Are you also worried about retirement and long term health costs??

[icnmgrjill]

I just had an awesome private message from one of our members that talked, very honestly, about her fears for the future... and about good financial planning for someone with a disability. To be completely honest, I also have many worries about the future. I am single, self supporting. I also do not make the approx. $150,000 salary + benefits that the President of the ICA makes a year (according to their 2003 IRS Form 990).

It's scary having a disability and having that a generalized fear about possibly getting worse, the cost of health care, limited incomes and the getting older. My parents were smart. Just after they got married, they invested as portion of their pay checks directly into savings bond... $50 at a time. Over 40 years, that has become a sizable savings that they now live on, in addition to their retirement checks from the State.

I didn't have that foresight. I just didn't get it... and it's not as if I spent indiscriminately. I went to grad school and paid for that myself.. about $20,000. My dad harped on me to work for the feds or the state and, though I did for two years, it just wasn't a good match for me. In 1995, all of my money savings went into a disability discrimination lawsuit for my IC during which my attorney declared bankruptcy and I lost about $50,000 even though I prevailed in the case. Most of the money I've earned since then is now invested in the ICN. So, my retirement account isn't half what it should be and that scares me.

Consider my Uncle Harold who, after college, went into the Navy for 20 years as an officer. Retired in his early 40's, then became an engineer for another 25 years... retired again. Now in his 90's, his retirement checks alone are about $6,000 a month, not including the investments that he's made over time. That's more than I take home right now! Sheesh!!! I just didn't understand the importance of saving when I was younger and now that I'm older... well... I'm freaked.

So... here I am in my 40's... with a good job, health that can be unpredictable and I'm about 10 years behind in my retirement savings. Aaackkkk!!! I'm not comfortable with most 401ks because I think they are unpredictable. I'm thinking Vanguard funds maybe..

So, let me ask you. What financial strategies are you using today to safeguard for your future?? IRA's, 401ks, bonds??? Are you good about saving each month?? Let's share our ideas!

Jill :)

[Imustpee]

I have always been a saver...even as a kid I always saved my allowace and babysitting $...I have many investments, Roth IRA's, IRAS, many mutual funds, no load index funds, and I play the stock market and I own stock in several companies...my hubby has his 2 different union retirement mutual funds and his 401ks, so we are doing well for our age ( I am 45 and he is 52)and we both have been planning for retirement since we married 14 years ago....people must plan for this type of thing...just like making out your will, which I did 15 years ago...most people don't want to think about planning for their future, which is very sad..it will be here before you know it...

[armslee]

I have a simple IRA that I started last year through my employer. What scares me most is if I come to the point that I cannot work full time anymore. YES, I have Long Term Disability coverage and I suppose at some point SS would kick in. But it certainly wouldn't be what we live on now.
And we don't live extravagantly. We just make it by each month.

[Sarojini]

Well, let's see... as a postdoc, I am not eligible for a 401(k), which annoys me. We do all the work, yet the NIH and many institutions are too cheap to do this for us.

However, when I was in grad school, UCLA actually put small amounts of money into a 403(b) plan for me, so I left with about $4000...not much. I then transferred that money into an IRA with a mutual fund company, so I contribute bits and pieces to it and it has made money and is pretty safe. *IF* I were to become faculty, then I would get the 401(k), so we're hoping... we're hoping...

Hubby on the other hand has an employer-matched 401(k), which is good for him.

My husband and I also throw money into other mutual funds each month (ones that aren't IRAs) and we are being very diligent about it because we are both concerned about retiring. The rest of the money is tied up in the house, etc.

Assuming we don't get divorced it should be okay ;). Basically, when we figure out how much we need to retire, we do NOT add in government funds and are trying to build the nest egg on our own -- we are unsure what the future holds for Social Security, etc -- but we do add in my healthcare costs.

Jill -- all of our investments are at Vanguard :) It's an excellent company, very helpful, and the funds perform well. Last year, for instance, my IRA had a 25.1% return!

I am very glad I have no student loans or other major debt (other than the house...but that's "good" debt). All in all, I believe I am ahead of the curve for someone who's 32 years old.

:)

[mary124]

I have been working with the State for 20 years, but still, with me being ill, and now my husband health is not all that good. I have my 401K, but that all went downhill with 9/11, it is coming back up slowly but surely and I have my retirement that that state provides, plus we'll have our Social Security. I have 6 more years before I can retire (I'll be 52 years old then) but I will be too young too retire so what will I do? Who will hire someone that is sick (besides IC, I have a host of other illnesses). Guess, I will probably stay on with the State. (I like my job- ) I have pretty good health insurance, so thats a plus, and I will have that when I do retire.
We have a savings account, but that goes up and down, just depending on our income, (my husband is self-employed).
My father told me to save my money,he ( my father's) job took him to Saudi Arabia for 7 years, and they were able to sock it away, paid their house off, cars, etc. Now they just have their monthly bills, and some savings.

[HB]

I am trying to save as much as I can now while I am able to work - the prospect of being NOT able to work scares me very much. I'm doing very well with my IC at the moment, but whenever I do have a flare that lasts a week or more, fears about not being able to work haunt me.

Frankly, I'm a bit obsessed with saving for retirement - I feel very lucky to be a Federal employee where they encourage you to save from the start. I probably would not have saved as much without the encouragement of matching funds from my employer.

We can put aside a portion of our salary (pre-tax) AND get matching funds (up to 5% of our salary) from Uncle Sam. We get to choose from several different mutual funds where our money can be invested it's basically a 401K type plan.

I also have 2 IRA's one traditional and one Roth. I do not own any stocks - I figure the option to save pre-tax dollars into a retirement account is a better deal for me.


I hope that I can keep my job long enough to actually retire from it - I'm about 1/2 way there. However, I could probably work from home if I really had to ... I feel VERY lucky to have my job.

[Janie Miranda]

One thing my father did and I learned from him was to live below the income we make. My dad made a decent income from a military retirement and then later from working at a big chemical plant. He made enough money that he could have bought a much bigger home and had a new car any time he wanted it. Instead he bought a small but comfortable home and always kept a car for 10 years before he bought a new one. When he passed away last summer he left my mom enough money that she will be comfortable for the rest of her life.

My husband and I basically try to do the same thing and our retirement savings is growing steadily. Our biggest concern is still health care because our insurance from the military retirement is good in some ways but the big problem is finding a doctor who will take it. It is actually great insurance if you have just routine health issues but if you get anything out of the ordinary like IC, good luck trying to find a specialist who will take TriCare. In fact there is a standing joke about it - people call it "TryToGetCare". Health Care is definitely a big concern for a lot of people.

[tigger_gal]

yikes... what a topic... I have not savins or ira's.. nothing saved.... hubby has a prfit sharing plan at work, but it wouldn't get us thru 3 years.... my ssd barely pays the utilities.. thanks for the food for thought.

[patricia1]

I am like Tiger have nothing saved. Me on SSD and hubby is a mechanic and a small garage that has nothing like that. He does not even have medical insurance....It is so scary to think about the future, but what really bothers me is should he get hurt on the job then what. My SSD would not cover anything hardly at all.

It is sad my Dad has 2 retirement (one from 30+yrs in military and he also retired from the Parish Road Dept, he was a mechanic to) plus he and my mom now get SSI due to their age and at times they struggle. He also is a bagger out at the base commisary. He is 72 yrs old and still goes. Although the Heart Bypass in November slowed him down as soon as he could he went back to work. He makes really good money out there, works on tips alone and he is making more there than when he was working min. wage jobs...Although I worry now about him, because after surgery he is just not his self anymore. Forgetful, falls alot. He came to visit 2 weeks ago had both hands full and try to go up my stairs outside, lost his footing on the top one and fell backwards. He had a sweatshirt on, but still tore his arm up. Mom had to take him to the quick care and they had to glue his skin back on...Gross I know, but I am worried about Alzih. disease now. I have read that sometimes Heart Bypass surgery can bring on that disease in patient who have the gene for it. Financial I dont know what they would do should something happened to him. Lucky their mobile home and one vehicle is paid for.....Dog eat Dog world isnt it.

[icnmgrjill]

I'm obsessing too. It's really scary especially if you're single. Luckily, I will have a home as long as I can pay the bills, etc. It's just scary.... frickin scary!

Jill :/

[Briza]

Yes...starting to get worried so just started a Roth IRA. I just turned 38...my dad RETIRED at 38. He has always lived well below his means. I will have teacher retirement but the thought of having to teach for 20 more years is scary. Don't get me wrong, I do like my job, but don't know if I can make it that long! I also get scared when a flare sets in. I haven't bought disability insurance yet...it's expensive! but probably something I should do just in case...

[VickiB]

What worries most about the future is that my kids are going to see 60% or more of their income go to taxes to pay for those who are planning to depend on social security for their retirement years. I suppose that sounds awful of me, but I see it coming. They say their generation will be the first to not "do as well" as the generations before them, and I find that very sad.

We've always lived well below our means, and I would venture to say many might look and say I was relatively 'poor'. I have never had a new (or even "Newer" car), though we could easily afford it. I have always saved, and keep a savings account, money market, Roth IRA, Traditional IRA, Simple IRA, and buy a CD on the 15th of every month.

Vicki

[icnmgrjill]

I keep a savings/MM account for me with enough to live on for a year in ready cash. I also have a money market for the business to keep us going if something happened.

Living in earthquake country, I've also invested a sizable chunk of change if I were to need to care for my parents after an earthquake... including water purifiers, chlorine, stashes of foods for us & our pets, soups, propane heating set, medical kits (even a a minor surgical kit), blankets, extra clothing, socks, heating pads, cash, ... etc. etc. to help manage an emergency. Having been through some big ones, I can only imagine how devastating it would be if the really big one hits. They estimate that we could have a 9.0 right here in the Valley that I live in. That reminds me.. the one thing that I don't have is a tent and sleeping bags ... oh and I need to get a sparkless wrench to keep near the gas meter in case we haven't turned it on.

In a weird, unexpected way, I'm also the owner of a cemetary plot... We almost lost my dad in 2001 and my mother and he decided that they needed to make their arrangements just in case we lost him during heart surgery. I went with her (that's a whole nother hysterical story in itself... I mean, honestly, did they really think we were going to buy the pink grave liner. Sheesh! It's concrete for gods sake)... and realized that I want my marker near my parents. So, I bought the plot next to them for my brother and I. He, though, thought it was pretty creepy when his sister called and said "So, Jack, you want to be buried next to mom and dad??" I don't think he expected that one... but it's good to have it arranged.

Jill

[ICNDonna]

There are a lot of people like husband Terry and me. We have enough to make it and carry really good health insurance, but God help us if either of us ever needs extended care --- it would wipe out our savings in a flash.

Donna

[Julie B]

You and I are about the same age, Jill, but even though I am married, it still is scary. We lost about 80% of our 401k money after 9/11 (still a heated argument now and then because I am more conservative and we wouldn't have lost so much....I know, nothing you can do about it now) but we are just caught up now to where we were then. We also live in Michigan where the economy is tumbling fast around the auto industry. The uncertainty is now, really........

[stacey79]

It is scary. My hubby has a 401(k) through his employer that we are slowly squirreling away money in. We have some time until retirment. He's 28 and I'm 26, but I know now is the time to start. I don't have any sort of retirement plan because I'm self-employed. I do have an accountant, though, and hope to make enough within the next couple of years to start my own retirement savings with a Roth IRA or something.

My brother is four years older than I am and is obsessed with savings for the future. He has plenty of advice, but one of our problems is that by the time we pay all the medical extras, there's not a ton left for savings. We're not living above our means at all. But, additional medical is a pain in the hindend.

THis year, we've started utilizing my husband's Flex SPending Account through his employer for medical expenses. That helps a smidge, but we have had a lot of extras thus far in 2006 with my husband's two-month long battle with a kidney stone that even resulted in two nights in the hospital and four trips to the ER. Don't get me wrong, we do have health insurance that is pretty decent, it just all adds up. But, I am thankful for that health insurance. I know many people don't have any.

As a sidenote, I have a lot of information about Health Savings Accounts if anyone is interested. They are great for investments, but they aren't as great if you have too many medical expenses. YOu have to have a high-deductible health insurance plan in order to open a HSA, but if you already have such a plan, it's good to help grow your money and be able to have that money there for medical expenses.