vision-master wrote:or become disabled, unable to work and whatever savings you have
Covered by a guaranteed renewable non-cancellable to-65 disability policy from a AAA-rated mutual on 83% of my income with an inflation rider. I pay a premium for an organization known for treating policyholders fairly and running an extremely conservative book that mostly stays invested in precious metals, cash, and midwestern farmland.
It's the responsible thing to do; if you don't have disability insurance, I know a good agent who hooked me up for $10/year per $1000/year of coverage. If you do ARDII, coverage stays cheap to about age 40 when you should have enough to retire, anyways.
could be spent on medical treament. You could become a ward-of the-state?
Covered by a health insurance policy with extension privileges on it. I pay a premium for a PPO with no required referrals, but again, it's the responsible thing to do.
1.) Work like crazy.
2.) Save 30% of your tax-adjusted income.
3.) Don't have kids until you own your home outright.
4.) Cover your bases on the insurance front. Everyone under 40-45 needs non-cancellable guaranteed renewable disability to age 65; everyone with kids or a non-working spouse needs term life; everyone over 55 should have an inflation-adjusted lifetime/survivor annuity as part of their retirement portfolio. And going through a conservatively financed mutual is worth the premium.
Yes. Anything can happen. I can get run over by a crazed New York cabbie tomorrow. The government can go bankrupt and millions can lose their SSDI. Life carries risks that cannot be hedged, and that is what makes it so interesting.
What is clear is that the current entitlement system where the government takes responsibility for people from cradle to grave is unsustainable.