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Old 11-11-2018, 12:49 PM
 
13,879 posts, read 7,391,112 times
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Quote:
Originally Posted by murph1982 View Post
Hello,
I am currently 55 years old and have 200k in my 401k. I contribute 20% of my take home pay for my 401k. I would like to retire with no debt when I am 62 but I have one big concern.
Can you please give options for health insurance if I do decide to retire at 62 with my wife?
I am confident we can live off of the 401k and social security. Our big concern is the health insurance.
Any help would be appreciated!
Iíd love to see the numbers that make it work if youíre trying to do it on nothing but Social Security and 200k in a 401(k). Dual income for 35 good years, maybe. Things would get awfully lean if one of you died.
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Old 11-11-2018, 02:15 PM
 
Location: equator
3,431 posts, read 1,527,565 times
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Quote:
Originally Posted by Beach Sportsfan View Post
I agree with most of what you stated but for some because of health reasons it may not be luxury. I agree that one needs to plan on it and save as much as you can, but not all are able to live past their 80s.
Yes. Many non-desk jobs you are physically washed-up by age 60 and can't perform them anymore. I don't call that a "luxury". And good luck getting hired for anything else.
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Old 11-11-2018, 03:20 PM
 
319 posts, read 150,690 times
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Quote:
Originally Posted by Sand&Salt View Post
Yes. Many non-desk jobs you are physically washed-up by age 60 and can't perform them anymore. I don't call that a "luxury". And good luck getting hired for anything else.
When I said retiring at 62 is a luxury, I was referring to the OP who started this thread (murph1982). There were no indications in his original post that he had any current health concerns, only that he was concerned about affording healthcare coverage until he reached Medicare age.

I should have qualified my original statement -- so I appreciate the qualification that was added by others who have contributed to this thread.

Regarding ACA coverage (and ACA seems to be a moving target, some changes already made but now the Democrats can block its repeal), the single group that gets hosed the most are the self-employed from ages 50-65.

They don't have an employer sponsored plan; being older they are pre-penalized by excessively high premiums; and finally, they make too much to be eligible for any financial assistance from the government.

Last edited by townshend; 11-11-2018 at 04:15 PM..
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Old 11-11-2018, 10:37 PM
 
Location: North Taxolina
1,008 posts, read 922,849 times
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Quote:
Originally Posted by GeoffD View Post
Iíd love to see the numbers that make it work if youíre trying to do it on nothing but Social Security and 200k in a 401(k). Dual income for 35 good years, maybe. Things would get awfully lean if one of you died.
Iím also very curious about the numbers here. Even medical cost aside, that doesnít seem sufficient to me... Unless OP is paid so well that 20% is a large number or there is some pension plan involved.
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Old 11-12-2018, 02:35 AM
 
13,879 posts, read 7,391,112 times
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Quote:
Originally Posted by jelenap View Post
Iím also very curious about the numbers here. Even medical cost aside, that doesnít seem sufficient to me... Unless OP is paid so well that 20% is a large number or there is some pension plan involved.
The OP wrote 401(k) and Social Security. Even assuming the Medicaid fairy waives her magic wand in an ACA opt in state until they get to age 65, it looks extremely lean unless they both have 35 good income years in the Social Security system. With only $200k and 7 years left to build savings, you kind of have to use your 401(k) as an emergency fund and live off the cash flow of your Social Security checks.

Quote:
Originally Posted by murph1982
Can you please give options for health insurance if I do decide to retire at 62 with my wife?
I am confident we can live off of the 401k and social security. Our big concern is the health insurance.
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Old 11-12-2018, 05:42 AM
 
364 posts, read 125,728 times
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OP isn't retiring for another 7 years. He is 55 and saving 20% of his income and isn't retiring until 62. So he'll build up the 401K before age 62. Remember, they'll have TWO incomes. Two SS incomes plus the 401K is plenty of money to retire on, assuming they have no debt and they live a downsized lifestyle. I'm amazed how many people on C-D don't believe that retirement is possible despite someone not having 2.5 million. I've been living on just my modest 401K alone for a few years now with no pain. I haven't even started using SS. I know many, many people who live on just SS and never tap their investments. It CAN be done, and IS being done by many, many people.

As for health insurance, there is a subsidy available that's based on income through the government marketplace. My premium is very modest and is based on my income. I had to use Cobra during my first year of retirement until the open enrollment then I got a subsidized plan.
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Old 11-12-2018, 08:35 AM
 
12,107 posts, read 6,685,674 times
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Quote:
Originally Posted by Mr5150 View Post
With $200k in the bank the OP is not eligible for Medicaid
Asset testing is not used for expanded Medicaid, at least not yet. However in some states there is a work requirement. Some people are really stuck because they are older and cannot work for health reasons, do not qualify for ACA subsidy, Medicare or traditional Medicaid, and cannot afford private health insurance. Expanded Medicaid was a gap for those people and now it is being taken away by states that require work.
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Old 11-12-2018, 11:37 AM
 
Location: The Ozone Layer, apparently...
1,906 posts, read 673,864 times
Reputation: 3955
Well, if you are certified healthy and think you and your wife will remain so, you can always opt to simply pay the penalty for not having coverage.

Some companies offer ridiculously stupid coverage just to get you out from under the penalty, like Magnacare's MEC (minimum essential coverage) Plan. All this plan covers is one check up per year that you have to emerge from with no positive diagnosis to be covered for the visit. It has to be a 'wellcare' visit. I don't know if other insurance companies have such offerings. Im not sure what it costs, but one would assume it would be less than the penalty per year, otherwise it offers no benefit to the person purchasing it at all.
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Old 11-12-2018, 11:41 AM
 
2,749 posts, read 991,534 times
Reputation: 3204
Quote:
Originally Posted by ComeCloser View Post
Well, if you are certified healthy and think you and your wife will remain so, you can always opt to simply pay the penalty for not having coverage.

Some companies offer ridiculously stupid coverage just to get you out from under the penalty, like Magnacare's MEC (minimum essential coverage) Plan. All this plan covers is one check up per year that you have to emerge from with no positive diagnosis to be covered for the visit. It has to be a 'wellcare' visit. I don't know if other insurance companies have such offerings. Im not sure what it costs, but one would assume it would be less than the penalty per year, otherwise it offers no benefit to the person purchasing it at all.
Donít believe there is a penalty any longer
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Old 11-12-2018, 12:17 PM
 
Location: The Ozone Layer, apparently...
1,906 posts, read 673,864 times
Reputation: 3955
Quote:
Originally Posted by Beach Sportsfan View Post
Don’t believe there is a penalty any longer

https://www.healthcare.gov/fees/fee-...being-covered/


Starting with the 2019 plan year (for which you’ll file taxes in April 2020), the Shared Responsibility Payment no longer applies.


I think there still is, but maybe Im wrong.
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