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60 and looking to FIRE sooner rather than later!
Old 04-08-2013, 07:07 PM   #1
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60 and looking to FIRE sooner rather than later!

turning 60 next month. Want to be in OMY mode but time will tell if that works out. DW "retired" 5 years ago this June when we downsized from the big family house to our modest ranch style home. Third and last daughter graduated from college last May so we have been working on maximizing our savings since then. Anxious to find out how the 2014 HI costs will work out.
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Old 04-08-2013, 07:29 PM   #2
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turning 60 next month. Want to be in OMY mode but time will tell if that works out. DW "retired" 5 years ago this June when we downsized from the big family house to our modest ranch style home. Third and last daughter graduated from college last May so we have been working on maximizing our savings since then. Anxious to find out how the 2014 HI costs will work out.
what your looking at is insurance until 65.

i live in mass and we have had exchange insurance available since 2006. i just turned 62 and bought a policy on the connector.

i pay full rates.

getting subsidized rates should not be your prime reason to retire. although you can save some money that should not be the main reason to.

now if the issue is currently uninsurabilty because of health that is a differnt issue.
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Old 04-08-2013, 07:48 PM   #3
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What I am looking at is this - if i were to retire this year the cost for high deductible HI for the 2 of us would be approx. $800 per mo. Retiring next year using an exchange and the subsidy credit would reduce that cost to about $400 per month. For a lot of people that $400 per mo. difference would be a drop in the bucket but that amt. can make the difference between living off our investments only and not starting my annuity and letting it continue to grow by 6% a year until I am 70.
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Old 04-08-2013, 07:58 PM   #4
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What I am looking at is this - if i were to retire this year the cost for high deductible HI for the 2 of us would be approx. $800 per mo. Retiring next year using an exchange and the subsidy credit would reduce that cost to about $400 per month. For a lot of people that $400 per mo. difference would be a drop in the bucket but that amt. can make the difference between living off our investments only and not starting my annuity and letting it continue to grow by 6% a year until I am 70.
Uh...if you retired at the end of this month you'd have to pay that added $400/mo for 8 months. If $3,200 in one-time expense is too large a hit to your budget, I question whether you are really in financial shape to pull the plug any time in the near future.
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Old 04-08-2013, 08:19 PM   #5
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I have no plans to retire for at least 1 more year. I was only using that example as to why I was waiting to see what the exchanges might mean to us. All of my scenarios allow for retirement next year but an extra $400 a month is like getting a new car. To each his own but we watch each dollar carefully and just because we have it doesn't mean we want to spend it.
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Old 04-08-2013, 08:35 PM   #6
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I have no plans to retire for at least 1 more year. I was only using that example as to why I was waiting to see what the exchanges might mean to us. All of my scenarios allow for retirement next year but an extra $400 a month is like getting a new car. To each his own but we watch each dollar carefully and just because we have it doesn't mean we want to spend it.
Gotcha.

The purpose of my post wasn't to be critical, it was "have you looked at it from this perspective?" in direct response to the title of your thread: "retire sooner rather than later". Sometimes we can get so hung up in our own underwear we don't think we can walk, much less run to the FIRE exit.
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Old 04-08-2013, 09:03 PM   #7
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Thanks for the insight. I would pull the trigger sooner if I knew that health care could be budgeted like most other monthly costs. Unfortunately, that has not been the case yet. We only use insurance for medical providers and testing not prescription costs yet every insurer wants to know what medications we are on so they can use their actuarial skills to hit us with a surcharged rate quote.
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Old 04-08-2013, 09:09 PM   #8
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Thanks for the insight. I would pull the trigger sooner if I knew that health care could be budgeted like most other monthly costs. Unfortunately, that has not been the case yet. We only use insurance for medical providers and testing not prescription costs yet every insurer wants to know what medications we are on so they can use their actuarial skills to hit us with a surcharged rate quote.

you get no questions about health at an exchange. in massachusettes which already has an exchange i had no health questions. i only had to provide proof of address. ,
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Old 04-08-2013, 09:13 PM   #9
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Thanks for the insight. I would pull the trigger sooner if I knew that health care could be budgeted like most other monthly costs. Unfortunately, that has not been the case yet. We only use insurance for medical providers and testing not prescription costs yet every insurer wants to know what medications we are on so they can use their actuarial skills to hit us with a surcharged rate quote.
You can budget health care insurance and total out of pocket costs beginning next January. Two calculators, Berkeley (here) and KFF (here) will give you an idea of what you can expect to pay.
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Old 04-08-2013, 11:12 PM   #10
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Here's to hoping none of the children boomerang.
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Old 04-08-2013, 11:53 PM   #11
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so by not taking withdrawls from any tax deferred savings or annuities, you may qualify for a subsidy?
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Old 04-09-2013, 02:16 AM   #12
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Welcome to the forum, wmc1000.
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Old 04-09-2013, 03:05 PM   #13
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Thanks everybody! Keegs, yes as long as your MAGI is under 400% of FPL - Has been stated that it is about $60,000 for a couple
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