Unexpected Retirement
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Description/Scope
Purpose
Who This Applies to
When to Perform
Special Circumstances
Why This Is Important
General Benefits 7 Objectives
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Wednesday, December 12, 2001 06:53 AM
My story begins like a fairy tale, and with luck someday it will end happily like most
fairy tales. And true to fairy-tale form, my story contains a dark and challenging
passage. It began on an Indian summer evening in mid-September as I was feeding my
five-month-old, Taylor, in his high chair. My husband, Jim, had been suffering from a mild
sinus infection and at that particular moment was unable to pick up the teapot from the
stove. While somewhat surprised, I didn't think much of Jim's inability at the time.
Instead, I continued to feed the baby while thinking of how I could devise a quick plan
for getting my car from the repair shop, prepare our evening meal, and schedule Saturday's
chores. In short, I was involved with the usual Friday evening chaos after a full week of
work.
A neighbor came in for a quick visit. Between baby yelps, Jim told her that his legs were
tingling. My neighbor firmly suggested he go immediately to the emergency room. We did so,
and thus began our free-fall into his unplanned retirement. It was nine months before Jim
walked in our door again. I say "walked," but it was more of a heave-ho from
wheelchair to walker.
Jim had suffered a severe attack of a very rare and debilitating autoimmune disorder that
left him paralyzed from the knees down and subject to chronic fatigue for the rest of his
life. His condition shook our lives down to the very essentials of survival. Jim's life
now depended on equipment that kept his lungs pumping and his stomach filled. My family's
life depended on my working six to eight hours daily to keep the roof over our heads
coupled with another six to eight hours of daily dealing with doctors, therapists, case
workers, and Jim's daily procedures to say nothing of my research on other medications,
procedures, and alternatives -- all with a 12-pound baby companion in a sling at my side
accompanied by assorted infant paraphernalia.
The emotional havoc that Jim's disability has wrought in our lives is not the focus here.
But I would like to say, were it not for my family, my new mothers' support group, my
colleagues at work, my friends, and the folks at Taylor's daycare, then I would not have
been able to meet this challenge. I would have long ago crumbled under the enormity of the
situation. I have discovered that learning to live with a disability is a lifelong
process, and one cannot take for granted how any day or week or month might turn out.
There are good days and bad days. On all days, but especially on the bad ones, I try to
make a good space for those around me as well as myself. Usually, I succeed in doing so.
The nagging in my brain that started on that September night kept getting more persistent
and urgent. What if a bus hit me this afternoon? Who would take care of Taylor? Who would
provide for Jim if he can never work again? Could Taylor go to college if I was not
around?
Concerned about these issues, I called a lawyer. I started the revocable living trust
paperwork. Although our assets are meager, we have a family situation that warrants a
trust. I wrote a will, and I funded the trust. I also wrote a living will, and I thought
about life support. I sorted through boxes of photos and put all the better ones in albums
to create our personal legacy. I researched and purchased the largest life-insurance
policy for myself that we could afford.
I moved money from mutual funds into my own discount brokerage account. And I found the
Motley Fool and began to learn. My new mothers' support group evolved into a wonderful,
supportive and family-oriented investment club. I purged my unneeded possessions, and I
organized our house. Now I fully fund my retirement plan, and I select our new
"toys" very carefully. We go to the library every week.
That's not a huge feat in itself, and nothing that deserves any special kudos. It's just
what anyone would do under extraordinary circumstances. The Motley Fool calls it
"living below your means." And I rest easier now knowing that if that bus does
come along after I have my lunch today, then the planning I've done so far will leave my
family in reasonable shape.
Are we finished? No, not by a long shot. Jim has the huge task of figuring out how he now
fits into the world. He must determine what he can reasonably do and not do, above and
beyond being part of our little guy's growing up. In my more cynical and perhaps realistic
moments, I do not think he will ever be able to work for wages again. In my optimistic
moments, I'm content to just have him be a dad as best as he can and just leave the wage
earning to me. It's an understatement to say our transition from a two-income, one-child
family to a one-income, two-dependents family has not been easy. But we're learning, and
learning fast.
As for my remaining tasks, I still need to find disability and long-term care insurance;
develop a plan for generating the bulk of our retirement income; fund college costs for
Taylor; and still be able to save for and buy the essentials we need in the short-term. I
also need to write a book to portray the emotional upheaval that serious illness and
lasting disability can have on loved ones; that describes our firsthand triumphs over and
the tribulations of the managed-care health system; and that highlights the never-ending
joys and challenges of being a Mom despite our present situation.
We are well on our way to finding our happy ending, at least until the next unexpected
life-altering event comes along. I'm looking forward to a new job, and we are all looking
forward to our move to a new and exciting city, a larger home in a lower cost area, some
travel, and a more relaxed life.
Law (commentary and citation)
Regs (commentary and citation)
Cases (commentary and citation)
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§274(d)
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This is about Activity Based Taxplanning - maximizing deductions, minimizing cash outlay and maximizing the amount of cash retained and the net worth.
Tax is a subject that many view in order to cut costs. Taxes are a cost just as any other cost. It happens this cost is somewhat intangible and is defined by legislation without a tangible item to view and control. The money is spent and the control of the expenditure is more appropriately administered by someone trained in the law.
This is about Activity Based Costing - methods to cut costs, management accounting, management information systems, decision support systems - in general about being a manager.
From Banking Records
From Customer Records
From Signed Documents
From Your Other Business, or Financial Records
From Corporation or Organization Records (meetings, etc.)
Assistance - What to do
Forms - Checklists - Etc.
Financial Statement Presentation
Notes to Financial Statements
How to Make Entries
What Kind of Records to Keep
Bookkeeping Methods - Cash, Accrual and Other
How the Business Entity Affects the Recording
Sole Proprietor
Corporation - C & S
Partnerships - General, Limited, Limited Liability Company, Registered Limited Liability Partnership or Company
Trusts
Tax Exempt
Alerts & Dangers - Risks
Asset Protection
Your Defense
retirement_disability_intro.htm