For those that actually grind it out making a career out of trading, how do you guys manage the necessities like insurance? Everyone talks about quitting their day jobs looking for the ultimate freedom, but the benefits from that day job like health insurance and life insurance are always overlooked. You mean to tell me that most of you in these forums can actually afford to pay full insurance premiums out of your own pockets or from profits?? I'm still single and already worried about these costs... more so if I had a family.
Health insurance is a real thorn in the side of all that are self employed, not just professional traders. If it were tax deductable from the top it would help a lot. In my experience, what many do is get catastrophe health insurance, and only get "pay/save as you go" health insurance for the little things that come up during the year like physicals etc. There is no good answer to it and I will tell you that it is a non-trivial expense. It is no wonder that in some ways it is the reason trading is a young mans game (since young people rarely have health issues,) more and more so for this reason alone. nitro
health insurance is a major expense... married with family my group is 1200.00 a month... how's that for a gift on the first of the month
If things like health insurance has you worried *before* you even get into trading, then forget about it, because there's a LOT of other things more important like actually making money *first*.
well you could always move to a cool country where you dont get stiffed for this every month (or have a wanker for president), and good health care is free for all like n europe failing that - why not make a solution. how about inventing healthcare options?? you buy the calls if you think youre gunna be sick (the strike depends on how bad its gunna be - OTM for death, ITM for flu). if you end the month fine, sell them to some sicko just b4 expiry - just out side a tobacco shop. you could also buy puts if youre some health freak, and sell them if you get an accident!! am i a genius or am i genius??? (just make sure youre not delta neutral cos that will kind of negate the gig.)
The best is when your spouses job offers these benefits. We pay $100 total a month (PPO) for the two of us together and have full coverage: $5 scipts, $10 office visits, and $50 emergency visits. Also zero deductible.
Of course the bankroll first. I made sure I finished college first and have been working for the past 3 years trying to make sure I have a solid foundation to begin with. Being a position/swing trader, this allowed me to have a day job without watching every single tick. But even if I was a millionaire, I'd still worry about the costs of insurance
The medical coverage is a bit easier to take when one is Canadian, which I am. But it all balances out. The govt. runs the liquor store and the prices are about as unreasonable as medical coverage in the US. My $.02 (if it's even worth that much).... Have a plan and stick to it so that unnecessary worrying can be eliminated as you trade.
Until recently I had an excellent group health PPO for my s-corp through my local Blue Cross affiliate in Philadelphia. I made my wife an officer of the company so we would have a qualifying group (i.e., two or more members -- she did work for the company anyway, but I simply formalized her role). The medical and prescription coverage on this plan was outstanding (no dental or disability). I had myself and our daughter on my policy, and my wife had an individual policy. The monthly premium for the individual plan was $315.48, and the parent and children plan premium was $548.54 (these premiums were after an increase on 1 June 2005). The cost of my wife's premium was fully deductible to my business and my premiums were deductible as an adjustment to income on my 1040, provided I didn't deduct more than I paid myself in wages (usually not an issue). I have a separate, individual long-term disability policy to provide $6500/month in income replacement with a 90-day wait for which I pay $250/month (I can't recall who writes that policy -- Berkshire perhaps). If you're single, the only challenge (apart from being profitable) is finding a second person to round out your group. You need to be able to make a "reasonable" claim that this person works for your business (I don't think corporate officers necessarily need to be paid, but you could also have the person on 100 percent commission with unattainable goals). A big plus for you is your relatively young age, since many group policies have begun pricing policies based on the demographics of the group, rather than broad demographics related to geographic area. I recently gave up my own business to work for a big corporation, and the health and prescription benefits I now receive are no better than my Blue Cross policy. Good luck.
One suggestion is that considering you are young you might look into term life insurance. ie 10-20yr. it will cost you a few dollars a year and provide you with coverage. I also do this with my business partners as each partner has their responsibilities to maintain. I am not sure where you live so medical insurance is an item I can not help you with other than I understand that credit cards have the abiltiy to have insurance outside of travel. Also the life insurance company may be able to assist if you take out a premium with them good luck