have life insurance through my bank, health insurance, dental insurance.....but I'm afraid I can't get disability until I get that full time job that I can stick with.;)

Thanks for helping me, Chuck. I'm looking forward to figuring out this retirement thing so I can live comfortably in any event. =)

Heather

Hi Heather,

I work in a specialized career (technical writing for pharmaceutical companies), and we're mostly all contract-based. I have a plan to get a full time job, but I can't make it known at the company.

Try this link and see if the job it describes is in line with your current career and expectations: http://tinyurl.com/5d9hs

I can't make any promises, of course, but what will it hurt to try?

-Chuck

Another thing, too, is to look into getting hired at a contracting company, rather than being independent. I know that the contractors I work with often have insurance policies through their agencies, though I don't have specifics on their plans or what types of insurance they have available. Even if you would have to pay the insurance costs yourself, if you were employed through a contracting agency with insurance options, you could get the group policy underwriting you'd likely need to get insured affordably.

-Chuck

Early retirement is difficult because in some states you would find it difficult or impossible to buy private insurance. Once you're 65, Medicare kicks in (whew!) and it's no longer an issue, but if your illness requires you to retire in middle-age then you may want to investigate states where it will be possible for you to buy health insurance/care. In my state (Louisiana) I have trouble in my 40s buying health insurance at any price even though I'm thin and healthy, whereas a chubby (but not obese) relative also in her 40s with chronic pain is able to buy a health insurance policy for less than $200 per month in Tennessee. My first thought as a retiree is -- Will I be retiring before age 65? Will I have to buy my own insurance? Will a working spouse be able to provide insurance? Or will I need to relocate to an area where there are some controls on costs of private insurance? If this might affect you, it's something to consider.

Make sure you have 40 quarters of work as soon as you can -- maybe you already do. Yeah, I know, it's damn hard to collect SSI, you don't want to collect SSI, and it takes at least two years for them to start distributing your SSI...BUT...I am saying since you are able to work now, get those quarters in, just in case your illness takes a sudden turn for the worse and you really do need to collect your disability from the feds. It will take years to build up your own resources to the point where you can provide a lifetime income from retirement so don't dismiss SSI out of hand just because it's a hassle. With planning and a bit of luck, you'll never need it, but it's still good to have those 40 quarters of work if you do need it.

It sounds like you are on the right track with IRA, brokerage, and savings/E-fund so not sure if I can tell you anything you don't already know there.

Here are some brainstorming ideas;

Probably better to go with a traditional IRA, if you can, rather than a Roth because you will likely be in a much lower tax bracket when you retire.

You might also look at incorporating yourself as a one person corporation to what retirement plans available to business owners. As I recall some of these have much higher annual limits then a 401k. I know of several computer contractors that do this for tax reasons.

You might also research retiring outside the U.S. where the cost of medical care is much less and hiring assistants can be inexpensive. I recall an artical about some people going to India for medical procedures that they could not afford otherwise. Some of the Indian facilities are apparently top notch and have doctors that were trained all over the world and cost a fraction of what U.S. doctors do.

Greg

I don't know India but a friend had a great experience getting a number of surgeries in Thailand and is now thinking of moving there if she can arrange it. These were elective surgeries though.

Costa Rica is supposed to be another good one but haven't checked it out yet. Another friend is thinking of going on a plastic surgery run there. Again, elective surgery, so don't know how their good reputation translates into other forms of care, but people in Costa Rica have a longer life expectancy than the U.S. so I assume they know something.

Heather,


I rember you from the passion savings board:

http://boards.fool.com/Message.asp?mid=15953735


I am trying to get that board going again. It looks like you have made a lot of progress in the last few yrs in saving in spite of chronic illness. Will you come over to that board and share your experiences?

Thanks.