Yello! Getting ready to do it!

[Lathedog]

Hi all. I have had enough of 100% traveling job and the rat race.
I have decided that this is the year! I am sure I have enough savings but I’m only 61. I’ll probably file for SS at the beginning of the new year.
I am healthy , divorced and have zero debt. Insurance is a big unknown to me.. not sure I’ll get any and see if I can go 3 years without.
I can’t get the Fire Calculator to work for me but am interested in what it shows.

 

[Out-to-Lunch]

Welcome aboard!

What problems are you having when you try to use FireCalc?

 

[braumeister]

I see you had your FIRECalc question answered in another thread, so I'll just say welcome.

You should also look here, since many new members tend to miss it:
https://www.early-retirement.org/forums/f47/

Specifically, this thread, which can be quite useful:
https://www.early-retirement.org/forums/f47/some-important-questions-to-answer-before-asking-can-i-retire-69999.html

 

[Lathedog]

Figured it out with help.Thanks

 

[Exchme]

If you haven't already, check opensocialsecurity.com for an optimized SS claiming strategy. I'll bet it's not to claim at 62.

 

[street]

Please look into ACA health insurance. There are great mentors here that will help you along the way. Welcome!

 

[Lathedog]

I am grabbing SS as soon as I can. I fear the DC clowns are going to push out the 62 year old time to 64-65. I have a gut feeling. I checked the break even point and it’s around 76. I have a lot of savings and no debt.A 401k worth 500000.
I calculated my monthly outlays and estimated food at 400 and a few other floating expenses and my SS should about cover all that.

 

[Calico]

Congratulations on your upcoming retirement!

I hope you will reconsider your plan to go without insurance.

I was perfectly healthy my entire life, until the age of 62, when I was blindsided by a cancer diagnosis.

I am fine now, thanks to amazing medical treatment that was made possible by my health insurance.

Any one of us can go from perfect health to a devastating diagnosis in the blink of an eye - trust me - you don't see it coming until it smacks you in the face.

 

[pb4uski]

Hi all. I have had enough of 100% traveling job and the rat race.
I have decided that this is the year! I am sure I have enough savings but I’m only 61. I’ll probably file for SS at the beginning of the new year.
I am healthy , divorced and have zero debt. Insurance is a big unknown to me.. not sure I’ll get any and see if I can go 3 years without.
I can’t get the Fire Calculator to work for me but am interested in what it shows.

I am grabbing SS as soon as I can. I fear the DC clowns are going to push out the 62 year old time to 64-65. I have a gut feeling. I checked the break even point and it’s around 76. I have a lot of savings and no debt.A 401k worth 500000.
I calculated my monthly outlays and estimated food at 400 and a few other floating expenses and my SS should about cover all that.

Whatever you do, do NOT, I repeat... do NOT go without health insurance. One health event and you can kiss that 401k goodbye. In any event, you should be able to manage your income to qualify for ACA subsidies that will make health insurance more affordable and will also cover deductibles and co-pays. Check out healthsherpa.com

Here is a good reason to defer SS.

Let's say that your FRA benefit at age 67 is $24,000/yr and if you claim at 62 it is $16,800/yr.

If you claim at 62 and start withdrawals at 4% from your $500,000 401(k) then your total income is $16,800 from SS and $20,000 from the 401(k) for a total of $36,800.

Alternatively, if at age 62 you notionally carve out $120,000 out of your $500,000 401(k) to substitute for the SS you will get at 67 ($24,000 * (67-62)=$120,000)... the remainder is $380,000 and using the 4% rule that would support inflation adjusted withdrawals of $15,200/yr... when combined with the $39,200 from the 401(k) from 62-67 and $15,200/yr thereafter plus $24,000 from SS is annual income of $39,200.

Would you rather have annual income of $36,800 or $39,200?

BTW, given that there is absolutely no chatter in DC of changing the early start age of 62... it isn't even among all the various "fix SS" proposals... the risk of them moving that start age is somewhere between slim and none.

 

[Lathedog]

I’ll check into ACA. Would be fine if it was decent and more than a catastrophic policy.
I plan on taking June-October and use my pto and comp time to carry me thru the summer on the employers insurance so don’t need it till after that. I figured I will take off the rest of year till I apply for SS early in 22. I really have no idea in time frames as to when I need to do everything. Not understanding the 150% of poverty thing. I don’t know when they start the time as to your wages to determine the insurance cost any if I qualify. More homework..

 

[Lathedog]

I appreciate the advice. I don’t need to touch the 401 for years. I have plenty of money to go on. I really have no idea as to what the rules are on all these new events in my life.
I just don’t trust DC.. we have trillions to piss away and keep saying SS will be broke in a decade. Bothers the **** out of me.

 

[pb4uski]

.... I just don’t trust DC.. we have trillions to piss away and keep saying SS will be broke in a decade. Bothers the **** out of me.

Can you elaborate on what you mean by SS going "broke"? There is a lot of misinformation out there.

 

[pb4uski]

I’ll check into ACA. Would be fine if it was decent and more than a catastrophic policy.
I plan on taking June-October and use my pto and comp time to carry me thru the summer on the employers insurance so don’t need it till after that. I figured I will take off the rest of year till I apply for SS early in 22. I really have no idea in time frames as to when I need to do everything. Not understanding the 150% of poverty thing. I don’t know when they start the time as to your wages to determine the insurance cost any if I qualify. More homework..

ACA is very decent... we were on ACA from when I retired at age 56 to when we qualified for Medicare in 2020. Long story, but we passed on subsidies but the premiums were still very affordable.

ACA subsidies are available up to 400% FPL...$51k of income for a single... and I think it has changed resently and others will come along an weigh in.

 

[Lathedog]

Here is something I found right off. Been hearing it for years now.

 

[pb4uski]

Ok... I just wanted to be sure that you knew. When some people say "SS will go broke" they mistakenly think that SS wouldn't be paying anything at all... rather than 79% of scheduled benefits.

0% is totally different from 79%.

 

[Lathedog]

Yep. But that is why I prefer to get in at 62. Not that I need it but family has cancer history and I figured I worked hard and saved and went without nicer things that were easily obtainable so I could do this. I also got a Divorce several years ago.28 years of marriage so this cost me money but it gave me years to enjoy instead of working to furnish health insurance for a 5 year younger spouse. That turned out ok for me.

 

[Bigdawg]

Lathedog, welcome. The folks on this forum are pretty awesome in responding and guiding poster like you (and me) to sources of information that answer our questions. Every topic you mentioned in your original post have threads on here associated with them. Tons of info. Lots to digest. I have even seen a few minds changed by information suggested on this site. Best of luck to you sir.

 

[Lathedog]

Thank everyone for your willing to guide me and advise me. This is a little overwhelming but I know Ill be fine .Just all new to guiding my way thru this point in my life. Thank you all.

 

[Lazyfish]

My FIL went the no insurance route but he had the savings to cover it. Having done that he would not recommend the same now at 81. Find a way to cover it. The options are plentiful as posted. You aren’t invincible anymore like you were at 25 despite your freedom from responsibility.

 

[Finance Dave]

I seriously doubt anyone in or near SS collection will be materially impacted by legislative changes to SS...with one exception. I can easily see some sort of means testing...so if you're "rich", watch out!

The people who should be really worried are those in their 20s and 30s.

 

[RetireeRobert]

I seriously doubt anyone in or near SS collection will be materially impacted by legislative changes to SS...

+1 Anytime Congress has even whispered about raising SS retirement age, proposals have always been to raise the retirement age only or those younger than age 50. People 50 and older would be able to retire under the current rules.

I very highly doubt any proposal more stringent than this, and which would raise SS retirement age for people already 60 or older, would ever get off the ground.