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Hi, I am wanaberetiree from San Francisco
Old 04-26-2010, 11:13 AM   #1
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Hi, I am wanaberetiree from San Francisco

Hi all,

I am wanaberetiree from San Francisco.

I'm very glad I found this forum, as I can see that I am not the only one going crazy in desire to retire.

Here is my situation:
- I am 50, my wife is 51
- I am a full time tech manager, my wife lost her job last year and unemployed at the moment
- No mortgage on a house in SF, value ~800-900K
- Daughter is 4 years out of college and supports herself
- 1.5M in assets, 50/50 roughly in stock and bonds (including ~600K in IRAs/401-Ks), we plan/hope to have $1,300-$1,600/mo x 2 after 62.5 year old from SS; no pensions

We would like to retire in 3-4 years, but not sure if we have enough funds to support us. Iíve been keeping track of our expenses in last 3-4 years and it looks like we spend 31-36K a year (including property taxes). FIRE calc shows positive predictions, but I would like to hear from people who are in similar situation and live in comparable area (we would like to stay in SF, if we can afford it).

Another unknown is health care cost. I have no clue how to account for it. We are generally in good health, although I take blood pressure and cholesterol control pills. Does it mean we are not insurable? How much it may cost? Please comment.

Thank you all!
wanaberetiree
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Old 04-26-2010, 11:45 AM   #2
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Welcome to the board.

We live in NJ - an expensive place. Your budget is a lot lower than ours, but our property taxes are likely to be much higher than yours if you have lived in the same house for a long time. NJ Health insurance premiums are also much higher than CA. We have friends there who pay half our premiums and have better benefits.

You should approach a insurance provider and find out what your premiums would be. Does CA have a high-risk pool? If the insurance company turns you down, you'll have to look there. Here 's a site for health insurance information.
Health Insurance and Coverage Help for Consumers Everywhere
and one to get online quotes
Health Insurance - Affordable Health Insurance Quotes, Buy Medical Insurance Plans Online

Consider using a 4% of portfolio value (exclude home equity) withdrawal strategy (rather than the conventional 4% of initial portfolio adjusted for inflation) because you should plan to have assets for 40+ years.

Bob's site has a whole list of SWR strategies.
Bob's Financial Website

All the very best.
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Old 04-26-2010, 01:05 PM   #3
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Quote:
Originally Posted by wanaberetiree View Post
....
Another unknown is health care cost. I have no clue how to account for it. We are generally in good health, although I take blood pressure and cholesterol control pills. Does it mean we are not insurable? How much it may cost? Please comment.

Thank you all!
wanaberetiree
Hi neighbor!

When I retired, I just took over the payments on my individual HMO plan. When I originally applied for the plan, they turned me down but I was able to provide more information and was approved, been covered ever since. Here's a radical idea: try applying for health insurance to that well-known local HMO and see if you qualify.
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Old 04-26-2010, 01:18 PM   #4
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Originally Posted by CuppaJoe View Post
Hi neighbor!

When I retired, I just took over the payments on my individual HMO plan. When I originally applied for the plan, they turned me down but I was able to provide more information and was approved, been covered ever since. Here's a radical idea: try applying for health insurance to that well-known local HMO and see if you qualify.
Thanks CuppaJoe

Can you share some details on how you did it? Who is the provider? Do you take any medications? How much does it cost you?
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Old 04-26-2010, 02:43 PM   #5
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It sounds like you only need to withdraw less than 3% of your portfolio, right now. So you are ready to retire.

In 2014, you will also easily qualify for subsidized exchange insurance. Based on the estimate from Health Reform Subsidy Calculator -- Premium Assistance for Coverage in Exchanges/Gateways, as a family of two in the 200-250% range, (400% is 58,000 for two), you will receive a subsidy (tax credit) of in the 4-5k range, and your premiums should be capped at somewhere near 2k/year for both of you together, at least for premiums. You would just need some sort of gap insurance for 3 years, perhaps through part-time work, one person working, and/or COBRA.
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Old 04-26-2010, 04:14 PM   #6
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...In 2014, you will also easily qualify for subsidized exchange insurance. Based on the estimate from Health Reform Subsidy Calculator -- Premium Assistance for Coverage in Exchanges/Gateways, as a family of two in the 200-250% range, (400% is 58,000 for two), you will receive a subsidy (tax credit) of in the 4-5k range...
I read about this. One thing that is not clear to me. Would total amount of assets play role in qualifying for subsidized exchange insurance? Or it would not matter?
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Old 04-26-2010, 04:55 PM   #7
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Originally Posted by CuppaJoe View Post
Hi neighbor!

When I retired, I just took over the payments on my individual HMO plan. When I originally applied for the plan, they turned me down but I was able to provide more information and was approved, been covered ever since. Here's a radical idea: try applying for health insurance to that well-known local HMO and see if you qualify.
Quote:
Originally Posted by wanaberetiree View Post
Thanks CuppaJoe

Can you share some details on how you did it? Who is the provider? Do you take any medications? How much does it cost you?
Med details. etc. will be sent by PM. I used the word, ďradicalĒ above because Iím suggesting (not just to you) that an option for some of us is to find a way to have portable insurance before you leave--I might go as far as suggesting getting the individual insurance in advance whether or not the employer would pay for it. My employer was a very small company that used memberships in the East Bay Regional Arts Assn. to qualify us for a group plan until the HMO disallowed those kinds of groups but fortunately switched us to individual plans--by that time I really was uninsurable. Iíd be interested in comments on this because I donít recall seeing it discussed here (expect by yours truly).
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