"Early" retirement and have a portfolio that last in perpetuity.

[COcheesehead]

Would be interesting to know how many on the edge of FIRE are staying at work just for the HC insurance. Likely not an answer.

 

[skyking1]

Would be interesting to know how many on the edge of FIRE are staying at work just for the HC insurance. Likely not an answer.

I would wager a big number. I know it is a big concern of ours, as my wife is rotating through a ton of different expensive RA medications.

 

[Koolau]

We were subsidy-eligible for 2024 and 2025 but not going forward. For 2026 our premium is going up by $880/month and our deductible is going up by $7,300. That's easily enough to wreck a tight retirement budget.

True, but fortunately, most of us here do not exist on such a tight budget. My expenditures for dental have been eye-watering here of late but, while a bit upsetting, they won't wreck my budget.

Before I went on MC, my health care costs were similar to those mentioned. ca 2010 I counted on spending $12K to $15K on health care each year. That was with retiree insurance supplement.

 

[marko]

Before I went on MC, my health care costs were similar to those mentioned. ca 2010 I counted on spending $12K to $15K on health care each year. That was with retiree insurance susupplement.

Yeah. We were stuck with a $26k tab for 13 years and then $13k for six more until we both got onto Medicare. Brutal!

 

[Steelpony]

To paraphrase “everyone is confident until they’re hit with the first punch”.

So no plan in the face of unknowns is foolproof. You adapt a plan as your circumstances factually present themselves.

If you think you have a plan covering every circumstance until the end of time how come you’re anxious? You’ll never know the result.

Everything in VOO or VTI growing in value greater than historical inflation rates going back to the beginning of time and under spending should do it. Easy fix.

 

[WhenIsItTime]

My health insurance has doubled in 6 years. Crazy.

 

[COcheesehead]

My health insurance has doubled in 6 years. Crazy.

I went with Cobra first year. Big mistake. Then years 2,3 and 4 we cut it about in half. This year it went up, but still about 40% less than Cobra. DW goes on Medicare next year which helps. All in we are still paying about 30% less than Cobra in year 1.

 

[Gumby]

By far the most valuable thing I got when I retired from my last employer was retiree health insurance. It is much more valuable than my pittance of a pension.

 

[Mulligan]

I would wager a big number. I know it is a big concern of ours, as my wife is rotating through a ton of different expensive RA medications.

I would agree. Especially in my “economic circle”. I have friends who are not mega wealthy, but would have already retired if not for health insurance premiums. And fear of where the future premiums could go before they hit medicare. So they stay employed largely from that fear.

 

[ElizabethT]

Question, who here is living this retirement plan where their portfolio can last them in perpetuity?

We are. FIRE'd at 49 and 55, one year apart in order to test the FIRE budget. FIRE'd now 15 years. Portfolio is 50% up from where we entered FIRE. We started at 2% WDR, stayed there for about 5 years, then upped WDR to 2.5%, where it's pretty much stayed since, though we are committed to bumping it to 2.75% in 2026 and beyond.

Now that money flow like pensions, SS, and Medicare have kicked in, we feel like we're rolling in money, even at our current conservative 2.5% WDR.

It's hard to put a price on knowing we will never have issues or concerns about money, as long as we stay our current course.

(Also in HCOL area)

 

[Koolau]

By far the most valuable thing I got when I retired from my last employer was retiree health insurance. It is much more valuable than my pittance of a pension.

Yes, I still give thanks for that (though Megacorp diluted the benefits out a bit over time). Now, for instance, I must get my MC supplement through a broker that Megacorp sends me to and they give me one chunk of money (sort of like an HSA) to use for buying insurance and paying co-pays, deductibles, etc. Of course, it doesn't cover everything - heh, heh, not by a long shot some years. BUT it's so much better than nothing and I'm guaranteed to have health insurance which is the most important thing.

 

[PristineSound]

We are. FIRE'd at 49 and 55, one year apart in order to test the FIRE budget. FIRE'd now 15 years. Portfolio is 50% up from where we entered FIRE. We started at 2% WDR, stayed there for about 5 years, then upped WDR to 2.5%, where it's pretty much stayed since, though we are committed to bumping it to 2.75% in 2026 and beyond.

Now that money flow like pensions, SS, and Medicare have kicked in, we feel like we're rolling in money, even at our current conservative 2.5% WDR.

It's hard to put a price on knowing we will never have issues or concerns about money, as long as we stay our current course.

(Also in HCOL area)

That is so awesome. I aspire to be in your shoes on day. I am even ok to live very frugally the first few years in retirement of it helps accumulate the wealth.

 

[ElizabethT]

That is so awesome. I aspire to be in your shoes on day. I am even ok to live very frugally the first few years in retirement of it helps accumulate the wealth.

I don't think we lived frugally- just not quite as decadent-ly as we seem to be living now. We traveled extensively those first five years, but with less bells and whistles perhaps.

We were younger, we had more energy to use for entertainment- long distance hiking, backpacking, and bicycling, long RV trips, on-our-own slower travel. We went and went, much of which utilized our energy more than our money. In hindsight, yes, it worked amazingly well in allowing the portfolio to continue to grow, but that was not our deliberate intention.