Author Topic: Deal with large unexpected expenses  (Read 1388 times)

kdawgud

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Deal with large unexpected expenses
« on: June 19, 2014, 06:28:00 PM »
How do Mustachian early retirees plan and/or deal with the risk of catastrophic events that aren't easily insurable?  I know most big risks can be insured against (i.e. home, car, life, health insurance), but there are still unforeseen events that can cause huge expenses.  For instance: someone becoming disabled or needing extensive medical care that isn't all covered by insurance.  Or what if one of your parents or other extended family member suddenly can't care for him/herself and needs full time professional care (above and beyond what their assets can cover). 

Do you just plan to return to work if necessary or ensure there is extra buffer on the long term budget for anything unforeseen?

brewer12345

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Re: Deal with large unexpected expenses
« Reply #1 on: June 19, 2014, 07:27:49 PM »
Some risks you simply have to bear.  Extra money in your portfolio helps with most of this, but when all is said and done you pays yo money and you takes yo chances.

HSLmom

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Re: Deal with large unexpected expenses
« Reply #2 on: June 19, 2014, 07:56:13 PM »
I wouldn't mind returning to work in that kind of circumstance. Think about how much worse off you would be if you didn't have retirement income and were maxed out paying bills with your entire salary.

Prairie Stash

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Re: Deal with large unexpected expenses
« Reply #3 on: June 19, 2014, 07:57:40 PM »
How would a non-mustachian at age 65? I'll do similar; without worrying about money.

Everyone retires sometime, in the end everyone faces the same risks.