Did I say Class of 2016? Make it 2013... sort of

[MichaelB]

Well, it couldn't happen to a more prepared individual.

Taking health insurance through DW's plan also has the benefit of being entirely paid pre-tax, whereas I believe COBRA would only be deductible to the extent medical expenses exceed [-]7.5%[/-] 10% of AGI (and that assumes what's left is more than the standard deduction).

That tax math might prove compelling. Good thing is you don't have to choose now, and even when you do, you can change your mind.

 

[W2R]

COBRA dental coverage is $114 a month. What a ripoff, given the benefit maximums per year. We'll self-insure that one if we're not on DW's plan. (We rarely have $1300 a year in dental expenses anyway, insured or not, and we might be able to negotiate discounts for cash up front.)

I don't have dental insurance, and even though I am "up front" with my dentist about the fact that I am not poor, he automatically gives me 15% off for not having insurance, and that is without any negotiating. If I negotiated, it would probably be even lower.

Vision is $17 per month and we'd probably take that given our combined vision situation as we usually wind up racking up several hundred dollars a year in covered expenses.

Wow, that is a lot. I haven't spent a penny on vision during the first 3+ years of retirement, although I will probably get new glasses this year at some point.

Between my wife's new job situation and the coming of PPACA, it looks like the timing of my whacking is extremely fortunate.

Absolutely! She is going to need your support and help, I am sure, and now you will have the time to provide it. Also I seriously doubt that any other ministers' spouses have a full time job right away (if ever) when changing to a new ministry like this.

 

[rodi]

Congratulations, Ziggy. It does sound like there's a "bigger" plan in the timing of this. (And I'm not particularly religious... it just seems like the fates have aligned very well.)

I'm currently planning for 2016, like you were - but have my plan B lined up for a possible (hopefully?) RIF this year when our corporate buyout is over.

 

[eytonxav]

I think you'll find there is life after your former mega-corp job. I'm always of the opinion that good things happen to good people, and I'm sure that will be the case for you. Congrats and best wishes on what ever the next step may be, beit another job or ER.

 

[SumDay]

I'm anticipating the same happening to me before 2017, so we'll see.

Do report back and let us know how it's going. I've often wondered how I'd feel if it were their decision rather than mine. I suspect you'll do just fine...

 

[ziggy29]

Do report back and let us know how it's going. I've often wondered how I'd feel if it were their decision rather than mine.

I think it might be a lot easier that they took the decision away from me and eliminated all the paralysis-of-analysis and tendency toward "one more year" syndrome.

In truth, FIREcalc already gives me a better than 90% chance, assuming DW stays with her current setup for another 15 years or so (at which time I'd be 62 and she'd be 59; she's hoping for 15-20 years out of this but most clergy work well past 60, by choice). Another 2-3 years would have put me really close to 100%, but at this point, it is what it is.

 

[ziggy29]

Earlier today, assessing the health insurance morass through the remainder of 2013, I wrote:

Starting to look at the health insurance morass. It looks like COBRA for both of us would cost about $960 per month....

...

It looks like for the rest of 2013 we may need to see if she can get her own health insurance through the church-sponsored group plan while I stay on COBRA. The church plan would also include dental and vision in the premium. Their total employee plus spouse coverage is about $930....

Hmm. I'm seeing short-term plans that would work for up to 11 months with Blue Cross for about $320 per month, for both of us and (ahem) "honest" assessments of our weight and medical history. That 8 months is all I need to bridge Megacorp insurance and the Obamacare exchanges in 2014. It says there's a $2,500 deductible for each of us, a $2 million maximum and covers prescriptions. (No coverage for preventative care, but it's something we can eat for a difference of over $600 per month.) I'm a little wary of these short term plans, but this is a huge difference. Need to look at this more.

 

[samclem]

Hmm. I'm seeing short-term plans that would work for up to 11 months with Blue Cross for about $320 per month, for both of us and (ahem) "honest" assessments of our weight and medical history. That 8 months is all I need to bridge Megacorp insurance and the Obamacare exchanges in 2014.

That's great news. Things are changing quickly out there, and even promised firm dates and programs have evaporated. Also, the paper-pushers in these insurance companies are going to be swamped. Bottom line: If you see a "good enough" deal it would probably be smart to lock it in rather than deliberate one fateful day too long.

 

[David1961]

Ziggy. I do believe things happen for a reason. It sounds like if this was going to happen, now is the best time for your family.

 

[UserRequested]

I notice you've been a member since 2005. Hopefully being involved in so many discussions about ER has helped you enormously in dealing with this situation. All the best.

 

[jon-nyc]

I'm going full on congrats here, no condolences! You'll be fine, and you'll look back at this moment and be glad you got the push.

 

[obgyn65]

You come across as a pretty smart guy with your posts, ziggy. I am sure you will be fine. Take care.

So much for the best laid plans. I got whacked by a big RIF today.

 

[Milton]

I'm going full on congrats here, no condolences! You'll be fine, and you'll look back at this moment and be glad you got the push.

+1. Although you are not yet FI you are most of the way there; and it sounds like your wife's new situation will more than cover the shortfall.

I anticipate that you will likely find some form of alternate employment (perhaps part-time?) that will allow you a nice transition to ER. You've been 'saved' from the dreaded 'one more year syndrome'!

All this talk of health insurance makes me feel lucky not to be an American: it seems like a significant stumbling block for many would-be early retirees.

I do believe things happen for a reason.

Maybe. But then e.g. one reads about a hardworking mother of three killed by a drunk driver who crossed into her lane. Pretty hard to find any reason for that sort of tragedy.

 

[Lcountz]

To a relative newbie like me....what is "RIF"? thanks....

 

[REWahoo]

Reduction In Force, a layoff.

 

[Sarah in SC]

I will also go with CONGRATULATIONS! You'll be fine, and I'm sure you will enjoy being a kept man for a little while.

 

[ziggy29]

Reduction In Force, a layoff.

Also "resistance is futile", which is also strangely accurate when it comes to the Borg-like corporate machine and its whims...

 

[ziggy29]

I will also go with CONGRATULATIONS! You'll be fine, and I'm sure you will enjoy being a kept man for a little while.

If DW stays with this at her current salary for 15 years, FIREcalc is showing 100% success. So there is little need to rush into anything that isn't just right.

I've had to knock my expected SS down a bit if I'm not feeding that beast any more, though. Having only 30 years of earnings history will be a bit lower than having 40+, but not sure how much less yet (I'm guessing 10-15% less but I could be wrong -- I'll crunch that one later).

 

[Calico]

If DW stays with this at her current salary for 15 years, FIREcalc is showing 100% success. So there is little need to rush into anything that isn't just right.

I've had to knock my expected SS down a bit if I'm not feeding that beast any more, though. Having only 30 years of earnings history will be a bit lower than having 40+, but not sure how much less yet (I'm guessing 10-15% less but I could be wrong -- I'll crunch that one later).

If I'm not mistaken, SS is calculated based on 35 years of earnings, so the difference may not be as large as 15%.

I have enjoyed reading your posts over several months, and I am sorry that you weren't able to leave megacorp on your own terms. I think your attitude is amazing, however.

Last week my department was hit with a RIF - 2/3 of the folks were told their jobs will be gone within the next few months. Since we only have a total of 3 people in the department, that makes me the sole survivor. When they come for me in the next wave (and I expect they will) I will take inspiration from how you are handling this unexpected change in circumstances. Best of luck to you and Mrs. Rev Ziggy!

 

[ziggy29]

I have enjoyed reading your posts over several months, and I am sorry that you weren't able to leave on your own terms. I think your attitude is amazing, however.

The way you wrote this makes it sound like I announced I'm leaving the forum! You can't get rid of me that easily; it takes more than a corporate layoff to stop me. Maybe a silver bullet...

 

[Calico]

The way you wrote this makes it sound like I announced I'm leaving the forum! You can't get rid of me that easily; it takes more than a corporate layoff to stop me. Maybe a silver bullet...

OMG - that is NOT what I meant! I fixed it; see above.

 

[wmc1000]

SS is based on your 35 highest earning years - if less than 35 years the other years are based on zero income. For most people the more recent years at much higher incomes are what drives the final number. I have run my social security numbers and if I had 5 more years of high earnings vs early retirement and leaving in 5 early years with incomes of less than $20K it only affects my projected FRA number by about $10 a month.

 

[ziggy29]

SS is based on your 35 highest earning years - if less than 35 years the other years are based on zero income. For most people the more recent years at much higher incomes are what drives the final number. I have run my social security numbers and if I had 5 more years of high earnings vs early retirement and leaving in 5 early years with incomes of less than $20K it only affects my projected FRA number by about $10 a month.

Good to know -- I was thinking it was 40 for some reason. I already have 31 years (including 2013) in my earning history. That means a lot fewer zeroes in the calculation.

 

[samclem]

I have run my social security numbers and if I had 5 more years of high earnings vs early retirement and leaving in 5 early years with incomes of less than $20K it only affects my projected FRA number by about $10 a month.

I did the same calculation, with approx the same results. It's amazing that the later, higher-earning years matter so little in the final SS monthly check amounts (even if these high-pay years replace earlier zeros).
-- I suspect folks inclined to ER who go to the trouble to crunch these numbers find one more reason to ER.
-- Regarding raising the cap on wages subject to FICA taxes: Whatever the other merits of this proposal, I think it's useful to remember that many high wage earners are already contributing quite robustly to the "fund" in relation to their expected personal benefit from the program.

 

[gerrym51]

SS is based on your 35 highest earning years - if less than 35 years the other years are based on zero income. For most people the more recent years at much higher incomes are what drives the final number. I have run my social security numbers and if I had 5 more years of high earnings vs early retirement and leaving in 5 early years with incomes of less than $20K it only affects my projected FRA number by about $10 a month.

thats not totally correct-although it replaces zeros its how much you made in a given year versus the maximums in that given year.

for instance(this is not exact) if 30 years ago you made 10000 a year and the max was 20000 it would be like making 50000 a year now with the cap at 100,000.

its how much money you made in relation to the cap(point at which no more ss taken out of your pay). thats why if you have 35 years in but you are at the same level versus the cap now the dollars don't change much