1 Year Later

[babyape]

I ERed about one year ago and changed my life completely. Got married, changed coutries, started a new "career".

Here's the results:

1) My nest egg has grown in one year.
2) Fought for my severance, back commissions and other money and won. PRICELESS!
3) I got married and paid for a wedding, ring and a bunch of other associated stuff that really seemed like a waste but it all ended up okay and I am glad I did it.
4) Traveled to Asia 2 times
5) I lost 20 pounds .....and then gained back 10.
6) I taught a kid how to read
7) I learned how to skate on hockey skates
8) Moved to a foreign country.
9) My heart palpitations went away.
10) I'm starting a small business that's generating good money and I am not working too hard.
I always wanted to start a business so this feels great. Technically, I am on the ESRBob track, i guess.
11) I found medical insurance first for 435 /mo then 285 /mo and now it's about 150. Big relief.
12) Generally a little anxious still about not working but each day I feel like I am getting closer to being a truely self-directed person. I'm still way too obsessed with the market and it's gyrations....but i am getting better.

......I'm only in my forties.

.......It was worth saving my money when everyone else was buying junk they didn't need

 

[Sam]

Congratulations! Sounds excellent.

Please take the time to tell more, about everything, especially the country you moved to, adjustment, good, bad, and ugly.

 

[hogtied]

babyape,
can you elaborate a bit more about your reductions in medical insurance premiums. How did that come about, etc. ? thanks.

 

[DangerMouse]

It's always nice to hear from someone who took the plunge and survived. Sounds like it has been an event packed 12 months for you.

 

[chinaco]

Sound like an exciting time in your life.

 

[modhatter]

Pray tell. Where are you?

 

[SteveR]

Nice report! Keep them coming.

I will be in the Class of 2007.

It is interesting to see how people transition from full time jobs into a different lifestyle and the evolution one makes in ER.

What business are you starting? I have considered doing something that does not take a lot of time or $$ and does not become just another job. Perhaps I will find in someday.

 

[HFWR]

I have considered doing something that does not take a lot of time or $$ and does not become just another job. Perhaps I will find in someday.

Not if you don't look...

 

[SteveR]

Not if you don't look...

I know....the looking part takes both time and a mind that is not filled with other work-related and personal issues. Once the work part is behind me, I will be in a better position to look.

 

[HFWR]

I know....the looking part takes both time and a mind that is not filled with other work-related and personal issues. Once the work part is behind me, I will be in a better position to look.

Let me rephrase that: Don't look...

Go smell them there flowers!!

 

[SteveR]

Let me rephrase that: Don't look...

Go smell them there flowers!!

Whoops!

Thanks for the clarification. If and when I do ever want to do a small business it will have to be something I can do when I want to; not when I have to. If I don't see anything that meets this criteria then, Oh Well.

 

[babyape]

Here's a little more elaboration.

The business is a small consultancy that helps overseas firms do business in the West. There are lots of import / export people out there. I am not set up that way. I sell services. It is very specialized and it is a niche. It allows me to travel and to explore new opportunties without totally pulling the plug on work.

It doesn't really matter to me if I make 30 grand or 100 this year. That's a beautiful luxury that I didn't have when I was saving and working toward ER. It gives you a freedom that I never had as an executive. For example, a guy was trying to pressure me a few weeks ago into paying for something that I just didn't think was fair. It was only a $100 and he assumed I would pay for it because there "was a lot of business down the road"and he was with a really big company. After all I was the vendor and he expected me to suck up to him. Then he started getting pissed when I told him I would no longer work with him merely because I thought he was being unfair and I NO LONGER HAVE TO WORK WITH PEOPLE I DON'T WANT TO. Being able to negotiate from a position of "I can always walk away" is tremendously empowering. It also means I will end up only working with people that I like and trust. I don't really know if I am retired or not but being FI gave me the base to explore the world.

For the first time in my life I can spend all the money I make instead of saving it if I want. But I find this impossible since I am so used to being frugal. I will use any money I make to take more business and investment risks however. I was never a risk taker from an investment point of view and now I can afford to try some new things as long as I build a moat around the ER stash.

Hasn't anyone else started a small business in ER? It will also help with Taxes which are starting to be my number 1 obsession right after S&P index.

 

[babyape]

Someone asked about my medical insurance.

At first I paid for COBRA which was abouit 110% of the true cost. Later I found a comparable plan with a 2000 deductable for about 285 bucks. Now I found a Blue Cross program that might be as low as 150 bucks a month with a high deductable ( i still have to read the fine print).

 

[dumpster56]

Someone asked about my medical insurance.

At first I paid for COBRA which was abouit 110% of the true cost. Later I found a comparable plan with a 2000 deductable for about 285 bucks. Now I found a Blue Cross program that might be as low as 150 bucks a month with a high deductable ( i still have to read the fine print).

The high deductable is what is such BS.

I am a marathon runner who was in the shape of my life and ended up at 1am getting a cardiac cath a few years ago . It sure felt like a heart attack, BUT after the cath we saw no blockages . the next day while in the ICU found out I had Viral pericarditis, an inflamation of the pericardium around my heart. Without a great health plan the cardiac cath would put you in a big financial mess. I have seen plans with 15 to 20 K deductables. You would spend that in the situation I just wrote about.

 

[Billy]

SteveR

I know....the looking part takes both time and a mind that is not filled with other work-related and personal issues. Once the work part is behind me, I will be in a better position to look.

Babyape:

Being able to negotiate from a position of "I can always walk away" is tremendously empowering. It also means I will end up only working with people that I like and trust. I don't really know if I am retired or not but being FI gave me the base to explore the world.

We have found that since we retired, business or money-making opportunities seem to ‘fall into our laps’. Since we ‘don’t have to work’ and take the same attitude of Babyape, we can take it or leave it, or take it for a short period of time. It is immensely freeing, mentally. There is absolutely no reason whatsoever to sell your soul, be mistreated or put up with less than quality in any kind of $$ exchange. Lovely.

Hasn't anyone else started a small business in ER? It will also help with Taxes which are starting to be my number 1 obsession right after S&P index.

Taxes are a huge expense. Normally in a household, the expenses go in the order of Housing, Transportation, Taxes, Food. Having your own business certainly helps you in this area and that’s a good plan. Have you ever run a business before? It can be very handy in keeping that tax bill down.

Newguy88

The high deductable is what is such BS.
I am a marathon runner who was in the shape of my life and ended up at 1am getting a cardiac cath a few years ago . It sure felt like a heart attack, BUT after the cath we saw no blockages . the next day while in the ICU found out I had Viral pericarditis, an inflamation of the pericardium around my heart. Without a great health plan the cardiac cath would put you in a big financial mess. I have seen plans with 15 to 20 K deductables. You would spend that in the situation I just wrote about.

Hey, Newguy, sorry to hear about your pericarditis. Ouch. Hope things have mended by now… The point with choosing a high deductible plan is that one has considered the cost of monthly premiums and has chosen a high deductible instead. We self-insure for the deductible and go to 80-20 after the deductible has been met. If one cannot afford the high deductible, then one wouldn’t choose that sort of plan.

We utilize medical vacations to keep tabs on our health condition, choose a high deductible plan, and go from there.

Philippines Medical Tourism: http://www.retireearlylifestyle.com/medicalphilippines.htm
CBS Medical Tourism: http://www.retireearlylifestyle.com/medicalTourismCBC.htm
Medical Tourism Growing: http://www.retireearlylifestyle.com/medicalTourism.htm
Visa Extensions for Medical Tourism: http://www.retireearlylifestyle.com/medicalVisaExtension.htm

Certainly, this would not fit everyone’s life, but it is an option that is being considered more and more.

Be well,
Akaisha
Author, The Adventurer’s Guide to Early Retirement

 

[chinaco]

… The point with choosing a high deductible plan is that one has considered the cost of monthly premiums and has chosen a high deductible instead. We self-insure for the deductible and go to 80-20 after the deductible has been met. If one cannot afford the high deductible, then one wouldn’t choose that sort of plan.

One question about high deductable plans. Insurance companies seem to jack the rates on individual policies or drop the insured altogether once they develop a serious medical condition. Do High Deductible Plans help with this type of situation? In other words can one still get a catastrophic plan at an affordable price... or will the insurance companies still avoid you like the plague?

 

[Billy]

Chinaco:

One question about high deductable plans. Insurance companies seem to jack the rates on individual policies or drop the insured altogether once they develop a serious medical condition. Do High Deductible Plans help with this type of situation? In other words can one still get a catastrophic plan at an affordable price... or will the insurance companies still avoid you like the plague?

We all hear stories of insurance companies dropping patients after a claim or after having a serious illness. So we sent that question to Steve Shorr Insurance http://www.steveshorr.com/

We specifically asked about Blue Cross, and in answer to our question of whether or not the insurance company would drop someone if they had claims or raise their rates he answered 'No.'

Hope this helps.

Akaisha
Author, The Adventurer's Guide to Early Retirement

 

[ESRBob]

Akaisha,
Thx for the links and the info that at least Blue Cross can't dump you at the first sign of trouble. I wonder if it is 'urban myth' or not for a lot of other insurance companies. I do know we had an employee at one of our non-profits in a one-person-group health insurance who developed back trouble. The first time our bookkeeper was late on a premium, they dropped us like a rock. If we hadn't missed the payment, though, I don't think they could have dropped him.


BabyApe -- congrats on setting up your consulting and organizing your finance in semi-retirement!

I agree with you both -- doing work in FIRE is all about being able to say "sayonara' when somebody's ethics or motivations feel wrong. Sometimes you need to keep reminding yourself of that, because the world of work is not made up of a huge percentage of FIREes, so you won't see that many role models for the Sayonara method...

I have to say, sometimes I watch elderly billionaires like Kirk Kerkorian trying to buy Chrysler and think, OK, I'm sure he's having fun, but does he know how to give it a rest already? There is a big difference between buying and managing Chrysler and the kind of stuff we semi-retirees do, though!

 

[Billy]

ESRBob

Akaisha,
Thx for the links and the info that at least Blue Cross can't dump you at the first sign of trouble. I wonder if it is 'urban myth' or not for a lot of other insurance companies. I do know we had an employee at one of our non-profits in a one-person-group health insurance who developed back trouble. The first time our bookkeeper was late on a premium, they dropped us like a rock. If we hadn't missed the payment, though, I don't think they could have dropped him.

Exactly. You’re welcome for the link -- RE: the bookkeeper being late on a premium, that is really a hot button with these insurance companies. We speak a bit about fiscal mistreatment in our book -- either by the hospitals or by the Payor (insurance companies) and how to avoid it or get ahead of the game. But ya gotta keep up on the premiums. That’s a perfect case for the support of using automatic payments. You never have to worry about being distracted and being late on a bill.

It’s far harder to find insurance once someone has been ‘dropped’ no matter what the reason. It’s easier to change insurance policies and companies while you are still carrying insurance from someplace else.

Akaisha
Author, The Adventurer's Guide to Early Retirement