Can we talk about retirement?

ddickey said:
To those guys who're retiring soon, what are you finding out there for health insurance? My plant is slated to close in ten years so I have time before I retire but I've heard horror stories about the insurance costs.
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We are talking Obama care here. It all depends on your AGR, adjusted gross income. For my wife and I, in Minnesota, the Obama care credit started phasing out at $36000 and was completely gone by AGR $70,000. Below the bottom number and insurance was not too bad. Check me but you are in the $4K per person per year range - but BIG deductible. Now we were over the top number when Obama care first started and the bill was $15K per person per year with 6K deductable that we always had to pay because of our medical issues.

In our specific case it made sense to drop our income by 40K per year to save 30K a year in Obama care, income, and self employment taxes. So we closed 1/2 our business and in effect semi retired early.

Now we are on medicare, premium is only about $4K a year for both of us - cheap. Decent deductibles too.

ANYWAY TAKE HOME MESSAGE - BE SURE YOU KNOW WHAT YOU ARE LOOKING AT HERE. I'd pay a tax accountant to run the numbers for you.
 
Papa Charlie said:
Times when I have had no paycheck were bad times not good. Even though I should be good, the thought of retiring and the loss of that check from my hard work tends to send panic through me.
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That was the hurdle for me. The psychological impact of going from living off new earned money to living off our savings was traumatizing. It turned out well for going on 16 years now, because we are in good health, share the costs and do not have an expensive lifestyle.
 
I have looked into medical costs in retirement and medicare. Based on what I can find this is what I have budgeted per year for the two of us. This covers the medicare cost, supplemental insurance and out of pocket expenses. I also have added in an increase of 0.5% per year for inflation that applies to my entire budget including fixed expenses like mortgage.

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Papa Charlie said:
I have looked into medical costs in retirement and medicare. Based on what I can find this is what I have budgeted per year for the two of us. This covers the medicare cost, supplemental insurance and out of pocket expenses. I also have added in an increase of 0.5% per year for inflation that applies to my entire budget including fixed expenses like mortgage.

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Hopefully that mortgage will be paid soon.
That is our one of our many blessings, no house payment!
 
Janderso said:
Hopefully that mortgage will be paid soon.
That is our one of our many blessings, no house payment!
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All toll I have between my 401, Catchup and After Tax Roth I have 31% every two weeks going towards my Retirement, plus the 11% the company is contributing. Boeing has one of the best benefit packages that I have ever received. Doesn't leave much to live on, but it is getting me to retirement.

Sadly, the mortgage will be in the budget to the end. Unless I live another 30 years. Just one of those things. But I should be OK as long as the financial world doesn't crash or they pull our SS benefits. I have been aggressively putting as much as possible in my retirement funds after 2008 which wiped out almost everything.

But that is in the past. Now I am looking forward to my retirement. Wife made a rather startling announcement, she would like us to take a look at Florida for retirement location. Something I never thought she would suggest as neither of us like excessive heat. I know she would like to have a pool again and she is done with the loom and gloom of the Northern PNW. The good part of that is that it puts me closer to more reasonably priced used equipment. Yes, I am one track minded, confirmed by the wife.

We will see. I would like to check out Tennessee or Kentucky too, but she is not thrilled about the idea. I really don't care where we end up as long as I can have my shop, some space around me, doesn't have to be acres and she is happy. I have no family left and she only has her sisters who are tied up with their families. So we are not bound by family ties.
 
Papa Charlie said:
All toll I have between my 401, Catchup and After Tax Roth I have 31% every two weeks going towards my Retirement, plus the 11% the company is contributing. Boeing has one of the best benefit packages that I have ever received. Doesn't leave much to live on, but it is getting me to retirement.

Sadly, the mortgage will be in the budget to the end. Unless I live another 30 years. Just one of those things. But I should be OK as long as the financial world doesn't crash or they pull our SS benefits. I have been aggressively putting as much as possible in my retirement funds after 2008 which wiped out almost everything.

But that is in the past. Now I am looking forward to my retirement. Wife made a rather startling announcement, she would like us to take a look at Florida for retirement location. Something I never thought she would suggest as neither of us like excessive heat. I know she would like to have a pool again and she is done with the loom and gloom of the Northern PNW. The good part of that is that it puts me closer to more reasonably priced used equipment. Yes, I am one track minded, confirmed by the wife.

We will see. I would like to check out Tennessee or Kentucky too, but she is not thrilled about the idea. I really don't care where we end up as long as I can have my shop, some space around me, doesn't have to be acres and she is happy. I have no family left and she only has her sisters who are tied up with their families. So we are not bound by family ties.
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Everett is a nice place if you like the weather. beautiful country that's for sure, especially when the sun shines!!
Florida is a very popular retirement state. August is very hot.
Tennessee and Kentucky are beautiful places to live. I would love to find a home and shop outside a fair size town.
Unfortunately, my kids and grandchildren are here.
My folks moved to Arizona when they were my age. Dad never left. We moved my mother here a couple years ago.
That meant the burden of helping my folks fell to me and my wife traveling to AZ way too often. Our expense, my vacation time.
I won't do that to my kids.
 
That’s really something to keep in mind as we age. Many of our parents had little or no time caring for the previous generation as life expectancy was shorter. I’m into my 20th year taking care of my mom with each year taking on more responsibility.

I won’t do that to our daughter.

While it has been a blessing having mom close I have first hand experience of the difference between planning and leaving it up to others.

John
 
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