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Ok here are our numbers since working full time and saving for our retirement. The portfolio values below do not include home equity, just investments and cash. During these 12 years, we were also making extra payments on our mortgage and paid it off completely (we purchased our home in Port St. Lucie in 2010 so was very lucky to purchase a 4 bed 3 bath on a lake for only $120K unheard of now). Those extra principal payments are not counted in our portfolio but ditching the mortgage certainly enhanced our financial position in early retirement.
401k matches and profit sharing contributions are not included in salary. The reported salary does include annual bonus we received.
According to this table, OP's portfolio has increased an average of 36% per year. It isn't all down to savings, because in four of the years, the increase was 95% or more of OP's combined salary. In those years, the portfolio increased by 32%, 45%, 23% and 19%. That's pretty impressive, considering Warren Buffett has averaged around 22% annually with Berkshire Hathaway, and that OP's combined salary has increased an average of 4.4% per year, AND OP paid off the mortgage early, AND funded the kids' education.
I agree that less than 2% of people can probably realistically look at retirement by their mid-forties.
Someone in their mid-40's probably has parents age 70+. In any of the high COL regions, that could easily be a multi-million dollar inheritance. I would think DIY retirement at mid 40's is rare but doing it the old fashioned way by inheriting a pile is more normal.
I retired in 2004 knowing I would have to pay 23 years of individual health insurance premiums. I knew at the time that was probably the single biggest “what if” for me, given my circumstances. I also knew that at any time, social security, Medicare or tax laws could change, either for better or worse. I might have to adjust my plan.
Obamacare came along and changed the rules.....my premiums doubled. I adjusted my plan and qualified for Medi-Cal. In this state (CA) , that meant keeping the Kaiser plan I already had and having Medi-Cal (Medicaid) pick up the tab.
I have no qualms about this at all, even though I’d still be ok if I were not afforded the Medi-cal option. I knew what the deal was, I knew things could change. They did, and I adjusted. I just see the whole situation as good financial planning.
If they are really using medicaid and allowing their kids too that is insane. Op must not have had any serious injury yet or the kids. The Drs are horrific w that insurance. Did they really say that ? I read so many comments after OP I forgot.
Unless they just want to pay 600K in cash for a known DR if one gets cancer like everybody seems to.
They can't pay cash if they're on Medicaid.
It's illegal. This loophole was closed, yet apparently people haven't gotten the word because there are complaints all over the Web that doctors won't accept cash payments if you're on Medicaid.
The idea, of course, is that if you can afford to pay cash, you shouldn't be on Medicaid. So this law surfaces those who may have ...um, err... under-reported their income.
Remember that Medicare age is 65, regardless of when full retirement age is for Soc. Sec. You have to register for Medicare within the three month period prior to or three months after your 65th birthday, or else you pay a penalty for Part B for the rest of your life.
If you or spouse are still working at age 65 and have employer group health insurance, there is no requirement to sign up for Medicare. The person you responded to was working part-time and may have such health insurance.
If you or spouse are still working at age 65 and have employer group health insurance, there is no requirement to sign up for Medicare. The person you responded to was working part-time and may have such health insurance.
I thought you had to sign up for it even if you weren't going to actually pay for it or use it. The way the poster worded it, it sounded like she hoped to get to her FRA and then sign up for Medicare. Maybe I misunderstood.
just an observation - the top threads being actively posted on are this one (Retire Early under 40 ) and the other one (Americans Haven’t Saved Enough for Retirement. What Are We Going to Do About It?)....the irony
I thought you had to sign up for it even if you weren't going to actually pay for it or use it. The way the poster worded it, it sounded like she hoped to get to her FRA and then sign up for Medicare. Maybe I misunderstood.
You don't have to. But the penalties are steep.
You'll pay a penalty in the form of higher Medicare premiums for the rest of your life, 10% additional for every year you could have been enrolled in Part B but were not. Unless you're still working and have primary health insurance from your employer.
There is never any reason to not sign up for Medicare part A at age 65. It is free and can be used as a supplemental. Only Part B is required at 65 if you are not covered by another qualified plan, and can incur penalties.
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