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Old 04-21-2021, 06:10 AM   #61
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If your household income is low $110 seems quite plausible.
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Old 04-21-2021, 07:46 AM   #62
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I hope this is true... $110/Month

Hold on this only works if your spouse does not get insurance through her job..remember that homework you need to do?
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Old 04-21-2021, 08:10 AM   #63
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remember that homework you need to do?
Remember the dunce in the corner... LOL. The wife will reach a point she will have HI supplied after retiring, and at that point This may apply...
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Old 04-21-2021, 08:12 AM   #64
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Remember the dunce in the corner... LOL. The wife will reach a point she will have HI supplied after retiring, and at that point This may apply...

in 7 years you would be on Medicare....that has to be a separate cost from ACA.


I'm curious if you plugged any HC numbers into your long term budget.
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Old 04-21-2021, 09:31 AM   #65
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... Debt... not comfortable with it... But a necessary evil. ...
With respect, debt is almost never necessary and when it is (home mortgage) it is not evil.

Except for one silly auto loan right out of graduate school (a used Porsche!) we have never borrowed to buy things we wanted but couldn't pay for. In our household the idea of taking a $1500 vacation while carrying twice that in credit card debt would be simply unthinkable. I think it's been 20 years since we had mortgages on either of our homes.

Not comfortable? IMO you are too comfortable.

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... A separate investment account to try and make money with. ...
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... hopefully a positive outcome from investments.
There is a common pilot's rule regarding a flight: "If you find yourself thinking 'It will probably be alright' that is the time to cancel the plan. "Hope" is not a retirement plan.

Instead of continuing to consult SGOTI, I strongly suggest that you hire a good financial planner (interview several) to analyze your situation and make recommendations. Example, realize that $2600 pension could easily become $1300 in buying power in 20 or 25 years. 2 1/2% inflation will do it.

garrettplanningnetwork.com, www.xyplanningnetwork.com, and napfa.org seem to get good reviews around here. I have no direct experience with any of them. You are looking for a planner who will charge you hourly or a flat feet to do a complete financial analysis and plan.

Sorry to sound harsh.
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Old 04-21-2021, 09:54 AM   #66
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If Firecalc gives you a 98% success rate on your pension alone, which I think I understand from your posts, then it sounds like you may be fine.
The key is your budget and spending, making sure you have everything included, healthcare, taxes, future replacement costs, etc.
A financial planner, one time fee only, might be a good investment.
And there are some great books out there for learning.
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Old 04-21-2021, 10:14 AM   #67
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I'm curious if you plugged any HC numbers into your long term budget.
I've done my best to.... HC is actually my biggest unknown...
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Old 04-21-2021, 10:24 AM   #68
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I've done my best to.... HC is actually my biggest unknown...



What number did you use for HC?
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Old 04-21-2021, 10:28 AM   #69
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realize that $2600 pension could easily become $1300 in buying power in 20 or 25 years. 2 1/2% inflation will do it
Which is why he needs to know his COLA and if any overage is banked (MINE: 4% COLA but inflation is 5% so 1% goes into a bank for a future year where inflation = 3%. Then I get 3% COLA + 1% bank = 4% increase)

IMHO: OP needs a list of questions to ask at a pre-retirement pension office mtg. The questions (for me) would be:
♤ COLA - is overage banked
♡ When does annual increase happen-- what day does he have to be out to get the COLA
◇ When is the best retirement day for him personally? (Mine was actually mid-Feb even though my birthday is in May)
♧ HC - what will the cost be going forward? If OP opts for just dental can he opt back in at a later date or is he stuck at just dental?
○ How well funded is the pension
□ Is he affected by GPO / WPO / WEP
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Old 04-21-2021, 10:38 AM   #70
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With respect,
Sorry to sound harsh.
Not harsh at all... and with respect... an opinion from SGOTI.... LMAO... I did have to look that up...
I'm very thankful for everyone replies, an outside looking in opinion may just open eyes... Our CC debit is home building supplies at 0% and no mortgage. Our last purchase was nearly $3500 with 2 years @0%... we owe less than half in 4 months. Projected home value is in the 180-200K range. Looked at dropping almost another 3K this weekend to get kitchen cabinets before they start climbing in price.
The $1500 vacation... was 3.5 weeks of travel and camping...paid as we went. just an idea of how we spend... Know folks that have put twice that on a CC to take a dang 4 day cruise..
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Look for tax deductions plans now
Old 04-24-2021, 10:58 AM   #71
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Look for tax deductions plans now

I do not have a pension so taxable income is based on interest/divd, stock sales and rental income. I am able to control when I sale stock and expenses against income. This gives me some control over taxable income.
My mother has a nice pension and she has to pay taxes every year. With her 401k distributions and SS and the pension income she has waited to long to look for ways to reduce her tax burden. Also it makes her not qualify for several discounts programs. I am not sure how to do anything to reduce your tax liabilities but that might be an area you focus some thought on.
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Old 04-24-2021, 12:59 PM   #72
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IMHO: OP needs a list of questions to ask at a pre-retirement pension office mtg. The questions (for me) would be:
♤ COLA -
◇ When is the best retirement day for him personally? (Mine was actually mid-Feb even though my birthday is in May)
♧ HC - what will the cost be going forward? If OP opts for just dental can he opt back in at a later date or is he stuck at just dental?
○ How well funded is the pension
□ Is he affected by GPO / WPO / WEP
COLA- ... random every few years If the Governor adds it. think its 4% for next year. Optional if I would roll my 401K in, but only on that amount...

My last day is based on getting my severance pay on the very last check of the year for larger 4 year average salary.

HC- is on my own... there a vision/dental option but honestly a waste of money for me...

Funding.... Its the State Government ... Yes it could collapse... but at that point I feel we are self sufficient and well armed enough to maybe survive...

Is he affected by GPO / WPO / WEP....
WOW... more schooling and questions... Didn't find WPO... But will be digging.
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Old 04-24-2021, 02:21 PM   #73
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COLA- ... random every few years If the Governor adds it. think its 4% for next year. Optional if I would roll my 401K in, but only on that amount...
So what happens in a year where COLA is more than the granted increase? Does it roll [build a bank] for a future year? Or do you eventually lose?
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Old 04-24-2021, 03:58 PM   #74
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So what happens in a year where COLA is more than the granted increase? Does it roll [build a bank] for a future year? Or do you eventually lose?
From what I understand is Its not actually COLA, But like getting a raise in your pension.
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Old 04-25-2021, 08:12 AM   #75
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Remember if one member of a family gets HI from work, they need to all get insurance from work.
Good point.

But as for the ACA costs, I think some people quote the "gross" cost and don't figure in the subsidy....which you can get in full if you stay below 400% FPL.
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Old 06-21-2021, 09:33 AM   #76
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Well I'm now at 6 months away from retirement and my schooling has created way more questions than answers. Looking like we will need to be creative in keeping our taxable income below the next tax bracket, and then figuring in SS in the future... wait to gain more... just to pay it back in taxes. Then trying to figure how much to roll out of the 401K into ROTH without the next step in tax... UGH
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Old 06-21-2021, 09:50 AM   #77
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Well I'm now at 6 months away from retirement and my schooling has created way more questions than answers. Looking like we will need to be creative in keeping our taxable income below the next tax bracket, and then figuring in SS in the future... wait to gain more... just to pay it back in taxes. Then trying to figure how much to roll out of the 401K into ROTH without the next step in tax... UGH
You'll have lots more time to figure this out in 6 months...


Tax rates are important but I think number is projecting a good income flow for your DW in later life since she is early 50's and younger then you are. After you have that nailed down worry about tax brackets.
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Old 06-22-2021, 04:44 AM   #78
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You'll have lots more time to figure this out in 6 months...
But Im needing to get busy making choices now.... considering taking some of our cash savings and open a ROTH IRA account before retiring. That will leave us with one year of risk paying extra if we need to hit my 401 for any reason, and start rolling the 401 out to the ROTH next year after our Taxable income drops a bit. But then we have the 5 year wait to figure... but should be fine with her still working... BUT with considering her retiring early too.....
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Old 06-22-2021, 07:16 AM   #79
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But Im needing to get busy making choices now.... considering taking some of our cash savings and open a ROTH IRA account before retiring. That will leave us with one year of risk paying extra if we need to hit my 401 for any reason, and start rolling the 401 out to the ROTH next year after our Taxable income drops a bit. But then we have the 5 year wait to figure... but should be fine with her still working... BUT with considering her retiring early too.....
No you don't, you have until April of 22 to fund a roth for 21....if your wife retires too it's imperative you have after tax cash for living expenses to keep your HC costs low.


I see you have 35K in cash so I wouldn't put that cash in a Roth. Honestly you and your DW need to sit down and figure out if she's going to work another 7 years, before you stop working. Seven years less wages and lower/no pension is a whole different ballgame money wise.
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Old 06-22-2021, 07:49 AM   #80
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Thinking the Roth needed in 21 so 5 years up in 26.
Only reason some the cash is its already taxed... reading cap is $7000/yr
The wife will be working 2 more years anyway... @55 would be the earliest date.

Whats nice is both of us are under the same system, shes state i'm local government, so the rules are the same for us both...
COLA has been asked about, and its not annual, but the average Hx since 85 has been 2.3%... a little under the national average... that makes me feel better.
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