Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Would ER in a heartbeat but....
Old 01-23-2015, 06:42 AM   #1
Dryer sheet aficionado
 
Join Date: Sep 2011
Posts: 44
Would ER in a heartbeat but....

Would love to retire early but.....afraid to lose health insurance from my Job.

currently 58 yrs old, DW is 52 and have a 14 yr old son. Current expenses is about $4T/month but can withdraw $5T a month from investments (to last 25 yrs adjusted at 3% inflation) DW works partime (2 days) earning about $800/month, but looking for a full time job now. Plan to take SS at 62 and lessen my withdrawals from investments to make it last longer. Our income should be enough to cover expenses EXCEPT health insurance cost. Still researching how obamacare works and how much it will cost.

Investments in 70% taxable, 20% 401K and 10% roth.

BTW, workplace has been toxic and stressful the past year with the new Boss, causing sleepless nights and getting quite depressed.

Wish I had the full confidence and courage to ER. I have been reading posts here and it has helped me and learned a lot from posters here. Thank You for this site.

Anybody here who wanted to retire early but something holding them back? ...Either health insurance concerns, lack or shortage of investment income, high expenses, family concerns etc. or did anyone pulled the trigger and ER facing these concerns? Did everything went well and found out the concerns were really baseless?
__________________

__________________
jesaco is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-23-2015, 06:51 AM   #2
Recycles dryer sheets
cooch96's Avatar
 
Join Date: May 2014
Location: Lakewood
Posts: 442
Lack of sleep and depression will make you sick. I have a hard time wrapping my head around the concept of valuing health insurance more than actual Health. I would vote for quitting immediately and then figuring out what level of coverage you really need and can afford.

But please consider the source, folks are always telling me I'm crazy.
__________________

__________________
Why be normal when you can be yourself?
cooch96 is offline   Reply With Quote
Old 01-23-2015, 07:00 AM   #3
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,471
I am in a state that does not have its own healthcare marketplace so I used the national marketplace and it was very smooth. I see you are in NY, so you will have to check out your states website. I was able to browse the marketplace and see the plans and premiums ahead of time. It is expensive, but cheaper than COBRA by almost 50%. This year I will not qualify for a subsidy, due to payments received from my former job in January and quite a bit of other income.

To estimate your income minus your job income, look at your dividends, capital gains, and your wife's W2. Add those together. That is your income for ACA purposes. Withdrawals for living expenses don't count for tax purposes or for the ACA.

You can estimate your premiums and subsidy from the site without giving any information about yourself. I found that for us (similar age with one child) a subsidy kicked in at an income below $70 thousand.

Worth checking out.


Sent from my iPhone using Early Retirement Forum
__________________
EastWest Gal is offline   Reply With Quote
Old 01-23-2015, 07:31 AM   #4
Full time employment: Posting here.
Golden sunsets's Avatar
 
Join Date: Jun 2013
Posts: 734
If possible consider deferring SS to at least FRA. The difference in your SS increases by approximately 8 percent per year for each year you defer and makes a big difference in income, unless you have health concerns.
__________________
"Luck favors the prepared mind"
Pasteur
Golden sunsets is offline   Reply With Quote
Old 01-23-2015, 08:11 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,049
I am in NY and it went alright for the sign up, some minor bumps, but that was more on the insurance company than the state exchange. My COBRA would have been $614 a month, a Platinum plan that is comparable to this was $560, but with subsidy it was $378.
__________________
jim584672 is offline   Reply With Quote
Old 01-23-2015, 08:34 AM   #6
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
Even back in 1989, when we retired, health insurance was big...
The decision to retire at 53, was made, figuring on a tight budget between then and age 62 when SS was available. We adjusted to the squeeze, always keeping in mind that it might be necessary to go back. We watched the numbers all the way, and managed to make it all the way. In a heartbeat, indeed, but also with an honest look at the projections and the actual every year.
A different decade, but even then, with a lot less in assets than you'd guess.
Just a matter of adjusting spending to what we had.
Our road to retirement here:
Sharing 23 years of Frugal Retirement
__________________
imoldernu is offline   Reply With Quote
Old 01-23-2015, 08:40 AM   #7
Recycles dryer sheets
 
Join Date: Nov 2013
Posts: 358
Welcome to the board!

I'd recommend you posting your actual expenses, current income, nest egg and some of your assumptions.

People on this board are very good helping out with estimating expenses etc.

Have you run through fire calc etc?
__________________
NgineER is online now   Reply With Quote
Old 01-23-2015, 08:51 AM   #8
Dryer sheet wannabe
 
Join Date: Sep 2014
Posts: 16
I am in a similar situation and posted a similar question only a week or two ago (topic: What to Do?). The overwhelming response was to get the heck out now, while I still have my health... and I am now crafting my exit strategy. The thought of losing health insurance is scary, but the irony is that you are staying at your job for the health insurance....but your job is causing you to be unhealthy.
Life is too short to be unhappy.
__________________
Kook is offline   Reply With Quote
Old 01-23-2015, 09:18 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,276
You'll need to find an estimate of your true retirement expenses. They can be quite different than working expenses, beyond just health care costs.

This comment concerns me:

"but can withdraw $5T a month from investments (to last 25 yrs adjusted at 3% inflation)"

25 years is not a long time for a 58/52 year old couple. And what if inflation is greater than 3%? I'd suggest getting those numbers together and using a historical reporting calculator like FIRECalc. Far better, IMO, than just guessing what inflation might be.

-ERD50
__________________
ERD50 is offline   Reply With Quote
Old 01-23-2015, 10:36 AM   #10
Recycles dryer sheets
 
Join Date: Sep 2012
Posts: 91
I am also in NY. The difficulty that I found with the NY exchange was that NONE, and I mean NONE, of the carriers are offering out of network coverage. Any out of network expenses are on you. For me, that was just too risky.

If you are happy with your coverage, you might want to consider using COBRA until you figure something else out. If your wife is looking for a F/T job, she may be able to cover you both.

Let me add my voice to the chorus of those who are encouraging you to leave a toxic environment. You DO have options. Keep reading and posting here and you will sort it all out.

Good luck.
__________________
Likes_to_Lurk is offline   Reply With Quote
Old 01-23-2015, 12:10 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,326
As others have posted, run your numbers through some of the retirement calculators and plan to live a long time. You don't want to run out of money when you are 85.

You might consider downshifting or just changing jobs instead of full ER if you still have money concerns, or look at the budget to see if you can lower your expenses to make your numbers come out better.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is offline   Reply With Quote
Old 01-23-2015, 12:19 PM   #12
Recycles dryer sheets
Choices's Avatar
 
Join Date: Jan 2015
Location: In transit
Posts: 155
Rick, I second the idea of finding another job rather than completely retiring. Without seeing more in-depth financials I am thinking things are too tight to retire just now. I plan for a life span of 105 years, just so I am confident we can be okay so your 25 years of retirement savings seems shortsighted. Best of luck !
__________________
Choices is offline   Reply With Quote
Old 01-23-2015, 12:24 PM   #13
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Health insurance is the easy part. You can buy it. If you can't fit it into your retirement budget, that's a different story. You have to balance your expenses (including heath care costs) against any pensions, SS, etc and portfolio. The rule of thumb is that you can take 4% out of your portfolio. When you figure out everything, if you can't live on this you need to keep a job. If you are in a toxic job, you can certainly consider finding something else.

"Hoping it all works out" is not a plan. Yes, things can go wrong; but if your numbers are clearly falling short, you shouldn't retire on the assumption that you will mega-above average market returns for the next 30 years.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 01-23-2015, 12:47 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,326
I just watched an Amazon Prime Nova show on laboratory grown replacement body parts and people maybe living forever. They had a car with 2M miles on it to show that if we can replace all our body parts maybe we could do the same. It is food for thought when making a retirement plan. What advances in medical science may come along over the next 30 years to allow us to live to very old ages?
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is offline   Reply With Quote
Old 01-23-2015, 01:00 PM   #15
Dryer sheet aficionado
 
Join Date: Sep 2011
Posts: 44
Thank you so much for all the replies and insights. It has really given me a lot of points to ponder. All of you been very helpful. I will probably stay in my job for now but will start looking for a new (hopefully better and less stressful) job. Until then, I have no choice but to deal with the enviroment in my current office, Hoping I can delay retirement a few more years. It would give me more time to grow my investments and be more comfortable doing ER.

Thanks again to everyone. really glad I found this site.
__________________
jesaco is offline   Reply With Quote
Old 01-23-2015, 03:57 PM   #16
Thinks s/he gets paid by the post
 
Join Date: Jun 2014
Posts: 1,458
WE retired at 53 & 58 with expensive health insurance from the state (10K/year) on pensions that totaled $40k. We cut our expenses down to 30k. However, we knew we both wanted to work p.t. consulting in our fields & so our incomes have risen significantly in the last 3 years. This has worked out well since we mostly work from home, no office BS to deal with & only having to work p.t. Right now it is the best of both worlds for us. Good luck!
__________________
Teacher Terry is offline   Reply With Quote
Old 01-24-2015, 08:30 AM   #17
Dryer sheet wannabe
 
Join Date: Jan 2013
Posts: 14
I wouldn't let the comments posted in this thread talk you out of early retirement. You didn't provide enough details for anyone to give you accurate advice. Unless you have a lot of debt you may be able to cut your expenses enough to make early retirement very safe and reasonable. Check out other early retirement sites like Mr Money Mustache for a different perspective.

People on that site retire in their 30's with $600k where on this site I've seen commenters tell people in their late 50's they can't retire with 2 million in assets.

It's a matter of how much you want it and how willing you are to cut your expenses.
__________________
Accumulating Wealth is offline   Reply With Quote
Old 01-24-2015, 01:52 PM   #18
Recycles dryer sheets
 
Join Date: Aug 2010
Posts: 359
Quote:
Originally Posted by jesaco View Post
Anybody here who wanted to retire early but something holding them back? ...Either health insurance concerns, lack or shortage of investment income, high expenses, family concerns etc. or did anyone pulled the trigger and ER facing these concerns? Did everything went well and found out the concerns were really baseless?
Our reason may be quite different. DW wants to see if our 60/30/10 AA can survive the next market downturn without major impact. So we soldier on with OMY, watching market closely.
__________________
fh2000 is online now   Reply With Quote
Old 01-24-2015, 02:02 PM   #19
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Quote:
Originally Posted by Accumulating Wealth View Post

People on that site retire in their 30's with $600k where on this site I've seen commenters tell people in their late 50's they can't retire with 2 million in assets.

It's a matter of how much you want it and how willing you are to cut your expenses.
The people with $2MM are usually crying that they can't see themselves cutting back spending to less that $250k/yr. I agree that lots of people could retire sooner if they would seriously re-prioritize their spending.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 01-24-2015, 04:16 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,326
Quote:
Originally Posted by Accumulating Wealth View Post
I wouldn't let the comments posted in this thread talk you out of early retirement. You didn't provide enough details for anyone to give you accurate advice. Unless you have a lot of debt you may be able to cut your expenses enough to make early retirement very safe and reasonable. Check out other early retirement sites like Mr Money Mustache for a different perspective.

People on that site retire in their 30's with $600k where on this site I've seen commenters tell people in their late 50's they can't retire with 2 million in assets.

It's a matter of how much you want it and how willing you are to cut your expenses.
I think the advice here is generally pretty reasonable, especially this post from Gumby:

Some Important Questions to Answer Before Asking - Can I Retire?

The second chapter of The Millionaire Next Door, a perennial favorite here, is called Frugal, Frugal, Frugal. The first edition of that book came out in 1996. The first chapter is here:

http://www.washingtonpost.com/wp-srv...renextdoor.htm

" We live well below our means. We wear inexpensive suits and drive American-made cars. Only a minority of us drive the current-model-year automobile. Only a minority ever lease our motor vehicles....Most of our wives are planners and meticulous budgeters. In fact, only 18 percent of us disagreed with the statement "Charity begins at home." Most of us will tell you that our wives are a lot more conservative with money than we are."

Most Millionaire Next Doors are actually cheap dates:

http://www.thomasjstanley.com/blog-a...heap_Date.html
__________________

__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
resting heartbeat an independent predictor of life span Khufu Health and Early Retirement 15 04-22-2013 12:18 PM
57 – job eliminated – would LOVE to RE, but nervous that I can’t afford it…. smurray5991 Hi, I am... 17 11-11-2012 04:33 PM
Saving would be nice, but... FIREd FIRE and Money 41 10-16-2007 05:02 PM
i posted ths on anther frum, but it mst b 2 hard zuki FIRE and Money 21 04-23-2004 04:50 AM
Re:  Yes, but. Nords Other topics 1 04-01-2004 12:19 PM

 

 
All times are GMT -6. The time now is 08:59 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.