[USER]

Can I retire? I am a 60 years old female. About $1.8mm in investment accounts, mix of IRAS AND ROTH and CDs, regular savings accounts, 2 condos paid up, total value about $800k.

If i early retire at the end of this year, I will pay About $2000 a month in Cobra.

Fear of health insurance costs is what’s holding me back from leaving my job. I think I can do it but I need some mental talking.

Maybe you guys can help.

I have zero debt. Just regular food, gas, utilities, condo monthly fees, property taxes.

I am ready to retire. I wanna start traveling and be free to do whatever I want. Just hesitant.

Letting go is scary.

Tia

[Donna]

Retired and get on the healthcare hub and you will find decent healthcare for much less!

[Amy]

I retired early at 50, but I have a pension and a big portion of healthcare paid as part of my benefits.

Here is my advice, or at least part of my experience:
1. I planned my retirement fairly well about 3 years before I was set to retire.

I had plenty of $ at the time, my pension covered almost all monthly expenses.

I have a little less 401/roth amounts as you and a paid off house (no condos fee but high property tax and insurance). I also have two teenagers (one off to college in a year and one with 4 years of HS)

2. Healthcare is a legitimate concern. In the span of 4 years my health insurance costs increased by $235 a month and the insurance is covering way less with higher deductibles.

So, build into your equation these factors. At least until you get into Medicare.

3. Inflation really impacted my retirement plan. Food is the biggest (I haven’t needed to make any large purchases but eventually I will). My food costs have almost doubled from 4 years ago.

Granted my son is older and eats more now, just plan for spending more than you thought.

4. I do wish I had of paid for new cars. I always pay cash for cars and I’ll need a new one in about a year or 2.

Cars are going up and I’ll need to pull from my 401 to buy. I was hoping to leave it alone until I hit 60…

5. I’m spending a lot more than I thought I would have. If I could go back, I’d probably work a few more years at my old job making a decent salary (but I’m 50, not 60 and that’s a big difference)

6. I found a part time job, which I like, and that has taken a lot of pressure off of me financially. I can work when I want and take as much unpaid time off as I want.

It’s pretty ideal but the work pays far less and I hardly use my brain (not so fulfilling to me). It has kept me from tapping into 401k.

7. I’m keeping a large portion of my 401k in index funds to hedge inflation and grow $$. It’s a risk and you should use AI or a planner to make recommendations on your financial state going forward.

8. Traveling isn’t as cheap as it was just 5 years ago. However, tons of affordable options if you travel outside the box. Look at places that trade houses, or exchange work for free food and room.

Those are right up my alley, but maybe not for everyone.

Good luck and congratulations

[Stefano]

Healthcare is better in another country, just live a few months in the usa per year

[Pea]

Geo blue BCBS with optional USA coverage but more expensive or
check out Cigna international health care plan or
ACA

[Nat]

So you’ll need approximately 1/2 million over the next 20 yrs to cover your medical costs. 24k per yr for approx 20 yrs.

You’ll have 1.3 mil left to cover living expenses. You have no mortgage or rent costs cause your place is paid for (correct?).

So, if you divide 1.3 mil by 20 yrs that gives you 65k a yr to live on til you’re 80. Will that cover your living expenses?

And are you receiving rental income from one or both condos?

And if you needed long term care in your 80’s would the plan be to sell the two condos to cover the cost of it?

If so I think you’re good to go.

[Cheryl]

Congratulations! Retire and consider the Affordable Health Care Act for medical insurance. Enjoy your travels.

You got this!

[John]

Unbelievable, you are basically rich and worried about paying a Dr, growing up in a country with free dental care, healthcare and even university this boggles my mind.

[Jeff]

Renter or homeowner? How much do you spend? When will you draw SS? Do you have a pension, or will you be living on what you stated here?

You have to know you expenses to answer your question.

[Tina]

I don’t know where your located but a have a number of an insurance concierge! Both my daughters used him and got a good plan for 275$ a month….

Of course they are in there 20’s!

I wouldn’t use COBRA

[Musante]

Retire in a country where they give free healthcare. Or somewhere with affordable healthcare where us dollar goes a lot further than here

[Dawn]

I’ve been researching medical also for myself the last 3 months so I can be covered from ages 56-64. A decent ACA plan in FL costs about $830/month without any subsidy credits.

However, I was helping an elderly family member yesterday get a new doctor as her Dr.

of the last 10 years went concierge with 30 days notice. Her new dr office told me they take most major insurance but “except plans on the exchange.”

It made me rethink my future option with ACA plans once retired if some doctors won’t take it as I thought it was the same as commercial insurance.

[Mark]

Through the ACA portal your insurance cost should be capped at 8.5% of your expected annual income of $80,000 or $567 per month.

Considerably lower than Cobra at $2,000.

Hopefully, this should allow more peace of mind.

[Joe]

It’s not complicated.
Make a detailed accounting of your annual expenses. All of them. It will take a while

Then adjust all those expenses for retirement, like health insurance
Will you have retirement income to cover your expenses until age 62 or age 65?

Then adjust your income and expenses at age 65 for medicare and medigap, and for social security

I retired at 51 in 2009 with $1.9M.

Easy peasy

[Max]

I would not use COBRA…it’s too expensive. Go on Healthcare Exchange and you will pay much less for same coverage.

Enjoy your retirement.

You are good.

[Mak]

I’m following because I’m in similar position but afraid to take the plunge – in 57 with $1.5 split between IRA’s and investments , no debt, condo paid off annual expenses approx $10k, beach house paid off annual expenses approx $12k, I do have one more kid starting college but trying to decide if I pay it from my $1.5 or literally work just to cover her tuition – anyway, if you have zero other responsibilities I say go for it!!!!!

you worked hard to get where you are now!

[Tricia]

Check with an insurance broker. I had BCBS thru ACA and it was over $1,200/mo. for just me. ACA is full coverage, which you may not need.

My broker found insurance that excluded maternity care, in-patient substance abuse care and in-patient mental health care for about $725/ mo.

I had no idea such insurance even existed.

[Kyaw]

Just others said already, don’t go COBRA route, use your state ACA health insurance portal to choose plan that suite you.

Most states allow first time user to join at anytime but some have open enrollment period.

If you are planning on slow travel to multiple countries, consider getting international traveler health insurance plan too.

They are a lot affordable if USA is excluded.

[Fung]

Do you have you monthly budget worked out? Healthcare, hoa, food, utilities, entertainment, etc. You have about 2m in assets, excluding your condos.

That should generate about $80k a year (4% rule).

Does your budget match that $80k. Turn this into a math exercise.

[Aaron]

Move to a country with affordable healthcare and you should be able to retire no problem. I retired and moved to İstanbul.

And it is a great travel hub to get just about anywhere.

[Michelle]

If you have any health issues I would continue to work … maybe reduce your hours if you can while still maintaining your benefits.

[Kacee]

COBRA is usually available for a year, not 2. Marketplace insurance isn’t as bad you fear (that was my fear too). Depends on your health situation but you can get good plans for less than $2k (give or take).

Really comes down to your health/wellness needs.

How often you see your doctor and/or specialists and if you need to take on-going meds etc.

Those can cost so look at their plans for meds (some aren’t covered) and how much is out of pocket for you etc.

If you can afford $2k on healthcare monthly (do your math), you can most likely retire esp at 60 and can now access your 401k/IRAs as float yrs till medicare/SS kicks in

[Author]

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