Anyone else here forced to retire and scared to death?

[Teacher Terry]

Great news! I have struggled with weight the past 10 years but have been able to go from obese to just overweight by daily long walks and paying attention to my diet. Little changes can add up to big things.

 

[SumDay]

This made my day, seriously. I haven't been able to get your situation out of my mind. I'm so glad you were persistent and got this accomplished. It must make you feel great! You're in control of your life! Keep taking steps, literally and figuratively.

And keep us posted!

 

[Milton]

I have been reading the posts on this board for months and am shocked how many people have retired after years of great career success and expert and wonderful skills regarding financial planning. Many posters are so proud to tell the world that they only take 2% or less out of their portfolio every year and expect to give millions to their family upon their death.

I don't think this the real world. The real world is someone like me. Struggled to save money, had bad investment choices, and were forced to retire when they were fired from their job and due to lack of job opportunities.

Sorry to hear about your plight; but it isn't shared by everyone. The "real world" includes both grasshoppers and ants.

 

[Hristomilo]

If I were you, i would not take Social Security at 62. Financial guru Bill Bernstein had an interesting answer to the Social Security now/then question:

There are two possible goals with SS: 1) buy the optimal amount of longevity insurance for a given input, or 2) optimize your total amount of SS benefits. Both are valid goals, but let's assume you want to prioritize the former.

The clearest way to think about this is to imagine a pair of 62-year-old twins, both of who are entitled to $3,000 per month at age 70, which, coincidentally, is also their living expenses.

Twin A defers SS to age 70, when he will get $3,000 monthly benefits. He must thus cover 8 years of living expenses to get to age 70, costing $288,000 in real terms ($36,000 x 8). After he pays that liability, he's home free.

Twin B also has $3,000 per month living expenses, but decides to take $1,705 in SS at age 62. Thus, he has a $1,295 per month of shortfall until he dies. To cover this with a joint-survivorship inflation-adjusted fixed annuity costs approximately $438,000.

The difference between the two is $150,000. That's not chopped liver.

I'd even go so far as to recommend that if twin A runs out of money a year or two before 70, he should max out his credit cards to make it there.

Best,

Bill

 

[highlow65]

Hristomilo, this has been much discussed and is an individual decision. Given OPs health issues might be correct choice to take at 62.

 

[haha]

Hristomilo, this has been much discussed and is an individual decision. Given OPs health issues might be correct choice to take at 62.

Every decision is an individual decision, unless one are married. That does not mean that some decisions are not superior to others.

Ha

 

[Travelfreek]

Great News!, Forced to Retire!

I'm really happy for you. As far as your future happiness and your ability to play well with others (at work or elsewhere), you may want to pick up a book on the subject. I don't have any to recommend but other folks on this thread may. I'm almost 61 and I realize that the way we communicate is a key to how we attract friends. I just retired and live in a retirement community with a lot of activities. I just started joining these groups and find a lot of different personalities (just like at work). It's a little uncomfortable at first but pays off after getting to know some folks.

I also recommend you look at the ACA or Federal Health care exchanges (I used to work for the one in CA for a short stint). They are meant for people in your shoes who have no income and need a subsidy. You have always powered through this in your life and it's clear you are used to paying the freight so to speak. I recommend you check it out. People with no income usually get free medical care through Medicaid. Paying Cobra is unsustainable. I used to work in HR and I see the bills for Cobra. I think only 1 % of the folks go for that.

I also listen to financial experts like Dave Ramsey (Financial Peace University - available for a nominal cost in different communities) and Clark Howard. Getting educated in this respect (how to live below your means) and ways to get money on the side (pizza delivery for example) are no joke. That's the way many folks get out of debt. Lucky for you, you have no debt but need to get on a realistic budget. Best of luck to you.

Come back to this forum anytime as you can see how people love to help.

 

[Forced to Retire]

I looked into ObamaCare and due to my low income I can get health insurance for about $200 with a moderate deductible starting 1/1/2017. (I am paying $700 a month now using COBRA)

 

[ugeauxgirl]

I'm really happy for you. As far as your future happiness and your ability to play well with others (at work or elsewhere), you may want to pick up a book on the subject. I don't have any to recommend but other folks on this thread may. I'm almost 61 and I realize that the way we communicate is a key to how we attract friends.

I just paid my 12 y o son to read "How to Win Friends and Influence People" by Dale Carnegie. Son looked up several times to ask who "Emerson" and other people were, but enjoyed it very much. I found that book extremely helpful to me, and I think he will as well- you might give that book a try- any library will have it.

 

[ivinsfan]

I looked into ObamaCare and due to my low income I can get health insurance for about $200 with a moderate deductible starting 1/1/2017. (I am paying $700 a month now using COBRA)

Wow the savings are starting to pile up, that must feel good. Just keep nibbling away at that list. This is very similar to losing weight, once you really start in on diet and exercise and start losing the pounds it suddenly seems so much easier to follow that path.

 

[pb4uski]

I looked into ObamaCare and due to my low income I can get health insurance for about $200 with a moderate deductible starting 1/1/2017. (I am paying $700 a month now using COBRA)

While that is good news, was the pricing you looked at where you currently live or where you will be living? It probably will not make a difference, but check to make sure.

 

[gauss]

If he remains in a Medicaid non-expansion state, he will need to have ACA MAGI of at least 100% of FPL to continue to qualify for these premiums. (Actually this is a requirement in all 50 states, but in expansion states Medicaid will kick in for those that don't achieve these income levels).

For year 2017, I think his income will need to be at least $11,880.
Once he starts drawing Social Security this should be less of an issue.

And just to be clear - withdrawals from after-tax accounts to fund living expenses are not considered income (but dividends and capital gain distributions would be).

-gauss
AARP Tax-Aide volunteer
site ACA subject matter expert

 

[RobLJ]

Great news on the lease issue.
Consider the advice on walking; I've lost more than 10 pounds the last year by hiking regularly. Easy for me to say--there are 30-40 great hikes here in Reno within a 5-25 minute drive. DW and I have one 20 mile segment left to complete the Tahoe Rim Trail this summer.

 

[Amethyst]

Re walking regularly: Even if you don't lose (much) weight, your whole body will get stronger from habitual exercise. It's a change you will surely feel.

Great news about your health insurance, too.

 

[travelover]

I just paid my 12 y o son to read "How to Win Friends and Influence People" by Dale Carnegie. ...........

If you'd paid attention when you read it, you could have convinced him to read it for free.