Agreed!Lafder wrote: ↑Mon Jan 13, 2020 10:13 amExpenses 2000/month, SSDI 2000/month, plus extra income more than 100% of this for now, with implication of more to come, plus savings.
His financial situation is quite good!
He has some savings. I would suggest saving every bit of what he can for future emergencies.
I would not suggest the expense of a move or buying an older less reliable car.
If he can get expenses to 1800-1900/month, he can save the extra and build an extra buffer even once workman's comp ends.
He can also ask family for help if needed if his savings run out.
Although it did look to me like the expenses were $2,000 plus medical expenses. We don't know how much the medical expenses are. So:
SSDI income - Total expenses = $2,000 - ($2,000 + medical expenses) = a negative number. But the exact figures don't change the advice above, which is very good.
Current (Temporary) Workman's Comp income = $3,500. Some of this will have to cover medical expenses plus any necessities inadvertently not accounted for in the $2,000 a month expense figure. The rest needs to go to savings. Keep it in a separate account (plain savings account is fine for this at least for now) so it doesn't get mixed in with the spending account.
Leave the $20,000 alone. Leave the $10,000 in the 401k alone except be sure it is invested reasonably conservatively.
Right now Uncle cannot afford to take risk. And he needs to build up savings. He also should not be making changes such as in living situation or in vehicle at this time and maybe never.
He should keep doing the above as long as his financial situation is subject to significant change one way or another. Should there become clarity as to what is financial situation is going to be, or should his financial situation change significantly one way or another, the answers to any financial questions could be different.