BETH SUFIAN
The first step toward financial planning for an adult with CF involves career planning. All too often in the past young adults with CF were not encouraged to develop a career plan due to a short life expectancy.
BY BETH SUFIAN
This month’s column will discuss special issues of financial planning for the adult with CF. The idea of financial planning for adults with CF is one that often is overlooked or not discussed. Often there is a fear that talking about the possibility of slowing down in the future may lead to the actual need to slow down. In reality, all individuals should do some sort of financial planning for the possibility of becoming unable to work. I invite readers to share their financial planning ideas with CF Roundtable readers and to send me any questions you would like to see discussed in my next column which will continue with the topic of financial planning.
First Step-Career Planning
The first step toward financial planning for an adult with CF involves career planning. All too often in the past young adults with CF were not encouraged to develop a career plan due to a short life expectancy. However, given the recent increases in life expectancy for individuals with CF, it is likely that many young adults will be able to pursue a career. Therefore, it is important to start career planning early. Many CF Care Centers are beginning to include career planning as a component of the transition of a young adult to the Adult CF Care Center. Hopefully many CF caregivers will continue to realize the importance of career planning in the overall health outcome of adults with CF.
Many adults with CF have found that career choice can impact the ability to care for oneself and to stay healthy. Some career choices can have a negative impact on health. For example, some individuals with CF, find that a job that involves a large amount of air travel can lead to health problems. Likewise, many individuals with CF have found that a fulfilling and challenging career can affect their health in a positive way. Many adults report that being able to be engaged in meaningful work each day makes them more compliant with their medical treatments and their attempts to stay healthy and therefore, be able to work at a job they enjoy doing.
While there should be no blanket exclusions of career choices for individuals with CF it is important for young adults to explore the possible adverse effects of a particular career on their health. Communication between adults with CF who have pursued certain careers can be very helpful in exploring what certain careers involve, how a career may be modified for an individual with CF or whether a certain career is appropriate given specific health limitations. Forums like CF Roundtable and CF Internet Chat Boards provide the opportunity to share information. Adults with CF also can contact the Children’s CF Care Center in their area and give them permission to provide their name, phone number or e-mail address to individuals who may want to speak with an adult with CF involved in a certain type of work activity. Adults with CF can have a positive affect on younger adults who may be considering a similar career path. Making contact by phone or e-mail eliminates any cross-infection concerns.
Career planning should take many factors into consideration. Factors such as health insurance, sick leave offered by employers, legal protection from discrimination, and the potential health effects of certain work should be explored. Legal protection from discrimination usually depends on an employer having 15 or more employees. The ability to extend health insurance benefits after an individual leaves employment will be required only if the employer employs 20 or more employees. Therefore, the size of an employer’s work force should be considered by the adult with CF who is pursuing career opportunities.
Individuals with CF have a definite need for health insurance coverage in order to obtain the medical treatment and care that can help them live a healthy life. The main way people in the United States obtain health insurance coverage is through employment. Therefore, individuals with CF should consider the availability of health insurance in a particular career or field of work when thinking about pursuing certain career opportunities.
Second Step–Realistic Financial Obligations
An important but often overlooked aspect of financial planning is the ability to assess ones financial obligations and to realistically take on financial obligations. Many individuals with CF who are married purchase houses that require the income of both spouses in order to meet the mortgage payment. There is no way to predict whether an individual with CF will be able to work for many years or whether the individual may become unable to work due to health complications. However, it may be advisable for individuals to consider the possibility of early retirement when purchasing large items such as a house or a car. If an individual must stop work and is unable to meet their financial obligations, the individual may have to consider bankruptcy as a way to alleviate their monthly financial obligations. Bankruptcy can be a difficult and expensive process in some states. Individuals who are not married and are solely responsible for their financial obligations should also keep a close eye on the amount of debt they accumulate.
Third Step–Savings
One way to avoid financial hardship in the event of early retirement is to set aside money each month in some type of savings account. In the event of early retirement most individuals with CF who receive their health insurance through their employer will have to COBRA their benefits. Under the federal law COBRA, an individual who leaves work and applies for Social Security disability benefits is able to extend their health insurance benefits for 29 months. The employee must pay the insurance premiums. Individuals who must leave work due to health concerns are often shocked to find out that they must pay the health insurance premiums in order to extend their health insurance benefits under COBRA.
It is a good idea to determine how much money it would cost to COBRA health insurance benefits for 29 months. Once the amount is determined, individuals should start saving money to be used in the future if an extension of benefits under COBRA is needed. In the event the individual must retire from work the individual will have the funds to extend and continue their heath insurance benefits for 29 months.
In addition, individuals should determine their monthly living expenses. In the book, The Nine Steps to Financial Freedom, Suze Orman suggests that all adults should make a list of all their monthly expenses. Orman points out that expenses that are paid on a yearly basis such as car insurance should be divided by 12 and counted as part of the monthly expenses. It is important to know your monthly expenses. In the event an individual becomes unable to work and applies for Social Security benefits, the individual will not receive benefits for the first five months of eligibility. The first five months is a waiting period when no benefits are paid. Therefore, it is important to save money to cover living expenses for five months. If an employer offers employees private disability insurance it is advisable to sign up for such coverage. The private disability policy will usually have a waiting period of from one to three months and will help bridge the gap until SSDI benefits begin.