Thinking of Retiring at 52, Please Critique Plan

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FireHorse
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Joined: Sat Nov 25, 2017 7:03 pm

Re: Thinking of Retiring at 52, Please Critique Plan

Post by FireHorse » Fri Oct 26, 2018 4:03 pm

Here are some real world numbers: 4 years ago ACA coverage for my wife and I was $14k, me age 50 her 48.
The following year it went to $22k
The next year it went to $28k
This year, $32k.

How are we supposed to predict what it wee be over the next 11 years until I hit 65, or 13 years for her?

I'm budgeting $48k on average. And we can probably afford that.

But the reality is we will probably try to keep our income low enough to qualify for a subsidy.

And I'm actually OK with paying $48-50k if need be. Uncancellable insurance with pre-exiting coverage has only been available to individuals for maybe 10% of my life time, at any price.
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Wow, that's expensive. You must have maximum income then. Still, this is more than i have heard in any forums

blahblahsunshine
Posts: 93
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Re: Thinking of Retiring at 52, Please Critique Plan

Post by blahblahsunshine » Sun Oct 28, 2018 11:06 am

Very sorry to hear about your husbands diagnosis. Your scenerio or one like it is what I spend a bit of time thinking about as I consider retirement. There is the fundimental risk of retireing early and not retiring as well. Your numbers seem reasonable and you clearly would like to enjoy some time with your husband enjoying life. That is a powerful arguement for retireing, albeit doing as much as you can to control risks of portfolio failure. When I consider my situation looking forward a situation like yours is what I consider the strongest arguement to finish up early. I read a post earlier in the thread making the point that given the situation it was all the more important for your husband to grind it out...presumably until things deteriorate to the untenable. They could be right I suppose, but it is such a horrible testimonial to litterally work a job your dislike or hate to the point you can no longer. I'd work with the group to figure out the most effiecient way to use the system and your assets to punch out. At any rate, hope the path you walk gives you and your husband much time and satisfaction.

Dottie57
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Re: Thinking of Retiring at 52, Please Critique Plan

Post by Dottie57 » Sun Oct 28, 2018 12:26 pm

delamer wrote:
Sun Sep 16, 2018 5:42 pm
travel424 wrote:
Sun Sep 16, 2018 5:20 pm
Love everyone's feedback. I should provide more information to clarify the work situation. I put a lot of information out there though still wanted to stay somewhat anonymous. But It's only the internet. Who reads the internet. :?

My husband was diagnosed with early onset of Alzheimer's last year. As the diseases progresses, it's becoming increasingly difficult for him to perform his job - hence the stress. He does not want to claim SSDI as he feels that is admitting defeat to the disease. A part-time job would still feel like he's still in tact.

He doesn't not want ACA tax subsides as he feels that is for people that really need financial help. Since I manage the finances, I will likely keep our income in such a way to use these subsides.

My goal is to structure our investments so he can "retire" with his head held high and maintain a lifestyle where he does not feel like he let the family down.

That being said, what does everyone think is the best path to create an income stream of $40,000 to cover day to day expenses, with the option to tax efficiently pull extra money?

Thank you.
I am very sorry to hear about your husband’s diagnosis.

Unfortunately, that makes it even more imperative that he has adequate health insurance.

People who qualify for SSDI become eligible for Medicare after a waiting period.

You really need to delve into your options. Qualifying for SSDI may be the best financial thing he can do for your family. You have very unpredictable costs for healthcare, given his condition.
+1

mathguy3021
Posts: 254
Joined: Sat Apr 09, 2011 9:30 pm

Re: Thinking of Retiring at 52, Please Critique Plan

Post by mathguy3021 » Sun Oct 28, 2018 12:58 pm

bhsince87 wrote:
Wed Sep 19, 2018 2:14 pm
ponyboy wrote:
Tue Sep 18, 2018 10:58 am
It amazes me how afraid people are of retiring early for the sole reason of health care.

When doing calculations...why not just double the health care cost, just to be safe? Is it really impossible to retire early and have to pay $25k/year in health insurance? If you have the money whats the big deal? All these people with fear of the unknown. With that mentality you'll have to work until medicare kicks in...have fun with that.

For those who were responsible their whole lives and saved accordingly..retire early and pay up for health care.
Here are some real world numbers: 4 years ago ACA coverage for my wife and I was $14k, me age 50 her 48.
The following year it went to $22k
The next year it went to $28k
This year, $32k.

How are we supposed to predict what it wee be over the next 11 years until I hit 65, or 13 years for her?

I'm budgeting $48k on average. And we can probably afford that.

But the reality is we will probably try to keep our income low enough to qualify for a subsidy.

And I'm actually OK with paying $48-50k if need be. Uncancellable insurance with pre-exiting coverage has only been available to individuals for maybe 10% of my life time, at any price.
How difficult is it for you and your wife to keep your MAGI low enough to qualify for a large subsidy? The key to early retirement is not what you HAVE to spend, but the precise AMOUNT that you spend yearly in retirement. I would never pay $48,000 a year for health insurance, if I could get a large subsidy by keeping MAGI low. I am frugal by nature and only spend about $20,000 a year in total living costs. It won't be very hard for me to keep MAGI low in early retirement. I totally understand the uncertainty surrounding the ACA, but even if the ACA is totally repealed and gone by the time I retire, there are other high deductible insurance options out there. Life is filled with uncertainty, and American health care is EXPENSIVE. There's no question about that. But I'm not going to be afraid of early retirement because of health care. I'm going to do the best I can to keep costs down, even if that means retiring in another country.

indexonlyplease
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Location: Florida

Re: Thinking of Retiring at 52, Please Critique Plan

Post by indexonlyplease » Sun Oct 28, 2018 1:19 pm

Just some FYI,

I retired at 52, 2 years ago. Both kids are in college so I had no kids to worry about. My wife is a teacher and still works. We traveled took care of our 2 sets of parents and enjoyed. Then after that I went back to work 3 months ago. I am lucky to have another great job. I work because I want to not because I have to. I retired with government pension and great investments.

But my point is make sure it is what he wants. He may never get that job again when he is older and may need to go back to work because of finances or maybe just bored. Many of us just dream about retirement but when we get there it is not what we wanted or expected. I went back and my wife took a one year leave. So for me that was a positive for her to stay home. The teaching world has gone down the tubes.

One can not bike, golf and travel all the time. I tried it and it did not work for me. But than maybe he is a different person.

Be careful and good luck. Also, husband and wife staying home together everyday at early retirement is a another whole topic I would research.

mathguy3021
Posts: 254
Joined: Sat Apr 09, 2011 9:30 pm

Re: Thinking of Retiring at 52, Please Critique Plan

Post by mathguy3021 » Sun Oct 28, 2018 1:48 pm

indexonlyplease wrote:
Sun Oct 28, 2018 1:19 pm
Just some FYI,

I retired at 52, 2 years ago. Both kids are in college so I had no kids to worry about. My wife is a teacher and still works. We traveled took care of our 2 sets of parents and enjoyed. Then after that I went back to work 3 months ago. I am lucky to have another great job. I work because I want to not because I have to. I retired with government pension and great investments.

But my point is make sure it is what he wants. He may never get that job again when he is older and may need to go back to work because of finances or maybe just bored. Many of us just dream about retirement but when we get there it is not what we wanted or expected. I went back and my wife took a one year leave. So for me that was a positive for her to stay home. The teaching world has gone down the tubes.

One can not bike, golf and travel all the time. I tried it and it did not work for me. But than maybe he is a different person.

Be careful and good luck. Also, husband and wife staying home together everyday at early retirement is a another whole topic I would research.
You can call me eccentric, but I don't get bored when I'm in control of every hour in my life doing the things that I enjoy. You don't have to bike, golf, or travel all the time in retirement to be happy or productive. I can be happy just reading books and learning new things at home. I get bored and stressed working on things I don't enjoy and having a boss tell me all the deadlines that I have. The purpose of life is happiness, and early retirement from the corporate world is the epitome of happiness for me. I intend to retire early to find happiness, and I KNOW without a doubt that not working for someone will bring me happiness even if I'm not doing anything that normally would be considered productive.

visualguy
Posts: 1805
Joined: Thu Jan 30, 2014 1:32 am

Re: Thinking of Retiring at 52, Please Critique Plan

Post by visualguy » Sun Oct 28, 2018 2:53 pm

indexonlyplease wrote:
Sun Oct 28, 2018 1:19 pm
Just some FYI,

I retired at 52, 2 years ago. Both kids are in college so I had no kids to worry about. My wife is a teacher and still works. We traveled took care of our 2 sets of parents and enjoyed. Then after that I went back to work 3 months ago. I am lucky to have another great job. I work because I want to not because I have to. I retired with government pension and great investments.

But my point is make sure it is what he wants. He may never get that job again when he is older and may need to go back to work because of finances or maybe just bored. Many of us just dream about retirement but when we get there it is not what we wanted or expected. I went back and my wife took a one year leave. So for me that was a positive for her to stay home. The teaching world has gone down the tubes.

One can not bike, golf and travel all the time. I tried it and it did not work for me. But than maybe he is a different person.

Be careful and good luck. Also, husband and wife staying home together everyday at early retirement is a another whole topic I would research.
This makes sense under normal circumstances, but there's an illness (early-onset Alzheimer's) in this particular case, so not the same situation.

Without an illness in the picture - I would agree with you. I also retired early, and went back to work. For many, having a job they like well-enough beats being retired. Also, agree with you on the challenging effects of being with your spouse at home too much in retirement. This is one of the factors that motivated us to build a second living unit on our lot. This makes it possible to be apart some of the time during retirement, hopefully avoiding some of the issues with spending too much time together, such as getting on each other's nerves.

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wander
Posts: 2903
Joined: Sat Oct 04, 2008 9:10 am

Re: Thinking of Retiring at 52, Please Critique Plan

Post by wander » Sun Oct 28, 2018 3:44 pm

indexonlyplease wrote:
Sun Oct 28, 2018 1:19 pm
Just some FYI,

I retired at 52, 2 years ago. Both kids are in college so I had no kids to worry about. My wife is a teacher and still works. We traveled took care of our 2 sets of parents and enjoyed. Then after that I went back to work 3 months ago. I am lucky to have another great job. I work because I want to not because I have to. I retired with government pension and great investments.
I don't get it. When I retire, I will do it once and never come back to work.

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Shackleton
Posts: 416
Joined: Mon Dec 29, 2014 6:20 pm

Re: Thinking of Retiring at 52, Please Critique Plan

Post by Shackleton » Sun Oct 28, 2018 4:06 pm

I really wish people would scroll down to read any updates from the OP before they reply. Some of these replies are almost heartless given what the OP has described her family going through.

OP - My heart really goes out to you and your family. It sounds like you are doing a wonderful job of supporting your husband's emotional well-being as well as your family finances. My mother has dementia (not early onset, she's now 84) and two of the people that live in the memory care facility where she is have early-onset alzheimer's, and I always think how hard it must be on their families to have such a change come over their loved one at such a young age. Good luck to you as you work your way through the challenges ahead.
“Superhuman effort isn't worth a damn unless it achieves results.” ~Ernest Shackleton

mathguy3021
Posts: 254
Joined: Sat Apr 09, 2011 9:30 pm

Re: Thinking of Retiring at 52, Please Critique Plan

Post by mathguy3021 » Sun Oct 28, 2018 4:19 pm

visualguy wrote:
Sun Oct 28, 2018 2:53 pm
indexonlyplease wrote:
Sun Oct 28, 2018 1:19 pm
Just some FYI,

I retired at 52, 2 years ago. Both kids are in college so I had no kids to worry about. My wife is a teacher and still works. We traveled took care of our 2 sets of parents and enjoyed. Then after that I went back to work 3 months ago. I am lucky to have another great job. I work because I want to not because I have to. I retired with government pension and great investments.

But my point is make sure it is what he wants. He may never get that job again when he is older and may need to go back to work because of finances or maybe just bored. Many of us just dream about retirement but when we get there it is not what we wanted or expected. I went back and my wife took a one year leave. So for me that was a positive for her to stay home. The teaching world has gone down the tubes.

One can not bike, golf and travel all the time. I tried it and it did not work for me. But than maybe he is a different person.

Be careful and good luck. Also, husband and wife staying home together everyday at early retirement is a another whole topic I would research.
This makes sense under normal circumstances, but there's an illness (early-onset Alzheimer's) in this particular case, so not the same situation.

Without an illness in the picture - I would agree with you. I also retired early, and went back to work. For many, having a job they like well-enough beats being retired. Also, agree with you on the challenging effects of being with your spouse at home too much in retirement. This is one of the factors that motivated us to build a second living unit on our lot. This makes it possible to be apart some of the time during retirement, hopefully avoiding some of the issues with spending too much time together, such as getting on each other's nerves.
I agree that the early onset Alzheimer's diagnosis makes a big difference in choosing whether to retire early. If I had a disability, I would not work a stressful job. I would try to find a less stressful job. Both of my parents passed away at an early age due to health problems. If you have a family history of early catastrophic health issues, that's another reason to retire early. I plan to retire early because I realistically have less time on this planet than the average American. People with disabilities should think the same way. Why work a stressful job until your disability kills you?

mathguy3021
Posts: 254
Joined: Sat Apr 09, 2011 9:30 pm

Re: Thinking of Retiring at 52, Please Critique Plan

Post by mathguy3021 » Sun Oct 28, 2018 4:36 pm

Shackleton wrote:
Sun Oct 28, 2018 4:06 pm
I really wish people would scroll down to read any updates from the OP before they reply. Some of these replies are almost heartless given what the OP has described her family going through.

OP - My heart really goes out to you and your family. It sounds like you are doing a wonderful job of supporting your husband's emotional well-being as well as your family finances. My mother has dementia (not early onset, she's now 84) and two of the people that live in the memory care facility where she is have early-onset alzheimer's, and I always think how hard it must be on their families to have such a change come over their loved one at such a young age. Good luck to you as you work your way through the challenges ahead.
I empathize with this couple 100% and the challenges that they face. I've had to deal with taking care of disabled family members myself. My replies are targeted specifically to certain posts that I want to share my opinion on.

dirtlaw
Posts: 17
Joined: Sat Jan 13, 2018 6:51 pm

Re: Thinking of Retiring at 52, Please Critique Plan

Post by dirtlaw » Sun Oct 28, 2018 6:20 pm

KlangFool wrote:
Sun Sep 16, 2018 4:25 pm
OP,

SEPP is the wrong answer for you. Roth conversion is a better answer for you. Please check the following URL for all the available options.

https://www.madfientist.com/how-to-acce ... nds-early/

KlangFool
I second KlangFool's sentiments - look into starting yearly Roth conversions if you haven't already. It will give you more flexibility and may be more tax efficient long term.

Also, congratulations; I think you have plenty saved to retire now if you so choose.

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