Do any of you cut it really close in easy retirement?

[CalifGal]

At your joint income level, you might be at about the combined income level to receive both Medicare and Medi-Cal at no cost.

Hello, thanks for the suggestion. This is long but very encouraging. I understand if you do not want to read this all, it's just for everyone or anyone interested.

I called our Native American Clinic and got the specialist who handles all insurance matters. Received excellent guidance.

At age 65
1. Pan Am Indemnity Plan is first payer. Average payout is 50% of the service/procedure regarding Medical
2. Our two HSA's can be used to pay for either of our Part B Premiums. There is no real reason to sign up for a Medicare Savings Program even though we qualify (thanks for that) Stocks did so well our combined HSA's are 13k right now.
3. Medicaid. If we have an emergency, we can sign up after the fact. Medicaid can be back billed for up to 3 months.

Hubby says our Social Security Income is $2305 per month. Probably a COLA raise not long ago. There was also a $15 a month increased per person for the Indemnity Plan so we're actually ahead about $20 a month.

Drug Plan at 65

She said the Indian Health Service qualifies as "essential coverage". If we ever want to sign up for a Stand Alone Drug Plan, there will never be a late penalty. And we have the $400 a mo. each of drug coverage thru the Indemnity Plans. She suggested not wasting $ to sign up for a drug plan until you know for sure you will need it.

Dental Plan
Lady said a stand alone plan is not worth it. Generally only worth it if it's employer sponsored. To appreciate the 4k a year of dental each and remember, work can be done at the very end of December then again the beginning of Jan. so within 2 weeks. that 4k for one year in December turns into another 4k on Jan 1st so 8k can be used mostly all at once. Even if it means going toothless for a few days to a max of 2 weeks
She said Native Americans have good teeth, their bad oral issues mean they can loose teeth but many do not. I have very strong teeth. They removed one of my wisdom teeth then were acting cool about removing the other. Dentist had a hell of at time saying if a Serial Killer got a hold of me, no way could he pull out my teeth so I wouldn't be identified. I also have the Native American Shovel teeth. Hubby not so much. I'll call the Indemnity plan to find out if he can use my 4k a year from me, and if he can use my $400 a month of drugs from me, or vice versa. Sorry this was so long but thought some of the people here might be interested in knowing how this Pan American Indemnity Plan works and how the IHSS (Indian Health Services) works.

 

[CalifGal]

Couple of things I see.

Is car insurance in there somewhere? It may be so cheap you don't include it.

Are you getting the $30 per month federal subsidy for your internet/phone? I think you easily qualify. That program may or may not end soon though.

Car insurance is included under Transportation. We do not get a federal subsidy for Internet or phone but I'll look into it. Doubtful we'd do that but thank you so much for that suggestion

 

[CalifGal]

In a word....NO we did not cut it really close. I never considered it as an option.

Moreover I did two early retirement financial calculations. One for both of us. The second for my spouse as the survivor because her income would be reduced. Worst case scenerio.

We wanted to be prepared as best we could for any of those life changing curveballs that could come our way in retirement.

Sounds great, you did well

 

[CalifGal]

Healthcare in this country is the big financial wildcard (thus the #1 cause of bankruptcies). The name-brand medication I take cost me $258/mo, and a friend who takes the same pays $140/mo, even though she's on Medicare. Other drugs have not proven effective, so I pay it. Although you have drug coverage, most insurance doesn't cover all medications. There are many exclusions. And getting a drug "at cost" may not be cheap, due to the crazy quilt pricing of drugs.

Another friend whose budget and lifestyle are similar to yours had a bike accident that required surgery and rehab. Due to her low income she is on Oregon Health Plan. Still cost her about $10k out of pocket. Your HSA and emergency fund could get used up real fast. Agree with others here that it'd be good to sock away some more $$ while you're able.

Sorry to hear about your friend. That's interesting about the variation in drug prices depending upon the circumstance. New to me. The upside is we can sign up at any time for a drug plan without penalty so only the first month would be out of pocket. And to your second comment, it's new risk for us to consider. We cycle, weather permitting, sometimes adjacent traffic. This is more than reason to beef up the emergency fund as it probably puts us in a higher risk category

 

[arbeadub]

CalifGal since you mentioned your Native heritage, do you have the inclination to make and sell art? If so, you maybe able to supplement your monthly income at your own pace to suit your needs.

 

[CalifGal]

CalifGal since you mentioned your Native heritage, do you have the inclination to make and sell art? If so, you maybe able to supplement your monthly income at your own pace to suit your needs.

That's a fantastic idea. I will look into that

 

[kgtest]

In a word....NO we did not cut it really close. I never considered it as an option.

Moreover I did two early retirement financial calculations. One for both of us. The second for my spouse as the survivor because her income would be reduced. Worst case scenerio.

We wanted to be prepared as best we could for any of those life changing curveballs that could come our way in retirement.

Good point. Surviving together on the "together" budget looks different than surviving on the budget when one is gone..vs when the other is gone. All 3 of those budgets would look different.

"close only counts in horseshoes and hand grenades'!"

 

[FI_RElater]

OP

as you mentioned you get care from Indian Health Service, presumably then you are enrolled in a tribe

Do you get any subsidy from the BIA?
Of those I've known (Pine Ridge Reservation, SD and Warm Springs, OR) the BIA would have subsidies for tribe, which get broken down into "shares" which are based on family (one I knew had shares from multiple parts of his family, all being registered members of tribe).

 

[ImaCheesehead]

If your SS check combined is 3005, and you spend 2280, you should have $725 per month left over, not $100-200. That is a pretty large difference so I suspect your monthly budget is a lot higher than you are reporting. You may want to go back a year or two and really nail down your expenses to see where you can cut. You also need to save for lump sum big ticket repairs or a replacement car.

When the first of you dies the other could be in big trouble. Hopefully you stay healthy but anything can happen at any time. My 66 year old husband was fine until last August when he was diagnosed with Glioblastoma and advised the median survival rate is 14-18 month even with surgery, chemo and radiation. We over prepared for retirement so I will be fine, but if we hadn’t, I would be panicking about finances as well as his health.

 

[CalifGal]

OP

as you mentioned you get care from Indian Health Service, presumably then you are enrolled in a tribe

Do you get any subsidy from the BIA?
Of those I've known (Pine Ridge Reservation, SD and Warm Springs, OR) the BIA would have subsidies for tribe, which get broken down into "shares" which are based on family (one I knew had shares from multiple parts of his family, all being registered members of tribe).

Most of the people who go to that clinic are not enrolled in a Tribe. I believe that's the norm they informed me. They suggested I sign up though.. I was accepted due to my Grandma being on the Dawes list.

 

[Drake3287]

"Giving $175.00" What does that mean?

Do you donate $175. each month to a special cause? If so you can't afford to do that as nice as it might be. You're living to close to financial disaster as it is and I don't mean to be blunt about it. You need an emergency fund and at some point you're going to need it like all of us do. Save that $175. for a rainy day.

 

[GenXguy]

The OPs profile changed. It had said age 55 at the time I mentioned it earlier and matched very closely to the profile of the OP of the other thread.
https://www.early-retirement.org/forums/members/northerncalifgal-50757.html

Two different social security figures were provided by the OP in this thread.

Combined Social Security is $3005 per month Expenses are $2250. No debt. $100-$200+ leftover each month

Hubby says our Social Security Income is $2305 per month.

That $700 difference in the budget depending on which of those is correct.

 

[CalifGal]

If your SS check combined is 3005, and you spend 2280, you should have $725 per month left over, not $100-200. That is a pretty large difference so I suspect your monthly budget is a lot higher than you are reporting. You may want to go back a year or two and really nail down your expenses to see where you can cut. You also need to save for lump sum big ticket repairs or a replacement car.

When the first of you dies the other could be in big trouble. Hopefully you stay healthy but anything can happen at any time. My 66 year old husband was fine until last August when he was diagnosed with Glioblastoma and advised the median survival rate is 14-18 month even with surgery, chemo and radiation. We over prepared for retirement so I will be fine, but if we hadn’t, I would be panicking about finances as well as his health.

Here are our monthly expenses cut & pasted from my other post. I asked hubby what they are.
Monthly Expenses: $200 prop Tax, $150 Internet/Phones, $50 Pets, $200 Towing/gas/maintenance, Utilities $400, Groceries $400,Giving $175, Eating Out $225, Gardening $50, Travel $100, $80 Indemnity Plans, Unexpected $100, Repairs $100 = $2280

We make a little over that is what he indicated so around $2305 combined. You are correct, it appears it's a smaller margin than posted yet $100 is categorized as unexpected and one is repairs are $100 so we still usually have a few hundred left over each month. Utilities & food costs can vary. So sorry to hear about your husband. My former doctor's wife got cancer for the second time, she was treated in another country. It went dormant or was non existent for 15 years then the third time she died. Since we've moved many yrs ago, I am not sure what happened but maybe consider going out of the US to somewhere else since you over-prepared for retirement. Doctors name is Blaise De Souza in Foresthill CA. He's still practicing so if you'd like to call to ask him about it, I bet he would return your call. Really nice guy.

Yes the survivor would need to get a room-mate and a job to survive is my guess. Which is probably best anyhow, who wants to retire alone? Time to go back to work and get out in society. If we hit 70 yrs old, and the IRA grows pretty well, I think we'd be okay. Downsizing is also an option, it is possible to buy a condo for 200k selling this house. I said a prayer for your husband

 

[CalifGal]

"Giving $175.00" What does that mean?

Do you donate $175. each month to a special cause? If so you can't afford to do that as nice as it might be. You're living to close to financial disaster as it is and I don't mean to be blunt about it. You need an emergency fund and at some point you're going to need it like all of us do. Save that $175. for a rainy day.

Yes it's imperative we get an emergency fund. We attend church and $200 is much lower, for sure, than others donate. The church is small too so $ is surely needed to keep it open.

 

[wrigley]

WOW....I would have never guessed only $200 a month for property taxes on 3 acres in California? I'm paying just about that much in North Florida and I can lean out of my windows and touch my neighbor's homes!

Mike

 

[Exchme]

Sorry, I don't see you as set to retire. You are scraping by without any rain falling in your lives, but occasional rain, and sometimes a real storm, is inevitable.

 

[rk911]

Thanks for sharing but with no debt and living beneath our means allows us to not have to watch nickles, dimes and pennies. We're blessed to have more than we can ever spend so we donate heavily to charity and get whatever crosses our minds at the moment. My nephew and his wife are expecting their first this summer so we're learning about 529 plans.

 

[Badger]

I didn't cut it really close or even just close. We have been very frugal throughout our modest employ and got into the habit that allows us to live with a couple of small pensions and our SS with an occasional small dip into our nest egg. It helps that our house has long since been paid off and we have Medicare and Tricare for Life from my wife's 20+ years in the reserves. Even so we saved and invested until there was enough to last us both well beyond our expiration dates with left over for a nice inheritance for her 2 grown children.
If it was just me I wouldn't have been as careful but if I go first I wanted to make sure my wife would not have to be worried about a place to live or eat the food we serve our cats.

 

[flyingaway]

Do you grow fruit trees? I grow fruit trees with fruits that are rare on the market (for my own enjoying). The weather in California is much better than the middle U.S., where cold winter kills my trees once a few years.

Asian pears, persimmons, jujubes, etc. Avocados could be grown in California, I read.

 

[pacergal]

Welcome to the forum.
Your income/budget is too close for my comfort, but many live on less.
If your plan is to return to work at 70+ after one of you passes, as you state in post #30, then the time to return to work is now. It is extremely difficult to find work at age 70, I believe.

I would definitely look into applying for California subsidies on medical care, food stamps, etc. And decrease your giving by 50%,as you really can't afford it. You can possibly offset that by offering some volunteer work at your church?

Best of luck to you.

 

[slaternuthink]

The OPs profile changed. It had said age 55 at the time I mentioned it earlier and matched very closely to the profile of the OP of the other thread.
https://www.early-retirement.org/forums/members/northerncalifgal-50757.html

Two different social security figures were provided by the OP in this thread.

That $700 difference in the budget depending on which of those is correct.

Yeah, it's pretty clear she is taking the willing along for a ride.

 

[Sunset]

OP -
Too close to running out of $$ for me.

Go back to work to beef up your savings. Nothing wrong with working to age 70 much better than trying to go back to work at age 70.

Sad that you took SS at age 62 as you (may your spouse) will probably live long and poor. If you are within the 1 year first term, you can cancel and go back to work so you get a larger SS.

I don't understand what is the magic of waiting to age 70 for the IRA (which is too low anyhow, and really would have been better to put into a Roth.) Did you put it in some investment that is locked in

If the IRA is not locked up. You can probably do Roth conversions (IRA -> Roth) and have them tax free, just do low amounts each year.

Monthly giving is Too high, you should really be getting (receiving) not giving ! No way you should give $2,100 per year.

Good news for you is when age 65, some prescription plans are very cheap. My plan this year is $0.00 per month , the benefit of having a super cheap one, even if you don't use meds, is should you get cancer, the cost of drugs is capped (still not cheap as would probably spend $10K or more per year but not dying is worth it).

Yes, you will need medicare/medicaid insurance at age 65. So save up.

 

[CalifGal]

The OPs profile changed. It had said age 55 at the time I mentioned it earlier and matched very closely to the profile of the OP of the other thread.
https://www.early-retirement.org/forums/members/northerncalifgal-50757.html

Two different social security figures were provided by the OP in this thread.

That $700 difference in the budget depending on which of those is correct.

Sorry I got the expenses correct, here they are again cut and pasted:

Monthly Expenses: $200 prop Tax, $150 Internet/Phones, $50 Pets, $200 Towing/gas/maintenance, Utilities $400, Groceries $400,Giving $175, Eating Out $225, Gardening $50, Travel $100, $80 Indemnity Plans, Unexpected $100, Repairs $100 = $2280

And despite the wrong number, I inserted he still says (as I posted) we have about $175-$200 a month leftover each month. Clearly that's because two of the categories are not regular expenses, Unexpected is budged for $100 and so is repairs for $100. Social Security last I knew of it was $2265 per month. There was a COLA increase so it's closer to $2300 per month now. However, our Indemnity Plans were increased by $15 each/$30 a month so that comes to about a wash. He predicted there is maybe $20 extra dollars more than normal.

 

[CalifGal]

Do you grow fruit trees? I grow fruit trees with fruits that are rare on the market (for my own enjoying). The weather in California is much better than the middle U.S., where cold winter kills my trees once a few years.

Asian pears, persimmons, jujubes, etc. Avocados could be grown in California, I read.

No we don't grow fruit trees but we have in the past many years ago. We don't eat that much fruit. That's a great idea though

 

[MichaelB]

Califgal, please check your messages