Can I bail in July????

[Cattusbabe]

I found this site just in time and need sound advice please.

By way of background, DH is a 63-year-old involuntary retiree of two years. Health concerns made him unable to continue to working in his profession. However he was told that he was unable to get Social Security Disability because he was not disabled enough and with his level of education was re trainable.
We had a good laugh at that. Retrain for what at the age of 61. Rather that continuing to fight with SS we tightened our belts, lived on my nursing salary ($58000 gross) and he quit work at 61.

As luck would have it he began to get a distribution from a family trust of 1000/month, which helped a lot to get us through. At the time we were $35,000 in debt. (Credit cards, school loans, debts to family, car note) We have a mortgage. That first year was tight but not impossible. At 62 he began to draw SS to the tune of $945/month. I got a small raise. Since we made it through his first year of retirement ok we decided to use the income from his SS to do a rapid debt reduction plan instead of spending it. We cut expenses, refinanced the mortgage to take advantage of the lower rates, and got rid of the second car. We cleared most of that debt in one year.

Where we stand now. My husband, now 63, came into his full inheritance this year. After taxes and fees he will have $1,900,000 in assets. I am 50 and still work making $61,000 with full health care benefits. I have an IRA worth $50,000 and a 403B worth $15,000. There is another $38,000 in a savings account. Our monthly cost of living is small. I run the house/car (utilities, food, fuel, taxes, insurance, maintance fund etc.) on about 2000/month. The mortgage is $449.00/month @ 5.49 percent. We have 14 years on this but are now using the SS money now at $984/month to pay this off fast. We are also building an emergency fund and use the $1,000 per month that we were getting from the trust for that. There is now $10,000 in the Emergency account.

My husband and I knew that the inheritance money was coming, just not this soon or that much so we were getting our own financial house in order in preparation so that I could quit working when the time came. So now it is here but we want to do this right. The only increase in expenses would be health care of course and travel. Dear Husband wants to take two trips per year, has signed up with Elder hostel and we are both drooling over the possibilities.

If we continue our frugal ways I feel that we can do this sooner (like July 2006) rather than later. I am not adverse to working part time. As a Registered Nurse I can do agency shifts easily. I average $30 to $35/hour for a shift. What I would gain is the freedom to work around our travel So what o you say can I bail this July

[73ss454]

I can only say one thing, why are you waiting till July?

You have more than enough money.

Congrat's, your done.

[REWahoo]

Just looking at the $ standpoint, you should already have your hand in the D-ring, pulling the chute release!

The only potential fly in the ointment I see (and it could be a huge one) is health care coverage once you quit. Will you have retiree medical benefits for the two of you? If not, have you looked at the avaiablilty and cost of coverage until you reach Medicare age? With pre existing conditions for your DH, getting coverage can be very expensive at best and virtually unavaliable at worst.

[jdw_fire]

Based on FIREcalc your $1.9 m inheritance plus the $945/mo SS would have 100% successfully provided $72,500 (inflation adjusted) for 40 years. Since this is more than you are making now it looks like you can bail whenever you want.

[Rich_by_the_Bay]

Quote:

Originally Posted by REWahoo! The only potential fly in the ointment I see (and it could be a huge one) is health care coverage once you quit. Will you have retiree medical benefits for the two of you? If not, have you looked at the avaiablilty and cost of coverage until you reach Medicare age? With pre existing conditions for your DH, getting coverage can be very expensive at best and virtually unavaliable at worst.

REWahoo is right. Check your current employer's policy: mine will let me remain on their group policy indefinitely (not just for the COBRA 18 months) at my own expense but if I lapse for any reason, I am out of the running. Not cheap, but at least a guaranteed option if I can cough up the premiums.

[HFWR]

I'm currently eligible for 66%/37% co-pay for retirement health insurance, although I fully expect them to f*ck me out of it that could change.

In three years, that number goes to 75%/25%.

[Cattusbabe]

The health care piece is the reason for pause. *I currently pay $236 per month now as my share of health coverage through my job. I also have a flexable savings account which fund to the tune of 420/ year.

I can COBRA for 18 months after that DH will be 65 and on Medicare with a Medigap policy and I will have to pay out right until 65 if of course Medicare is still around.

In order to get around the preexisting we are looking at a BC/BS indemnity type policy. The literature says that if we could transfer directly after COBRA with no break in coverage we need not submit to an exam but I am not sure what if any question would be asked on any application forms.

[gtmeouttahere]

What are you waiting for!!!! I'd be sipping Margaritas and enjoying life. WOW!!! Not even kidding, I'd be gone from my J.O.B. yesterday, if not sooner. Go live life!!! Congrats!!!!

[Cattusbabe]

Hello again.* I want to thank you for this site.* DH and I put our information in FIRECALC and also went onto the Georgetown Insurance information site.* That Information sealed the deal.* I’m bailing in May; * there is no reason to wait.* We decided to suspend paying off the house early and using DH’s SS money to pay for health care.* When he goes on Medicare we will get back to our early payoff plan.* I feel better doing this because the SS is a fixed and guaranteed amount of money each month and I feel that we need that sort of stability when it comes to paying for Healthcare. We will also continue to build the emergency fund. That way we have wiggle room to work with no matter what the market does with our monthly income.*

[Coach]

Congratulations! Collect some great times and enjoy.

Coach

[playaman]

Good decision!

Enjoy the rest of your life the way it was meant to be -- in activities of your choosing at your own pace.

[Cattusbabe]

Just an update. My hand is in the d-ring. I leap May 21, 2006. Wish me luck.

[REWahoo]

Be sure to yell "Geroniomo!!!" when you jump.

[SolidA]

HOORAY FOR YOU!!!!!!!!!!!!!!!!!! Keep us posted as to how it's going!!!

SS is guaranteed? Just kidding. Congrats, you'll do fine.

[Cattusbabe]

Handed in letter yesterday just after my last (thank God) staff meeting.
Was told "You can't do this." (yeah I can and did). The boss spent most of the meeting asking me how DH and I did it. Then asking me to delay quiting. (Not a chance.) Was getting ready to suggest this board for further information but she brushed that off saying that she has heard/read it all. ( Boss lady not very good at listening to the underlings. Not my problem in three weeks. )

[Dawg52]

Quote:

Originally Posted by Cattusbabe Handed in letter yesterday just after my last (thank God) staff meeting. Was told "You can't do this."* (yeah I can and did).* *The boss spent most of the meeting asking me how DH and I did it. Then asking me to delay quiting. (Not a chance.) Was getting ready to suggest this board* for further information but she brushed that off saying that she has heard/read it all. ( Boss lady not very good at listening to the underlings. Not my problem in three weeks. )

Congrats! I gave my boss a 2 year notice believe it or not but it still is a good feeling knowing the decision has been made. Just a few more months to go.*

[SteveR]

Congrats on getting out of the rat race. I am sure you will do just fine after you de-tox and get your brain back. Have fun with the next few days....you have earned it.

Looks like your boss will be working until manditory retirement with her attitude. Too many in management have bought the whole Corp. package of BS and can't see the truth any more. My boss is the King of BS and it is all I can do to keep from puking most of the time when he turns on his BS machine. Yuck..

We have 14 months left and have no intention of telling our bosses about it...we keep them guessing about when since they both know it is "traditional" for people to get out at 55 and we will both hit that next year. I have already asked about doing some part time consulting but they "don't do that here" so they will get the required 2 weeks notice........just like on my last ER.

[Cattusbabe]

Thanks for the kind words.* DH and I are in countdown mode.* *The new kitchen will be completed next week.* This was the* largest* remodel expence for this house so we wanted it done before I quit.* No financing, its paid for. Thats what works for us.

We took out a HELOC as suggested by some on this board as* an additional emergency fund. Easier to get when you can list that you have a Job. We sign the papers today.* We will use it for extreme emergencies. We do not want to have to ever tap into our principal.* *

The week after my last day at work we are off to Mystic Conn. for a vacation. Will stop in at the Foxwoods casino, I have heard it really nice. I think that is a great way to start retired life.

[REWahoo]

Quote:

Originally Posted by Cattusbabe We took out a HELOC as suggested by some on this board as an additional emergency fund. The week after my last day at work we are off to Mystic Conn. for a vacation. Will stop in at the Foxwoods casino...

You might want to leave the HELOC checkbook at home on this trip.