From: "Elle" 
Newsgroups: misc.invest.financial-plan
Subject: Re: I'm 26, have cash, and don't know what to do with it!
Date: Thu, 24 May 2007 04:03:21 -0500
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	=MO7M

 wrote
> I may have to provide health insurance for myself, it 
> could range from
> as low as $80/month if I qualify for Cobra,

Such a low monthly fee via COBRA would surprise me, 
especially if your employer is a Fortune 500 Co.

If you had non-catastrophic healt insurance with your 
employer, I expect the cost to be over, and maybe well over, 
$150/month, assuming excellent health at present.

Remember COBRA coverage lasts a few years at most, 
depending. The following site is helpful: 
http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.html

> to a max of $400/month if
> I have to buy my own policy.

I suggest getting a feel for the pricing of catastrophic 
health ins plans using
https://www.ehealthinsurance.com/

One bad accident, say just a badly broken arm, and you 
should expect your premiums to skyrocket. With the 20% copay 
typical of catastrophic plans, a really bad accident or 
cancer or yada will wipe you out.

(I think the U.S. will extend Medicare to all ages within 
ten years, but until then, most of us, insured or not, are 
walking on eggshells.)

> I also dream of buying a small home in another
> country where the cost of living is far lower and where I 
> can live a
> simple life without working.

Move to a country with socialized medicine.

Car? Gas? Clothes? (Do women go for men living as cheaply as 
you? Does this matter to you?) Figure at least another $350 
for food each month. Add $150/month for cheap-o cata health 
insurance. Figure $1400/month for living expenses, or about 
$17k/year, best case. You need $340,000 to yield $17k a year 
at 5% interest. You do not have it. (Do not be foolish and 
dip into your retirement plans.)

You could invest in stocks and gamble. Otherwise, inflation 
will ravage your plan, then health care costs will bankrupt 
you.

You want to be self-employed in what?

If you take the trip, you're coming home to living off 
principal. You're really rolling the dice.

Have you asked your employer if you can take a one-year 
leave of absence?