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Information about all aspects of finances affected by a serious health condition. Includes income sources such as work, investments, and private and government disability programs, and expenses such as medical bills, and how to deal with financial problems.
Information about all aspects of health care from choosing a doctor and treatment, staying safe in a hospital, to end of life care. Includes how to obtain, choose and maximize health insurance policies.
Answers to your practical questions such as how to travel safely despite your health condition, how to avoid getting infected by a pet, and what to say or not say to an insurance company.

Summary

If you are self employed and have a history of a serious health condition, what to about finances in general dependso n whether you have a positive cash flow or not.

  • If you have a positive cash flow, click here.
  • If you do not have a positive cash flow at this point, click here.

Whatever your situation, there may be financial assistance available to help pay medical bills. Contact your local and national disease specific non-profit organization. Help may even be available for expense you would otherwise have to incur such as getting to and from doctors' appointments.

NOTE: If you have health insurance, including Medicare, you can deduct your premiums - even if you have Medicare Part B premiums are subtracted from your Social Security checks. 

To Learn More

If You Have A Positive Cash Flow

Emergency+Fund.

Everyone should aim to have money available to carry through at least a few months with no income. When thinking about how much money you would need each month, keep in mind possible medical expenses.  We call the fund an Emergency+Fund.

Consider topping up your fund even if it means holding off paying non-essential creditors until you have a sufficient fund. You may be subjected to additional interest payments, but you'll have the peace of mind of knowing you'll have money available for critical immediate needs if required.

Retirement Plans

Once your Fund is in place, it is advisable to add as much money as you can spare to the maximum permitted into your retirement accounts. Saving tax dollars is the same as earning extra money. You may be able to withdraw money or borrow it if necessary. If you become disabled, withdrawals are generally without penalty. In addition, money in a retirement account is protected from creditors.

If you have a choice of accounts, consider:

  • Which accounts are easier to withdraw money from or borrow against in case of unexpected expense. Pay particular attention to when you can do these things as well as the costs you'll pay, such as penalties.
  • Which accounts are earning you the most money.

Look at our information on how to deal with a financial crunch even if you aren't experiencing one. It may indicate changes to make in your current situation. For example, if you're going to borrow money from a bank, consider borrowing a small amount now which you can quickly and easily pay back. It sets up your credit with the lender. You don't have to tell a bank or other commercial lender about your health condition. If you raise the issue, the lender can't use it as part of a lending decision, but why raise the issue? It's difficult to prove discrimination - and the last thing you need is a lawsuit to try. Maybe your accountant and/or other financial advisor have suggestions.

If you still have money left, open new accounts to the maximum permitted by the tax laws. Speak with your accountant or financial planner for advice relating to your particular situaiton. Retirement accounts available to self-employed individuals include:

  • SEP (also known as SEP-IRA) - Simplified Employee Pension
  • Keogh
  • Solo 401K
  • Roth IRA
  • IRAs,including 

If you need help with these decisions, speak with a financial planner, your accountant or lawyer.

Credit

Do what you can to increase credit limits to the maximum now. Your health condition could lead to an unstable cash flow situation. It can become totally unpredictable. Credit can provide cash needed for medical bills. Credit is likely to dry up if you become disabled.In any event, increase your credit limits to the max. (To learn about credit, and its' value, click here.) 

If You Do Not Have A Positive Cash Flow

  • Create a budget to get a fix on where you are today and what you can expect. Include additional expenses related to your health condition - as well as the possibility of decreased income for the same reason.
  • Do what you still can to increase your credit limits. You may need the cash to help get you through a rough patch. (To learn about credit, and its' value, click here.)
  • Create a game plan. To learn more about how to do this, see: How To Deal With A Financial Crunch or Crisis