Old and Started in a Big Hole

[PointBreeze]

OP is doing fine though I'd recommend Fidelity (what I use, local office) or Schwab given Vanguard's (thoroughly discussed over on Bogleheads) decline in customer service.

Agreed, but OP should know he can buy most Vanguard funds at Fidelity (and, I imagine, at Schwab - I don’t have any direct knowledge of that).

OP, you are doing great. If you think there is a chance you will retire before 65, make sure to have some $$ to live on in after-tax accounts. That way you can keep you MAGI (modified adjusted gross income) low and get highly subsidized ACA health insurance.

One concern re: ACA insurance. Many of the policies may not cover you out of state, especially if your state of record is TX. I would do some serious research into that.

 

[zippy2020]

Ummm...why is no one talking about medical costs?

SocSec is in moderate trouble and Medicare is in deep ****. I'd feel safe in assuming that SS retirement age will be pushed out (again) and benefits for future claims reduced by maybe 10-15%. People taking SS already will get grandfathered in if at all possible.

Medicare at the lowest premium level is currently around $165 and is set annually by Congress. Count on it going up by $5-20 every year.

You will need to decide what kind of Medigap plan you want to add on. Do NOT do this strictly by cost, and I say this as someone who worked with life insurance underwriters for over 15 yrs. Consider your family history and your own health history/maintenance. Pick a plan that you can afford that lowers your risk profile - IOW, if something bad happens, whether falling on a sidewalk or an auto accident, and lays you up for a couple of weeks or even a couple of months.

If you are disciplined enough to keep a healthy savings reserve for those times, then it's fine to pick a cheap, catastrophe-oriented plan, and use your retirement income to absorb the costs of an injury - Tylenol with codeine, emergency X-rays, etc. etc.

Just be honest with yourself. There's a reason why media publishes articles that most Americans, retired or working, can't afford a sudden emergency needing an extra $400 in a month.

You will also continue to have dental and vision needs in retirement. Those don't go away and they don't get cheaper over time. It's great that the GMC has given you such good service, but it's even better if you acknowledge that there is no guarantee you can keep it running at a reasonable cost forever. What happens if it needs a major repair that takes it out of commission for a week or more (especially with the supply chain issues that are not going away for a good long while yet)? Can you manage easily with no vehicle?

You've done a great job on getting 'back into the black', so congratulations to you are well deserved!

Be sure to keep building a resilient social network. Everybody needs friends to help out once in a while, and to socialize with. People who remain engaged in the world around them live longer and are happier, as well.

 

[timeismine]

Great advice all around.
One thing to watch is the fees on accounts and funds.
1% of your total account can be up to 20% of your return at 5%.
Vanguard is popular because the fees are very low, like .2% or even lower.

 

[DesertSolitaire]

Congratulations on the amazing turn around you've completed. I can relate to divorce silver lining as well.

You're getting all the great advice you need, and I second what the others are saying. You are certainly on the right path, and welcome!

 

[RetirementOrDieTrying]

Ummm...why is no one talking about medical costs?

SocSec is in moderate trouble and Medicare is in deep ****. I'd feel safe in assuming that SS retirement age will be pushed out (again) and benefits for future claims reduced by maybe 10-15%. People taking SS already will get grandfathered in if at all possible.

Medicare at the lowest premium level is currently around $165 and is set annually by Congress. Count on it going up by $5-20 every year.

You will need to decide what kind of Medigap plan you want to add on. Do NOT do this strictly by cost, and I say this as someone who worked with life insurance underwriters for over 15 yrs. Consider your family history and your own health history/maintenance. Pick a plan that you can afford that lowers your risk profile - IOW, if something bad happens, whether falling on a sidewalk or an auto accident, and lays you up for a couple of weeks or even a couple of months.

If you are disciplined enough to keep a healthy savings reserve for those times, then it's fine to pick a cheap, catastrophe-oriented plan, and use your retirement income to absorb the costs of an injury - Tylenol with codeine, emergency X-rays, etc. etc.

Just be honest with yourself. There's a reason why media publishes articles that most Americans, retired or working, can't afford a sudden emergency needing an extra $400 in a month.

You will also continue to have dental and vision needs in retirement. Those don't go away and they don't get cheaper over time. It's great that the GMC has given you such good service, but it's even better if you acknowledge that there is no guarantee you can keep it running at a reasonable cost forever. What happens if it needs a major repair that takes it out of commission for a week or more (especially with the supply chain issues that are not going away for a good long while yet)? Can you manage easily with no vehicle?

You've done a great job on getting 'back into the black', so congratulations to you are well deserved!

Be sure to keep building a resilient social network. Everybody needs friends to help out once in a while, and to socialize with. People who remain engaged in the world around them live longer and are happier, as well.

Good and interesting points, and I appreciate that you took the time to formulate that response. In order:

Healthcare - I think my take on this is that I'm far enough away for crystal balling (that sounds wrong, said like that) is ripe for miscalculation, since Congresscritters are incapable of leaving things alone, and I don't think anyone knows with any certainty what the healthcare playing field will look like in 15 years. As I get closer, I'll certainly pay more attention to my healthcare options. Thankfully (knock on wood), I have been healthy as an ox my whole life thus far.

Vehicle - if it breaks, easy enough to Uber or rent whilst it's being repaired, and ultimately I can drive my motor home itself, although I'm far too lazy to pack it up every time I need to go somewhere.

Social network - I am fortunate to have an embarrassment of riches in this area. I travel full-time nourishing relationships with family and friends, and making new ones every day. It's one of the great things about this country and populace, on the whole.