Sybertiger
Known around here
Congrats! You're probably gonna find out that you are busier in retirement then wonder how you ever got anything done when you had a job.
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Retirement Gift
- Thread starter bigredfish
- Start date
So True!!!
I am so glad for you. I retired in 2015 and can wholeheartedly recommend it!
Parley
Known around here
I not sure I want to say when I retired. It has been a while. Hahahaha 
bigredfish
Known around here
Thanks again. Yeah I'll be 65 in a few weeks, wasnt gonna hang around for another 2 years for $400 of SS (that if you do the math would take 13.5 years to break even before I realized a gain vs taking it now.)
Mrs bigredfish plans on retiring at 62 in July. So we'll have to shop for health insurance for her....
Mrs bigredfish plans on retiring at 62 in July. So we'll have to shop for health insurance for her....
BORIStheBLADE
Getting comfortable
Congratulations on making it to retirement! Enjoy it!
Swampledge
Getting comfortable
Congratulations on your retirement! Your work buds sure think a lot of you as evidenced by those gifts!
I am only 40 but have gone down a rabbit hole of videos on Youtube trying to figure out more about how all of this works so I can plan better and/or at least have some sort of understanding. I realize a lot can change in 20 years, but it's also a bit more complicated with my ability to take my wife's SS Survivor benefits at age 60.
WOW!!! Congrats
bigredfish
Known around here
Yeah everyone's different.
Our basic plan (YMMV just my opinion, not financial advice)
- OUR GOAL: have little to no debt at retirement age so you can budget to live solely off of SS. Debt is the #1 issue for retiring comfortably IMHO.
- Start saving as early as possible. 401Ks, plus we set a "monthly savings amount" in our 40;s that we treated like any other monthly bill. No excuses. However much that is, dont deviate. Would you NOT pay your Electric bill to buy that new gun? No. Same with the "savings bill"
- Pay down all debt in your 50's other than maybe mortgage
- We also took out Universal/Whole Life policies early on that while more expensive per month, built up cash value (about 1/2 our mo. premium went to cash value as well as a guaranteed 4% interest). We'll cash those out next year because A) we dont want that big monthly premium bill and B) we feel comfortable that the surviving spouse will have plenty of $ and simply wont need that extra. Another option on those is to stop paying monthly and let the cash value pay the premium if the death benefit is need for spouse or heirs.
- House equity was planned all long to be part of our retirement nest egg. So you need a plan on where to live after you sell it. This one is complicated with a lot of factors. We assumed we would downsize, so put $50K into the trailer here in "the swamp" and always figured that we'd live there with and eventually without Mom in our later years. Low maintenance, and because we sold at the top (a year earlier than we planned. but you cant hope that Mr market will wait for you) we were able to put a very nice chunk into the nest egg.
- When to take SS is a big decision. It may or may not coordinate with your retirement date. My philosophy is dont get all wrapped around the axle about that. Set your retirement date and take it then. A) For most, $100-$500 p/mo, or the difference between taking SS at say 62, 65, vs 67 is not going to break you. If that is the difference between being comfortable and not, then you probably didnt do the other bullet points above as well as you could have. B) for most the difference between taking SS at 65 vs 67 is around lets say $400 p/mo. But lets say you qualify for $3000 at 65 and take it. Now I've got 3000x24 months of income or $72,000 over those 2 years that I wouldnt otherwise have. It will take 13.5 years (age 78.5) before I make that back waiting on the two years to get the extra $400 before I start. Avg life expectancy is what? 78-82?
- As far as health insurance, I did Legacy Medicare A&B ($126 p/mo out of your SS check), with a Part C MediGap plan through AARP ($220 p/mo because I smoke, otherwise deduct $20 p/mo). So total premiums are $300+ p/mo. But I'll never pay a dime out of pocket otherwise regardless of the illness or event. Some shop the Advantage plan supplements and again you can save $50-$100 p/mo, but you WILL make it up in the event of a sever illness or event
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A variable that I have is I am able to start collecting the SS Survivor benefit for my wife's SS when I turn 60. This would be at 71%, but I can then delay taking mine until it makes sense and then switch over. Hopefully this does not change in 20 years, but is something you can do as a survivor that you are not able to do with the other ways to claim SS.
Fortunately, right now, the only debt we/I have is the house.
I have some 401Ks, Roth IRA, etc working, but wish my current employer matched 401K contributions as well as my previous employer did.
Fortunately, right now, the only debt we/I have is the house.
I have some 401Ks, Roth IRA, etc working, but wish my current employer matched 401K contributions as well as my previous employer did.
Parley
Known around here
Fortunately, the wife and I were able to pay off our house before retirement. Not having a mortgage payment to worry about is a biggie. As Bigredfish stated, have a savings plan. I always put away a certain amount every month. Oh, one more thing. I did retire in this century.
General Rule, if you have major Health conditions/issues, go for Supplement Plan, if not Advantage Plan does work but has drawbacks, some have location (HMO) type coverage, my father had one, he no longer traveled so it worked for him, he paid ZERO out of pocket for everything, no copay, no doctor checkup expenses, he went every 3 months. I remember when he told me he had no monthly bill for his Advantage Plan, I did not believe him until he passed, he was right, he only had to pay for Medicare Plan B, like everyone does, it comes out of your SS check...
bigredfish
Known around here
I have no major health issues, just thyroid medication due to hyperthyroid. But no telling what may come, so I opted for the MediGap supplemental which does cost me $200 p/mo
So are you saying there's no difference and I could get an Advantage plan, have a quadruple bypass next year and pay NO premium and nothing out of pocket?
looney2ns
IPCT Contributor
Yeah, get rid of your debt before retirement. My house was paid off about 15 yrs before retirement.
I also hired a financial advisor that is only paid a quarterly fee instead of commission about 15 yrs prior.
He manages the investments, and works towards limiting taxes for us.
I have been EXTREMELY happy with the advisor. He allowed us both to retire at 58 for me and at 60 for my wife.
I also hired a financial advisor that is only paid a quarterly fee instead of commission about 15 yrs prior.
He manages the investments, and works towards limiting taxes for us.
I have been EXTREMELY happy with the advisor. He allowed us both to retire at 58 for me and at 60 for my wife.
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looney2ns
IPCT Contributor
The advantage plans are different depending on where you live.
Around here, you would have a very large deductible for any major surgeries.
Plus if for any reason you want to leave the advantage plan, then you are subject to underwriting, and could be turned down.
We have a medigap that cost's us $135 per month for me, and $120 per month for my wife.
I had open heart surgery 3 yrs ago, and only had to pay the medicare deductible.
Around here, you would have a very large deductible for any major surgeries.
Plus if for any reason you want to leave the advantage plan, then you are subject to underwriting, and could be turned down.
We have a medigap that cost's us $135 per month for me, and $120 per month for my wife.
I had open heart surgery 3 yrs ago, and only had to pay the medicare deductible.
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I can only say my father never had any major health issues, he did have a hip replacement that cost him Zero. But he did it within network and it took almost 6 months to get him scheduled. Medicare part A paid 80% of the hospital and his Advantage Plan paid the rest, Doctor, etc. For him, the Advantaged Plan worked, again he did not travel and his local hospital and Doctor was covered. We did find out that our county had him covered when he visited but only 2 hospitals in our area, but if he went outside our county he was not covered. To my knowledge is if he went outside of the network he would have to pay 100% of what Medicare did not pay. That is the risk.
My wife recently (last year) got a Medi-Gap Plan, she pays $126 a month. She is on a Plan G. I know St. Lukes hospital gives her plan discounts, so not sure how that works but she will be doing any future procedures with them. When you first sign up for a Plan they cannot turn you down for any medical reason. If you ever switch plans then the providers can take into account your medical history/preexisting conditions which could effect your premium.
For us, since we travel, an Advantage Plan would not work. My wife had breast cancer, but over 5 years ago, it would not be wise for her.
Plan F was one of the best Supplement Plans until they no longer offer it, Plan G is the closest plan to F. So everyone tells us...we had a family member switch from F to G to try to save money, she told us she could switch back, she was told, only those who had F before can go back.
bigredfish
Known around here
Yep plan G is what I got... I may have the cost wrong...