Health issues and investment strategies....

[Breelander]

It's that time of year again when I start preparing the first draft of my Christmas monologue. One of the first things it must include this year is a tribute to the late and much missed Gengulphus.

And there comes my dilemma. A natural follow on from that would be to mention my own intimations of mortality. In February I was diagnosed with prostate cancer. Apart from putting a complete downer on what should be (or at least, is is intended to be) an entertaining read for the holiday season, it would also generate a lots of OT posts. So this post is by way of getting that out of the way with now, in advance.

Don't worry, with chemo and radio therapy I should be around for many more years to come. I also note, having searched these boards, that I'm not alone in this. At least one other stalwart of these boards seems to have been through this.

So finally, to drag this post kicking and screaming into some semblance of being on-topic for this board, I was wondering if others with similar life-changing issues have found that it changed their investment strategy in any way?

For my part I can't say that it has, not the investment side of it any way. Spending the income has though. My portfolio has build up a cash float during the covid lockdown years that's probably enough to cover two years of normal expenses. I'm feeling much more inlined to spend some of that now on 'bucket list' items...

[Dod101]

That is the (un)usual thought provoking post from Bree. I certainly have a prostate problem which I hope is not cancerous, and I understand the theme, because whether or not you have a cancer problem or not as we get older the same concerns apply.

No. The answer from me is that I carry on as always. I genuinely do not see why I would not do so

Dod

[TUK020]

Breelander,
Hope you are managing with chemo/radio therapy, and you are not suffering from it too much.

I had a brush with mortality spring 2019, and nearly didn't make it. It has not really affected my investment strategy, but did cause me to accelerate my retirement plans. I retired about 15 months ago, although I have just started a new part time job (3 weeks into being a teacher at the local tech college, which is fun but scary).

My tennis is still crap, and my canoe racing is pedestrian (if I can mix metaphors), but I am enjoying spending time on those things.

Possibly the main thing that I have spent time on in terms of my investments was in simplifying things, improving my documentation and clarifying my IHT plans. So that if/when my good lady survives me, things are easier for her to to find out what is going on and manage it.
We have updated our wills, and more importantly Lasting Power of Attorney (both Medical and Wealth).

tuk020

[richfool]

An operation on my prostate (not cancer related), resulted in a need for another operation for a stricture (narrowing), both limited my activities and caused me to rethink how I spend my time in retirement. The outcome has been that I further increased my focus on dividend yielding IT's, hopefully more hands-off than previously, and have started drawing the income for holidays.

[ReformedCharacter]

I wish you well Breelander.

Having had a few 'opportunities' to see the end approaching sooner than I might have anticipated, and with an OH somewhat younger than me, I have documented a process that will enable my OH, who has little interest in investment, to make the most of our pot. I have also begun, albeit slowly, to move more towards collective investments which should be simpler to deal with than individual company holdings.

RC

[Breelander]

Breelander,
Hope you are managing with chemo/radio therapy, and you are not suffering from it too much.

Thank you for your concern. Physically I'm as fit, well, and active as I ever was. It was only mild symptoms of an enlarged prostate that led me to ask for the PSA blood test that led to the diagnosis. Much to my surprise, the chemo hasn't adversely affected me at all, except to make my beard look a bit threadbare. I was already mostly bald, so no change up there.

Possibly the main thing that I have spent time on in terms of my investments was in simplifying things, improving my documentation and clarifying my IHT plans. So that if/when my good lady survives me, things are easier for her to to find out what is going on and manage it.
We have updated our wills, and more importantly Lasting Power of Attorney (both Medical and Wealth).

I wish you well Breelander.

Having had a few 'opportunities' to see the end approaching sooner than I might have anticipated, and with an OH somewhat younger than me, I have documented a process that will enable my OH, who has little interest in investment, to make the most of our pot. I have also begun, albeit slowly, to move more towards collective investments which should be simpler to deal with than individual company holdings.

My good lady passed away a few years back, so it's just me now. The will is up to date and my daughter is the main beneficiary. I think that two ISA trading accounts are simple enough, but I may well accelerate my plans to 'bed and ISA' my few certificated shares.

Documentation and LPA, both good suggestions I'll take on board.

[spiderbill]

Best wishes to Bree for a good recovery - and to anyone else on the board with similar issues.
While not as serious, I've had my own little wake-up call in the last year. My knees started giving problems just over a year ago and got progressively worse (as in couldn't stand up from the couch or bed, was on crutches, and lost 9½kg) until I was diagnosed with rheumatic polymialgia in March. An autoimmune problem that attacks the muscles and joints. Been on corticosteroids since then and much improved but still working on building back the muscles. Having told friends that I moved out here to Slovenia while I was still fit enough to climb the mountains it's been frustrating to barely be able to walk past the front door until a couple of months ago. Travel has been out as I was also advised that I couldn't get Covid boosters while the immunosuppressants were still high-dose.

As a result I've been re-evaluating my approach to money in general, and realising that my long-ingrained tendancy to thrift needs to be slackened off so I can enjoy my proceeds while I still can. For the last few years I've been subsidising my (remote) partner's rent so have been wary of spending too much while moving into retirement but with no other dependents I'm now splashing out a bit more. So far it's been guitars and associated stuff, but if I can get my Covis booster next month then travel can resume. House improvements will centre on comfort and warmth - new windows, insulation, and possibly solar panels. A new car is also on the horizon.

As far as investments are concerned I'm planning some simplification - the smaller shareholdings (which were mostly duds anyway) will go as soon as a suitable window appears. I'll stop agonising about middle level shares and ditch long-running disappointments like Wodafone and Marston for something more stable and settle for yields that mostly maintain my wealth rather than attempt to raise it too much. I'll dabble less and drip-feed more into IT stalwarts like FCIT and JGGI, with less yield chasing at one extreme and less growth chasing at the other - my modest excursion into growth was ill-timed anyway. A house that is rented out in Edinburgh may be sold in a year or so and swapped for one in the Netherlands so I can spend more time there with my partner when the winters here are at their worst. My two OEICs have fared a little differently during the recent downturn so I may look at whether I can swap the contents of one of them into the other and/or release some of the capital.

All in all a little more focus on forward planning has been a good thing - a pity about the cause of it but hopefully in another year I'll be fully recovered. Hope that applies to any of you with similar issues too.

cheers
Spiderbill

[Steveam]

Best wishes to all suffering from various ailments. I’ve had a difficult year with Epstein-Barr (Reactivated) Virus which caused dreadful headaches and fatigue. Having a few prostate problems I had both a PSA and an ultrasound. PSA was o but ultrasound showeaadder row the and subsequent tests have led to a diagnosis of early stage low grade bladder cancer. All seems to be under control without many side effects so I’ve just been getting on with life but it has changed my investment behaviour a little and my expenditure profile is changing quite a lot.

I’ve sold my (over large) house and am in the process of buying a flat which will be more manageable and cheaper to run.

I’ve not changed my investments/investment philosophy but I was already very laidback about the two major portfolios.

I’m planning a trip to SE Asia (I used to do this every year but haven’t been since before Covid).

The big change since the health issues is in my ease with spending - I’ve started using private medics much, much more. (When I started with serious headaches the GP process was hopeless with a three month delay to the headache clinic). Similar delays for the bladder cancer … I’m much happier with private medical care.

Best wishes,

Steve

[Arborbridge]

Bree, I trust everything will turn out well for you. I've been through all that decision making with not enough facts several years ago, so I can empathise.

I had a radical prostatectomy a couple of years ago. I can't say that has altered my investment activities at all, although the general realisation of my age and mortality is beginning to stir in my thick skull and I keep thinking dark thoughts of funerals etc., including simplifying the portfolios. The OH does understand some mechanics about the investments and knows that by and large nothing much is going to happen in a hurry so nothing radcial is necessary.
The speed with which the past 10 years have slipped past, reinforce the fact that I am in the end game and that I can only play for a while longer until the reaper calls checkmate.

The end will be cancer or a heart attack: neither prospect particular inviting. I guess I can force the choice by eating and drinking a lot more...

Arb.

Anyone who wants to DM me about the prostatectomy is welcome to do so.


Arb.

[Lootman]

As far as I am aware I am in good health, but this is an important question because at a certain age, things can go downhill quickly. My father went from being fit,active and healthy to being dead in just 2 weeks, due to an opportunistic infection. He was 75.

Insofar as I have thought about this, it is usually a thought experiment around the idea of being told that I only had a few months to live. I guess how I'd actually feel and what I'd actually do may be different than what I think would be the case. But my bet is that I would think the following:

1) I would lose a lot of my interest in investing since I see that as a long-term activity to do with the building and retaining of wealth, and there would no longer be any long-term.

2) So I would probably liquidate some holdings, particularly from tax-sheltered accounts, to reduce the risk to the portfolio. This would make sense to me since there would no longer be time for its value to recover. Avoiding a sudden loss would become more important.

3) I might be tempted to donate some specific holdings to my beneficiaries, especially since my kids have developed an interest in investing themselves. However gifts of shares to someone who is not your spouse incurs CGT as if you sold them at market price, so that might be limited in scope. Cash gifts would make more sense. And death resets the cost basis on taxable holdings.

4) My focus would probably be on making things easy for those I leave behind, basically the wife and kids. So gifts now would take assets out of the scope of probate. Likewise ensure that all accounts are held in joint names to minimise probate delays and issues.

5) One thought would be whether to liquidate my ISA, since the remaining tax benefits of that would be very small, and ISAs cannot be held in joint names.

6) Otherwise I think a general simplifying would be in order. Nobody I will leave behind shares my passion for doing this and it would be unfair to place that burden upon them. In fact I should probably do that now on the basis that you do things whilst you can rather than when it is forced upon you suddenly.

Good luck with your prognosis, and I look forward to many more years of your posts.

[88V8]

5) One thought would be whether to liquidate my ISA, since the remaining tax benefits of that would be very small, and ISAs cannot be held in joint names.

ISAs can now be inherited and need not be liquidated... although of course if one has already sucked out most of the capital there may as you say be little benefit.

...I was wondering if others with similar life-changing issues have found that it changed their investment strategy in any way?

Sorry to hear your news.

I would be thinking of how to leave things for OH who has little interest in investing as a hobby. No, make that zero interest. So as others have said it would mainly be along the lines of simplification.

It would also be nice to find a stockbroker who will automatically remit funds to one's bank a/c, which ii do not.

And if I had more than one active broker a/c, I would close all but one.

If it were just me left, I might spend more, but there is nothing material that I really really want that I can't already have, so again if it were a matter of the end game it would just be simplifying and documenting, including various log-in details.
Apart from anything else, if I'm being honest my outperformance vs just sticking the pot into a couple of funds has probably not been a worthwhile use of time, so if I suddenly had little time left then the 'hobby' would get canned, and some major simplification would be a win-win.

V8

[tjh290633]

5) One thought would be whether to liquidate my ISA, since the remaining tax benefits of that would be very small, and ISAs cannot be held in joint names.

6) Otherwise I think a general simplifying would be in order. Nobody I will leave behind shares my passion for doing this and it would be unfair to place that burden upon them. In fact I should probably do that now on the basis that you do things whilst you can rather than when it is forced upon you suddenly.

Don't forget that ISAs can be passed to a spouse after death.

A few years ago we had a topic about simplifying portfolios with advancing years. I know that one or two are moving in that direction by shifting from equities to Investment Trusts. I keep thinking about it but still have done nothing about it.

The problem I foresee is that one might shed this mortal coil suddenly, without notice, as compared with having a life threatening condition. We wrinkly people probably all have some condition or other, like diabetes or asthma, with which we coexist quite happily. Either could develop or present complications which would haasten the end, but unlikely to be a sudden demise.

I have given my children instructions about what is where and what needs to be done, plus my funeral wishes. I am not sure how competent they would be about managing my investments if they passed to them.

TJH

[Breelander]

Bree, I trust everything will turn out well for you. I've been through all that decision making with not enough facts several years ago, so I can empathise.

I had a radical prostatectomy a couple of years ago. ... The speed with which the past 10 years have slipped past, reinforce the fact that I am in the end game and that I can only play for a while longer until the reaper calls checkmate.

Thank you Arb, it was you that I referred to as the 'other stalwart of these boards' that my search had turned up. In my case it was found a little too late for a prostatectomy, it had started to spread a little. Chemo/radio therapy should keep it at bay for many years yet.

As far as I am aware I am in good health, but this is an important question because at a certain age, things can go downhill quickly. My father went from being fit,active and healthy to being dead in just 2 weeks, due to an opportunistic infection. He was 75....
Good luck with your prognosis, and I look forward to many more years of your posts.

Thank you. As far as I was aware I was in good health too. In all other respects I still am. I hadn't seen a doctor for years apart from routine flu and covid jabs. No aches or pains of old age, all my joints are supple and I'll happily walk 6 miles at a stretch. Even now my body give no indication other than it's 100% fit.

So as far as I'm concerned the question of any 'end date' is still wide open. As such I'm not going to change how I invest, though I do intend to start spending more of the income on some little luxuries

[Breelander]

..Don't forget that ISAs can be passed to a spouse after death.....
....I have given my children instructions about what is where and what needs to be done, plus my funeral wishes. I am not sure how competent they would be about managing my investments if they passed to them.

My spouse pre-deceased me some 3 or 4 years ago, so that's not an option.

My daughter is an accountant by training, but I've not been able to educate her in the art of investment (or car maintenance, come to that ).

probably for the best if I spend the inheritance - amongst other things a flight in a Spitfire is on my 'bucket list'

[scrumpyjack]

I was diagnosed with locally advanced prostate cancer in March (means it had got out of the prostate and could not be operated on) and have been having hormone therapy and lengthy radio therapy (daily for 8 weeks). That finished a month ago so I wait to see if it has worked. I have had a lot of other medical issues but, perhaps strangely, it hasn't changed my investment strategies. I have though been giving a lot more away as it does give one a new perspective and one realises more clearly that other things are far more important than money (as long as you have enough of it, I suppose!).

[Arborbridge]

My daughter is an accountant by training, but I've not been able to educate her in the art of investment (or car maintenance, come to that ).

probably for the best if I spend the inheritance - amongst other things a flight in a Spitfire is on my 'bucket list'

If you take a flight from Goodwood, let me know and I'll come and watch. As you deduced a while ago, I don't live far from there.

And BTW, I did wonder if I was the "stalwart" you referred to.

Sorry to hear they didn't catch the little bugger before it spread. I only found out because my GP ordered a PSA as a routine ages before it developed - I had never heard of PSA until they said it was a tiny bit over the normal for my age. I'm sure it's knocked on the head for you now, and as you say, one would hardly know there as anything wrong - like mine, it probably just sat there biding its time.


Arb

[Charlottesquare]

A comment on the thread, a fair number on here have discussed giving things away, do be aware that IHT reaches back re lifetime transfers so taking decent professional advice before doing anything is likely very advisable.

Irrespective of health one likely should consider portfolios as one ages, for one thing if mistakes are made there are fewer years left to let the market correct them.

Another issue is the mix between Income and Growth, my father had a fair chunk of his income reduced post 2008, when he finally let me "review" his holdings I found he held a substantial proportion in assets paying no dividends and focused for growth, my point to him was at 81 he maybe should balance more to income which he eventually, begrudgingly, did, thus easing his income issues.

Portfolios possibly ought to be periodically looked at through the prism of age, catch is as we age we perhaps are not as aware of their shortcomings, or even our own.

[Lootman]

A comment on the thread, a fair number on here have discussed giving things away, do be aware that IHT reaches back re lifetime transfers so taking decent professional advice before doing anything is likely very advisable.

Yes but it doesn't reach back for a "lifetime". Just 7 years absent a claim of reservation of benefit.

Gifts to charity or to a spouse should be fully exempt from IHT regardless. Likewise allowable small gifts and gifts from income.

[rcrumble]

Bree,

I'm in a not dissimilar situation having been diagnosed with metastatic colorectal cancer (and undergone emergency surgery) in May. Luckily I'm weathering the chemo well, so other than a bit of fatigue it hasn't changed my daily life and I'm still able to WFH my previous job - long may that state of affairs continue.

I initially considering moving to a very short term horizon for everything but then changed my mind about it. What I've done instead is involve my OH in a lot more investing decisions - she's not naturally a "spreadsheet person", so there is a learning curve, but I feel a lot better knowing she is in the picture. She turned out to be a quick learner! And our basic mentality regarding risk, what to invest in, etc. is quite aligned so that helps.

As far as my investing objectives - which were essentially FIRE - nothing has changed. If I don't get to be the beneficiary (still quite a few decades away from state pension age...), my OH will, and I want to make sure she is financially secure whatever happens to me. One change we made was to finally get a civil partnership so she doesn't get IHT-disadvantaged (not that I'm that much above the threshold, but still).

As you and others have said though, it has reduced my reluctance to spend money on everyday items and the occasional luxury quite a bit - you can't take it with you when you go, so make the best of it while you can, and go for that bucket list!

Best wishes for your future health,
RC

[Charlottesquare]

A comment on the thread, a fair number on here have discussed giving things away, do be aware that IHT reaches back re lifetime transfers so taking decent professional advice before doing anything is likely very advisable.

Yes but it doesn't reach back for a "lifetime". Just 7 years absent a claim of reservation of benefit.

Gifts to charity or to a spouse should be fully exempt from IHT regardless. Likewise allowable small gifts and gifts from income.

I never said it did reach back a lifetime. , I said be careful with lifetime transfers and I stick to that comment.