Tuesday, July 04, 2006

monthly update pending...thoughts on it

I might be able to create my monthly update while on the road.

I have some of my financial data with me and may be able to post my end of month summary. Unfortunately, some credit card charges may not be able to make it in. I'll just have to guestimate.

May and June in general were tought months. Most significantly due to stock market declines. They were only mitigated by the end of June resurgence after the Fed raised rates to 5.25%. Oddly, my foreign holdings seemed to do better than my domestic holdings. i'm not sure about the connection.

We had enourmous expenses during the period - the kind that do not often repeat, hopefully. However, it's likely that we'll have a family medical issue that could lop off 25% of our income for a few months, maybe even 60%. It should be resolved by December.

I'm probably going to change jobs to help offset the potential loss or at least some of it.

We've saved up a bit anticipating this could happen, so we're prepared and will come out of it in good condition, however, there's always the part of you that doesn't want to spend the savings. Said differently, I like having $100k in savings, it gives me great security and comfort, I'd prefer not to spend it if possible.

Our total economic costs should be somewhere between $5,000 and $19,000 depending upon insurance coverage (medical, long term and short term disability coverages). This is an odd situation where the disability will last longer than 3 months but less than 6 months. This means we would suspend saving money, and would spend an extra $5k - $20k through the end of the year from savings.

If we do not have insurance cooperation, the costs could be much higher, perhaps as high as $62,000 if I cannot change jobs and offset some of the loss. However, I'm fairly certain I'll be able to do so and cover much of the loss. Ideally I'll be able to make up most of the lost income and continue our savings.

We'll know what will happen within a week or so.

It's times like these where you test your metal, learn the strength of your family and see how creative you can be.

Have a wonderful holiday,

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