Want to retire -- now, please

[pb4uski]

+1, the more the merrier!

[TwinkleToes]

Ivinsfan, thank you for your comments. Maybe I was doing something wrong but when I researched ACA, it said we didn't qualify for a subsidy and it looked like it would cost me about the same out of pocket as COBRA. I will look at it again and play with some of the numbers using different amounts of taxable income.

Golden sunsets, your comments concern me. DH enrolled in Part A just prior to turning 65, but because he is on my company insurance, it was our understanding he wouldn't be penalized for not signing up for Part B. I sure hope I'm not wrong. I do not believe COBRA counts as company insurance so he would have to enroll in Part B if he isn't covered on my insurance any longer.

My 401k is with Fidelity. The company has institutional funds with a requirement that at least 5% be invested in them. The rest can be invested in anything through a brokerage account. Transaction fees apply on non Fidelity funds so I have 5% invested in a small cap index fund on the 401k institutional side and then on the brokerage side I have 40% in FSTVX total stock and 55 FSITX total bond for a 45/55 equity/bond mix.

The other IRA investments are all in Vanguard. I'm less concerned right now with the IRAs because I'm pretty comfortable with the asset allocation there, but my immediate concern is what to do with the 80k my husband inherited. I opened a brokerage account and would like to move all of that money and much of our savings into that account. But I'm not sure in what to invest. Right now, in savings, it is earning a paltry interest. This is the money, though, that I would like to use as, as pjigar was perhaps suggesting, an aid to bridge the gap tax free till I get to 65. Also, this money plus additional savings are the funds we would use to purchase a car or other irregular large purchases. It will be a secondary savings account to the bank savings. It is essentially our first bucket and would be the cash bucket.

Should some be in a MM or should it all be invested in something like VFSTX or VBISX?

Corporateburnout, thanks for your comments - you and others give me hope!






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[EastWest Gal]

Bogleheads has a simple 3 fund portfolio recommendation that makes sense and keeps costs low. Check out their forum. They have a couple of read only information sheets on investing that are fantastic. We are 60:40 in equities and bonds. If you think you'll need the money in less than 5-10 years than you may want to skew toward bonds and money markets, but MM makes very little as well.

Your hubby situation is near mine except for age. We are indeed friends, married 32 years but have known one another 41 years. DH does very little around the house on his own initiative. He does a lot of music work and fills the house with gorgeous piano music quite a bit.

I have noticed, that as I do more that is visible, he does more. And I'm getting good at saying, "Honey, I need you to do this for me by such and such a time." Most of the time these guys just need direction.

I do most of the garden work but after doing some very visible yard cleanup DH's guilt kicked in and he suddenly started doing a lot more. It's getting better and better.

Last, welcome aboard! This is my favorite Internet forum. I've learned loads here.


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[TwinkleToes]

EastWest Gal,

Thanks for the welcome. You say your DH is a musician ... Mine is as well and a visual artist. He has been working on various pieces for the last two years, all digital art. But he has never printed anything. He is just perpetually learning. He could, I believe, sell his work but he doesn't have enough confidence. One of these days perhaps. He says that is his goal. At any rate, his artistic nature is what probably contributes to his lack of practical responsibility.


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[Golden sunsets]

Twinkle Toes; Good news-I believe I was wrong on the Medicare rules vis a vis your current insurance. Yey! Sorry for the scare. You have enough to deal with.

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[TwinkleToes]

Golden Sunset,

Phew! I did spend some time looking at the Medicare rules last night hoping I wasn't totally misunderstanding them so it is good to have the validation! I do appreciate your follow up email.


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[ivinsfan]

I'm not sure what you mean about ACA. It's based on income by year. For example if you quit you job in Dec., you have no w-2 income for 2017. When you apply for insurance you use projected income for 2017. Are you telling me with no job and no SS payments you have taxable income over 60K a year? Based on your comments I don't believe you really understand health insurance, ACA or Medicare rules and such.
In my opinion you should research this first instead of worrying about the 80K and investements. It's crucial you understand how this works. I dont think there is any way company cobra would be cheaper for your DH then Medicare with a supplement.

[pjigar]

Quote:

Originally Posted by Corporateburnout Based on your numbers above it seems that retirement is doable for you. With a 42K in combined SS and a 5K pension you will need 13K from your portfolio to cover the 60K expenses. That's only a 2.6% WR from your portfolio. As for investment I would move all investments to Vanguard or Fidelity and invest it in one balanced index fund. I'm sure the folks at these companies would be more than happy to assist you free of charge. BTW $1000 a month for healthcare is a good estimate in retirement and may be slightly less when you're both on Medicare. Part A is free, parts B, D and a Medigap supplement will cost around $700 a month for both and the coverage is pretty comprehensive with the exception of dental cost.

This! You are good.

[NanoSour]

First off, welcome Twinkletoes. On first glance, I believe you are ready for retirement now if you so choose. I'd delve deeper in to your yearly spend as I think there is a lot of room to cut back without sacrificing quality of life. 60K is a lot for 2 retirees in their 60s if you do not live in a HCOL city such as SF or NYC. For instance, we are raising 3 teenagers (2 boys) in a mid-sized western city and spent 66K and 65K in 2014 and 2015 respectively. This includes 17K in mortgage/property tax payments. I gotta believe your situation would cost much less than mine. Realize that once you retire, many of your monthly expenses will reduce or go away all together.

Also, I agree with other posters in that it's crucial you understand the medical equation through and through going into this stage of life. Looks like you are now fully engaged and should do fine. Good luck to you. I wish you well.

[TwinkleToes]

Ivinstan, perhaps you are giving me less credit than I deserve. I have researched ACA, Medicare, and COBRA and, while I am not a SME I do understand how they work, although I have only recently been looking into the ACA. I was using $60k family income because if I don't have a job, we will both be taking SS and possibly some combination of taxable investments and I'm using high projections for a "worst case". However, I also played with several other scenarios and income levels from different sources, including still working some but without any benefits, and I am still researching. As I'm sure you know, the 2017 open enrollment period has not begun so one can only obtain quotes for 2016 rates. I received a quote from work for COBRA as well, although it is, again, for 2016 rates. As for Medicare, my mother is on Medicare and I read the Medicare booklet each year and I have researched it and Medigap plans with the idea that DH would go on it if I leave my job. If I have questions about any of these insurance options, I know where to go for answers and don't intend to blunder blindly into any choices for such an important decision. Also, as I said in a previous post, COBRA would only be for me, not DH. He would go on Medicare/a Medigap policy.

NanoSour, thank you for the warm welcome and encouraging comments. In many ways, just knowing I can afford to retire helps a lot! Since I track almost every dime we spend in Quicken, I have a pretty good grasp on our spending and you are correct. We have expenditures we could cut (like paying someone else for lawn care) but I include them because we haven't cut them yet and I am basing the figure on historical data. The $60k does include taxes and it is a high end projection so if we come in less that will be great but at least I am prepared if we end up spending up to that amount.


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[Corporateburnout]

Quote:

Originally Posted by TwinkleToes The $60k does include taxes and it is a high end projection so if we come in less that will be great but at least I am prepared if we end up spending up to that amount

It's prudent to use the high end expense projection and as I said before, you are in good shape to retire with a conservative WR. Good luck.

[ivinsfan]

Quote:

Originally Posted by TwinkleToes Ivinstan, perhaps you are giving me less credit than I deserve. I have researched ACA, Medicare, and COBRA and, while I am not a SME I do understand how they work, although I have only recently been looking into the ACA. I was using $60k family income because if I don't have a job, we will both be taking SS and possibly some combination of taxable investments and I'm using high projections for a "worst case". However, I also played with several other scenarios and income levels from different sources, including still working some but without any benefits, and I am still researching. As I'm sure you know, the 2017 open enrollment period has not begun so one can only obtain quotes for 2016 rates. I received a quote from work for COBRA as well, although it is, again, for 2016 rates. As for Medicare, my mother is on Medicare and I read the Medicare booklet each year and I have researched it and Medigap plans with the idea that DH would go on it if I leave my job. If I have questions about any of these insurance options, I know where to go for answers and don't intend to blunder blindly into any choices for such an important decision. Also, as I said in a previous post, COBRA would only be for me, not DH. He would go on Medicare/a Medigap policy. NanoSour, thank you for the warm welcome and encouraging comments. In many ways, just knowing I can afford to retire helps a lot! Since I track almost every dime we spend in Quicken, I have a pretty good grasp on our spending and you are correct. We have expenditures we could cut (like paying someone else for lawn care) but I include them because we haven't cut them yet and I am basing the figure on historical data. The $60k does include taxes and it is a high end projection so if we come in less that will be great but at least I am prepared if we end up spending up to that amount. Sent from my iPad using Early Retirement Forum

Good enough, the details are that maybe before you reach Medicare age, you might want to live off one SS payment and savings. This might lower the cost of your insurance substantially until you hit 65. Even with 2016 quotes you should be able to see if the exchange or Cobra is cheaper by comparing the 2. Delaying one SS could raise the monthly payment and maybe save you money on healthcare. After you both are 65 both insurance should run you about 600-700 a monthly with very little out of of pocket.

As for you thinking I insulted you I simply responded to the information you posted about health care and was trying to point out what an expensive item it is and deserves your utmost attention so it doesn't slip thru the cracks because you have to process all the ER details by yourself. So I'm done now, and won't be responding to you again. Good Luck!

[TwinkleToes]

Ivinan,

Oh no! You didn't hurt my feelings. That's the trouble with this form of communication, isn't it? It can lend itself to miscommunication. I do hope you won't stop responding. I have seen some of your comments to others as well as to me and I appreciate your insight!

Maybe I need to move my specific question about how to invest to another area of the forum, though.

Thank you again, everyone, for your welcome, encouragement, and honest discourse.


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