I am within 6 months of turning 65... I am gainfully employed with an EXCELLENT health plan. My wife is 5 years younger than me. The house is paid off and the only thing we owe money on is our car. We could pay it off but the interest rate on the car is nominal and we're making good money on investments. I don't hate going to work but I don't have the passion for programming that I once had. We've got about $700K saved. I just got a social security "statement" that says we'll make about $3K/month when I retire. Soooo, the big question: Should I stay gainfully employed until the wife qualifies for Medicare or should I "hang up the cleats" and enjoy the rest of my life. I'm a bit scared about the cost of health care for the wife. (She is THE most important person in my life FYI) I am totally unprepared and uninformed for this situation. My bad.

Any advice from the SigForum brain trust will be greatly appreciated!

Health care is expensive, especially when you are in your 60's. Do you want to work until you are 70? I would price out the cost of basic healthcare for the wife and go from there. I know lots of people that are struggling with this same problem.

I am 15 years your junior but was recently discussing retirement plans with my financial planner.

I'd do the due diligence of figuring how much you need to live on.

Healthcare is a big chunk.

I know there are plenty of guys here who have navigated these waters so you'll probably get lots of good advice but I really like trusting a professional in helping me make financial decisions.

If you don’t have a financial advisor/planner, you should really go sit down with one and talk about this. Ask around for recommendations in your area.

Not enuf info to decide. Like, any additional income post-retirement besides SS and whatever you pull out of the 700k on a recurring basis? Wife working now? Any SS payments from her work years that she’ll get at 66? Long term care insurance planning for both of you or not? SS increases by 8% per year if you delay taking it beyond your full retirement age.

I waited an extra year and got the 8% bump in mine and also took care of some needed house maintenance (replacement roof, HVAC, water heater) while still working to minimize early retirement expenses to make living on less easier.

My opinion is that you should keep working. I was in a similar position but with full benefits from government retirement.

From a personal standpoint, the benefits are important. Also important is staying busy in "retirement" even if it is a full time or part time 1099 contractor job.

In short, I'd stay employed until your wife reached medicare age unless there are other circumstances that take precedence.

quote:

Originally posted by 280nosler:
If your wife is 60, and has no other access to healthcare other than your employer, you are in a bit of a pickle. You can look into high deductible stand alone individual plans, but they typically cost $1500 and up a month, meaning you will spend $18,000 a year. Only you know her health needs, so there is only so much advise that can be given online.

Maybe not quite that bad. I'm self employed so have purchased my own insurance for 30 years. The rate chart for my high deductible BCBS plan shows $801/month for a 60yo. Of course, you also need to be able to absorb the hit of the annual deductible if she were to have some significant illness between 60-65.

Thanks for the advice so far... I didn't mention that we are making about $900 a month from my MIL house in KC, MO that we inherited. Financial advisors (I golf with a few of them) have been of little help other than how to avoid taxes. It's that whole health care thingy. I'm leaning towards working until I'm 70 and then a big problem would be solved and I wouldn't hate it. I used to look forward to Mon. mornings so I could write code. Now I don't look forward to Mondays but I don't hate them.

How the heck could I come to this hill in my life without thinking about it I am a freaking idiot.

quote:

Originally posted by Bytes: It's that whole health care thingy.

It's definitely something to consider, but not a total mystery. There are many of us that have it as a line in our budgets. Can you live without the $900/mo income from the rental for the next 5 years? If so, that covers her insurance. Could your savings support a $6,500 deductible (possibly every year if she developed a chronic illness)? Of course, if she gets sick enough to max out insurance, she might not be working, so her employer plan may be gone anyway.

I agree with many above that you should consider keeping working. Partly financial, partly to stay active, and partly because continuing to work keeps options open.

Is there something you could do to get more energized about your work? Set up goals, make it a game, engage with co-workers you currently don't, see about a transfer to work on different projects, find a course on some new technologies, ... those kinds of things.

Those advisors you golf with are golfing, not working. Sit down, in an office, lay out the issues. If you still get nothing but tax avoidance advice then you need to find a different advisor. The tax issue is huge but it’s not the whole picture.

what state ?

I think you CAN 'afford' it.

SS : ~$36,000 / yr

rental: ~$7,500 / yr (I'm sure there are some expenses you incur)

retirement funds: $28,000 / yr (assuming a nominal 4% distribution rate per year)

= ~$71,000 per year retirement 'income' or $5,900 / month

subtract out healthcare for your wife -- lets assume $1,250 / month leaves about $4,700 per month.

you have no mortgage or other major expenses. unless you live in a HCOL area I think you could do it.

you can shop plans on the ACA website -- they are offered by state.


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quote:

Originally posted by Sig209:
what state ?

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Utah

quote:

Originally posted by Leemur:
Those advisors you golf with are golfing, not working. Sit down, in an office, lay out the issues. If you still get nothing but tax avoidance advice then you need to find a different advisor. The tax issue is huge but it’s not the whole picture.

I agree, taxes are a real big deal and we think we have that handled thanks to the "golfers". Those boys just don't have a whole lot of advice on health care. The wife and I have sat down with them in their office and over dinner at our house. We've also met with "3rd party" advisors in their office. They're not out to screw us (well some are) but have very little knowledge on health care. Just wondering how the SigForum contributors have handled similar situations. I also don't have a big issue with working for another five years but I'd rather golf and garden

I'm seeing plans on the ACA website for under $1,000 / month for a 60 year old female in Salt Lake City, UT (you have to input a zip code) in an income range of $65,000 / yr.


obviously you have to think about the TOTAL cost to include premium, deductible, OOP maximum, etc.

https://www.healthcare.gov/see-plans/#/plan/results

(need to re-input your personal parameters for the most accurate quote)

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Thanks Sig209.

Yeah, it just sneaks up on you. I'm now 72 and been retired since 62. I've found that I can be lazy as all hell and enjoy it. My wife not so much. Hobbies are just time wasters, but fun.

How you get to the point where you find yourself is easy. Its just autopilot. You float along until some external force wakes you up. You'll find, if you want to, that changing direction isn't difficult at all. But to retire is easy if you learn not to spend money. Its just as much fun not to, but you've got to understand where you're wasting it. Maybe you need to consult with your wife, too.

Other considerations are cars. Gawd they're expensive, but fun. Its probably a mistake to listen to others and pattern your life after them. I discovered I really like to go out to eat. So we do, once a day. If you have modest demands, its easy and not that expensive.

Do you like your home and want to continue living in it? Is it big enough or too big? How about the area? Is it going downhill? Or ripe to do so? Had a physical lately? Do you trust others with your money? Do you like vacations and are they expensive? Got any grand kids? Can you sleep in? Lots of other factors, too. How about hobbies? Bought a new gun lately? That does seem to clear your thinking.

I’m not sure why so many of the pros you’ve consulted with are laser focused on taxes. Mine is heavy on tax issues but I’m also only knocking on the door of 48 so it’s still a concern in the planning. As mentioned earlier, could the rental property money be set aside for the insurance cost? It’s a great idea if you can swing it and you plan to keep the property for several more years. How about selling the house and using that money until your wife can get Medicare? There’s so many factors involved that it’ll take some time invested in number crunching and war gaming the possibilities. Just remember that the best plans rarely survive first contact with the enemy. Also, any chance you could go part time since your job doesn’t thrill you anymore?

Regardless, good luck!

Thanks Leemur.

Your advice is more than appreciated!

I have a five year younger wife too and the insurance issue is a problem. Policies get very expensive after 60 and coverage and deductibles are not good. The ACA plans are terrible and expensive. At least you will have Medicare and that's a big improvement.
On the SS side, I wouldn't take it until at least full retirement age which for you will be 66 plus a few months. You get 8% more per year by waiting but also before that you loose some of the benefits and pay taxes if you make over a small income.
Lots of other info needed to be able to give more advice but I'd be doing that with a professional.