The truth about being able to retire....shed some light for me (long-term, friend)
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If you don't have an IRA of some sort, start it now for both of you. You can invest $6,500 at 50 and above each year so with the two of you in 12 years you would have $150,000+ growth. You could utilize this as income along with a part time job that was fun and not touch your SS until you are 100% qualified. A regular IRA and you can cut your tax bill but you will need to make sure you will be in a lower tax bracket in order to benefit. A Roth you can take it out without paying taxes. It would be great if your part time work provided low cost medical insurance as well. I don't know where medical insurance will be in the future but you will need to look at that as you go along since you will have to pay out of pocket between 62 and 65 when you become Medicare qualified.
I have a a 401K that was doing pretty good up until a month ago. My wife has an IRA that she started a 2 years ago. Has about $46,000 in it right now. My 401 K contribution is 18% right now so for me I can't go anymore or start another investment.
Very true. Medicare is cheap, but supplementary insurance to cover the other 20% of hospital and surgical bills and testing, and a good prescription plan will run about $6K per year for a couple. Without it, you are just one illness away from bankruptcy, or at least a major change in your lifestyle.
How do you figure $6000 per year for supplemental to Medicare for two people?
My supplemental is $79 per month, and prescription plan is $20 per month.
With $6000 you must be talking some of the higher priced plans.
I know I could go with a better higher priced prescription plan.
That's a few years old and our rate of increase is also worse, so the gap is bigger now.
Yes, I agree that we can get the cost down--by a lot. I disagree that the federal government is going to be willing or able to do it.
If that were the case, Medicare/Medicaid would be much cheaper to provide on a per capita basis than private health insurance. If those programs are cheaper, they're not cheaper by much. So thinking our government is going to make healthcare cheaper if we just give it more control is the fantasy. Our government sucks and cannot be trusted. The evidence is so abundant, I don't know what it would take to shake people out of their illusions.
Reckon what health insurance for a 62 year old will cost in 2030? $5000 a month? $10,000?
Quote:
Originally Posted by ReachTheBeach
It will be single payer by then.
If so, everyone will still need to give the Federal Government enough in the way of insurance premiums to cover the underlying medical care. Today, the underlying medical care costs over $10,000 per year on average. So the insurance premiums in any single-payer system will have to be $10,000 per year in today's dollars plus administration. Then add 12 years of inflation...
Soooo.... how much do you reckon the Single Payer system will cost each person in 2030?
How do you figure $6000 per year for supplemental to Medicare for two people?
My supplemental is $79 per month, and prescription plan is $20 per month.
With $6000 you must be talking some of the higher priced plans.
I know I could go with a better higher priced prescription plan.
An f plan in ny is 320 a month . We have a high deductible f plan with a 2k deductible for 92 a month plus 41 for part d and 134 for medicare per person
My Medicare is 134x2x12= $3216 per year. Secondary coverage with Cigna is $1404. Prescriptions with Silver Script is $2112. Dental is $646. Coverage not including Medicare is $4164. Out of pocket deductibles, and expenses for medical and prescriptions and dental have run about $1800 a year. So total non-medicare medical expenses is about $6,000 per year plus $3200 medicare = about $9200/yr. for two people. I have about a dozen doctor and specialist visits a year. So far I've needed two teeth extracted and a couple of cavities filled. My wife just has a couple of dental and a couple of GP visits a year.
Bear in mind I was perfectly healthy until I got to 65, 6 years ago. Didn't take any meds, had no medical problems at all. Didn't smoke, drank moderately, was about 20 lbs over weight, but ate well and was hale and hearty, did lots of exercise and yard work.
My last hospital bill 2 years ago was for $380,000. I only paid about $2K out of pocket. I now have to take 9 prescription pills a day. Without the prescription plan I'd be spending $6K a year just for medication. I know people who need maintenance chemo that can cost $40K a month.
Quote:
Originally Posted by matisse12
How do you figure $6000 per year for supplemental to Medicare for two people?
My supplemental is $79 per month, and prescription plan is $20 per month.
With $6000 you must be talking some of the higher priced plans.
I know I could go with a better higher priced prescription plan.
I thought the key was to find a place that would take private pay for a minimum period of time and then accept Medicaid after that - that "decent" places would make arrangements like this? Otherwise, what is the answer if you don't have unlimited LTCi (and they don't write policies like that anymore).
There are all levels - and some of the people we know paid their money out (one had 250K and was single so survived in a 50K per year home for 5 years). She didn't expect to live this long - they aren't kicking her out, but she can't - for example - give a $100 gift to her new grandson (legally). She is effectively a ward of the state.
No, there are not rats running around in these nursing homes.
On the other hand, my friends mom is 98 and had the money to go into "assisted living"...a nice 2 bedroom apartment in an expensive area (Boston) with services such as a person to make her breakfast, if desired, etc. - it's certainly a different lifestyle than 2 in a little hospital-type room.
Places like that often cost an "up front" fee from 300-600K plus 70-90K per year. You get most of the up-front fee back when you pass on (your estate) or leave.
But, as you can imagine, a lot of the people posting here won't have that kind of money - even the nice places with small up-front fees will cost 70K per year, which can go higher if you need dementia care, etc.
The only answer is that you come up with the money or equity (sell house, etc.), get the kids to chip in, have your own savings or be content with a middle-of-the-road place or worse.
Remember that Medicaid often does a "look back" to make sure you didn't transfer assets within the last 5 years (some say 8, some say 3, it may depend on the state).
Very true. Medicare is cheap, but supplementary insurance to cover the other 20% of hospital and surgical bills and testing, and a good prescription plan will run about $6K per year for a couple. Without it, you are just one illness away from bankruptcy, or at least a major change in your lifestyle.
True
I pay $205 /m for my supplemental through AARP. So $2400+ per year for just me, in addition to my Medicare ($150/m), so yeah for a couple, it's be about $6000/yr for supplemental.
Our hospital also has a help plan that will cover the costs associated with the hospital or it's ancillary services, a couple can earn up to 65ka year and still qualify for some kind of assistance, a family of 5 up to 94k. But you have to have insurance first.
With all my health issues and being in SSDI, I didn't have a choice but to buy the supplemental insurance. My knee replacement coming up next month alone would cost a small fortune. Ive had 3 MRI s on that knee, and they ain't no cheapy either.
A retirement plan —-ok
I went to work for welfare department at 45 - hostile negative high stress invironment
Best move I ever made
I appreciate the fact that you are proud of your fierce independence and employment history
But now you are interested in talking about retirement -which your current employment does not offer at all and you are 50
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