Personal finance writer Jonathan Clements was known among readers, friends and family for the sound financial advice in his weekly column for The Wall Street Journal. He followed his own advice, saving diligently to retire early, write books and launch a personal finance website. The same discipline extended to his health—Clements rode his bicycle or went for a run nearly every day.
But Clements received a life-altering diagnosis at age 61. He had cancer and it had spread throughout his body. The doctor’s prognosis wasn’t good, even though his body responded well to treatment. In Clements's recent article for AARP, “19 Ways My Cancer Diagnosis Transformed My Finances and Mindset,” we learn what steps he’s taken since his diagnosis.
Clements isn’t retiring. He is doing what he’s been doing for years: waking up, having coffee, exercising, writing, taking an afternoon walk and doing the things that bring him enjoyment every day.
He has no regrets about leading a frugal life. He says avoiding financial worries throughout this adult life was worth being careful about money.
Despite his diagnosis, he continues to live frugally. He and his partner of many years married, so she would be able to qualify for Social Security benefits. They’ve taken a few special trips, but he’s still not buying first-class tickets.
Never a big shopper, he continues to limit his purchases to what he needs.
Gifting is now a priority. He isn’t spending because, in part, he wants to leave a healthy sum to his wife and his children. He’s also funded 529 College Savings Plans for his grandsons.
His investment strategy has changed from a conservative approach to preserving assets to an aggressive stance because he’s investing not for his retirement but for his heirs. Their time horizon is longer than his, so he’s now keeping 80% or more in stock-index funds.
Clements isn’t worried about long-term care costs, which type of Medicare to choose, or minimizing his retirement tax bill. His main priority is making sure everything is for heirs.
While Clements turned 62 in early 2025, he still hasn’t applied for Social Security. His goal is to ensure his wife’s ability to take survivor’s benefits when he dies and for those benefits to be as high as possible. When she turns 70, she will swap to a benefit based on her own earnings.
He realized his paperwork wasn’t as orderly as he thought. He has shredded old tax returns and investment statements and removed unnecessary paper documents. He’s also found that even after thirteen years of downsizing, there’s more stuff to eliminate.
He also thought his finances were simple. However, he’s simplified them even more. Four credit cards became two and a Roth 401(k) has been folded into his Roth IRA. He’s liquidated a small inherited IRA.
Shortly after his diagnosis, he sat down with his wife and children to review his estate plan. He realized they didn’t know the difference between a Roth IRA and a traditional IRA. The whole “step-up-in-cost-basis” concept was a mystery to them. After a lifetime of writing on personal finance, what was second nature to Clements was unfamiliar to his children. They continue talking about his estate plan and finances, so everyone understands his intentions and the assets.
If you’ve received a serious diagnosis, taking care of your loved ones is likely your priority as well. The steps taken by Clements may be helpful. Include a review and discussion of your estate planning documents with your family and keep your estate planning attorney up to date so you can focus on your priorities.
Reference: AARP (Jan. 16, 2025) “19 Ways My Cancer Diagnosis Transformed My Finances and Mindset”