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Anyone that lets themselves get to the point that late in life where they actually have no idea that they owe so much that they have to declare bankruptcy in order to fix their finances needs more than a budget to fix their finances. They need significant financial education. The people that don’t budget and that are still successful simply know at all times where the money is going, both inflow and outflow. I’ve never had a budget in my life. I knew when things were tight, and always had a plan, despite 2 divorces which cost a lot. It’s called LBYM. And like some here, I am in the 15% or better. All I had to know is what my means was to live below, and be sure I was investing a significant amount of my income for later. The people that need a budget the worst are also the ones most likely to never use one. We have put our 30yo son on budgets many times and plainly showed him he lives above his means. Doesn’t care. He keeps paying interest on CC debt and when he hits the point where every cent he makes goes to that, then he will have to deal on his own. He’s a fool, and you can’t change that. He’s seen by example what it takes to get ahead. A budget only helps those that want the help and need it.
Anyone that lets themselves get to the point that late in life where they actually have no idea that they owe so much that they have to declare bankruptcy in order to fix their finances needs more than a budget to fix their finances. They need significant financial education. The people that don’t budget and that are still successful simply know at all times where the money is going, both inflow and outflow. I’ve never had a budget in my life. I knew when things were tight, and always had a plan, despite 2 divorces which cost a lot. It’s called LBYM. And like some here, I am in the 15% or better. All I had to know is what my means was to live below, and be sure I was investing a significant amount of my income for later. The people that need a budget the worst are also the ones most likely to never use one. We have put our 30yo son on budgets many times and plainly showed him he lives above his means. Doesn’t care. He keeps paying interest on CC debt and when he hits the point where every cent he makes goes to that, then he will have to deal on his own. He’s a fool, and you can’t change that. He’s seen by example what it takes to get ahead. A budget only helps those that want the help and need it.
Sorry for the derail OP.
Bingo. If you’re sensible and disciplined, you most likely don’t need to budget. Those who have to set a budget are generally those who can’t control their spending. I have a whole family of them.
Now THAT is curve ball. Sorry for the diagnosis, I hope things are/were not too horrendous. A very good friend of mine found out a year ago he has metastasized colon cancer, age 56. He will be on a chemo therapy for the rest of his life. 2 weeks on, 5 weeks off. His oncologist tells him he can live 8-11 years that way. They will know more after 2 years. He is surprisingly upbeat, more than I would be. Sold his business, has been hammering out his bucket list with his wife. Making plans and not letting the diagnosis defeat him.
Update: my wife had surgery for adhesive capsulitis (frozen shoulder) two weeks ago and started PT the day after. She has regained her range of motion but now she's back to having nerve pain (she calls them zings) down her arm. She's mentioned several times that she'd rather have the frozen shoulder than the zings. Yesterday we went to the neurosurgeon for a follow up and he thinks she still be having some neck issues. They took X-rays so we're waiting on the results. Right now she's off work for at least another month and we're also waiting for her to get scheduled for implanting the stimulator in her neck. At this point I've pretty much given up that any of this is ever going to "fix" her enough to return to work. I see how she feels after just working half days. I've already started pushing her about the disability retirement. I also realized that she's eligible now for a deferred retirement.
As for me, my knee and back are both still bothering me a lot. I saw a neurosurgeon spine specialist yesterday and he determined that my hips were tilted roughly 12 degrees and that my pains was more in the SI joints than L3/4, which s where I've received most of my previous treatments. He recommended that I get some heel lifts, SI joint injections, and PT specific to the SI joints before we discuss surgical options. He also mentioned that whatever he did for my back wouldn't really fix until the knee was also fixed.
I've talked about my retirement plans in some other posts if you want more details, but here's a summary:
I'm currently 54, retired military and now working a federal job. Along with my military pension, I was planning to work and then retire again at age 62 to get a small (maybe $1,000) federal pension and delay SS as long as possible. We're also planning to sell our house and move to a lower cost of living area.
My wife has a variety of medical issues, including the auto-immune disease Sjogrens. Her issues were greatly aggravated due to a car accident in December 2016. She still has neck and shoulder issues caused by the accident. She's already had two neck surgeries and has a third procedure coming up in January. While she has seen some improvement, she is not anywhere close to be back to her normal. She's also a federal civilian. She has only worked sporadically since the accident although about a month ago she officially went back to work half time but she's usually miserable by the time she's done. Thankfully the Department of Labor has covered most of her salary through workman's compensation.
Because of her medical issues, we've always been planning for her to retire at her MRA (Minimum Retirement Age), which she reaches in December 2024. We were planning for her to delay receiving her federal pension until age 60 or 62 (to minimize the early reduction)
Now comes the curve ball. Since she's still not even close to being able to do her actual job ( she's a dental assistant) she's been working as the front desk/receptionist, but even that still bothers her a lot. Her agency has started talking about her getting a medical/disability retirement. If she doesn't start showing more improvement after the January procedure, then disability retirement is probably the right step.
Of course if she does get medically retired it will wreck havoc on our finances. As I understand things, for the first year she'll get 60% of her high 3 salary and then 40% after that. I think it would all be tax free but even so its still a significant drop in income. Her current high 3 is roughly $50,000, so that means $30,000 the first year and then only $20,000 from then on.
I'm not really asking for any advice, although if anyone has experience with federal disability retirement I'd like to hear your story. Mostly I'm just venting my frustration about how that event two years ago has completely disrupted our lives.
I’m sorry your wife’s health may force the both of you to have to change your plans and make some very hard choices. As you are aware, life doesn’t always play fair. I say that in all sincerity because I too have had a similar situation. Just know that you will find a way, just as I did. I too retired early so we could move to a location that was better for my wife’s health. It cost me plenty dollar-wise, but knowing that my wife is healthier now than she has been in the last 20 years is priceless and I’d do it again in a heartbeat.
Now THAT is curve ball. Sorry for the diagnosis, I hope things are/were not too horrendous. A very good friend of mine found out a year ago he has metastasized colon cancer, age 56. He will be on a chemo therapy for the rest of his life. 2 weeks on, 5 weeks off. His oncologist tells him he can live 8-11 years that way. They will know more after 2 years. He is surprisingly upbeat, more than I would be. Sold his business, has been hammering out his bucket list with his wife. Making plans and not letting the diagnosis defeat him.
I hope most cancer will become a chronic disease. I’ve heard terrible news about some family members this week regarding cancer. He is surprising upbeat too. So I’m hopeful.
I've talked about my retirement plans in some other posts if you want more details, but here's a summary:
I'm currently 54, retired military and now working a federal job. Along with my military pension, I was planning to work and then retire again at age 62 to get a small (maybe $1,000) federal pension and delay SS as long as possible. We're also planning to sell our house and move to a lower cost of living area.
My wife has a variety of medical issues, including the auto-immune disease Sjogrens. Her issues were greatly aggravated due to a car accident in December 2016. She still has neck and shoulder issues caused by the accident. She's already had two neck surgeries and has a third procedure coming up in January. While she has seen some improvement, she is not anywhere close to be back to her normal. She's also a federal civilian. She has only worked sporadically since the accident although about a month ago she officially went back to work half time but she's usually miserable by the time she's done. Thankfully the Department of Labor has covered most of her salary through workman's compensation.
Because of her medical issues, we've always been planning for her to retire at her MRA (Minimum Retirement Age), which she reaches in December 2024. We were planning for her to delay receiving her federal pension until age 60 or 62 (to minimize the early reduction)
Now comes the curve ball. Since she's still not even close to being able to do her actual job ( she's a dental assistant) she's been working as the front desk/receptionist, but even that still bothers her a lot. Her agency has started talking about her getting a medical/disability retirement. If she doesn't start showing more improvement after the January procedure, then disability retirement is probably the right step.
Of course if she does get medically retired it will wreck havoc on our finances. As I understand things, for the first year she'll get 60% of her high 3 salary and then 40% after that. I think it would all be tax free but even so its still a significant drop in income. Her current high 3 is roughly $50,000, so that means $30,000 the first year and then only $20,000 from then on.
I'm not really asking for any advice, although if anyone has experience with federal disability retirement I'd like to hear your story. Mostly I'm just venting my frustration about how that event two years ago has completely disrupted our lives.
Unless the car accident happened at work, why would workmans comp cover this?
To the OP
You mentioned a “deferred retirement”
Not familiar with federal employment practices
Could you explain how that possibility impacts your situation
I hope you both have good ortho doctors
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