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I’VE ALWAYS ASSUMED my financial life wasn’t so different from that of others—and that made writing personal-finance articles a whole lot easier. I, too, wanted to own a home, buy the right insurance, pay for the kids’ college, and amass enough for a long and comfortable retirement.
On top of that, I wasn’t some financial minority—a highly paid executive, or a successful business owner, or the recipient of a hefty inheritance. Instead, I was like most everybody else, trying to turn an everyday paycheck into something that looked like financial success.
But suddenly, I am the oddball. I’m a 61-year-old with perhaps as little as a year to live, and that means my financial life today doesn’t look like that of anybody I know—in seven key ways.
1. I no longer need to worry about funding retirement. That money I diligently amassed over the past four decades? Almost all of it will end up with my heirs. My carefully considered plans—continuing to work at least part-time, buying a series of immediate-fixed annuities that generate lifetime income, delaying Social Security until age 70—have gone out the window.
Of course, I had no clue my life would take this turn, so it makes no sense to regret the thought and money that I poured into retirement planning. Still, it’s sobering to think that I devoted a big chunk of my life to an endeavor that’ll do me scant good.
2. It doesn’t matter how much I spend—in theory. Should I start splurging? Even before my cancer diagnosis, Elaine and I had two trips to Europe planned for later this year. Since then, we’ve nixed one and revamped the other, so the timing fits with my chemotherapy schedule.
When I made changes to our flights, the airlines dinged me for a few hundred dollars. Supposedly, I no longer need to worry about how much I spend, and yet I couldn’t help but be irked. Yes, even now, my frugality still lingers.
In addition to the European trip we kept, we’ve booked three new trips for 2024. None is cheap. But again, even at this late stage, there’s a limit to how wide I’ll open my wallet. I looked at the price of business class flights, and I just couldn’t bring myself to do it.
I’d like to add a few trips for early 2025. I enjoy the planning and I like to have things on the calendar to look forward to. But for now, caution suggests I should wait until I have a better handle on how fast my health is deteriorating.
3. My portfolio’s time horizon just got longer. I’m not a long-term investor anymore, but Elaine and my two kids are, and at this point they’re the ones I’m investing for. The upshot: I have more than 90% of my portfolio in stocks—because that’s the asset allocation that makes sense for them, given where they are in their career and what other investments they hold.
Two days after my diagnosis, I sat down with Elaine and the kids, and talked to them about my estate. One thing I emphasized to my two 30-something children: They’ll be getting their inheritance far earlier than expected—but, if they’re smart in handling the money, they’ll end up as wealthy retirees. With some three decades to retirement, the money that Hannah and Henry inherit could grow eightfold.
How did I get to eightfold? According to the rule of 72, if money grows at an after-inflation 7% a year, its real value would double after 10 years, quadruple after 20 years and be up eightfold after 30 years. To be honest, I’m not sure the stock market will fare that well. Still, using 7% made the math easy, and I’m hoping the potential growth impressed Hannah and Henry.
4. Estate planning has become my top priority. My financial focus today is on giving away money and getting my affairs in order. In recent years, I’ve been moving to simplify my finances. Yet my diagnosis has made me realize there’s still much to be done.
Indeed, if my life had come to an abrupt end, I now realize my family would have had a surprising amount of work to do to settle my affairs. Fortunately, I can now do a lot of that work for them. Make no mistake: Leaving behind a well-organized financial life is a wonderful gift to your family.
5. I can stop fretting over my retirement’s tax bill. In recent years, I’ve been focused on the hefty income-tax bills I’d face once I reached age 75 and had to start taking required minimum distributions (RMDs) from my retirement accounts. I’d also worried about the Medicare premium surcharges known as IRMAA, or income-related monthly adjustment amount, that would kick in at age 65. But thanks to my cancer diagnosis, living that long is highly unlikely.
With an eye to minimizing both RMDs and IRMAA later in retirement, I’d shrunk my traditional IRA by making large Roth conversions. A lot of number-crunching lay behind those conversions. But like my lifetime focus on retirement, all that thought devoted to future taxes now looks like a heap of wasted time. That said, there is a silver lining: Those conversions will mean a handsome inheritance for my two kids, who are my Roth’s beneficiaries.
6. Many worries of other 60-somethings are no longer my concern. I won’t need to choose between traditional Medicare and Medicare Advantage. I can forget about long-term-care costs. I don’t need to fret over how long I’ll be able to stay in my home or whether I ought to move into some form of senior housing.
These are all topics others in their 60s should be thinking about, and I’ve certainly given them a lot of thought in recent years. Indeed, I’ve paid careful attention to HumbleDollar articles on these subjects, including those by Nancy Fagan, Howard Rohleder, Lucretia Ryan and Kathy Wilhelm. Even now, my web browser’s bookmarks include those for local continuing care retirement communities (CCRCs) that Elaine and I thought we’d visit down the road. But while Elaine will need to ponder the possibility of a CCRC, senior housing disappeared from my list of concerns the moment I got my diagnosis.
7. Social Security has become a different sort of conundrum. I could claim Social Security in January, when I turn age 62. But I won’t.
Instead, my focus is on the best strategy not for me, but for Elaine. How can she get the most out of Social Security? She could claim either her own benefit or she could claim survivor benefits based on my earnings record, with the option of later swapping from one benefit to the other. It’s an intriguing situation—one I’m currently researching and which I plan to write about in the weeks ahead.
Jonathan Clements is the founder and editor of HumbleDollar. Follow him on X @ClementsMoney and on Facebook, and check out his earlier articles.
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I am 78 and have a cancer diagnosis which is being treated but I know the outcome will be a shorter life, hopefully without pain but who knows. I too have had a wonderful life, full of travel and no financial worries. My wife will not have any money concerns as I have accumulated a substantial eight figure portfolio of stocks and real estate. Our children will benefit from this as well. I am not afraid to die and know that the greatest mystery known to man will be revealed to me at death…is there a heaven? Too bad I can’t report back to earthlings about this but each must discover this on their own.
Good luck to you in your journey and I hope you continue to be a peace.
Jonathan, I’m so sorry to hear about your diagnosis. And as a fellow (former) WSJ advice columnist and reporter, I can relate to the difficulties in turning a journalist’s salary into a comfortable retirement, with something left over for your heirs.
I’m glad to see that you’re planning travel now. But I hope you won’t spend too much time worrying about the extra cost of business tickets or other splurges. Might you also consider handing over some of the tedious number-crunching and estate planning jobs to a tax and/or financial planner so you can enjoy more time with your family and friends?
You’ve been a wonderful inspiration to me and so many others over the years. No matter what the future holds, you’re leaving a legacy you can be proud of.
Please keep optimistic. You seem like a family friend after all these years. I seem to remember you had a column in The Wall Street Journal many years ago and wrote about a yellow epiphyllum plant, but I may be mistaken.
As time passed, you will adjust and see life through different lenses. Even if you are feeling like an oddball, you can let us know about your experience in managing your way when traveling. We all have to face the end of life sooner or later. Wishing you the best in your journey.
Jonathan, my husband and I have been following your columns for years. One thing we decided to do was to assign our Roth IRAs to each other as beneficiaries, rather than to our 30-something children to give the funds more time to grow after the death of one of us. If they need the money we can always just take it out of the Roth and give it to them. Just a thought on another way to deal with the ten year rule.
Don’t count yourself out too early. My uncle was given six months, and lived to walk his daughter down the aisle six years later. It wasn’t always comfortable for him, but he accomplished what he wanted to before he passed. Thanks for everything you’ve done for us.
I am so sorry to hear of your diagnosis and wish you much enjoyment and love in your remaining days. I send you and your family prayers for strength as you navigate this new reality.
Thank you for all the excellent advice and information you have provided in your Humble Dollar column. As someone who struggles to “get” all the financial mumbo jumbo required to handle my finances, you provided some easy-to-understand and common-sense information. I was always excited when I saw a new column by you was added. Sending a huge thank you for your amazing contribution to my and the world’s understanding of finance…
I hope you and your wife enjoy your travel. Just for the record, I wouldn’t spend $15,000 on a plane ticket—I would rather see my family or a favorite charity use the extra $ instead (though premium economy would be a no-brainer).
Thank you again for all your sage advice- I know your generous spirit in sharing all you have learned on your financial path, will live on in the countless people who have learned from your writings.