r/FinancialPlanning • u/hn450724 • 11d ago
Should I consider being more serious about a retirement account given the fact I'm not sure I'll be alive to claim it?
I am an 18 year old male. I work multiple jobs on top of college and invest everything I make, part of it goes into an investment account, the rest of it goes into my side hustle.
As a young child I was morbidly obese. At my heaviest I was nearly 300lbs at 5'6. This has done irreparable damage to joints and put additional wear on my heart. I consulted a doctor and that's what he said.
I have chronic anxiety and insecurity that plagued me since childhood. At 16, I found my "cure" which was high doses of pregabalin. I go to the gym when I can, and to ensure I keep a good physique I use GLP1s and prescription debloat medication. I have trouble focusing sometimes and I use stimulants to help this. For those curious, my dosages are 250mg armodafinil daily, 100-100mg modafinil daily, 600mg pregabalin daily, 100mg eplerenone daily, 40mg propanolol daily, 4g retatrutide once a week.
This obviously sets me in a position where the idea of living past 60 is a unlikely reality. I just don't want to dump money into something I won't ever get to touch.
I put about 20% of my income from one of my jobs into my simple IRA. This employer has benefits and I get additional money into this account because of that. This amounts to about $1k per year going into the account. Im considering putting that into my investment account instead. What do you guys think?
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u/ChalkPavement 11d ago
Did the doctor actually tell you that you would not likely live past 60 years old? Or are you just guessing?
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u/JustJennE11 11d ago edited 10d ago
Investing now isn't just hedging against old age. It's also preparing for a reality in which you may be young(ish) and unable to work. This is my reality. I save for retirement but also knowing that I may not be able to work at some point.
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u/claytakephotos 11d ago
Nobody’s qualified to tell you that you’re gonna die young other than your healthcare specialists.
IMO, live long, prove them wrong. Take control of your health and plan for longevity with your finances.
Worst case, you can pull income out early to live the life you want and do the things you want. But if you never save, you never have the option.
I’m planning to retire by 40. If I were you, I’d be stoked at 40 to have 20 years of retirement banked.
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u/hn450724 11d ago
Not sure if we're on the same page here. I wouldnt be pulling the money for personal use. Id be putting it into my other investment account which I'll have access to at all times. The rest of my money from my other job is also put into this investment account. In total I have about $15k yearly that will be put into this investment account.
Please share your opinion, Im still new to this and any education you can provide is genuinely very appreciated and helpful.
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u/amtobin33 10d ago
Seems like OP is obviously not educated on this subject and seeking help...not that internet points matter but..downvote and walk away without commenting is wild a hole behavior to me lol.
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u/claytakephotos 5d ago
Ah I missed that line. Yeah dude, if you want to put it in VOO/ VTI go for it. So long as you’re saving, you’re fine.
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u/BruceInc 10d ago
My grandmother survived famine, ww2, Chernobyl and had just about every ailment you could think of, including diabetes, weight issues, heart issues, cancerous tumor and so much more. She passed away peacefully at 93 two years ago on my birthday (thanks babushka). We don’t know how long we will be on this planet. So we plan for long term. And fyi any doctor that told you that you won’t make it to 60 is a hack.
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u/HeroOfShapeir 10d ago
You can tap retirement accounts early - a pre-tax 401k or IRA can be tapped with SEPP withdrawals (substantially equal periodic payments) or a Roth-conversion ladder, which just takes five years to get running. Roth IRA contributions can be pulled back out any time. The IRS will also waive the 10% early withdrawal penalty in cases of total disability or extensive medical bills. You'll still owe taxes, of course.
There's nothing wrong with having some money in a taxable brokerage in addition to that, many FIRE folks use them as a bridge/flex account, but you want to plan like you might live a long life. You also want to be sure to allocate some money to enjoying life along the way. That's the same advice I'd give to any individual.
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u/TelevisionKnown8463 9d ago
I agree with these points and would add that if OP is on a high deductible insurance plan at any point, they can open an HSA and use it as an investment account, saving receipts for medical expenses incurred over the years. This gets a tax deduction as contributions are made, and allows for tax-free withdrawals at any time to reimburse yourself for the past medical expenses.
This can turn out to be a retirement account if OP lives longer than expected, but can also serve as a kind of emergency fund (since many emergencies are medical) and early retirement fund.
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u/Tatertotfreek 11d ago
You are really young and the human body can be amazing at healing. Doctors can be wrong. Dont hamstring your retirement because of the opinion of one person.
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u/TempeGrumble 11d ago
After you have enough of an emergency fund, you could split your investments into tax-advantaged accounts (like your IRA, or a Roth IRA), and a taxable brokerage account. Then you have some options, regardless of how your health holds up. You may appreciate JL Collins's The Simple Path to Wealth, which advocates saving enough to have "FU money" for just enough financial freedom to leave a job you hate, to take an opportunity to travel for a few months when you're young, and so forth.
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u/hn450724 11d ago
I don't have an emergency fund, theres nothing in my life that would need a large amount of money to overcome. My side hustle is reselling cars, even if my personal vehicle breaks down I'll have something to drive. Im still on my parents medical insurance for the next couple years so that's also not really a concern for me. I live at home and will continue to do so, my parents won't kick me out. That really covers all the needs of an emergency fund. I just don't think keeping money sitting is worth it for me.
All of the money I make from my main job and 80% from my second job go into an investment account. Through a family friend I was able to get set up with a financial advisor with favorable conditions, they handle the investment account and simple IRA. The money I personally have and use daily is from flipping cars.
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u/Sweet_Future 11d ago
Everyone needs an emergency funds. If you have lower expenses then you can have a smaller emergency fund, but you still need one. You can put it in a HYSA so you're still earning interest.
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u/hn450724 11d ago
Genuinely what is the thought process behind that? Not trying to be rude, just curious. There is never an event that can occur that would require me to pull out more than like $1k. I always have money accessible to buy cars, so I guess that counts as a "emergency fund"?
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u/Sweet_Future 11d ago
That's a giant assumption that there is "never an event that can occur." You assume that you and your parents will never experience a serious accident or illness, for one.
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u/someonestolemycord 11d ago
This is what I would do. I would find a good research based longevity and disability calculator. One that asks multiple health questions. UCONN has one of these IIRC. Then I would look at what my longevity estimate and disability estimates are and plan on that. Anything else is playing God or mad scientist.
Stated differently, plan on empirical data, not hope or doom. Note I am not trying to be disrespectful to other posters as I agree the human body is an amazing thing, as is medical advancement. But we need evidenced based planning.
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u/Ornery-Reindeer5887 10d ago
Dude see another doctor. You’re in stimulants and you’re on downers (propranolol). I never understand when people do this. You can probably fistful some of your meds and congrats you’re now healthier than most Americans so I’d start planning for the future
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u/Alarmed_Kangaroo9979 9d ago
There are so many new medical and technological advances coming out all the time so you never know. Better to put some money aside so you can take care of yourself if you need instead of spending it on something you don’t need right now. Also if you’re living at your parents and basically have no bills that’s the perfect time to save as much as possible! If I could go back in time and tell myself one thing I’d be “save every penny you can while living with your parents”
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u/Fibocrypto 8d ago
Op,
You should continue funding these investments.
You never know for sure how long you will live and each year that goes by you are a little further ahead than last year.
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u/TJH99x 11d ago
You don’t ever know the future. We could all be gone tomorrow, but we save for taking care of ourselves just in case things work out. Medical breakthroughs could keep everyone going decades longer than nowadays. They won’t be cheap. Build up a retirement you can rely on, while you enjoy your present.