Hi, new member from Valley Center Calif.

[aladin61]

Will be taking a pkg from work that includes almost a years severance and other benefits. 30+ years at the same co. have $130 in 401k, home is paid for. Retirement is approx. $40k/yr Am married, wife has been retired for 4 years her retirement income is $28k/yr. I am 55. She is 59.5. I will be getting $950/mnth for health care. Kaiser through the co retirement plan is $1250/mnth. Am a bit nervous about retiring. Live in a golfing retirement community and golf is free.

[scrinch]

aladin61, welcome to the forum. Looks like you, combined with your wife, will be getting about $80k/yr in retirement benefits (including the medical contribution), is that right? And then SS kicks in after 5-10 years, depending on when you decide to start. Sounds like you are well on your way to retirement as long as you can easily live on that $80k/yr. You might want to look at SS as something to cover inflation 10 years down the road.

[aladin61]

I think we will do alright, Just not sure what Obamacare will do to our healthcare? Am planning on leaving my 401k alone and using that later on to help with inflation. I cannot add to this 401k but I can change the funds around in it including stocks.

[boilerman]

Is the combined $68K in income (not including the medical benefit) have a COLA? If not, you should look at the effect of inflation over 30+ years. Living on that income today might be easy for you but in 30 years that $68K will buy somewhere around $24K if you assume 3% inflation.

Even with your 401K and SS, that might be difficult to overcome.

[aladin61]

My wife's does.

[Htown Harry]

Welcome, aladin.

Quote:

Originally Posted by aladin61 I think we will do alright, Just not sure what Obamacare will do to our healthcare?

Ask your HR department for every plan health plan document they have available on your way out, then sit tight for a month or three or six while you do your research. (It's open enrollment on the exchanges from October 1 through March 31.)

At those rates, it is likely you will find that your plan is a "qualified" plan that falls in the "if you like your health plan, you can keep it" category. A net cost of $300 per month for a couple is a good deal, particularly if there is no age-based escalation as move toward Medicare eligibility at age 65.

On the other hand, if the $950 per month is a cash allowance that could be applied toward any health coverage you might choose to buy, then an individual policy might be worth a look.

Quote:

Originally Posted by aladin61 Am planning on leaving my 401k alone and using that later on to help with inflation. I cannot add to this 401k but I can change the funds around in it including stocks.

Also ask for 401k plan documents as you go through check out. In most cases, a 401k plan can be left in place in the employer's funds or rolled over to an IRA. Many threads here discuss the high fund management fees and expenses that can be present in company 401k plans. You may find that you can boost your returns 1% or more just by transferring the account to Vanguard or Fidelity and reinvesting in a low-fee, no-load mutual fund portfolio very similar to what you have in the employer plan.

[rodi]

Welcome.
No advice on the financial front - but wanted to welcome you as a neighbor. I live in San Diego and have a few friends who live in Valley Center. It's a nice place!

[lemming]

What is the HOA fee for your development? How often does it go up?