Preparing for my financial future with MS...any suggestions?

[Tawanda]

PLASTICS! (err...am I the only one old enough to remember Dustin Hoffman in "The Graduate"?)

There has been some amazing advice here. Since M.S. attacks during our prime earning years, and then costs us a fortune in medical expenses, I am surprised at how seldom we discuss this topic! It's important!!!!!!!!!!

[trevvian]

disability expectations

Is there a reason to believe you will be completely disabled and therefore not working?
I have had MS for 28+ years and I am still working a full time job. I think planning for the worst case scenario is good but don't anticipate that being the expected outcome.

No , I have no specific reasons to think I'll have to give up working; I'm just playing the odds. I've read lots of stats, but the one that shook me was that about 80% of PWMS are out of the workforce in 10 years.

Given my age, lack of savings, & the fact that I am single with no rich uncles, I figured I should plan based on that. I gave myself an extra five years for the DMD, optimism & sheer cussedness.

I'm hoping to get to the point in the next two years that I can live day to day on what I'd make on disability. If I save most of the rest, maybe I can do a few bucket list things, without being in the habit of living at my current income.

I know it's a crapshoot. But at least it gives the illusion of control...and keeps me from wasting $$$ on crap like fast food.

I'm glad to hear you are still working full time 28 years later. That's encouraging.

[Thinkimjob]

If you're young and you can get a public service job, say nothing about your MS until everything is signed, sealed and delivered.

I made the error of confessing (wrong word) my MS when I was just about to get a full time job as a teacher.

That was that. $80,000 a year, gone. I was only allowed to work as a "casual" (supply) after that. No sick leave, no etc etc etc. and I was healthy for a good eight years.

[Tawanda]

I know it's a crapshoot. But at least it gives the illusion of control...and keeps me from wasting $$$ on crap like fast food.

This just cracked me up! I spent $32 at the Colonel's last week and still feel guilty about it!

[trevvian]

$32 gone...

Yeah, I know right? I know fast food is a waste of money, but in context, sometimes I think to myself, "well, $32, that's like 20% of one DAY of Tecfidera. How much difference will it really make?"

So I wouldn't feel too guilty. As long as you enjoyed it. Call it a bucket list item...KFC comes in a bucket, right?

[MSW1963]

laheisey

I've been unable to find a defination for 'completely disabled'. Is it a requirement for SSDI or LTD? If so please provide a link.

It's not my intention to turn this into a confrontation, but there's always the possibility that I've missed something that you have the answers to, if so I'd like you to educate me/us.

Looking forward to you reply.

[Seasha]

I've been unable to find a defination for 'completely disabled'. Is it a requirement for SSDI or LTD? If so please provide a link.

MSW -maybe laheisey meant total disability. The SSA defines this here: http://www.ssa.gov/dibplan/dqualify4.htm And yes, it is a requirement for SSDI.

[onlyairfare]

Where are the building plans for these houses?

If you google "tiny houses" you will find a number of websites that offer blogs, newsletters and workshops on how to build a tiny house. A number of them offer building plans for sale.

I attended one such weekend workshop and thought it was great. It is actually possible to build a tiny house even if you are only an amateur or inexperienced in construction, and they can be very affordable. At the workshop I attended, there were almost one hundred people from "my neighborhood" (my state and the surrounding 2 - 3 states); we developed an email list and can help each other build our tiny houses.

I may build a tiny house and place it on the same property as my "regular house," then rent out the big house for income. And I love the concept of a supportive tiny house community - great idea!

[trevvian]

update:now what?

I said I'd give an update after the meeting with the financial planner, in case anyone was curious. Here's what I found out; I feel kind of like he lit a fire under me.

I liked the guy...he was pretty knowledgeable about the future possibilities someone with MS, since his brother has it. And he will do fee-based planning, which is what I want.

Since it was a free consultation, we didn't get into very specific advice. But he ran the numbers & said I'm not saving anywhere near enough & that my housing is way too high. If I sell my house today, I'd walk out owing about $20k. Which is a huge amount to pay back with just the difference between my mortgage & rent here. SO, he challenged me to try to aggressively cut my spending, save up $20k in the next 9 months, & put the house on the market next year.

That's insanely aggressive. I guess I was right about scaling back my standard of living, but I didn't realize how much I'd have to do that! No idea if I can, but I'm going to see. Maybe I can get a roommate for a while to help...and sell all my extraneous stuff in preparation for downsizing. Even then, I'd be saving every penny that's not food or utilities and cutting those to the bone.

Anyhow, he said he charges $750/year to do financial planning, but would do it for $500 ssice I was referred by the MS Society. It would include a budget review, asset allocation advice, and 2 meetings/year. I'm trying to decide if it's worth it. It might be, just to have someone who knows the laws, etc.

I don't know. Does this sound like a good deal?

[poppydarling]

My city government offers free financial planning for its citizens -- maybe check if that's available anywhere nearby? Or call your nearest United Way?

I'm not going for now because I'm thoroughly sick of having them say "cut back" to a person whose gross adjusted income on tax returns is about $11,000! Seriously. I have some ideas for renting some of my space on Airbnb, and I hope that eases things, but Life, you're not taking my coffee or Internet.

[poppydarling]

Where are the building plans for these houses?

Search online for "tiny houses" "small house living" and "intentional communities." There are many blogs and sites now devoted to the movement, some selling plans and even completed tiny homes.

[trevvian]

UPDATE-MS is too complicated for a financial planner

I said I'd give an update after the meeting with the financial planner, in case anyone was curious. Here's what I found out; I feel kind of like he lit a fire under me.

I liked the guy...he was pretty knowledgeable about the future possibilities someone with MS, since his brother has it. And he will do fee-based planning, which is what I want.

Since it was a free consultation, we didn't get into very specific advice. But he ran the numbers & said I'm not saving anywhere near enough & that my housing is way too high. If I sell my house today, I'd walk out owing about $20k. Which is a huge amount to pay back with just the difference between my mortgage & rent here. SO, he challenged me to try to aggressively cut my spending, save up $20k in the next 9 months, & put the house on the market next year.

That's insanely aggressive. I guess I was right about scaling back my standard of living, but I didn't realize how much I'd have to do that! No idea if I can, but I'm going to see. Maybe I can get a roommate for a while to help...and sell all my extraneous stuff in preparation for downsizing. Even then, I'd be saving every penny that's not food or utilities and cutting those to the bone.

Anyhow, he said he charges $750/year to do financial planning, but would do it for $500 ssice I was referred by the MS Society. It would include a budget review, asset allocation advice, and 2 meetings/year. I'm trying to decide if it's worth it. It might be, just to have someone who knows the laws, etc.

I don't know. Does this sound like a good deal?

Well, I finally got the money saved up to meet with the planner & gave him all my info so he could create a plan. He ran the numbers, said he had some recommendations and this is what he came back with (drumroll please):

If I do nothing different than what I am doing today, my money will run out shortly after normal retirement age. (yeah, I had kind figured that out using google)

He recommended contributing to my 401k, saving a cash reserve, keeping my disability insurance through work, and getting a Roth IRA. (I had also figured that out)

So, I've asked him to go back and run a breakeven analysis to see what I need to be saving right now (by reducing expenses) if I want to maintain a consistent standard of living.

I'll see what he comes back with, but I think I will end up having to create my own excel models, which is what I was trying to avoid. Very nice guy, very helpful, but I was hoping for a lot more details around what options I have. I have a finance degree so I could have done what he did. I was hoping for some really robust scenario analysis. Maybe I didn't make that clear. But I think more likely, it's just plain to complicated. All the calculators are linear, not designed to model income, then disability, then retirement.

Just wanted to give an update in case it was helpful to anyone else.