The “I want to retire soon” thread (3 Viewers)

[ConstruxBoy]

will probably end up in North Carolina area

A top 4 state IMO.

How many states have warm ocean beaches and "real" mountains? California, Virginia, North Carolina and.....?

Georgia but you're talking like a 5 hour drive to get from the beach to the mountains

And the mountains in GA and SC are closer to foothills. Not the Appalachian/Blue Ridge type.

 

[ConstruxBoy]

Although I guess the AT does end up in GA, right?

 

[-OZ-]

How many states have warm ocean beaches and "real" mountains? California, Virginia, North Carolina and.....?

Alabama, depending on your definition of “real” mountain. We top off at 2,407’. Which is plenty for most purposes. Also, the Gulf has nicer water than the Atlantic. (Although our favorite place is in SC).

 

[Desert_Power]

will probably end up in North Carolina area

A top 4 state IMO.

How many states have warm ocean beaches and "real" mountains? California, Virginia, North Carolina and.....?

Georgia but you're talking like a 5 hour drive to get from the beach to the mountains

And the mountains in GA and SC are closer to foothills. Not the Appalachian/Blue Ridge type.

Blue Ridge goes into both states just a bit. That whole area where all 4 are close together (GA, SC, NC, and TN) is pretty packed with outdoorsy goodness. Just not as high elevations.

 

[NutterButter]

will probably end up in North Carolina area

A top 4 state IMO.

How many states have warm ocean beaches and "real" mountains? California, Virginia, North Carolina and.....?

Georgia but you're talking like a 5 hour drive to get from the beach to the mountains

And the mountains in GA and SC are closer to foothills. Not the Appalachian/Blue Ridge type.

Georgia has the blue ridge mountains in the northwest. That's where the appalachian trail begins. But you're right its not as high as Va and NC

 

[-OZ-]

will probably end up in North Carolina area

A top 4 state IMO.

How many states have warm ocean beaches and "real" mountains? California, Virginia, North Carolina and.....?

Georgia but you're talking like a 5 hour drive to get from the beach to the mountains

And the mountains in GA and SC are closer to foothills. Not the Appalachian/Blue Ridge type.

Georgia has the blue ridge mountains in the northwest. That's where the appalachian trail begins. But you're right its not as high as Va and NC

Seems kind of pretend elitist to include Virginia at 5,729’ and intentionally leave GA out at 4,784’. Virginia is 19th, like half of Oregon which is 13th.
For all practical purposes these states have very similar mountains.

 

[Judge Smails]

Retiring in two weeks at age 62. Insurance was the one giving me heartburn, but it looks like I can get a policy thru ACA for just under $200/mo. I know I'm coming up short incomewise, but only $300-400/mo which I plan on making up by working part-time. I've had a couple financial guys look it over including my best friend and they both said I'll be fine.
Already joined a SR Mens Golf league on Monday mornings and am cleared to be an Uber driver.

I really think a lot of people wait too long looking to be in “perfect” financial shape and miss out on a lot of great years.

I've spent a lot of time thinking about this point and trying to internalize it. I'm a temperamentally-conservative person who is going to be reluctant to leave my job (I can't come back - the decision to quit is final) until I am 100% sure that I am ready. And as you correctly note, there is a huge downside to that in terms of wasting a valuable year in the office. I don't really want to look back and decide that I waited too long to pull the trigger.

That's one of the main reasons why I have unofficially put myself on a clock and made at least some of my family (parents, in-laws) aware of our target date. I'm hoping that having a clearly-articulated target will work against the tendency to say "let's do one more year and see where things are after that."

Good conversation, a topic I've been thinking about a lot lately. The financial services industry is super conservative in their guidance on this. And that makes sense - the model has been AUM, so the more accumulation and the slower the decumulation the better for them. That's how they get paid. And telling someone to save more money obviously fulfills their fiduciary duties as well, it's not some scheme or anything, nothing wrong with that. So they run monte carlo simulations and say you can't retire until you get to a 95-100% chance of "success", which is defined as not running out of money, so you need to save more and withdraw less. And if you're a conservative or risk-averse person, that model probably works pretty well for you.

The 4% rule is similar. That's designed to survive the very worst sequence of return that has ever happened, essentially those that retired in the mid-late 60s. Some may want that level of confidence, again there's nothing wrong with that.

But the flip side is that the data shows many people end up with larger account balances at death than they had at retirement. Is that "success"? To me that means they underspent, they worked too long, or both. It seems if you are able to build in some flexibility in your spending plan, guardrails or similar, and/or be open to earning some income, then you can take on some more risk. Maybe a 75% chance of success on a monte carlo sim is sufficient, especially if it means you can retire 2 years earlier or spend another $10K a year.

What makes this all so challenging is that it's a math problem where we don't know with any certainty most of the inputs. We don't know when we'll die, what our personal rate of return or inflation will be (both are very much personal), whether we'll require long term care, etc. So I get why people want to build worst-case scenarios into their plans.

I’m at 99-100% chance of success with Monte Carlo sims but still don’t feel comfortable at 62. I probably should be but am not. For one, I know my monthly spend has to go down. We travel, umpteen concerts a year, pay for every meal for our adult kids when together, etc. We live far beneath our means but cash sure flies out the door. I have to come to grips with the fact I’m not going to be paying huge estimated taxes, mortgage will be history, I won’t be contributing for retirement vehicles, etc. It’s the mental cross walk of here’s what I make gross, and I will need only X a month retirement. Have done all this with a financial planner, but the thought keeps me working another year or 2. Also, I now want to help my 3 kids get a house. So maybe I work one extra year just to fund that.

I’m not stressed where I am, have flexibility as 99% company is East coast so here so I can start early, golf or workout any day after 2, etc. So might be foolish to walk away from that. But if I’m ever stressed or have an a hole CEO I’ll walk the next day. Choosing the right time to call it a day is not easy.

 

[NutterButter]

will probably end up in North Carolina area

A top 4 state IMO.

How many states have warm ocean beaches and "real" mountains? California, Virginia, North Carolina and.....?

Georgia but you're talking like a 5 hour drive to get from the beach to the mountains

And the mountains in GA and SC are closer to foothills. Not the Appalachian/Blue Ridge type.

Georgia has the blue ridge mountains in the northwest. That's where the appalachian trail begins. But you're right its not as high as Va and NC

Seems kind of pretend elitist to include Virginia at 5,729’ and intentionally leave GA out at 4,784’. Virginia is 19th, like half of Oregon which is 13th.
For all practical purposes these states have very similar mountains.

I've been called worse. I mostly think of mountains from a hiking perspective and from that point of view, the elevation gain is what matters unless you're talking like the really high stuff where you feel the effects of the thin air.

 

[SFBayDuck]

will probably end up in North Carolina area

A top 4 state IMO.

How many states have warm ocean beaches and "real" mountains? California, Virginia, North Carolina and.....?

Now add in "without brutal summer humidity". That's why California is so damned expensive.

Oregon has all but one word in the above, and that would be "warm". Beaches are beautiful, and you can get from Seaside to Mt. Hood in 3 hours. But the beaches aren't warm very often, and the ocean never is. Although I imagine a day of summer skiing in early August followed by an evening on the beach watching the sunset would be pretty sweet.

 

[SFBayDuck]

I’m at 99-100% chance of success with Monte Carlo sims but still don’t feel comfortable at 62. I probably should be but am not. For one, I know my monthly spend has to go down. We travel, umpteen concerts a year, pay for every meal for our adult kids when together, etc. We live far beneath our means but cash sure flies out the door. I have to come to grips with the fact I’m not going to be paying huge estimated taxes, mortgage will be history, I won’t be contributing for retirement vehicles, etc. It’s the mental cross walk of here’s what I make gross, and I will need only X a month retirement. Have done all this with a financial planner, but the thought keeps me working another year or 2. Also, I now want to help my 3 kids get a house. So maybe I work one extra year just to fund that.

I’m not stressed where I am, have flexibility as 99% company is East coast so here so I can start early, golf or workout any day after 2, etc. So might be foolish to walk away from that. But if I’m ever stressed or have an a hole CEO I’ll walk the next day. Choosing the right time to call it a day is not easy.

Are you saying you are 99-100% success with your current monthly spend, or that you're at that level at some projected future and lower spend?

Based on your last paragraph it sounds like you've got no strong desire to retire anyway, so keep on going until you're ready. Like most choices, just be aware of the opportunity cost of continuing to work, and factor that into your decision. Are there things you'd like to do that you can't while working? Sounds like you're living a pretty good life already, so those opportunity costs may be pretty low at this point.

ETA: have you thought about what you'll be retiring to, instead of retiring from? I think for a lot of people that's where it gets tough to get across "the mental cross walk", if you're not sure what is on the other side. Research shows that a lot of people roll right into that first year or so of treating retirement like one big vacation, but after that time can have trouble transitioning without a plan that includes purpose, social connections, etc.

 

[AAABatteries]

will probably end up in North Carolina area

A top 4 state IMO.

How many states have warm ocean beaches and "real" mountains? California, Virginia, North Carolina and.....?

Georgia

 

[NutterButter]

Retiring in two weeks at age 62. Insurance was the one giving me heartburn, but it looks like I can get a policy thru ACA for just under $200/mo. I know I'm coming up short incomewise, but only $300-400/mo which I plan on making up by working part-time. I've had a couple financial guys look it over including my best friend and they both said I'll be fine.
Already joined a SR Mens Golf league on Monday mornings and am cleared to be an Uber driver.

I really think a lot of people wait too long looking to be in “perfect” financial shape and miss out on a lot of great years.

I've spent a lot of time thinking about this point and trying to internalize it. I'm a temperamentally-conservative person who is going to be reluctant to leave my job (I can't come back - the decision to quit is final) until I am 100% sure that I am ready. And as you correctly note, there is a huge downside to that in terms of wasting a valuable year in the office. I don't really want to look back and decide that I waited too long to pull the trigger.

That's one of the main reasons why I have unofficially put myself on a clock and made at least some of my family (parents, in-laws) aware of our target date. I'm hoping that having a clearly-articulated target will work against the tendency to say "let's do one more year and see where things are after that."

Good conversation, a topic I've been thinking about a lot lately. The financial services industry is super conservative in their guidance on this. And that makes sense - the model has been AUM, so the more accumulation and the slower the decumulation the better for them. That's how they get paid. And telling someone to save more money obviously fulfills their fiduciary duties as well, it's not some scheme or anything, nothing wrong with that. So they run monte carlo simulations and say you can't retire until you get to a 95-100% chance of "success", which is defined as not running out of money, so you need to save more and withdraw less. And if you're a conservative or risk-averse person, that model probably works pretty well for you.

The 4% rule is similar. That's designed to survive the very worst sequence of return that has ever happened, essentially those that retired in the mid-late 60s. Some may want that level of confidence, again there's nothing wrong with that.

But the flip side is that the data shows many people end up with larger account balances at death than they had at retirement. Is that "success"? To me that means they underspent, they worked too long, or both. It seems if you are able to build in some flexibility in your spending plan, guardrails or similar, and/or be open to earning some income, then you can take on some more risk. Maybe a 75% chance of success on a monte carlo sim is sufficient, especially if it means you can retire 2 years earlier or spend another $10K a year.

What makes this all so challenging is that it's a math problem where we don't know with any certainty most of the inputs. We don't know when we'll die, what our personal rate of return or inflation will be (both are very much personal), whether we'll require long term care, etc. So I get why people want to build worst-case scenarios into their plans.

I’m at 99-100% chance of success with Monte Carlo sims but still don’t feel comfortable at 62. I probably should be but am not. For one, I know my monthly spend has to go down. We travel, umpteen concerts a year, pay for every meal for our adult kids when together, etc. We live far beneath our means but cash sure flies out the door. I have to come to grips with the fact I’m not going to be paying huge estimated taxes, mortgage will be history, I won’t be contributing for retirement vehicles, etc. It’s the mental cross walk of here’s what I make gross, and I will need only X a month retirement. Have done all this with a financial planner, but the thought keeps me working another year or 2. Also, I now want to help my 3 kids get a house. So maybe I work one extra year just to fund that.

I’m not stressed where I am, have flexibility as 99% company is East coast so here so I can start early, golf or workout any day after 2, etc. So might be foolish to walk away from that. But if I’m ever stressed or have an a hole CEO I’ll walk the next day. Choosing the right time to call it a day is not easy.

As long as the job fits into your desired lifestyle, there's really no reason to walk away. It sounds like you're doing it right with the traveling, concerts, other rec activities and quality time with the fam.

 

[AAABatteries]

will probably end up in North Carolina area

A top 4 state IMO.

How many states have warm ocean beaches and "real" mountains? California, Virginia, North Carolina and.....?

Georgia but you're talking like a 5 hour drive to get from the beach to the mountains

And the mountains in GA and SC are closer to foothills. Not the Appalachian/Blue Ridge type.

Somewhat true but the first 80 miles of the AT are in North GA and while it doesn’t reach the peaks of the Smokies or the Whites they are more than foothills with many 4k+ in elevation.

 

[General Malaise]

will probably end up in North Carolina area

A top 4 state IMO.

How many states have warm ocean beaches and "real" mountains? California, Virginia, North Carolina and.....?

Georgia but you're talking like a 5 hour drive to get from the beach to the mountains

You can go from Mt. Hood to the Oregon Coast in like 3 hours, but that water will cause the sort of shrinkage no man wants.

 

[General Malaise]

will probably end up in North Carolina area

A top 4 state IMO.

How many states have warm ocean beaches and "real" mountains? California, Virginia, North Carolina and.....?

Now add in "without brutal summer humidity". That's why California is so damned expensive.

Oregon has all but one word in the above, and that would be "warm". Beaches are beautiful, and you can get from Seaside to Mt. Hood in 3 hours. But the beaches aren't warm very often, and the ocean never is. Although I imagine a day of summer skiing in early August followed by an evening on the beach watching the sunset would be pretty sweet.

I don't think I've made it past my ankles on any Oregon beach. Brrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr.......................

 

[-OZ-]

You can go from Mt. Hood to the Oregon Coast in like 3 hours, but that water will cause the sort of shrinkage no man wants.

Wear a wetsuit.

 

[General Malaise]

You can go from Mt. Hood to the Oregon Coast in like 3 hours, but that water will cause the sort of shrinkage no man wants.

Wear a wetsuit.

I don't think they make 'em in my size.

My cousin surfs off the Oregon coast and has a really thick wetsuit, but she's a rock star and I'm softer than cotton candy.

 

[Gally]

My cousin surfs off the Oregon coast and has a really thick wetsuit, but she's a rock star and I'm softer than cotton candy.

Wet suit might tighten things up for you. You may want to start wearing it under all your clothes...

 

[General Malaise]

My cousin surfs off the Oregon coast and has a really thick wetsuit, but she's a rock star and I'm softer than cotton candy.

Wet suit might tighten things up for you. You may want to start wearing it under all your clothes...

Over the Spanx?

 

[General Malaise]

Gawd, you want an example of how soft I am? I used to teach swim lessons in college during the summers. In Texas. You know, where they judge the temperature by how long it takes to fry an egg on the sidewalk. All day in the outdoor pool and this delicate flower wore a wetsuit because he got too cold.

 

[Ministry of Pain]

So, with our move to Italy occurring 6/24, I am giving my notice that i am giving notice Monday the 20th of May. My intent is to make 6/28 my last day and squeak out a couple of extra days of pay.
What i mean is that I want to continue working, but I am making the logical assumption that my company will not allow me to work remotely full time from Italy. On 5/20 I will tell my mgr. that I love what I do and I want to continue, so maybe between 5/20-5/31 we can figure something out to make this work. If they flat say "no, get out", I will tender my formal written notice.

It was a run! I will be able to work anywhere, including Italy, but finding someone that wants to hire me under my conditions and to make something worth my while might be difficult. I mean, I'm not going to wash dishes in a restaurant (not insulting anyone, please don't report me).

I'd like to hear the update on this whenever you feel the time is right

 

[Judge Smails]

I’m at 99-100% chance of success with Monte Carlo sims but still don’t feel comfortable at 62. I probably should be but am not. For one, I know my monthly spend has to go down. We travel, umpteen concerts a year, pay for every meal for our adult kids when together, etc. We live far beneath our means but cash sure flies out the door. I have to come to grips with the fact I’m not going to be paying huge estimated taxes, mortgage will be history, I won’t be contributing for retirement vehicles, etc. It’s the mental cross walk of here’s what I make gross, and I will need only X a month retirement. Have done all this with a financial planner, but the thought keeps me working another year or 2. Also, I now want to help my 3 kids get a house. So maybe I work one extra year just to fund that.

I’m not stressed where I am, have flexibility as 99% company is East coast so here so I can start early, golf or workout any day after 2, etc. So might be foolish to walk away from that. But if I’m ever stressed or have an a hole CEO I’ll walk the next day. Choosing the right time to call it a day is not easy.

Are you saying you are 99-100% success with your current monthly spend, or that you're at that level at some projected future and lower spend?

Based on your last paragraph it sounds like you've got no strong desire to retire anyway, so keep on going until you're ready. Like most choices, just be aware of the opportunity cost of continuing to work, and factor that into your decision. Are there things you'd like to do that you can't while working? Sounds like you're living a pretty good life already, so those opportunity costs may be pretty low at this point.

ETA: have you thought about what you'll be retiring to, instead of retiring from? I think for a lot of people that's where it gets tough to get across "the mental cross walk", if you're not sure what is on the other side. Research shows that a lot of people roll right into that first year or so of treating retirement like one big vacation, but after that time can have trouble transitioning without a plan that includes purpose, social connections, etc.

Some great questions. The Monte Carlo sim was based on projected spend - less than my spend now. And my spend will definitely be less. No mortgage, estimated taxes, retirement investments, etc. The projected spend was pretty all inclusive though. Factored in a decent amount of travel the first decade. Golf club membership (already have) for the next 15 years. Healthcare costs. Long term care. Maybe it's more of a mindset that the longer I'm accumulating the less time I'm drawing down and the picture looks even rosier. But truth is I could be laid off tomorrow, never return to work and be fine. So to everyone's point if it works in my lifestyle and I can still do the things I want then why not continue for awhile. On the flip side, not a lot of longevity in my family history so I'm chancing tapping out without really enjoying retirement. But even in that case - more for Mrs. Smails and family. I do have a great social network (24 guys heading to Palm Springs next week for our 33rd year of Ryder Cup type match play and debauchery) and some volunteer work I'm interested in. Plus grandkids. More time to work out and take care of myself. So I won't be the type who will be lost without their career.

 

[Atomic Punk]

I’m on my last work trip to Ottawa and only ten work days left … love my job, but these last few days are dragging.

Bring on cottage life and pickleball!!

 

[SFBayDuck]

Some great questions. The Monte Carlo sim was based on projected spend - less than my spend now. And my spend will definitely be less. No mortgage, estimated taxes, retirement investments, etc. The projected spend was pretty all inclusive though. Factored in a decent amount of travel the first decade. Golf club membership (already have) for the next 15 years. Healthcare costs. Long term care. Maybe it's more of a mindset that the longer I'm accumulating the less time I'm drawing down and the picture looks even rosier. But truth is I could be laid off tomorrow, never return to work and be fine. So to everyone's point if it works in my lifestyle and I can still do the things I want then why not continue for awhile. On the flip side, not a lot of longevity in my family history so I'm chancing tapping out without really enjoying retirement. But even in that case - more for Mrs. Smails and family. I do have a great social network (24 guys heading to Palm Springs next week for our 33rd year of Ryder Cup type match play and debauchery) and some volunteer work I'm interested in. Plus grandkids. More time to work out and take care of myself. So I won't be the type who will be lost without their career.

Sounds like you've won the game and can stop playing whenever you feel like it. Congrats!

That's great you have a group like that still getting together, at 62! I had a group of 15-20 buddies from college that did a Tahoe trip every summer for 20 years, but it petered out after that. Now it's just smaller get togethers of 4-6 guys, other than football tailgates which might bring 15-20 together.

 

[WVU Alum]

I retire in 8 years at 54. I’ve said that here before, but I am going to keep saying it. I’m ready.

 

[IvanKaramazov]

I'm tentatively 4 years out. When I did my plan, my projected "spend" was just (current household income) - (current annual retirement savings). In other words, we are hoping to replace 100% of our income, except for the fact that we don't need to save for retirement anymore, obviously. We live super-comfortably on that income right now, and we have no problem accumulating short run savings to cover things like new cars, the occasional vacation, helping the kids out with random stuff, etc. If it matters, we do not have a mortgage or any other debt.

This is a case of KISS, right? I mean, assuming that's an attainable goal for us, there's no need for me to overthink this, is there?

 

[Chemical X]

@Ministry of Pain

My impending Italian Ex-Pat adventure is ***Official*** 2024-25 v3.1

Looking to see if your company has transferred you to Europe.....if so, did they help you relo and assist with visa? Interested in stories, experiences and looking for advise.

forums.footballguys.com

 

[SFBayDuck]

I'm tentatively 4 years out. When I did my plan, my projected "spend" was just (current household income) - (current annual retirement savings). In other words, we are hoping to replace 100% of our income, except for the fact that we don't need to save for retirement anymore, obviously. We live super-comfortably on that income right now, and we have no problem accumulating short run savings to cover things like new cars, the occasional vacation, helping the kids out with random stuff, etc. If it matters, we do not have a mortgage or any other debt.

This is a case of KISS, right? I mean, assuming that's an attainable goal for us, there's no need for me to overthink this, is there?

KISS wins the day most of the time, and sounds like you're in great shape. I've found the toughest things to wrap my head around are taxes and healthcare. Depending on your sources of income in retirement, your taxes may go down significantly, in fact for many it could zero until RMDs kick in. If you're funding from LTCG, married filing jointly you would have a 0% tax rate up to $94K in total taxable income. It's only 15% from $94K up to $583K. If you have pre-tax money coming from 401Ks/IRAs, that's obviously taxable and would figure in to that total. And of course Roth/HSA funds don't figure in at all. Speaks to the flexibility of having money in all three buckets.

So that's where the complexity can come in, as you potentially look to do things like harvest gains, roth conversion ladders, or just minimize your taxes in any given year. Relates to healthcare with things like how to maximize ACA subsidies and avoid IRMAA surcharges.

 

[IvanKaramazov]

I'm tentatively 4 years out. When I did my plan, my projected "spend" was just (current household income) - (current annual retirement savings). In other words, we are hoping to replace 100% of our income, except for the fact that we don't need to save for retirement anymore, obviously. We live super-comfortably on that income right now, and we have no problem accumulating short run savings to cover things like new cars, the occasional vacation, helping the kids out with random stuff, etc. If it matters, we do not have a mortgage or any other debt.

This is a case of KISS, right? I mean, assuming that's an attainable goal for us, there's no need for me to overthink this, is there?

KISS wins the day most of the time, and sounds like you're in great shape. I've found the toughest things to wrap my head around are taxes and healthcare. Depending on your sources of income in retirement, your taxes may go down significantly, in fact for many it could zero until RMDs kick in. If you're funding from LTCG, married filing jointly you would have a 0% tax rate up to $94K in total taxable income. It's only 15% from $94K up to $583K. If you have pre-tax money coming from 401Ks/IRAs, that's obviously taxable and would figure in to that total. And of course Roth/HSA funds don't figure in at all. Speaks to the flexibility of having money in all three buckets.

So that's where the complexity can come in, as you potentially look to do things like harvest gains, roth conversion ladders, or just minimize your taxes in any given year. Relates is healthcare with things like how to maximize ACA subsidies and avoid IRMAA surcharges.

Can you (or somebody) point me to a FBG-recommend explainer on health insurance? We'll have go into the private market for a several years, and while I know a little bit about it and have a general idea of what I'm going to be spending, I could use a primer. We've never had problems making ends meet given our lifestyle, so I've just always assumed that insurance would work itself out. I guess I should probably start doing more than just assuming.

 

[NutterButter]

I'm tentatively 4 years out. When I did my plan, my projected "spend" was just (current household income) - (current annual retirement savings). In other words, we are hoping to replace 100% of our income, except for the fact that we don't need to save for retirement anymore, obviously. We live super-comfortably on that income right now, and we have no problem accumulating short run savings to cover things like new cars, the occasional vacation, helping the kids out with random stuff, etc. If it matters, we do not have a mortgage or any other debt.

This is a case of KISS, right? I mean, assuming that's an attainable goal for us, there's no need for me to overthink this, is there?

KISS wins the day most of the time, and sounds like you're in great shape. I've found the toughest things to wrap my head around are taxes and healthcare. Depending on your sources of income in retirement, your taxes may go down significantly, in fact for many it could zero until RMDs kick in. If you're funding from LTCG, married filing jointly you would have a 0% tax rate up to $94K in total taxable income. It's only 15% from $94K up to $583K. If you have pre-tax money coming from 401Ks/IRAs, that's obviously taxable and would figure in to that total. And of course Roth/HSA funds don't figure in at all. Speaks to the flexibility of having money in all three buckets.

So that's where the complexity can come in, as you potentially look to do things like harvest gains, roth conversion ladders, or just minimize your taxes in any given year. Relates to healthcare with things like how to maximize ACA subsidies and avoid IRMAA surcharges.

I might do a one time advisor session just to get some tax advice. Saw a couple of useful calculators out there that look at your entire portfolio and tell u what to take from where when.
I might also marry my girlfriend just to almost double my tax buckets. I'd be 60 at that point and 15 years into the relationship so figure there's no going back so might as well max out the tax bennies.

 

[SFBayDuck]

I might also marry my girlfriend just to almost double my tax buckets. I'd be 60 at that point and 15 years into the relationship so figure there's no going back so might as well max out the tax bennies.

Sounds familiar! I've been with my lady for over 13 years, we own a home together, but aren't yet married. Financially it's just not smart not to be, especially since her take home income is pretty minimal (half of her "income" is run through her business as expenses).

Don't think I'll bring up the subject with her in those terms, though

 

[SFBayDuck]

Can you (or somebody) point me to a FBG-recommend explainer on health insurance? We'll have go into the private market for a several years, and while I know a little bit about it and have a general idea of what I'm going to be spending, I could use a primer. We've never had problems making ends meet given our lifestyle, so I've just always assumed that insurance would work itself out. I guess I should probably start doing more than just assuming.

I haven't seen a good comprehensive primer on the topic, just picked up bits and pieces through articles and blogs and podcasts. But I'm going to try and dig something up, as I need to better educate myself on this as well.

 

[Peggy]

I'm tentatively 4 years out. When I did my plan, my projected "spend" was just (current household income) - (current annual retirement savings). In other words, we are hoping to replace 100% of our income, except for the fact that we don't need to save for retirement anymore, obviously. We live super-comfortably on that income right now, and we have no problem accumulating short run savings to cover things like new cars, the occasional vacation, helping the kids out with random stuff, etc. If it matters, we do not have a mortgage or any other debt.

This is a case of KISS, right? I mean, assuming that's an attainable goal for us, there's no need for me to overthink this, is there?

KISS wins the day most of the time, and sounds like you're in great shape. I've found the toughest things to wrap my head around are taxes and healthcare. Depending on your sources of income in retirement, your taxes may go down significantly, in fact for many it could zero until RMDs kick in. If you're funding from LTCG, married filing jointly you would have a 0% tax rate up to $94K in total taxable income. It's only 15% from $94K up to $583K. If you have pre-tax money coming from 401Ks/IRAs, that's obviously taxable and would figure in to that total. And of course Roth/HSA funds don't figure in at all. Speaks to the flexibility of having money in all three buckets.

So that's where the complexity can come in, as you potentially look to do things like harvest gains, roth conversion ladders, or just minimize your taxes in any given year. Relates is healthcare with things like how to maximize ACA subsidies and avoid IRMAA surcharges.

Can you (or somebody) point me to a FBG-recommend explainer on health insurance? We'll have go into the private market for a several years, and while I know a little bit about it and have a general idea of what I'm going to be spending, I could use a primer. We've never had problems making ends meet given our lifestyle, so I've just always assumed that insurance would work itself out. I guess I should probably start doing more than just assuming.

@matttyl
I started to figure it out once, then I realized that what I'm going to save in property tax might just pay for itself. That and I could use Cobra for 18 months. Not a bad idea to spark up the conversation again. Matttyl is the expert in all things health insurance if I remember correctly.

 

[NewlyRetired]

Can you (or somebody) point me to a FBG-recommend explainer on health insurance? We'll have go into the private market for a several years, and while I know a little bit about it and have a general idea of what I'm going to be spending, I could use a primer. We've never had problems making ends meet given our lifestyle, so I've just always assumed that insurance would work itself out. I guess I should probably start doing more than just assuming.

I can only speak for my state but here in Mass, we have what is called the Mass Healthcare Connector.

It allows people to see what type of insurance they can get and at what cost, based on their expected income levels.

Check to see if your state has something similar. It is a very easy way to gauge insurance cost with out having to interface with the insurance companies themselves.

 

[Peggy]

I'm tentatively 4 years out. When I did my plan, my projected "spend" was just (current household income) - (current annual retirement savings). In other words, we are hoping to replace 100% of our income, except for the fact that we don't need to save for retirement anymore, obviously. We live super-comfortably on that income right now, and we have no problem accumulating short run savings to cover things like new cars, the occasional vacation, helping the kids out with random stuff, etc. If it matters, we do not have a mortgage or any other debt.

This is a case of KISS, right? I mean, assuming that's an attainable goal for us, there's no need for me to overthink this, is there?

KISS wins the day most of the time, and sounds like you're in great shape. I've found the toughest things to wrap my head around are taxes and healthcare. Depending on your sources of income in retirement, your taxes may go down significantly, in fact for many it could zero until RMDs kick in. If you're funding from LTCG, married filing jointly you would have a 0% tax rate up to $94K in total taxable income. It's only 15% from $94K up to $583K. If you have pre-tax money coming from 401Ks/IRAs, that's obviously taxable and would figure in to that total. And of course Roth/HSA funds don't figure in at all. Speaks to the flexibility of having money in all three buckets.

So that's where the complexity can come in, as you potentially look to do things like harvest gains, roth conversion ladders, or just minimize your taxes in any given year. Relates to healthcare with things like how to maximize ACA subsidies and avoid IRMAA surcharges.

I might do a one time advisor session just to get some tax advice. Saw a couple of useful calculators out there that look at your entire portfolio and tell u what to take from where when.
I might also marry my girlfriend just to almost double my tax buckets. I'd be 60 at that point and 15 years into the relationship so figure there's no going back so might as well max out the tax bennies.

I might also marry my girlfriend just to almost double my tax buckets. I'd be 60 at that point and 15 years into the relationship so figure there's no going back so might as well max out the tax bennies.

Sounds familiar! I've been with my lady for over 13 years, we own a home together, but aren't yet married. Financially it's just not smart not to be, especially since her take home income is pretty minimal (half of her "income" is run through her business as expenses).

Don't think I'll bring up the subject with her in those terms, though

My wife and I didn't get married for the looooooongest time. Didn't believe in it. But eventually the tax implications and making sure she got my Social Security if something happened to me made us get over it. For sure make sure you have beneficiaries designated for all your bank and retirement accounts in addition to a good will.

 

[Desert_Power]

Can you (or somebody) point me to a FBG-recommend explainer on health insurance? We'll have go into the private market for a several years, and while I know a little bit about it and have a general idea of what I'm going to be spending, I could use a primer. We've never had problems making ends meet given our lifestyle, so I've just always assumed that insurance would work itself out. I guess I should probably start doing more than just assuming.

I haven't seen a good comprehensive primer on the topic, just picked up bits and pieces through articles and blogs and podcasts. But I'm going to try and dig something up, as I need to better educate myself on this as well.

Looks like some decent ones here: https://twosidesoffi.com/aca/

I guess the key would be to figure out if you would (or could) be around different income levels to take advantage of the ACA subsidies. 2 people without a mortgage in a low cost state, may not be far.

 

[Peggy]

The Appalachians are the main reason we looked at and are moving to VA-NC-TN. We never lived nor have relatives on the east coast. It was as simple as looking on the map and seeing how far south we could get a mountain range. Mountains plus warmer weather. The Rockies don't go that far south.

 

[matttyl]

I'm tentatively 4 years out. When I did my plan, my projected "spend" was just (current household income) - (current annual retirement savings). In other words, we are hoping to replace 100% of our income, except for the fact that we don't need to save for retirement anymore, obviously. We live super-comfortably on that income right now, and we have no problem accumulating short run savings to cover things like new cars, the occasional vacation, helping the kids out with random stuff, etc. If it matters, we do not have a mortgage or any other debt.

This is a case of KISS, right? I mean, assuming that's an attainable goal for us, there's no need for me to overthink this, is there?

KISS wins the day most of the time, and sounds like you're in great shape. I've found the toughest things to wrap my head around are taxes and healthcare. Depending on your sources of income in retirement, your taxes may go down significantly, in fact for many it could zero until RMDs kick in. If you're funding from LTCG, married filing jointly you would have a 0% tax rate up to $94K in total taxable income. It's only 15% from $94K up to $583K. If you have pre-tax money coming from 401Ks/IRAs, that's obviously taxable and would figure in to that total. And of course Roth/HSA funds don't figure in at all. Speaks to the flexibility of having money in all three buckets.

So that's where the complexity can come in, as you potentially look to do things like harvest gains, roth conversion ladders, or just minimize your taxes in any given year. Relates is healthcare with things like how to maximize ACA subsidies and avoid IRMAA surcharges.

Can you (or somebody) point me to a FBG-recommend explainer on health insurance? We'll have go into the private market for a several years, and while I know a little bit about it and have a general idea of what I'm going to be spending, I could use a primer. We've never had problems making ends meet given our lifestyle, so I've just always assumed that insurance would work itself out. I guess I should probably start doing more than just assuming.

Happy to help. Can do 1 on 1 (actually had a phone conversation with an FBG earlier this week for his situation), or happy to chat it out here.

ETA - I’m an insurance agent here in Va.

 

[NutterButter]

I might also marry my girlfriend just to almost double my tax buckets. I'd be 60 at that point and 15 years into the relationship so figure there's no going back so might as well max out the tax bennies.

Sounds familiar! I've been with my lady for over 13 years, we own a home together, but aren't yet married. Financially it's just not smart not to be, especially since her take home income is pretty minimal (half of her "income" is run through her business as expenses).

Don't think I'll bring up the subject with her in those terms, though

Yeah, maybe some different words but truth is any taxes saved is just more money you'll have to spend together. My situation is very similar if u add 11 years to my relationship.

 

[Sand]

How many states have warm ocean beaches and "real" mountains? California, Virginia, North Carolina and.....?

Alabama, depending on your definition of “real” mountain. We top off at 2,407’. Which is plenty for most purposes. Also, the Gulf has nicer water than the Atlantic. (Although our favorite place is in SC).

Flagg Mountain is the southernmost Appalachian mountain.

Pretty sure it was named after that war hero Colonel Flagg.

 

[New Binky the Doormat]

Pretty sure it was named after that war hero Colonel Flagg.

Top 10 all-time TV characters of all time.

 

[matttyl]

How many states have warm ocean beaches and "real" mountains? California, Virginia, North Carolina and.....?

Alabama, depending on your definition of “real” mountain. We top off at 2,407’. Which is plenty for most purposes. Also, the Gulf has nicer water than the Atlantic. (Although our favorite place is in SC).

Flagg Mountain is the southernmost Appalachian mountain.

Pretty sure it was named after that war hero Colonel Flagg.

Colonel Samuel Flagg? Man I’m old….

 

[Sand]

How many states have warm ocean beaches and "real" mountains? California, Virginia, North Carolina and.....?

Alabama, depending on your definition of “real” mountain. We top off at 2,407’. Which is plenty for most purposes. Also, the Gulf has nicer water than the Atlantic. (Although our favorite place is in SC).

Flagg Mountain is the southernmost Appalachian mountain.

Pretty sure it was named after that war hero Colonel Flagg.

Colonel Samuel Flagg? Man I’m old….

So is the mountain.

 

[matttyl]

Can you (or somebody) point me to a FBG-recommend explainer on health insurance? We'll have go into the private market for a several years, and while I know a little bit about it and have a general idea of what I'm going to be spending, I could use a primer. We've never had problems making ends meet given our lifestyle, so I've just always assumed that insurance would work itself out. I guess I should probably start doing more than just assuming.

I haven't seen a good comprehensive primer on the topic, just picked up bits and pieces through articles and blogs and podcasts. But I'm going to try and dig something up, as I need to better educate myself on this as well.

Thought I’d just post a very basic primer here to at least get some groundwork covered.

When Ivan said “private market”, I’m assuming he means individual market (not through any employer). Today, that is synonymous with “ACA” or “marketplace” in my mind. Now, you can buy directly from the insurance company, and sometimes with better policies available, but you’d be forgoing any tax subsidies you might be eligible for. Going through the exchange to obtain coverage makes you at least eligible for tax subsidies, but it’s your income (MAGI - modified adjusted gross income) that will determine the size of those subsidies. Generally speaking the policies available on the exchanges aren’t as good as policies available through an employer group. The largest difference, typically, being the network type - HMO vs PPO (can be tough to find a participating doctor, especially with specialists, with an individual plan). Another is the generally much higher max out of pockets you’ll see (up to 9,450 per person).

 

[jwb]

We're on ACA. I'm self-employed and my wife (retiring next year) is part time.

The "is it better?" question is employer dependent, and many smaller companies (like my wife's employer, a small law firm) have pretty meh plans. Our Blue Cross ACA plan is actually better than what her employer would offer were she full-time, and we pay about the same as we would for both of us if we got it through them, so it's win for us.

The only issue I have with it is the tenuous political status of the ACA in general.

 

[matttyl]

We're on ACA. I'm self-employed and my wife (retiring next year) is part time.

The "is it better?" question is employer dependent, and many smaller companies (like my wife's employer, a small law firm) have pretty meh plans. Our Blue Cross ACA plan is actually better than what her employer would offer were she full-time, and we pay about the same as we would for both of us if we got it through them, so it's win for us.

The only issue I have with it is the tenuous political status of the ACA in general.

If I may ask, are you being subsidized on your ACA plan? Is it an HMO?

 

[jwb]

We're on ACA. I'm self-employed and my wife (retiring next year) is part time.

The "is it better?" question is employer dependent, and many smaller companies (like my wife's employer, a small law firm) have pretty meh plans. Our Blue Cross ACA plan is actually better than what her employer would offer were she full-time, and we pay about the same as we would for both of us if we got it through them, so it's win for us.

The only issue I have with it is the tenuous political status of the ACA in general.

If I may ask, are you being subsidized on your ACA plan? Is it an HMO?

I don't know if it's an HMO. I only know the big details (my wife knows the real ones). I do know its taken almost everywhere we've wanted to go. NC triangle area is pretty good healthcare-wise.

The premium, I think, is based on our annual income, so I guess that's subsidized. I'm self employed (s-corp) and pay myself a salary. She's part time. I think we pay somewhere around $600/mo. We'd pay pretty close to that on her job's health plan for a family plan, so it works out.

 

[matttyl]

We're on ACA. I'm self-employed and my wife (retiring next year) is part time.

The "is it better?" question is employer dependent, and many smaller companies (like my wife's employer, a small law firm) have pretty meh plans. Our Blue Cross ACA plan is actually better than what her employer would offer were she full-time, and we pay about the same as we would for both of us if we got it through them, so it's win for us.

The only issue I have with it is the tenuous political status of the ACA in general.

If I may ask, are you being subsidized on your ACA plan? Is it an HMO?

I don't know if it's an HMO. I only know the big details (my wife knows the real ones). I do know its taken almost everywhere we've wanted to go. NC triangle area is pretty good healthcare-wise.

The premium, I think, is based on our annual income, so I guess that's subsidized. I'm self employed (s-corp) and pay myself a salary. She's part time. I think we pay somewhere around $600/mo. We'd pay pretty close to that on her job's health plan for a family plan, so it works out.

If based on income then yes, I would assume you’re getting a subsidy. HMOs (if that’s what you have) can be more than fine in areas with large healthcare systems in place. We have something similar here in northern Va, but can sometimes be hard to find specialists who participate, and are often state based (so if you needed to see a specialist in another state you may not have coverage for that).

But I agree that it will depend on what an employer may offer, and how much of that premium they will pay for you.

 

[Sand]

We're on ACA. I'm self-employed and my wife (retiring next year) is part time.

The "is it better?" question is employer dependent, and many smaller companies (like my wife's employer, a small law firm) have pretty meh plans. Our Blue Cross ACA plan is actually better than what her employer would offer were she full-time, and we pay about the same as we would for both of us if we got it through them, so it's win for us.

The only issue I have with it is the tenuous political status of the ACA in general.

Not being political, but realistically the ACA is as permanent as Social Security.

 

[General Malaise]

I thought we retire we go on Medicare and collect social security? Why is this so hard and confusing?