Facing a Terminal Illness: How I’m Planning My Financial Future with Just 4 Years Left

Dealing with a terminal illness is a devastating thing. And it’s important for people in that situation to prioritize their health as much as possible. But it’s also natural to have some financial questions and concerns.

In this Reddit post, we have a 57-year-old who only expects to be around for another four years. They had initially expected to work until age 67 and claim Social Security at that point. Now, they recognize that’s not realistic — and they may not even be around to claim Social Security at 62, which is the earliest age to claim retirement benefits.

They have some money in retirement accounts, but it’s not a lot. And at age 57, they’re not old enough to access an IRA or 401(k) without risking a 10% early withdrawal penalty.

They also have a small life insurance policy they can cash out. But they’re worried that increasing their income will render them ineligible for other government benefits.

It’s an extremely tough situation, to say the least. But it’s a good thing that the poster is trying to prepare.

Getting finances in order

It may be the case that the poster here is eligible for Social Security Disability Insurance (SSDI). If so, they should apply right away.

SSDI is not means tested, which means eligibility isn’t based on income. Rather, it’s based on work history and disability status.

If the poster is unable to work, they might qualify. That could make it possible to leave their life insurance policy alone, which they may want for their loved ones.

It’s also important that the poster figure out their goals for the coming years. If there are things they’ve always wanted to do, now may be the time.

It’s unclear as to what their physical condition is like right now given their illness. It may be that things like travel aren’t possible due to pain or mobility issues.

But now’s the time for the poster to think about their life goals and see if any are achievable. And it’s okay to allocate money to those goals if it’s there.

A situation where it pays to get help

The poster here is clearly dealing with a lot. But it would be a good idea for them to talk to a financial advisor as well as an estate-planning attorney.

A financial advisor can help the poster understand their options and work to ensure that they have as much income as possible during this difficult stage of their life. An advisor, as well as an estate-planning attorney, can also talk to the poster about their family’s needs.

It may be that the poster has a child they want to provide for, or a spouse they’ll be leaving behind and are worried about. That should be part of the conversation.

It’s also unclear as to whether the poster will be able to work at all in the coming years, or whether they want to. That, too, needs to be factored in.

All told, the poster has a lot to think about, so they should get help with the financial end of things. And it would also probably be wise for them to speak to a therapist who can help them cope with their news and try to make as much peace with it as possible.

Finally, the poster should let their loved ones know how they want to be supported during this time. It’s a heartbreaking situation, and being honest about their needs is crucial.

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