Could the FI of FIRE be good enough?

[Sparky]

We're with Golden Rule - got a recommendation from a doctor in the area that we know.

We got info directly from their website - if you go to Ehealthinsurance.com, you'll pay a premium. But seeing the options on Ehealthinsurance.com gives you a clearer picture of what's available in your area. Then contact the insurere directly.

At 44 and 45, it costs us $193 per month total, up from $163 last year.

We're normal weight, although on high blood pressure and high cholesteroal meds that we buy outright. No drug coverage, $5,000 deductible for each per year.

So far, so good. We visit doctors about 2x per year - manageble so far.

Sparky

 

[Cut-Throat]

Sparky,

This is pretty manageable. There are folks here that are dropping over $10K per year on insurance. But, Really all you need is your plan for less than $3K. You can do a lot of self insure with the leftover $7K per year!

 

[Mr._johngalt]

We spend a lot of money on insurance. I often question
if we might be better off cutting back and self insuring
more. With the house, condo, 3 cars and health coverage, it's a pile. We have no debt, so no one is forcing us to buy all of this. Could cut back more I guess.

JG

 

[Sparky]

It gets better ...

You can split your pills - SOME, that is, talk to your doctor or pharmacist - for instance, if you're on lipitor 20 mg, get a script for lipitor 40mg and split them. The cost is almost identical so you are getting your drugs for half-price.

Our dentist also gives us a break because we don't have insurance - about 1/3 off the usual price. Doctors and medical professionals are USUALLY sympathetic and will work with you.

Sparky

 

[uncledrz]

http://wwwRe: Could the FI of FIRE be good enough?

C-T

We've been looking at HSA policies. Have received three quotes (still with our group policy at this time, but may change). All three with a $5,200 health savings account, with a similar deductibe, 100% coverage after that. Cost varies, but about $350-380 per month. Two people, mid 50's, good health.

Policies are state specific. Got our start at http://www.hsainsider.com/.

uncledrz

 

[Zorba]

Nice thread Azanon.

I suspect that I am FI. Early 40's, no debt, with a net worth of 1.5M+. I
haven't worked out whether I can RE since the job is still interesting. Stll,
most of us wouldn't be visiting this site we didn't think about RE from
time to time. FI for me is about having choices.

 

[eridanus]

She's still working. Hates it. I dont see her travelling a lot either.

But when she does retire boy-howdy will she be travelling. You'll regret your rash move to FIRE then.

 

[bpp]

Azanon asked,

Just wondering how many others have FI more as their #1 goal rather than RE.

I'm one.

Bpp

 

[MattInAustin]

Just wondering how many others have FI more as their #1 goal rather than RE.

This goal (FI) is much more important to me as well (maybe because it is the first step). I fantasize about it more than I do about leaving the job. However I will say that it is still pretty important to be able to say bye bye to the corporate gig. In one sense I would like to retire from that, but not necesarily from work all together.

I think of FI as the point where I can have a decent life by living off of 4% real from my investments. Not a glorious life, but one where I could get by. RE would require a bit more dough I think.

-Biker

 

[Jack_Key]

Being young (30), FI is more important now than ER. And even if my blog is named "The blog of a man who plans to RETIRE at 37", actually, I plan to be able to retire at that time, but FI is the real goal there.

People already have said here many reasons to seek FI:

- having options (you can leave your job to travel for a year and get back to work somewhere else, you can decide to work part-time at a new job, you can switch to lower wages, but more interesting job)...
- security (you don't mind getting laid, at least, financially speaking)
- no need for further savings (thus, you know exactly how much you can spend and don't feel guilty)

Jack

 

[sgeeeee]

The whole idea of FI is dependent on the same things that SWR is dependent on -- and therefore is never guaranteed. That's a little bit of problem if you say that FI is your goal. You can say you've reached FI provided 1) the future is no worse than the past in terms of inflation and investment returns, 2) you're spending desires and needs in the future are consistent with your planned spending, 3) you are not saddled with an unforseen financial crisis or combination of crises. . .

The second critera above can be really slippery -- especially if you are many years away from FI or RE. Your desires and needs are likely to change in ways that you do not forsee today. Also, costs of specific things you spend money on can change dramatically. For example, rising gas prices have has a significant impact on my travel costs that I did not count on just a few years ago.

I'd say the first order goal is simply to enjoy a comfortable, low-stress, satisfying life. Financial stability (FI) is likely to be a big factor in achieving that goal. Retirement may or may not be a big factor depending on what you find most satisfying and how comfortable you are with your job.

 

[sailaway]

Sparky mentioned the idea of saving health care costs such as cutting pills in half saves usually 50%. This is absolutely true and unless one is taking a specially designed slow release medication with a special delivery system, most medications can actually be done this way.

Another way people with high deductables or are forced to go without insurance can save money on big ticket items is to be honest and forward. As an example, when I see a patient that truly needs a big ticket test such as a CT scan, ect. I write them a script and tell them to call several centers, either hospital based or independent. Be honest and say that you need this study done ordered by your doctor and you will walk in with cash in your hand in 100 dollar bills and you are calling around to se where you can get it done most economical. Every one on the centers in general will discount immediately 30% and I have seen 50% if they know that you are captain of your ship and have cash in your hand. I do this almost daily.

Another way for patients in similar conditions that have to go to the hospital and come out with a big ticket is after receiving all hospital bills to call the business office and be honest by explaining that you are on a fixed income and will have to make payments for years. But if you tell them you are willing to "mortgage the home" what will they offer as a discount for cash in their hand? Every hospital has a policy for this and has a person hired to handle just such situations and all will make an offer

Another way is when you are going to have a proceedure done such as surgery I tell the patient to address the surgeon honestly beforehand and ask his bill, tell him your situation, and offer to pay him cash in advance. Virtually every physician will understand and greatly discount. If he won't, fire the doctor and find a caring one.

Sailaway

 

[Mudd]

Sorry to bump such an old thread, but this thread really hits home to me right now. I'm at a j*b that like very much, but always have the threat of budget cuts/layoffs hanging over our heads. But in the last 2+ years some really significant things have happened to me.

My Father passed away after an 8 year battle with cancer

We became debt free except for the house

We hit over $125k in retirement savings.

I vested at my work for a company pension.

When a death hits you hard, as most of you know, priorities change. Little things at work and life don't bother me [-]as much [/-]anymore.

Although we aren't near FI yet, vesting, becoming debt free, and getting over 100k in retirement has completely changed my w*rk stress. I no longer worry about layoffs. I hope it doesn't happen, but the only thing I can control is how I work. Since all these milestones I perform better at my j*b and people have noticed it. I worry about what I can control, and forget about the rest. True FI may hit in about 10 years, but for now I feel more free and involved at w*rk, then ever before.

Thanks for all the advice from the great people on this board. Somebody on here once said that they are FI enough that "they need A j*b, but not this j*b." I find that very liberating.

Again sorry to bump such an old thread, I just thought there were quite a few nuggets in these pages.

Mudd

 

[FinanceDude]

Sorry to bump such an old thread, but this thread really hits home to me right now. I'm at a j*b that like very much, but always have the threat of budget cuts/layoffs hanging over our heads. But in the last 2+ years some really significant things have happened to me.

My Father passed away after an 8 year battle with cancer

We became debt free except for the house

We hit over $125k in retirement savings.

I vested at my work for a company pension.

When a death hits you hard, as most of you know, priorities change. Little things at work and life don't bother me [-]as much [/-]anymore.

Although we aren't near FI yet, vesting, becoming debt free, and getting over 100k in retirement has completely changed my w*rk stress. I no longer worry about layoffs. I hope it doesn't happen, but the only thing I can control is how I work. Since all these milestones I perform better at my j*b and people have noticed it. I worry about what I can control, and forget about the rest. True FI may hit in about 10 years, but for now I feel more free and involved at w*rk, then ever before.

Thanks for all the advice from the great people on this board. Somebody on here once said that they are FI enough that "they need A j*b, but not this j*b." I find that very liberating.

Again sorry to bump such an old thread, I just thought there were quite a few nuggets in these pages.

Mudd

An older client of mine summed it up best:

"When I had one year's worth of living expenses saved up ,I figure I could tell the boss where to go"

"When I had TWO years worth of living expenses, I figure I could tell the WORLD where to go".......

Total LBYM guy, he lived on about $20,000 a year

 

[W2R]

An older client of mine summed it up best:

"When I had one year's worth of living expenses saved up ,I figure I could tell the boss where to go"

"When I had TWO years worth of living expenses, I figure I could tell the WORLD where to go".......

Total LBYM guy, he lived on about $20,000 a year

I have 8 years' living expenses saved up (well, if you count the equity in my house, then 18 years), but I don't figure I could tell the WORLD where to go, just yet.

When I have 25 years' saved up, then, maybe!

 

[Grizz]

FI, as I've recently discovered is all about being mentally prepared for new options. I am now 38, and according to every retirement calc that I could find, I could RE in relative comfort. The sale of my business is nearly complete, and the new owners have asked me to manage the merged businesses.

I didn't spend any time focused on ER until the sale offer came in, I just worked hard, took a couple of well timed risks, for the most part enjoyed what I did, and tried to build profits. I've been experimenting with taking 3 and 4 day weekends for the last few months and darn it, I'm not sure that I'm mentally quite ready to RE.

Sure, there are mornings when you don't want to drag your tired carcass out of bed, people that you'd rather choke than talk to, and more agreeable climates to live in, and these things are probably made even more difficult to tolerate when you are FI, but having even this much time on my hands has been tough. I know, boo hoo, get a hobby, right?

I just figured that I might as well line up for a couple more years of good wages and new challenges while actually spending some serious time pondering post RE options (gearing down). All this sounds weird, I know, but in my opinion, those of you who have spent time thinking about ER (and, whether you know it or not, mentally preparing for it) are in many ways, ahead of folks like me who didn't pay attention to net worth, and were completely surprised when they found out that they were FI.

 

[Meadbh]

All this sounds weird, I know, but in my opinion, those of you who have spent time thinking about ER (and, whether you know it or not, mentally preparing for it) are in many ways, ahead of folks like me who didn't pay attention to net worth, and were completely surprised when they found out that they were FI.

It's not weird all all. There is no reason why you should be "ready" to retire at exactly the same time it becomes financially possible. You are lucky it's not the other way around! Till you are "ready" to retire, just enjoy life and w*ork. I bet you will enjoy it even more now that you know you have other choices.

 

[Alex]

I hear you loud and clear. I can tell you one thing: It is nice to have what I call F*** YOU! money. Because I have FU! money, I recently was able to tell my boss, a mental midget, total jackass alpha male, jerkoff, with a Napoleon complex, to go F*** Himself! I refuse to take crap from anyone ever again. So YEAH, Financial Independence is freedom. Believe it.

 

[Grizz]

It's not weird all all. There is no reason why you should be "ready" to retire at exactly the same time it becomes financially possible. You are lucky it's not the other way around! Till you are "ready" to retire, just enjoy life and w*ork. I bet you will enjoy it even more now that you know you have other choices.

Thanks, glad that you see it that way, but I do feel a bit like one of those idiots who win the lottery and then goes straight back to w**k. Like you said though, it's a nice problem to have.