Investments After Diagnosis: An Overview

Investing isn't easy. If it were, we'd all be millionaires and thousands of investment professionals would be out of jobs.

Investment decisions can be even more difficult because of the uncertainties that come with a diagnosis, including whether your income will be interrupted temporarily or permanently, or how much your expenses will increase - as well as the fact that the effect of your health condition can change over time.

Before making investment decisions, it is advisable to:

• Understand your health situation, what is likely to happen and what may happen.
• Understand the different types of investments that are available.
• Consider the various factors used in making investment decisions.
• Create an investment strategy that combines investments in your personal account, 401(k) and other retirement accounts - guidelines which help determine which investments are right for you. For instance, are you more interested in receiving income from your investments or in growing their value? Your strategy should take into account expenses related to your health condition and prognosis (life expectancy). Keep in mind that any projection of life expectancy is about large numbers of people and it does not predict what will happen to any particular individual.
• Review possible investments in terms of whether they fit your strategy.
• Consider making your investments through use of a mutual fund or funds.

If you keep money in cash type accounts, understand the various types of accounts (checking, savings, CDs and money market funds). Work the system to maximize the amount of interest you earn.

Reevaluate your investment strategy if you experience a change in health or in income. Even if there is no change, reevaluate your investment strategy at least once a year to be sure it reflects your individual situation..

Consider whether to engage a professional advisor to help in the investment process. If so, choose a professional carefully. Keep final say over his or her work. Be sure to disclose your health condition - and changes as they occur.

• Investment Basics
  • Characteristics Of Investments
  • Comparison Of Different Types Of Investment Vehicles
  • Mutual funds
  • Money Market Funds
• Defining Your Investment Strategy 
  • How To Define Your Investment Strategy
  • How To Maximize Interest Earned On Cash Type Investments
• Estate Planning  
• Should I Invest On My Own Or Use A Professional Advisor?
• If I Hire A Professional Investment Advisor, What Type Should I Use?  
  
• If I Hire A Professional Investment Advisor, What Should I Look For In The Brokerage Company And Particular Advisor?
  
• Sources of Investment Information
  
• What If An Advisor Mismanages My Investment Account?
  

NOTE: If you are thinking about giving to charity, consider making a donation of a stock that has appreciated in value. You get a deduction for the current value of the stock without paying tax on the appreciation since the time you bought it.

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