Like you mentioned above, having access to those funds in the years leading up to Medicare can definitely help with those premiums. It’s also nice from a large purchase perspective, i.e. you could make a large withdrawal to purchase a vehicle and not affect your income.
Retirees whatcha living on?..........
- Thread starter Lawnboy
- Start date
You just made me realize that it is a double whammy. Because if you did pull 50K extra to buy a new set of wheels and were on the exchange the 2 types of 401 withdraws are light years apart on buying power and healthcare exchange rate
Retirement is a funny thing. Some people retire when they want to. Some people retire when they have to.
I could retire, but don’t as I feel such a responsibility to everyone that I have worked with in my career. I understand we all “can’t get off the bus at the same time” but it’s a burden (good type I guess) imho.
I could retire, but don’t as I feel such a responsibility to everyone that I have worked with in my career. I understand we all “can’t get off the bus at the same time” but it’s a burden (good type I guess) imho.
Private health insurance can eat you alive if you retire before Medicare kicks in. But if you can live on beans and franks for a few years before that happens, Healthcare.gov insurance is very affordable as a safety net if you're not in bad health.
David58
Well-known member
I have just gotten over that responsibility part. The old "pull the hand out of the bucket of water" thing is really how it works out.
But, yes, retirement is a funny thing. Letting myself retire has been a challenge I thought I would never face - but all done by June.
David
NM-->ID
Can’t deny…
mxracer317
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- Nov 20, 2020
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100%. Taxes are on sale right now.You can always bite the bullet and convert them to Roth, give Uncle Sam his cut now.
Irrelevant
Well-known member
Every time I read a thread like this I key into the health insurance costs. When are we collectively going to figure out a better way. It's the worst of all worlds, either go universal coverage or eliminate insurance and go pay to play. But spending tens of thousands on premiums only to either not hit your deductible or have your claim be denied is completely unsustainable
Too much money lining the pockets of the people passing laws for that to change…
Nick87
Well-known member
Pretty similar to ours when I get there.
Straight Arrow
Well-known member
After a long military career including active Army, then Army National Guard, it was nice having a pension. But the greatest benefit came at a time when the health insurance costs launched into the skyrocketing stratosphere. My wife and I are covered by Tricare, the DOD insurance program, as well as Medicare. (for me also VA as further support) It is a blessing which becomes more important each year it seems. For anyone interested in military service, it is a benefit well worth considering.
MarvB
Well-known member
I doubt you'll EVER find cheaper Dave....even Medicare B is $185.
I will say that health insurance had been the one ever changing wildcard for us. When I first started with my gov job it was 100% paid by the employer...upon retirement 28+ years later it had grown to a 50-50 split BUT my 50 amounted to $1080/month. Still kept it for a variety of reasons- my income was too high at the time to qualify for cheaper programs; it was a family plan that covered myself/wife/and 2 kids under 26; and it was all inclusive- medical, dental, vision, and Rx. Plus I rarely took a sick day in 30 years so they threw all my unused SL into an HSA so I had seed money to pay the premiums for years.
Then the thing that I didn't think through enough. Turned 65 and thought its Medicare time, save some money!! The kids had aged out BUT my wife is 5 years younger than I am
. Looked at all the plans I could find for her/with our income and by the time I cobbled them all together to maintain the same benefits, it was nearly back up to what I was already paying (the $1080). So then I thought I'd just pass on Medicare for now...Nope! You get penalized for NOT taking at least Part B and the penalty increases every year up to the point you take it and then stays on for life. So moral of this windy story is I'm currently one insured SOB and pay for both the coverage I retired with AND Medicare....and the HSA is almost used up!Bonasababy
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- May 16, 2024
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Everyone's different though. We ran through several planners advice and Monte Carlo analyses and also used some online calculators that tell you how long money will last with rates of return and inflation you plug in.
We have SS one good pension and saved money. Most of the latter being managed by Fidelity for now, planning to give Vanguard a try with the rest and compare the two for a few years. Both have low fees, like 1/3 to 1/2 of the fees charged by most advisors. Fidelity has a great pre retirement tool.
We have been planning to replace about 90 percent of pre retirement income to cover some traveling early in retirement...we could cover basics and still travel regionally to visit relatives, fish and hunt by replacing about 75%.
First few years will be a bit tighter as we want to delay taking my social security.
Bonasababy
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- May 16, 2024
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Forget to mention healthcare...can be a HUGE factor for some.
We have great insurance that gets even better (more portable wherever we go) after 65. Until 65 though it's very costly...2400/month.Am delaying my retirement due to this by a year, maybe more if the economy does poorly in the next year. Wife retired this month.
We have great insurance that gets even better (more portable wherever we go) after 65. Until 65 though it's very costly...2400/month.Am delaying my retirement due to this by a year, maybe more if the economy does poorly in the next year. Wife retired this month.
No worries, I have plans and it won't be sitting at my house.
Nick87
Well-known member
That's good. Seen so many guys work a ton of hours there whole life. Only to retire and do that and die 2 years later. Not me either.
westbranch
Well-known member
You can also access pre-tax retirement funds using 72t distributions without penalty. Rollover 401k into a couple separate IRAs and then do the distributions in accordance with the rules:
Substantially equal periodic payments | Internal Revenue Service
Insights into substantially equal periodic payments under IRC section 72(t)(2)(A)(iv), with examples.
Forkyfinder
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- Dec 13, 2023
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- 3,067
Union benefit, right?
WyoCoalMiner
Member
- Joined
- Nov 14, 2024
- Messages
- 46
Part of my plan.You can also access pre-tax retirement funds using 72t distributions without penalty. Rollover 401k into a couple separate IRAs and then do the distributions in accordance with the rules:
Substantially equal periodic payments | Internal Revenue Service
Insights into substantially equal periodic payments under IRC section 72(t)(2)(A)(iv), with examples.www.irs.gov
