Double Whamming Coming our Way (moving, 2015, payments, salary)
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My gripe is that if you don't have a retirement plan that provides medical coverage, you are driven to Medicare. You can't get insurance via Obamacare and no private company will provide an individual plan to someone over 65.
As Obamacare continues to reduce Medicare, this is going to be an issue in a few years.
So many health issues don't show up till we reach senior status and these can be very expensive. For 7 years I've been getting injections in my eyeballs monthly for macular degeneration. Each visit and injection is billed at between $4-$5k. You do the math. We have Medicare and BC/BC Federal and we are out of pocket very little. I'm 69 and have had major health issues for several years so this medicare has saved us. My husband, on the other hand is 75 and doesn't take even 1 pill and is in excellent health. Just a few months ago he signed up for part B Medicare because he felt he had pushed his luck too long. We are keeping our BC/BS Fed because we have 2 minor children still at home.
My gripe is that if you don't have a retirement plan that provides medical coverage, you are driven to Medicare. You can't get insurance via Obamacare and no private company will provide an individual plan to someone over 65.
As Obamacare continues to reduce Medicare, this is going to be an issue in a few years.
Please explain why that constitutes a "gripe". My Medicare has not been reduced at all - I have the same coverage and essentially the same co-pays I've had for the last six and a half years (since turning 65 and enrolling in Medicare).
i already stated " if delaying ss" when i wrote that thread .
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QUOTE=mathjak107;40928934]yep , it has been a sneaky parameter that bites those delaying ss to 70 increasing the time frame to just break even.
retiring early and spending down invested assets , coupled with not getting .checks , coupled with no spousal adders from 62 to fra and the hold harmless law can see you needing to live 24 years just to get to zero where you are even with filing at 62 and getting all of the above earlier .. .[/quote]
Few would dispute the need for a rise in the cost of Medicare. But a 40% hike in one year?? Who's in the planning department?
It's very simple. Let's say you have 100 people on Medicare who have been paying $10 each for coverage to cover Medicare's total outlay of $1,000. However, in the upcoming year, Medicare's costs are increasing 10% to $1,100. Well, normally, everybody would just be charged one additional dollar and the increase is covered without anyone really suffering. However, because 75 of the 100 people can't be charged that one dollar due to the hold harmless provision, the remaining 25 have to combine to pay that $100 increase. Therefore, instead of just paying one extra dollar, they each have to pay $4 to cover the deficit. Consequently, their costs have risen 40% instead of just 10% because they have to subsidize the costs of everyone else who wasn't charged their $1.
My gripe is that if you don't have a retirement plan that provides medical coverage, you are driven to Medicare. You can't get insurance via Obamacare and no private company will provide an individual plan to someone over 65.
As Obamacare continues to reduce Medicare, this is going to be an issue in a few years.
Where are you hearing that Obamacare is reducing Medicare?
i already stated " if delaying ss" when i wrote that thread .
I was having trouble parsing and comprehending your original post.
When I run the numbers, it looks like I want to defer collecting Social Security until age 70 and use the five or so years I'm retired but not collecting to shift 401(k) and IRA money to a Roth while I'm in a very low tax bracket. When I'm collecting Social Security, I'll be in the 25% bracket. If I can shift enough, I might be able to avoid the cliff where 85% of my Social Security check is taxed. I'm 57 and the $25K & $34K cliffs aren't indexed to inflation so I'll have to run the numbers again when I'm 65 and stop working. Inflation may have pushed me to the point where I'm paying tax on 85% of my Social Security check no matter what I do. For now, all I can do is stop contributing to a 401(k) on January 1 and max out my Roth 401(k) now paying the Federal income tax now when I can afford it.
Is what you were writing about the ability to shift tax deferred retirement money to a Roth? Or was it taking the distribution and banking/investing/spending it.
Very well stated Escort and the way I see it as well. Medicare is an excellent deal for the vast majority of folks.
Best insurance I've ever had!
Like everyone I pay $104.90 for Part B, and $136.48 for my Plan G and $27 for my Plan D spending a total of $268.38 and the only thing I have to pay is the $147 deductible and that is it!
My maximum out of pocket for everything, not including drugs, is $3,367.56 for the year and that includes my premiums. Sure beats the $1,000/month I was paying before medicare.
If I read it right nothing to panic over, we're all going to end up spending an extra $600 or so for the year but that is something we are all going to end up spending eventually. When I do file I'll get COLA's in my check while others will live with it until the COLA's catch up to the premium increase.
That was my point as well, there were a few different discussions going on at the same time. "Break even by delaying", "Live off deferred savings to pay the least tax on up to 42k/per year ", "File early to be held harmless", etc. It may not have been clear to the reader if bracketed taxes and delaying were mutally tandem. Otherwise, I wouldn't have chimed in.
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