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There probably is data on this somewhere in the CMS data. I am more aware of the members hitting MOOP because they are more apt to bring it up. From my antidotal observation from speaking to many MA consumers the ones who do not have a hospital stay in the year with the typical number of doctor visits , diagnostic test ,out patient services etc may spend 200- 700.000 annual . The biggest reason one hits the MOOP is the 20% for chemo and dialysis however many middle class retirees can get help with this co insurance through different programs/foundations s On the flipside of this the same person who has plan G may see the Medicare supplement G has paid out claims of 150-350.00 annual in this typical year. IMO the biggest reason to choose or...

Most if not all MA plans bundle charges for daily in patient co pay, out patient procedures and ER meaning you don't get itemized for anything. Check the Evidence of Coverage document to confirm this for that plan. Also IMO your total cost analyses for plan N or G should include the part B deductible if it doesn't . In my experience dealing with thousands of MA members since 2006 my observation has been less than 5 % of MA members hit their MOOP and this is mostly in Florida where the average MOOP on leading plans have a MOOP of less than 5000 for PPOs and 3500 for HMOs disclaimer licensed agent not recommending any plan. Can you tell us more about our of pocket cost experience for Medicare advantage plans? In our area typical OOP max is 5...

It is pay later vs pay now proposition. With plan G, you are paying more now in premiums, but in old age you may not pay as much as advantage plan out of pocket max. With advantage plan, you pay less now, get some dental vision benefits, prescription benefits. If you have health issues, you may have to pay up to out of pocket max. Network of medical providers is not an issue for you - so this means in advantage plan's favor. Depending on your advantage plan, prior authorization for some treatments may be needed. Folks that have done due diligence, and are ok with local provider network (that is they are not snowbirding etc), find advantage plan is a good fit and results in lower cost to the person. Some 3-5% of people in advantage plan hit ...

You are paying for the service. You get to choose. Vanguard may not play ball. Just sent a secure message or call. Don't over think it

Thank you for updating your post.

Based on what I understand, yes you can retire now if you like.

As other have suggested, for long term survival of your portfolio, you probably should have higher percentage of stocks in your portfolio. 30%, or 50% etc, depends on your risk tolerance. Take time to figure this out before taking action.

You don't have to figure it out all in one go. Baby steps as you solve your puzzle.

The forum is a great resource for all your questions. So please do ask as you have them.

Helpful hints - May be cleanup your post to bring focus on the questions you want answers. No need to post individual stock positions they are distracting. If you have stepped up basis for those then simply liquidate them. Otherwise wait for more informed guidance from others. 1. Post total portfolio value - taxable, 457b, emergency and anything else. (Avoid runny conditional clauses after you present a number, it is confusing). This is $2.3 million, correct? Also mention what amount from this is to be used for home purchase. 2. Post annual expenses you estimate - I love how you are thinking here - each stage has different number and different constraints. pre-Medicare on ACA, then Medicare, then your SS etc. 3. Explain the cash flow source...

Check out their website https://www.continuedcarerx.com/ They mail the medications in fancy weekday label (mon, tue, etc) packaging to the facility. Making use of this service removes human error chance from facility staff. (At least that is the idea, who knows what the error rate is despite this) Basically the same pillbox thing I said in the earlier post but done by a machine to remove possible human error Paying for this service is obviously extra and hence costlier. I don't think a better plan D is available for this kind of service. I seems to me that this kind of service is more appropriate for long term care. (I may be biased here) They offer it for assisted living too which is what your mom's assisted living is using. It is up to yo...

OP, are the annual expenses of $20k/yr just your half of the total annual expenses? Does your partner contribute to the expenses? Please clarify in your original post.

Replies are getting anchored on whether this number makes sense since it is very low. You are not getting the full benefit of the wisdom of the forum.

What is the portfolio size of your partner? Both of your portfolios taken together - do the numbers work if your partner were out of employment?

You cannot choose a good plan if you do not know what network the assisted living facility is part of. Don't ask for a recommendation for part D plan. They cannot give one legally to avoid liability. Ask what network they are part of. Then research the plans that cover the medications in that network in a cost effective manner. Also ask her doctor's office where the prescriptions are sent - that should give you an idea of what pharmacy assisted living facility is using. Please clarify "institutionalized care" part - that sounds nursing home type thing. Medicare rules differ on coverage of prescriptions in institutionalized care. Medication management is separate from medication administration. If you visit and see her often, you c...

It seems all indicators point to 0.4% fixed or higher starting May 1st. Small chance that it may be lower.

Inflation rate will be lower.

Given this, I am holding off buying - possibly till end of October.

A bit of gamble, eh? Yes. Short term rates of money market fund make up for it. At least that is my mental accounting and I am sticking with it.

OP, 2023 tax return is in filed in 2024. That when you will include your 1099-R that you will receive in Jan 2024.

It doesn't impact 2022 tax return filed by April 17th this year.

Freetaxusa did a great job for me for 8606. It asked all relevant questions, pulled up info from past returns and correctly calculated the taxable amount.

I filed start of Feb and already received my refund.

May be recheck your entries?

Check out T-Mobile connect plans. They are prepaid plans. $10-$25 per month depending on the data bucket you choose.
https://prepaid.t-mobile.com/prepaid-plans/connect

You can upgrade to $40/month or higher plans and add $5/month Canada and Mexico roaming when traveling.
https://prepaid.t-mobile.com/prepaid-plans

Of course check that her smartphone is compatible and the network coverage works for her.

If she travels to other locations then ask get to get local sim card or more expensive postpaid plans from the US.

Mint mobile is being acquired by T-Mobile whose network it rented. So there is really no issues there. Things will work out just fine. It's not like they are being shuttered.

OP, I believe rewording the "5% SWR" as initial withdrawal amount until ...SS or inheritance etc makes sense. Your withdrawal amount can be high initially relative to portfolio until other assets or income streams come into picture.

Have a look at the 74X calc I made in this thread:
viewtopic.php?t=395775

It is a way of properly accounting future income streams etc and assessing proper safety margin one has.

I wish Bogleheads would stop talking about SWR because hardly anyone actually follows that and discussions are hardly ever productive.

So, the so-called deductible $2700 for HD-G is not a deductible, but just a misnamed OOP (out-of-pocket maximum). The actual deductible is $226 (deductible for Part B). Did I get it right? Thank you. Exactly! If you have Plan G-HD, you’re coverage for Part B is: $226 annual deductible, then 20% copay (based on low Medicare-reimbursement rates) $2,700 maximum out-of-pocket The only kicker is that if you admitted to the hospital as an in-patient, you will have a $1,600 Part A deductible (which counts toward the $2,700 maximum out-of-pocket). The $2,700 figure increases with inflation (tied to CPI-U). This is built-in cost sharing and results in HD premiums either having no annual increase or a minimal annual increase. Up until the last few y...

One does have to pay more if one's doctors belong to a major hospital group which charges "facility fees" and other charges in addition to the actual doctor's visit. Are these fees also covered by a Medicare or Medigap policy? Or are they separate charges you are 100% liable for? They can only bill what Medicare allows which is much less than your typical health insurance. Medicare pays based on part A (hospital) or part B (doctors and lab, mri etc). part A has 1600 deductible. part B $226, and then it covers 80%. Medigap plan G covers what Medicare does not (20% of part B or part A deductible). plan G-HD covers the same but after you pay the $2700. There are no separate "facility" charges if Medicare does not allow it....

This issue comes up frequently. Please search other threads on the forum. Online info is less than stellar. Goto medicare website for definitive answer. https://www.medicare.gov/basics/get-started-with-medicare/medicare-basics/working-past-65 Do not sign up for Part A just because it is free. 1. Does your wife employer have more than 20 FTE? If yes, employer insurance is primary otherwise Medicare is primary. 2. Is your wife's insurance HDHP and do you and her contribute to HSA? If so, hold off part A enrollment. If you enroll in part A then you cannot contribute $1000 post 55 age to HSA. Your wife can still contribute $7750+ $1000. 3. If you enroll in Medicare - all the way (part A part B part D and medigap) or advantage plan etc., then yo...

Simply if the annual premium plus the deductible for the plan G-HD are higher than the annual premium for a standard plan G then the standard plan G makes sense Are you assuming that this person hits their deductible every single year? That would be highly unlikely in the vast majority of cases. At 65? With medical costs as high as they are now I find it very likely. We don’t expect or want things to happen but they do at any given time. Even common diagnostic procedures such as a colonoscopy or an endoscopy can be quite costly. Add lab work and office visits to this and it’s not hard to get to $2700. (A friend of mine once joked that the reason we retire is so that we have time to go to all of our doctors appointments). You do understand ...

I talked with an online Medicare supplement broker today to obtain recommendations about Plan N and Plan G* (high deductible). The agent readily gave me Plan N options but tried to discourage me from further consideration of Plan G*. Said I could go almost bankrupt; Possibly incurring a $2,700 deductible for the broker might make HIM go bankrupt. Maybe that is why HE is still working too! :) Once one comprehends that $2700 deductible is not like most deductibles on private health insurance or policies on the Affordable Health Care Act where one must actually pay the whole deductible (except for preventive care and screenings), it doesn't seem such a bad deal at all. Medicare still pays for 80%; I would have to pay for the remaining 20%. Th...

Warren Buffett and others are proponents of share buybacks as tax efficient way of increasing share holder returns vs dividends. (Deriding opposers as financially illiterate) Simply from layman's observation, it is nowhere close to effective use of surplus capital. Already there is 1% excise tax on share buybacks. Nothing's says it won't go higher in the future. Why is market not punishing such shortsightedness? In other words, if market is pricing only future cash flows and not effective use of capital for future cash flows, then is it even an efficient market? You might enjoy this recent article about buybacks from Jason Zweig. https://www.wsj.com/articles/stock-buybacks-arent-bad-they-arent-good-either-6b63356a?st=nkl3w2pkvhqs1g6&re...

Warren Buffett and others are proponents of share buybacks as tax efficient way of increasing share holder returns vs dividends. (Deriding opposers as financially illiterate)

Simply from layman's observation, it is nowhere close to effective use of surplus capital.

Already there is 1% excise tax on share buybacks. Nothing's says it won't go higher in the future.

Why is market not punishing such shortsightedness?

In other words, if market is pricing only future cash flows and not effective use of capital for future cash flows, then is it even an efficient market?

I did this in 2022. Look at your form 8606 from last time you made nondeductible contributions. The basis there will guide you on the split.

Sell the investments and move them to money market fund in the IRA.

For me, form 8606 said I had $100 in nondeductible contributions. So first I moved all but $100 to 401k plan.

Then did total remaining amount Roth conversion to Roth IRA. Vanguard paid out $4 in interest from money market fund as it moved the $104 to Roth IRA.

I filed tax forms this year and it correctly show $4 as taxable amount on it, the rest as simply rolled over.

Hope this helps.

Did you file any ADA information or claims with your employer when your condition was diagnosed? Seems like they are legally and federally bound to work with you as you address and take steps to cure your illness. Have you considered pursuing this option? This! Merely telling your boss about medical condition is not enough. You have to request reasonable accommodations and have it certified by a doctor. HR may get involved but ultimately it saves everyone involved with difficult decisions. Why didn't you ask for reasonable accommodations? Why didn't your supervisor follow up with HR to figure it out? OP, you may be in a place of fear about this? Just trying to understand. Firing is not same as layoff. Especially in California, there is vir...

I see a lot of issues with the communication style OP has used that makes it suboptimal to provide guidance. Unspecific wording. " Dream retirement" " conservative" and many such phrases. These are broad and they mean vastly different things to different people. Give your age, monetary numbers and what you plan to do. In the typical wiki format. Having a clear idea of what you are proposing makes it easy on us to guide you. Do not anchor on conditional future happiness. There is no such thing. You will set up yourself for disappointment. If I retire now, and if markets do well in future and if I move to xyz city, and if I drink coffee or have lunch here etc....then I will be happier etc This kind of thing simply doesn't ...

https://www.nber.org/system/files/worki ... w30675.pdf

The paper on which the WSJ article is based on.

Take your time to read and learn the Medicare wiki on bogleheads, Medicare related threads on this forum and medicare.gov website. Does your employer have more than 20 employees? If yes, employer plan is primary and your spouse does not need to sign up for Medicare. Do you have HDHP with HSA? If yes, be careful about contributing to HSA if nearing Medicare enrollment for spouse. Nothing ominous but the devil is in the details. Let's assume you are contributing to HSA. Medicare part A may be free, but the way it impedes HSA contributions makes difficult in certain situations. Family max HSA contributions is $7750 + $1000 post-age 55 per person So total is $9,750 if both are older than 55. If your spouse enrolls in Medicare part A then she ca...

It is ok to spend as you propose with 4% withdrawal. But is not definitive. How much do they get from reverse mortgage annually? Do they have LTC insurance? How is their health? Do they plan on moving later? What are their annual expenses? All these will help evaluate if it is ok or not to spend 4% from their portfolio.

Income = SS + reverse mortgage + dividends - taxes

Hopefully that should cover usual annual expenses

For infrequent large expenses such a medical OOP max, home renovation, roof, appliances, cars, home aides etc it is ok to dip in for more.

Look into a ladder of myga annuity. There is a thread about it.

Canvas annuity is paying 6.2% for 5 yrs and 6.25% for 7 yrs

Gainbridge.io has 5.25%

Stan the annuity man shows many options highest being 5.65% I believe

Of course one should invest in myga only those amounts that you are sure will not require early withdrawal

This is not fictional. My in-laws retired in early-2000s with no stock exposure. They had two whole life policies predicated on FIL passing first to provide modest life insurance benefit to MIL. They lived on SS and drawing down on modest cash savings most which went to whole policies. FIL passed away 2 years ago. MIL received insurance money that is in online savings account earning below inflation (300K). House is paid off. There is gold and silver bought in 1980 - it would be worth $5 million today if had been invested in S&P 500. It adds up to less than 75K today. MIL lives really well on SS survivor benefit (32K). It covers all her expenses, and she has a bit leftover at the year end. It is clear as daylight that when assisted livi...

You don't need to have trust issues. Call Medicare directly or State Insurance assistance program SHIP. Or even the state insurance commissioner.

Or just use common sense. Medigap covers what Medicare does not. So that broker is probably incorrect if they say you pay $2700 before "Medicare" pays. Medicare always pays 80% after $226 deductible for part B. The G-HD deductible can technically only be applied to costs not paid by Medicare.

Stinky thank you for sharing

6.25% for 7 year myga at https://canvasannuity.com/product

AM Best financial rating B++

From your earlier post: Surrendering a MYGA to get a higher rate probably only works if you’re not incurring a market value adjustment at surrender. I’m aware of only two companies (Puritan (canvas) and Pacific Guardian) that issue MYGAs without a market value adjustment clause.

Yes, cheaper than medigap option but only if you remain healthy for most of the time. Otherwise costs can be higher if hitting OOP max each year. My wife’s copays are less with her MA plan than they would be with a Medigap plan (zero for most things). Her OOP max is $2000, and her premiums are $0. Explain how she’s going to spend more with a MA plan? Glad you have an excellent plan. Can you share what plan you have and where you are located? First dollar coverage with Medicare advantage plan is super common. Thats why she has no copays to see doctors in the network. Things get tricky when you need super specialty care with cancer and such. Precertifications, limited network issues become more pressing than worrying about OOP max. Typically...

There is another wrinkle on top of this discussion. Your OOP costs vary with your choice of plan. Good luck trying to estimate that. Bogleheads try to be conservative and assume OOP max is reached each year. One may not need be this conservative but certainly an element of safety margin needs to be built in as it will matter on what your total income ends up impacting subsidies and taxes.

Part B annual cost $2000/yr Part D Wellcare Value Script $120/yr many generics are $0 Medigap plan G $1400/yr (issue age policy with Old Surety) Total $3620/yr at age 65; will slowly increases to $5000/yr by age 85. (Approximate it as $4250/yr on average) (In real dollars) 22 years approx. under Medicare. Total cost = $4250*22 = $93,500 So paper checks out well. Tragically, wording is extremely poor for that publication. Nobody needs to have this amount saved at retirement. $2000/yr part B can come out of SS So about $50K saved or budgeted in annual spend over 22 years. That is not a whole lot of money over 22 years. It is not zero either. So truth is somewhere in between. Additional needed for dental, vision and hearing aids Part B $2000/y...

You are doing amazingly well. You have a great launchpad setup. 1. Think about contributing additional money to your parents to defray expenses of housing you even if they do not want it. 2. Make a plan for future housing - renting or buying a house, save money for down payment etc using I-bonds, vusxx or high yield savings account 3. Contribute to Roth IRA 4. Ask for more responsibility at work and progress your career or develop a side hustle if it's your thing 5. Go out in the world and meet a sweet soul to call your own and share your life with if you haven't already 6. Don't worry about student debt ...it will resolve itself 7. Invest in equities in taxable to the largest extent possible 8. Just because you have extra cash doesn't mean...

ModifiedDuration wrote: ↑Wed Feb 15, 2023 9:40 am

kd2008 wrote: ↑Wed Feb 15, 2023 9:35 am Pardon my ignorance. Say I have plan G. Can I change my company during annual enrollment? Say from AARP to Blue Cross blue shield etc? Does it require underwriting?

I understand underwriting is required when changing plan type say from plan N to plan G etc.

I assume statewise rules may be different. I wish medicare.gov listed this information readily.

This is no annual enrollment for Medigap plans. That is for Medicare Advantage plans.

You can switch Medigap plans or insurance companies at any time, as long as you can pass medical underwriting (there are about 10 states that have lenient rules regarding medical underwriting).

Thank you for that information

Pardon my ignorance. Say I have plan G. Can I change my company during annual enrollment? Say from AARP to Blue Cross blue shield etc? Does it require underwriting?

I understand underwriting is required when changing plan type say from plan N to plan G etc.

I assume statewise rules may be different. I wish medicare.gov listed this information readily.

Medicare has this webpage but the wording uses too many conditional statements to make sense for me.

https://www.medicare.gov/supplements-ot ... p-policies

kd2008 Frankly to answer your question, I had to look up the rate filings for Old Surety in OK to be sure - I'm not sure whether each state handles it the same. But after doing so, I can verify this - yes, the rate increases are applied to each age tier. You are assigned an age tier based on issue age. And the 2022 rate increase was 7% (the other increases you listed tied out too, of course). When I looked up their exact annual Plan F male non-tobacco rates in detail, by age, this seemed to jive. Specifically from their 2022 filing of last March: Age 65 (issue age) was $2,248.36, raised to $2,405.75 (up 7%) Age 75 (issue age) was $2,902.41, raised to $3,105.58 (up 7%) Age 85 (issue age) was $3,435.20, raised to $3,675.66 (up 7%) In other w...

ForestWolf: Glad it helped. One more time-saving tip comes to mind. You can first screen your candidates on the Medicare.gov site, and then check the SERFF portal for rate increase history on just the final contenders. You might already know this, but wen I was signing up, the Medicare site gave only general rate ranges. Now it gives fairly precise rates by policy type, company, zip, sex, tobacco usage, and age. Back then, I had to use the SERFF portal to get rates themselves - now it is not really necessary. Although SERFF filings still do a better job of outlining additional discounts available in your state (household, etc.). Some states provided this info on their own portals, but I don't recall seeing such a thing when I looked at NC ...

OP, 1) In this forum, many folks do not use percent of income as the saving rate. We use percent of annual expense. I save 100% of my annual expense every year. 2) In this forum too, many folks do not save for retirement. They save for Financial Independence. KlangFool "We use percent of annual expense." Having a metric like this that applies directly to financial independence and/or retirement makes a whole lot of sense. It is much more directly coupled to the end goal. It doesn't though. When I say savings I'm talking about what I save from my employment income. Everything else is a game, IMO. "Save 100% of annual expenses." Well, let's say you have $100k job income, $20k in taxes, 60k in expenses, $20k to 401k and $4...

OP, a job's primary function is to provide you an income, hopefully in a stable and increasing manner. I would like to know why do you seek affirmations at work - under appreciation, over working etc. That paycheck should be at least in part provide that. Sometimes we take things for granted especially in a stable secure job. Have you considered what you may lose in your search for things you miss in your current job? Real life trade offs are hard. Those that can understand them and take a decision, tend to thrive. You do not seem to want or decide what you want to trade, putting you in somewhat of a "whine" mode.

How does one retire early when current expense levels aren't representative of future levels? Specific scenario: married couple with preteen kids. I'm 50 & employed in tech, spouse (47) not employed. We've more or less "hit the number" (marketable assets at around 28x current level of expenses). I would love to be able to leave the workforce at some point, but I don't know how to figure out when. Using current expenses is probably wildly inaccurate. The kids will eventually start their own lives, so expenses may go down on that end, but healthcare costs will surely rise (ACA premiums + increasing needs with age). There is also the prospect of social security in 20 years, but that has its own risks and variability. I assume th...

Typically mortgage payoff questions answer themselves...did the OP bring up cash flow, retirement etc or did they bring up interest rates, leverage, inflation hedge etc. It is hard for people to realize their anchoring biases. Based on your concern around cash flow, I would say just go ahead and pay it off. If you are still on the fence with it, then just put it Vanguard treasury money market fund. You will get 4%+ rate, you will have liquidity to withdraw anytime and if the rates go up you will capture that. Do not overthink this. There is nothing to be gained by paralyzing your decision making by thinking about t-bills, CDs etc. Another bias that may be in play is end of history illusion. You seemed anchoring on today's cash flow and you ...

I used think just like all the folks who posted here. But not anymore. It important to visualize cash flow streams and really pencil down numbers. For example this thread I started, https://www.bogleheads.org/forum/viewtopic.php?p=7078889#p7078889 Effect paid off mortgage, SS, ACA subsidy using MAGI management if pre-Medicare -all this needs to be required education for those who have posted here. So much of wealth accumulation goals listed here are beyond the marginal utility of wealth. The prime of life spent accumulating it could be spent enjoying it. Just my take on this thread. Cliff notes please? Find out your all inclusive annual spend in retirement and then do the following math exercise: 1. Subtract mortgage amount from portfolio ...

I used think just like all the folks who posted here. But not anymore. It important to visualize cash flow streams and really pencil down numbers.

For example this thread I started, viewtopic.php?p=7078889#p7078889

Effect paid off mortgage, SS, ACA subsidy using MAGI management if pre-Medicare -all this needs to be required education for those who have posted here. So much of wealth accumulation goals listed here are beyond the marginal utility of wealth. The prime of life spent accumulating it could be spent enjoying it. Just my take on this thread.

Gainbridge dropped to 5.25%

Most likely OP received a discretionary bonus from the consultant. Not an officially advertised bonus. Given the massive size of OP's account, consultant probably was eligible for some sweet bonus if they notched up more assets for fidelity. Stars aligned just right that OP got the sweet deal.

bling wrote: ↑Sat Jan 28, 2023 8:39 am it still "hurts" me a little inside when i spend money, but i'm slowing getting better at it. the human mind is so weird. i'm completely desensitized to seeing the +/- 2% daily swings of my portfolio but if i need to spend 0.000000000000000001% of it, my brain automatically asks "do you really need that?"

+1000

Allan, my take take on this different from the usual advice. It is to recommend reflection on what your values are and if the current spending pattern complements that. Value- aligned spending is guilt-free spending in my book. May be test waters to see if marginal increase in spending gives you satisfaction. Restaurants for example - took DH to my city's one of the most expensive steakhouses that is very close to us. My overall impression was it was a nice experience but not a great value. But we tried an expensive seafood place that also very close to where we live. It was undoubtedly better experience and better food and an amazing value even though it was just as expensive as the steakhouse. It is our go to place now for special occasio...

We use planvisionmn com.

We really like Mark and his team. More importantly, my spouse (DH) feels comfortable - the whole point of the exercise.

Effective March 2022, the new first year price for guidance with PlanVision is $239. However, ongoing support after the first year is still $8 a month and you can cancel anytime.

There is a bit of legwork you have to be willing to do to get setup in eMoney online portal. After that it is easy.

Initial appointment may be few weeks away after you signup but ongoing access is easy via email and zoom.