Part time working? Insurance issues?

[dory36]

I imagine many ERs start a part time job once in a while. We've thought it might add to our restaurant fund in 2003, since our variable SEPP withdrawal looks like it will be a lot less than last year.

The trick question: If the employer offers free or cheap health insurance, what do you do about the individual policy you have? Continuing to pay it seems silly, but dropping it means that you risk being unable to get similar coverage, should your medical condition change in the interim.

I wonder if insurance companies have a "vacation rate" similar to what some phone companies offer?

Dory36

[area52]

I'd keep the insurance, unless you're thinking of becoming a "full time part-time" worker or a permanant temp. It's all about the freedom to come and go.

Besides if you start working part time or 4-6 months out of the yr all of a sudden you'll have more money coming in to defray the cost of the policy you already have.

That's sort of like getting insurance from your job in a very indirect..metaphysical sort of way

I am missing something:

Made $120K per year working - kept $5900 per month or $70.8K per year which was 59% of the $120K after taxes and 11% contribution to 401k.

Now retired and not yet receiving SS, from my investments, I can draw down $79K and get $5925 per month or $71.1 K after taxes per year.

That $71.1K is 65.8% of pre-retirement earnings.

I get slightly more, that's right, MORE, not approximately 70%, after tax dollars at 65.8% of pre-retirement income than I did when working.

What happened to the need to have 70%+ of pre-retirement income to retire? I can get more money after tax by drawing down 65.8% of pre-retirement than I did working.

By the way - I live in PA and find FIREcalc to be the greatest. You can develop various models and really find, historically speaking, where your money will take you.

Kudos to the inventor - Beats everything else I have found hands down.

Also agree that 4% drawdown will see you through 30+ years of retirement including inflation and not erode your base. Have looked at this for months and read everything I could. Thanks to those of you who have helped with the research.

I have touched on both of these issues before,
however.......................

After semiretiring in 1993, I worked part time and/or
on contract for almost 5 years. Although I had company paid insurance for most of that time, I made the mistake
of relying solely on that and jumping around from company
to company, both before and after I had the provided
coverage. Then, I developed some health issues and
became persona non grata with many insurance companies. Right now, if my wife changed employers
and had health insurance provided, I would stay right where
I am until medicare kicks in.

An aside. In 1993, I intended to work part time
indefinitely, in spite of having been on my own
(basically self employed) for about 6 years. I thought
going back and working for someone else would not
be a problem. After all, it was just to get an income stream, not a career. And, of course only a part time gig.
Even while making a lot of money with excellent
benefits it was no fun. IMHO, once you have been on your own for a long time, going back to work for
someone else is an iffy proposition.

JG

[BUM]

Quote:

*IMHO, once you have been on your own for a long time, going back to work for someone else is an iffy proposition.

One of the byproducts of entreprenurialism is that you become happily, deliciously, insanely unemployable.

BUM

[gayl]

Quote:

I imagine many ERs start a part time job once in a while. We've thought it might add to our restaurant fund in 2003..., The trick question: If the employer offers free or cheap health insurance, what do you do about the individual policy you have? Continuing to pay it seems silly, but dropping it means that you risk being unable to get similar coverage, should your medical condition change in the interim.... Dory36

I'd ask if they would increase the salary by the $nsurance premium. Healthcare employers often will factor that into the per diem rates.

Quote:

I am missing something: * What happened to the need to have 70%+ of pre-retirement income to retire? I can get more money after tax by drawing down 65.8% of pre-retirement than I did working.

I've always heard it was 80%+ of pre-retirement after tax pay to retire ... which is hardly true for me. I have more time to do things so I actually spend more now than when employed. Net now = 100% of after tax income while employed.