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Old 12-03-2008, 08:42 AM   #21
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Medicare already has surcharges for high income people.
Agree, but presently all-in it's still usually less than half the cost of commercial insurance.
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Old 12-03-2008, 08:52 AM   #22
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If my RE plans had such a tight tolerance that an extra $100K or so for health expenditures would have broken it (or caused excessive worry about it), I would have worked the extra time (6 months?) or so needed to eliminate it.
In 1993 I was layed off - Cobra would have ran over $700/mo - I chose ER, no medical insurance for the next 12 yrs and a healthy bad attitude.

Today can afford medical but still have a bad attitude.

heh heh heh - I sure as heck wasn't gonna let medical insurance make me 'w#&k'. Not recommended for others - I also tuned up with no A/C in Louisiana.
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Old 12-03-2008, 08:58 AM   #23
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Cycling Investor.. I think few people can accumulate an extra $100k after taxes in a mere 6 mo. of working. Just sayin'..
If your just talking income savings this is true but at near early retirement you would think 401k's and savings to be substantial -- At 1 million (although I would not retire with only a million unless I had a pension too -- but just for example) an extra 6 months interest would be $25k to $50k (5-10%) plus add in 6 months regular retirement salary savings and your looking at a total of $35k-60K (in my case)

So for me I'd say that I would need to stay a year extra to get an extra 100k assuming 401k balance of 1 million.
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Old 12-03-2008, 09:22 AM   #24
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I can imagine many optimistic action oriented people like the guy in this piece being blindsided by health insurance cost and accessability problems.

Most of us here are careful in the extreme, so we tend to look before we leap.
I agree, although I don't think it even needs to be "in the extreme" to have a get sense of what your anticipated expenses vs. income will be before you retire. I can't fathom someone retiring then scouting around for health insurance pricing.
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Old 12-03-2008, 09:24 AM   #25
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If your just talking income savings this is true but at near early retirement you would think 401k's and savings to be substantial -- At 1 million (although I would not retire with only a million unless I had a pension too -- but just for example) an extra 6 months interest would be $25k to $50k (5-10%) plus add in 6 months regular retirement salary savings and your looking at a total of $35k-60K (in my case)

So for me I'd say that I would need to stay a year extra to get an extra 100k assuming 401k balance of 1 million.
Yeh, this was close to my thinking. Since I have no pension, I figured a person would have about $1.5m at the ER decision point. I also tend to use 100% stock allocations, with an average return of 10-12%. This plus a savings rate of $30k/year gave me the 6 month number.
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Old 12-03-2008, 09:24 AM   #26
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So for me I'd say that I would need to stay a year extra to get an extra 100k assuming 401k balance of 1 million.
And assuming at least that much gains in portfolio after taxes/expenses for the exact six months before you retires.
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Old 12-03-2008, 12:05 PM   #27
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If your just talking income savings this is true but at near early retirement you would think 401k's and savings to be substantial -- At 1 million (although I would not retire with only a million unless I had a pension too -- but just for example) an extra 6 months interest would be $25k to $50k (5-10%) plus add in 6 months regular retirement salary savings and your looking at a total of $35k-60K (in my case)

So for me I'd say that I would need to stay a year extra to get an extra 100k assuming 401k balance of 1 million.
Where you can get "interest" of 5 to 10%? :confused: Sign me up!
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Old 12-03-2008, 12:15 PM   #28
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Something's gotta change, else health premiums will overtake the per capita income in my lifetime. A doubling every 5 years would force me to go naked at some point. Or retire a lot later than I expect.
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Old 12-03-2008, 12:20 PM   #29
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We are currently paying a bit less than $300/month for a $10K/yr deductible HSA. This covers a couple both in the early 50's, and a 19-y.o. son.

I agreed with the earlier posts about the purpose of the seemingly low copays. It is to keep down frivolous doctor visits, or at least slowing down the hypochondriacs. Actually, it may not be that low as a percentage of the fee. My doctor gets something like $90 per simple visit, while most copays are around $20.

Anyway, I thought we got ourselves covered, but this thread now makes me a bit concerned.
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Old 12-03-2008, 12:25 PM   #30
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In 1993 I was layed off - Cobra would have ran over $700/mo - I chose ER, no medical insurance for the next 12 yrs and a healthy bad attitude.

Today can afford medical but still have a bad attitude.

heh heh heh - I sure as heck wasn't gonna let medical insurance make me 'w#&k'. Not recommended for others - I also tuned up with no A/C in Louisiana.

Thats my backup plan. Just say screw insurance and roll the dice Take a few extra vacations a year to self heal..
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Old 12-03-2008, 12:28 PM   #31
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Where you can get "interest" of 5 to 10%? :confused: Sign me up!
Capital One 5.7%. Long term but then you would be living off of the INTEREST not the principal. Capital One Credit Cards, Home and Auto Loans, Banking, Small Business Credit Card
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Old 12-03-2008, 12:36 PM   #32
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Annual yield (not "interest" but still money back to the investor) on Vanguard Wellesley (not even Admiral level, which is a tad higher) is 5.43 per cent.
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Old 12-03-2008, 12:40 PM   #33
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The uncertainty in estimating the future premium increases makes health insurance a total "wild card" going forward. Insurance companies are always rolling out newer and less expensive policies, which compete with the ones already outstanding. The problem is that these new policies attract the "healthy" folks who can pass the required re-underwriting. If you are not one of those, and believe me, by the time you get over 50, it is very likely you will have a "pre-existing" condition. Then your risk pool suffers the additional costs associated with adverse selection, in addition to overall healthcare inflation, and the premiums really begin to skyrocket.
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Old 12-03-2008, 01:04 PM   #34
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Hi Rich,

Means testing of Medicare is a fact, not a possibility.

My wife's aunt had a huge capital gain on her TXU stock when it went private in 2007. Lo and behold, she received a notice this week that her
Medicare payment would have a big step up in 2009. I don't have the letter to quote the exact figures, but it appears that for AGI above a threshold limit, the Medicare payment is increased accordingly.

Fortunately, in her case she will drop below the limit in 2008 so her payment will revert back to the "normal" in 2010. Just another example of our gov at work.

Cheers,

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Old 12-03-2008, 01:56 PM   #35
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My wife's aunt had a huge capital gain on her TXU stock when it went private in 2007. Lo and behold, she received a notice this week that her Medicare payment would have a big step up in 2009. I don't have the letter to quote the exact figures, but it appears that for AGI above a threshold limit, the Medicare payment is increased accordingly.
Medicare Part B Premiums for 2009
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Old 12-03-2008, 02:25 PM   #36
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Hi Rich,
Means testing of Medicare is a fact, not a possibility.
That's right. More accurately, means testing will get more stringent resulting in higher premiums for many ERs since the newly-covered will include a disproportionate number of low means individuals.

It's all speculation for now, but hard to imagine premiums not rising.
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Old 12-03-2008, 06:56 PM   #37
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That's right. More accurately, means testing will get more stringent resulting in higher premiums for many ERs since the newly-covered will include a disproportionate number of low means individuals.
I don't understand what you mean. Medicare has often covered people who were never or rarely insured before they reached 65.

Ha
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