|
01-06-2015, 01:33 PM
|
#1
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Posts: 5,177
|
Fidelity RIP question
In another thread, people were mentioning HealthCare being part of FIDO RIP, and healthcare being calculated with 7% inflation rate, etc, but I cannot find where to put Healthcare expenses. I can tick "Megacap or other supplemental healthcare insurance" or "Long-term care insurance" under "Have You Budgeted for Insurance" in the expense part of the RIP, but ticking them or not ticking them do not to do anything (It still calculates my plan with the default 2.5%.) I cannot afford a 7% inflation rate in addition to the default 2.5% anyway, but I wanted to see where you add Heathcare to the RIP.
Also, I might split and add a discretionary expense to the essential but it doesn't seem to do calculation any differently? Am I missing something here?
Thank you very much.
|
|
|
|
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!
|
01-06-2015, 01:48 PM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2013
Posts: 11,078
|
It's under Your Situation-> Expenses then tick the radio button for "Detailed Living Expenses". There's a budget worksheet to fill out. It's in there.
Edit to add:if you split out essential from discretionary and had the same total, the only thing that changes is your withdrawal spreadsheet breaks those out in separate columns. Hope that helps.
Sent from my SAMSUNG-SGH-I337 using Early Retirement Forum mobile app
|
|
|
01-06-2015, 02:01 PM
|
#3
|
Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 1,495
|
I ignore the healthcare recommendations in RIP and put my own estimate of total healthcare expenses in a lump sum on one line under the healthcare section. I also ignore the discretionary versus essential calculation they do as I already know these numbers. For healthcare estimates, I've performed mock ups on several medicare provider sites, and studied polls and threads on the BH forum. On average, annual costs were around $5K per individual, which matched my mock ups.
Medicare inflation has actually slowed in recent years do to the introduction of the ACA, and is projected to slow more for retirees due to the total closure of the prescriptions "donut hole" (in 2020 I believe). Until that date, the donut hole is being phased out, although I don't recall the exact formula.
Total healthcare costs are actually held down by medicare usage for retirees. Up until approximately the mid-2000's, medicare premium inflation was increasing at around 7% yearly, but that has slowed in recent years. I am personally only calculating 7% increases in medicare premium increases, and even that is probably generous. You may think otherwise.
|
|
|
01-06-2015, 06:16 PM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2013
Posts: 9,358
|
Quote:
Originally Posted by Options
On average, annual costs were around $5K per individual, which matched my mock ups.
|
That is what I'm using. There are articles saying retirees Social Security benefits will be consumed entirely by Medicare. I think those are unrealistic. People would just go without health care before they'd go without food, clothes and shelter, and many upcoming retirees will not have much more than Social Security. I can't see people living on the streets just so they can make their Medicare payments.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
|
|
|
01-15-2015, 06:32 PM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Posts: 5,177
|
Thank you all for your responses and sorry that I didn't respond until now. I got busy and I forgot I even asked this question here. I did check out the breakdown on FIDO RIP, and now I know how to put the healthcare information in, but yeah, I don't know how anybody could afford a 7% increase (I certainly can't) so I will just put in my own estimate.
|
|
|
01-15-2015, 08:02 PM
|
#6
|
Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 1,495
|
Quote:
Originally Posted by tmm99
Thank you all for your responses and sorry that I didn't respond until now. I got busy and I forgot I even asked this question here. I did check out the breakdown on FIDO RIP, and now I know how to put the healthcare information in, but yeah, I don't know how anybody could afford a 7% increase (I certainly can't) so I will just put in my own estimate.
|
I am only factoring in 7% medicare part B premium increases, and that's probably too much, given that premium increases have slowed with the advent of the introduction of the ACA. I am definitely not factoring 7% overall healthcare inflation increases annually. That' not even sustainable, IMO. As I said, based on my readings, overall annual healthcare budgets for individuals were around $5K annual, although I'm using $6K to be a bit conservative.
Hope this helps.
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
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
|
|
|