Canoesmith
Recycles dryer sheets
57 and I am getting close!
I am 57. Plan to retire in 1 - 2 years. I will have $400k in a 403b and am currently maxing it out with age catch-ups. I will have 2 pensions. One will pay ~$30k (100% spouse survivor) when I turn 65 and has a cola, the other I will take upon retiring - with 2 options. About $90k annuity (100% spouse) with no cola or a lump sum which will be ~$1.7M (subject to variation based upon interest rates at time of retirement). I can roll that into my 403b at 3.5% fixed (old grandfathered rate that used to be awful, and now is great). BTW, absolutely no debt, two homes paid for with current value total $800k, cars older and paid for etc. I've worked really hard to get all my ducks lined up - I think.
So, I am currently building taxable savings at a decent rate and intend to have about $400k by the time I retire - in two separate FDIC insured accounts - (currently earning 1.20%). I know I can make more, but I enjoy the liquidity and easy access.
One of my Plans is to take the lump sum - and roll the lump sum when I get it into the 3.5% fixed 403b account and let it sit (maybe put some to work depending on the markets at the time), and spend down my taxable savings over five years to pay my bills which will be around $75k per year. I can pull some from my 403b to supplement as needed after 59.5 yoa.
One of my crazy ideas is should the ACA still be around, instead of 18 months of Cobra - I may go into the marketplace and get health care with federal subsidies, and as I will be showing very little income other than the interest from my taxable savings - and with health care under the ACA as it exists today, would be nearly no cost. I would make certain my income is not too low as I wouldn't want to qualify for Medicaid. I know there is an internal ethics bell that goes off here, as asset wise I'm doing well - but I would be following the "rules".
Bridging my proposed retirement age of 59 or 60 to age 65 is the challenge and health care is the biggest thorn. I do have an HSA and am building that at the max - and not using unless absolutely necessary, so will have about $50k in that when I retire as well, which will help with Cobra premiums should I need to go that route.
Also SS which - should I wait until 70 - will be in the mid $60's with my wife taking half of mine. So I sort of have my own built in laddering plan here.
Your thoughts on large cash bucket as a spend down pot to pay for my time to Medicare? Also, showing nearly zero income for 5 years, and buying an ACA health plan with subsidies even though I'm not "poor". Interested in your thoughts on that.
Thanks
I am 57. Plan to retire in 1 - 2 years. I will have $400k in a 403b and am currently maxing it out with age catch-ups. I will have 2 pensions. One will pay ~$30k (100% spouse survivor) when I turn 65 and has a cola, the other I will take upon retiring - with 2 options. About $90k annuity (100% spouse) with no cola or a lump sum which will be ~$1.7M (subject to variation based upon interest rates at time of retirement). I can roll that into my 403b at 3.5% fixed (old grandfathered rate that used to be awful, and now is great). BTW, absolutely no debt, two homes paid for with current value total $800k, cars older and paid for etc. I've worked really hard to get all my ducks lined up - I think.
So, I am currently building taxable savings at a decent rate and intend to have about $400k by the time I retire - in two separate FDIC insured accounts - (currently earning 1.20%). I know I can make more, but I enjoy the liquidity and easy access.
One of my Plans is to take the lump sum - and roll the lump sum when I get it into the 3.5% fixed 403b account and let it sit (maybe put some to work depending on the markets at the time), and spend down my taxable savings over five years to pay my bills which will be around $75k per year. I can pull some from my 403b to supplement as needed after 59.5 yoa.
One of my crazy ideas is should the ACA still be around, instead of 18 months of Cobra - I may go into the marketplace and get health care with federal subsidies, and as I will be showing very little income other than the interest from my taxable savings - and with health care under the ACA as it exists today, would be nearly no cost. I would make certain my income is not too low as I wouldn't want to qualify for Medicaid. I know there is an internal ethics bell that goes off here, as asset wise I'm doing well - but I would be following the "rules".
Bridging my proposed retirement age of 59 or 60 to age 65 is the challenge and health care is the biggest thorn. I do have an HSA and am building that at the max - and not using unless absolutely necessary, so will have about $50k in that when I retire as well, which will help with Cobra premiums should I need to go that route.
Also SS which - should I wait until 70 - will be in the mid $60's with my wife taking half of mine. So I sort of have my own built in laddering plan here.
Your thoughts on large cash bucket as a spend down pot to pay for my time to Medicare? Also, showing nearly zero income for 5 years, and buying an ACA health plan with subsidies even though I'm not "poor". Interested in your thoughts on that.
Thanks
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