Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Re: FIRE Now vs. Working to Obtain Health Insurance Benefits
Old 11-10-2006, 05:35 AM   #21
Thinks s/he gets paid by the post
martyb's Avatar
Join Date: Nov 2006
Location: Bossier City
Posts: 2,183
Re: FIRE Now vs. Working to Obtain Health Insurance Benefits

I'm a CSRS Fed too, age 49, mandatory for me to retire in 2013 at age 55 because I'm a military technician who will have maxed out on the military part at that time. To me, working just 2 more years in your case for the FEHB is a no-brainer. That's a huge benefit that many people would love to have. It's worth a great deal of money, not to mention the peace of mind for the rest of your life. As much as I'm sick of my job, I know for sure I'd stick it out for the FEHB. Best of luck to ya, I wish I was within 2 years instead of 6 .

“Change is the law of life. And those who look only to the past or present are certain to miss the future.”
-John F. Kennedy

“Hard work never killed anybody, but why take a chance?” - Edgar Bergen
martyb is offline   Reply With Quote
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 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!

Re: FIRE Now vs. Working to Obtain Health Insurance Benefits
Old 12-06-2006, 07:10 PM   #22
Recycles dryer sheets
RP's Avatar
Join Date: Dec 2006
Location: Marilao, Bulacan, RP
Posts: 55
Send a message via Yahoo to RP Send a message via Skype™ to RP
Re: FIRE Now vs. Working to Obtain Health Insurance Benefits

The biggest issues I see here are the idea of living overseas versus the US and the fact that there are still children involved.

Health care in the Philippines is so cheap that anyone with a million plus in their portfolio might well consider self insurance. It costs about $8.00 to see a specialist and peanuts per day in the hospital. One of the reasons I moved to the Philippines is the long-term care issue. If I should wind up needing an assisted living/nursing home environment my wife, who's substantially younger than I can hire ['round the clock nurses in our home for cheaper than the monthly premiums for LTC.

However there are teens involved and If they remain in the US and attend school there could be some big issues there.

At 65 Medicare kicks in and most insurance policies take a secondary position ... but Medicare can't be used overseas, so that's a factor I don't see addressed. In my own case I'm covered by a military retirement health plan (TRICARE) which works over seas and is free until I reach age 65. Then I'll have to avail of Medicare Part B even though my TRICARE will continue.

It's really hard to make a call, though, because I worked several extra years past my Federal retirement and my only regret, nearly 4 years after 'pulling the plug' is that I waited so long.
Best regards,

RP is offline   Reply With Quote
Re: FIRE Now vs. Working to Obtain Health Insurance Benefits
Old 12-06-2006, 08:27 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
Re: FIRE Now vs. Working to Obtain Health Insurance Benefits

Originally Posted by GMueller
I hate to forfeit the Government's contribution towards health coverage, but on the other hand, I hate to work two additional years if the only reason for continuing to work is to qualify for health insurance. I realize that in the end it is a personal choice, but I wanted to hear from others who have faced a similar situation. It appears that a consensus is growing that the working two more years is worth the price, i.e., health coverage is that important. I really appreciate the responses as this is a difficult decision for me.
Health care is vital. US health insurance is very expensive, or not available. You re talking about 2 years working - I assume not in Iraq- for a lifetime benefit for you and your wife, and I would guess coverage for your children until they are of age.

I can't imagine not doing the 2 years. Look at all the time you have already logged. This is a big part of the payoff.

"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Re: FIRE Now vs. Working to Obtain Health Insurance Benefits
Old 12-07-2006, 03:30 PM   #24
Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 1,012
Re: FIRE Now vs. Working to Obtain Health Insurance Benefits

Originally Posted by GMueller
Clarification: in the fed system eligible to retire with an "immediate annunity" means that you have both reached retirement age and have a sufficient number of years of service. That usually means 30 years of service at age 55, or 20 years of service at age 60. If I retire at age 58 (next year), I will have 22 years of service. Accordingly, I will be not be eligible for an immediate annunity (pension), but I will be entitled to take a deferred pension to start when I reach 60. Thus, I would not be entitled to health benefits. The pension is worth 1% for each year of service, i.e., in my case 22 percent of an average of my highest 3 years of service. That translates into a pension of about $18K.
GMueller, the pension you described above is a FERS (not a CSRS) pension. With FERS you can retire with an "immediate annuity" at your MRA (or any time after) with 10 years of service. There is a penalty to the annuity, which if memory serves me for you (@58yo) would be 4% or about $720/year. You would more than make up for this with the Gov's share of your health ins. Therefore there is no need to stay longer than you planned or give up the health insurance, you can have them both!
jdw_fire is offline   Reply With Quote

health insurance

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Apply for health insurance: Specific questions kramer Health and Early Retirement 48 04-25-2007 08:12 PM
Finding an Agent for Health Insurance? more_or_less Health and Early Retirement 4 03-24-2007 03:36 PM
HIPAA costs ? macnjus Health and Early Retirement 93 12-21-2006 09:04 AM
Scientific American poll: 90% fail at buying their own health insurance Nords FIRE and Money 3 09-16-2006 02:07 PM
Cheap way to get guaranteed health insurance justin FIRE and Money 65 09-16-2005 07:31 AM

» Quick Links

All times are GMT -6. The time now is 10:26 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2023, vBulletin Solutions, Inc.