Deer in the headlights

[sewinglady26]

As a new poster I know this group can give me some honest opinions. Our ages 59 & 57, I have to drag myself to work, my husband just got a menial job now after 2 years of applying, and we may have just sold our house in Houston.

We had planned on going back to Rving after this house sold. At least for a couple of years because we wanted to travel while we still can. I would put our yearly expense at about 26K with a lifestyle that we enjoy.

We own a patio home in a 55+ Fla Community which is rented and hopefully will stay that way. We have about 700k in other assets which are about 60% stocks.

Now that we may be able to follow this path... I feel a little scared..quitting jobs, running into the sunset etc Help please

 

[alphabet soup]

Come on in, the water's fine!

These days, there's a lot more security in relying on your own asset base than the whims of a corrupt management team or wall street bloodsuckers for your livelihood.

I'd rather worry about a swr of 3.75% as opposed to 3.85% than the machinations of some hot shot M&A outfit.

If your needs are well within what you already have, you're already better off than 95% of this debt plagued, wage slave population.

 

[brewer12345]

Hmmm, you have liquid assets sufficient to cover your living expenses (health insurance sorted out yet?), a lifestyle that you enjoy (RVing), are selling a house (some extra cash to play with?), have a home base to come back to if you need it (Fla place), and you are less than 10 years away from Medicare and SS. Where, exactly is the problem?

The fear and uncertainty are natural. Give yourself a little time to get over it. But if I were you I would probably go RVing and not worry too much about the future. Things look good and once you get on the road and start enjoying yourself you won't be spending so much time worrying.

 

[Spanky]

Now that we may be able to follow this path... I feel a little scared..quitting jobs, running into the sunset etc Help please

The finance part is fine - nothing to fear. Just make sure that you have adequate medical coverage.

 

[sewinglady26]

Thanks so much for the thoughtful replies, the unease on health insurance is a factor. We will COBRA on mine for 18 mos. I will try all of the normal avenues at that time.

The thought of staying on my job to hold onto the insurance makes my skin crawl. I am just one "toxic boss moment" away from my car keys.

I have worked on the financial side of medicine for many years and have a pessimistic view of the health insurance industry as a whole.

No major health problems now, but private health insurance will always add more reasons for denial in the future. State guarantees will probably be a victim on rising tide of uninsured. Here in Houston we have always had horrendous problems. The line item on our tax bill goes up especially after Katrina.

Not talking about the moral implications here but are there any protections in this litigious life to protect assets from a large medical judgement? Can a couple go bare and survive?

 

[alphabet soup]

Can a couple go bare and survive?

Not as a couple for very long...

 

[sewinglady26]

Let me see if I can rephrase this properly. In the event that a couple can't get insurance, are there any legal options (trusts, offshore etc. ) to protect their assets from a judgement?

 

[Howard]

Why are Americans not demanding that they be provided with Health Care along the lines of every other civilized nation in the world??

Should this not be a basic right

 

[brewer12345]

Let me see if I can rephrase this properly.  In the event that a couple can't get insurance, are there any legal options (trusts, offshore etc. ) to protect their assets from a judgement?

Not that I am aware, but a specialized lawyer might be able to provide more insight. Personally, I would probably try to find a cheap castrophe policy with a high deductible to keep from getting blown out by medical bills. HSA policies seem ideal for this.

Just a thought: as an RVer, since you can pretty much pick and choose what state you will have as a "residence", why not pick one that gives you good/guaranteed access to health coverage?

 

[Rustic23]

Should this not be a basic right

Why do people think they have a 'Right' to someone elses money? If the government pays for it, you and I pay for it or some other citizen.

 

[brewer12345]

Hey guys, lets keep the politics out of a thread that is looking for practical advice, huh?

 

[sewinglady26]

Hi Brewer,

You are right and there is always discussion on the RV boards on state of residence. We will be shopping for catastrophic coverage.  We have been Texans for several years and will be comparing this state with several others.

I am glad this board provides so many varied viewpoints.  Family and friends are as usual startled by our possible current turn of events. We have RVed in the past and I think people thought it was out of our system. So much for getting our "older, wiser" button.

Even with our black sheep background the actual first step has given us pause. We welcome the comments.

 

[Martha]

Sewinglady, well before your COBRA coverage expires I would give careful consideration as to what state you want as your residence. States vary tremendously on cost of individual health insurance. Federal law will give you some rights under HIPAA to move from your group policy to an individual policy. But it does not regulate rates

Is you health good, as in really really good? No drugs necessary. Etc.? If not, you might have trouble finding affordable insurance in a number of states. There are affordable options, but those options may require you to change your state of residence. I suggest using the consumer guides to health insurance found at www.healthinsuranceinfo.net.

With respect to the issue of protecting your assets, this is a very complicated area because it involves a mix of federal and state law. Therefore, it is hard to get any real helpful guidance on a message board. Is the bulk of your assets in a 401k or 403b plan? If so, federal law generally prevents creditors (other than exspouses or the feds) from taking that money. Is it in IRAs? If so, then there is an intermix of federal and state law that effects whether that money will be protected from creditors. Some states provide very broad protections. Others very minimal. Federal bankruptcy law has fairly broad IRA protections, but federal exemption law only applies if your home state's law lets you can claim federal bankruptcy exemptions. Many states require you to take their state exemptions. See how complicated this can get?

You may very well have trouble protecting the rental home in Florida, as it likely is not your homestead. Maybe your motorhome is your homestead? If you lived in Wisconsin, it could be. I could go on and on with these sorts of issues.

Establishing a trust to protect your assets from creditors is a strategy that can be helpful, but also involves a lot of risk and actually could be counter productive. Too many issues to address in this one post. However, over the past couple of years this board has had several discussions on these issues. You might want to do some poking around using the search function.

 

[sewinglady26]

Martha,

Your reply pointed out the many issues that we will have to wrestle with. Our assets are divided 50/50 between 401ks etc and investments.

The replies on this board will really keep us focused on where we want to be in the future. We know that RVing can be very complicated and hopefully we can avoid the mine fields.

Since my books on ESP haven't gotten here yet we will just try to enjoy new things and stay flexible. Just writing on the board has relieved some of the stress I was feeling at work so that is all good.

 

[haha]

Just a thought: as an RVer, since you can pretty much pick and choose what state you will have as a "residence", why not pick one that gives you good/guaranteed access to health coverage?

Washington works well for this, if you are coming off Cobra.

Ha

 

[Martha]

Good point Ha. If you are coming off of COBRA, Washington state currently allows no underwriting for health conditions. Based on figures Ha has mentioned in the past, insurance seems very affordable in Washington.

I have read a fair amount about picking a state for a home base for full time rving. Most of what I have read just deals with state tax burdens of a particular state. That information is easy to find. It is much, much harder to compare states with respect to health insurance availablity and cost.

 

[Martha]

Our off topic posts on the state of US medical care have been moved here: http://early-retirement.org/forums/index.php?topic=6037.0

 

[SteveR]

... and learned to let our loved ones go when its their time...health care costs would more than halve, if not drop 75%.

CFB,

Thanks for the notes for the other aspects of your post but how about the statement above? That seems to be the one that has the least hard data associated with it.

 

[cute fuzzy bunny]

See the new thread. There is plenty of hard data. It wont make a difference.

 

[treypar]

Where can you fine the information on health insurance in Washington? It sounds like a solution for me.

 

[REWahoo]

atla,

Look here for info on all states: http://www.healthinsuranceinfo.net/

 

[Ed_The_Gypsy]

Beware of Florida. HIPAA is supposed to make the states make health insurance available to all, even the otherwise uninsurable. I saw an article on the net somewhere to the effect that FL has not funded the distressed category for a long time. Washington state is better. Get your coverage before you have pre-existing conditions, believe me!