|
|
01-05-2011, 12:05 PM
|
#21
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,022
|
Quote:
Originally Posted by MALONEBOSS
The expenses include life insurance policy premiums...
|
Once you are financially independent, will you need life insurance? If you and your family can live off your nest egg, can't your family do the same if you are gone?
__________________
Numbers is hard
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
01-05-2011, 12:48 PM
|
#22
|
Moderator Emeritus
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,873
|
Quote:
Originally Posted by Rich_in_Tampa
... I am optimistic that health care reform will make insurance available directly (without an employer in the picture). ....
|
I thought I was an optimist, too, R-I-T . When that does go into effect (or when MediCare kicks in), I'll probably continue to allocate the same huge percentage of my budget (plus inflation) to various medical/health expenses. .
I was very fortunate that my employer paid for an individual plan which was portable allowing me to retire well before 65 without having to figure out what to do when COBRA runs out.
|
|
|
01-05-2011, 12:57 PM
|
#23
|
Confused about dryer sheets
Join Date: Jan 2011
Location: cleveland
Posts: 6
|
We certainly do not need the life insurance at this point. However, consider the following:
1. My wife's policy is a term life policy and valued at 2m. I'm not sure we want to give that up just yet.
2. My policy is a universal policy with a nice cash value. I can obviously use this cash for numerous things. One thing the cash value can do is start paying the premiums.
I am paying $7,800 a year in insurance policies, and could almost be considered insurance poor. But when you consider the 10 year cost of $78,000 vs the 2 million payout for a tragedy I think the risk is worth it for my family.
So while we probably do not need the policies, I think I will hang onto those as long as I really can. Because of the policy sizes, it certainly would give my kids some independence if me or my wife kick the bucket in the next 10 years.
|
|
|
01-05-2011, 12:57 PM
|
#24
|
Moderator Emeritus
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
|
Quote:
Originally Posted by CuppaJoe
I thought I was an optimist, too, R-I-T . When that does go into effect (or when MediCare kicks in), I'll probably continue to allocate the same huge percentage of my budget (plus inflation) to various medical/health expenses. .
I was very fortunate that my employer paid for an individual plan which was portable allowing me to retire well before 65 without having to figure out what to do when COBRA runs out.
|
Yep, I think it is wise not to count on it in planning at this point. OP is young enough that if it happens, it will do so while he is can really benefit. Too late for most of us seniors, most likely.
Sweet deal you got there on the individual policy.
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.
As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
|
|
|
01-05-2011, 01:08 PM
|
#25
|
Thinks s/he gets paid by the post
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 4,204
|
If you and your wife kicked the bucket the next ten years, your kids would have close to $3.5 mil to get started with. If you look at your insurance as some kind of a game, then 2m or 7.8k a year may seem like a reasonable risk/reward. However, if you look at 7.8k less expense means you can retire, it puts it in a different light.
For me insurance is there to serve a purpose. If I die, it will replace my income for those I leave behind. If they no longer need that income, then I no longer need the insurance.
__________________
If it is after 5:00 when I post I reserve the right to disavow anything I posted.
|
|
|
01-05-2011, 01:20 PM
|
#26
|
Thinks s/he gets paid by the post
Join Date: Dec 2010
Location: USA
Posts: 1,050
|
Life Insurance.... consider Term Life vs. Universal.
I'm 41 with good health and only pay about 1.5k per year on a 1M policy with a 20 term. I started the policy this year. YMMV
|
|
|
01-05-2011, 02:59 PM
|
#27
|
Moderator Emeritus
Join Date: Sep 2007
Posts: 17,774
|
Malone, I don't think you need to second-guess what decisions you and your spouse have made re insurance or any other expenses--just important that you know what they are today, what you might consider changing to enable ER, what you can't change.
And of course, a $3.5 million nest egg with no mortgage? I'm going to go out on a limb and say you might have to slightly change your lifestyle, but there aren't many universes where that shouldn't be plenty to retire on even with the most expensive health insurance policy, but that's me
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
|
|
|
01-05-2011, 04:53 PM
|
#28
|
Recycles dryer sheets
Join Date: Dec 2010
Posts: 63
|
Quote:
Originally Posted by MALONEBOSS
I am a 45 year old who is looking to retire next year at 46. I am trying to understand if I have enough money to retire now, or if I need to wait it out a few more years. I am looking for anyones advice, and opinions, please. I have given some details about my savings, etc.. below.
I am currently working in a job that pays me approx $125k per year. I previously owned my own business for 20 years.
My wife works for the school district and makes about $15k per year, plus she has our health insurance.
We own our house, 100% paid in full. Value $345,000
We have no debt, nothing.
We have two kids, one 16, and one 14.
College Savings for both children is $75K each, or $150k total.
Our nest egg is $3,500,000. This is made up of savings and IRA.
Our current living style suggests that we will need about $135k per year, after taxes.
Any thoughts are greatly appreciated.
|
You and I are somewhat similarly situated, as we are about the same age, with similar assets and family structures.
I think you can fulfill your plan to retire in a year, but as noted by many in this thread you should run the numbers yourself using FIREcalc or another similar program and make sure you have an iron-clad mastery of your expenditures.
On the insurance, my wife and I each have $1.5mm of 20-year term insurance in trust, plus I have universal insurance of $700k with about $50k of cash value. I plan to keep the term insurance, which costs us $2k per year, but probably cash out the universal.
|
|
|
01-07-2011, 03:08 PM
|
#29
|
Thinks s/he gets paid by the post
Join Date: Jun 2010
Location: Palma de Mallorca
Posts: 1,419
|
I don't understand why someone with $3.5 million needs $2 million in life insurance. If $3.5 million is enough, give or take a couple of years, for retirement for two people, why would one person need $5.5 million?
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|