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Old 08-03-2019, 07:23 AM
 
72,404 posts, read 72,316,796 times
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Quote:
Originally Posted by NewbieHere View Post
Cobra in California is 36 months if you work for a reasonably decent employer, otherwise it’s 18 months for most states. You may not have to wait that long.
it is 36 months in new york too ..however be aware .... if the insurer is not located in your state they don't usually abide by that rule and are exempt .

we had a new york insurer at work so i counted on 36 months ... we are a multi state company so they shifted to an insurer not in new york ... i was only allowed 18 months of cobra at that point . they discontinued me after 18 months and were allowed to do so . .
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Old 08-03-2019, 09:13 AM
 
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Can somebody enlighten me about withdrawals? Say I have 200k in Vanguard in multiple funds. That is $666 a month at 4% (I think). So do I call up Vanguard and pick a fund and set it to withdraw $666 a month until it is empty, then pick another fund, etc.? So eventually I would work my way though the funds as they are drawn down one by one. And Vanguard will not charge for this? I am just confused about how to take the 4% each month. Thanks!
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Old 08-03-2019, 09:41 AM
 
1,740 posts, read 613,915 times
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Quote:
Originally Posted by mathjak107 View Post
it is 36 months in new york too ..however be aware .... if the insurer is not located in your state they don't usually abide by that rule and are exempt .

we had a new york insurer at work so i counted on 36 months ... we are a multi state company so they shifted to an insurer not in new york ... i was only allowed 18 months of cobra at that point . they discontinued me after 18 months and were allowed to do so . .

I am curious as to what COBRA costs nowadays. When I had to leave my last job due to a family situation I was paying $40/week out of my paycheck for health insurance through United Healthcare. No dental. At that time (2001) the limit in NY was 18 months for COBRA or so I was told. Anyway the same plan that I had been paying $40/week for, was $987/month on COBRA. (This for a single person, not a family plan.) I had it for almost a year but eventually just couldn't afford it any more so dropped it. When I started looking into individual plans about a year after that, I discovered that the least expensive one was $1500/month so obviously I couldn't afford that either, LOL. Of course I couldn't go back onto COBRA even if I wanted to because the 18 months from employment-end had passed.

Now with Obamacare in the mix I wonder if COBRA premiums and something like a Bronze plan would end up being pretty much the same out of pocket. I've never had an ACA policy, luckily I became eligible for Medicare during the same year the requirement kicked in.
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Old 08-03-2019, 09:49 AM
 
Location: Haiku
4,351 posts, read 2,644,883 times
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Quote:
Originally Posted by wendellgee View Post
Can somebody enlighten me about withdrawals? Say I have 200k in Vanguard in multiple funds. That is $666 a month at 4% (I think). So do I call up Vanguard and pick a fund and set it to withdraw $666 a month until it is empty, then pick another fund, etc.? So eventually I would work my way though the funds as they are drawn down one by one. And Vanguard will not charge for this? I am just confused about how to take the 4% each month. Thanks!
You could do it that way but most people don't. Most balance the withdrawal across funds so the relative proportion of each fund stays the same and many people (not all) do it themselves. I take money out when I need it which is about 2x per year rather than on a schedule. If you ask most custodians like Vanguard to manage the withdrawals for you, they will charge a fee which can be quite high. It is a pretty easy process once you've done it a couple of times so I recommend doing it yourself.
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Old 08-03-2019, 12:11 PM
 
72,404 posts, read 72,316,796 times
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Quote:
Originally Posted by BBCjunkie View Post
I am curious as to what COBRA costs nowadays. When I had to leave my last job due to a family situation I was paying $40/week out of my paycheck for health insurance through United Healthcare. No dental. At that time (2001) the limit in NY was 18 months for COBRA or so I was told. Anyway the same plan that I had been paying $40/week for, was $987/month on COBRA. (This for a single person, not a family plan.) I had it for almost a year but eventually just couldn't afford it any more so dropped it. When I started looking into individual plans about a year after that, I discovered that the least expensive one was $1500/month so obviously I couldn't afford that either, LOL. Of course I couldn't go back onto COBRA even if I wanted to because the 18 months from employment-end had passed.

Now with Obamacare in the mix I wonder if COBRA premiums and something like a Bronze plan would end up being pretty much the same out of pocket. I've never had an ACA policy, luckily I became eligible for Medicare during the same year the requirement kicked in.
i was on cobra 4 years ago . i had to get an aca plan after 18 months , that was 700 a month 4000 out of pocket
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Old 08-03-2019, 01:16 PM
 
Location: VT; previously MD & NJ
2,247 posts, read 1,383,255 times
Reputation: 6523
Quote:
Originally Posted by TwoByFour View Post
You could do it that way but most people don't. Most balance the withdrawal across funds so the relative proportion of each fund stays the same and many people (not all) do it themselves. I take money out when I need it which is about 2x per year rather than on a schedule. If you ask most custodians like Vanguard to manage the withdrawals for you, they will charge a fee which can be quite high. It is a pretty easy process once you've done it a couple of times so I recommend doing it yourself.
Quote:
Originally Posted by wendellgee View Post
Can somebody enlighten me about withdrawals? Say I have 200k in Vanguard in multiple funds. That is $666 a month at 4% (I think). So do I call up Vanguard and pick a fund and set it to withdraw $666 a month until it is empty, then pick another fund, etc.? So eventually I would work my way though the funds as they are drawn down one by one. And Vanguard will not charge for this? I am just confused about how to take the 4% each month. Thanks!
You can do it either way. You can set up monthly, quarterly, or annual withdrawals, or just take it as you need it... whatever works for you. You can take it all from one fund or spread it out among different funds. If you are 70.5 years or older, they will send you a notice at the start of each year telling you how much you are required to take for your RMDs (the amount is based on your age and the balance on Dec 31). I don't know about Vanguard, but Merrill and Fidelity do not charge for withdrawals from an IRA account (there might be a small charge for selling shares of a fund). An investment account may work differently.
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Old 08-04-2019, 08:14 AM
 
Location: Black Forest, CO
1,521 posts, read 2,255,633 times
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Thanks for all the helpful information all!
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Old Yesterday, 09:00 AM
 
Location: Washington State
18,934 posts, read 9,749,807 times
Reputation: 16136
Quote:
Originally Posted by beezle1 View Post
My husband and I both had good paying careers and were able to save a lot for retirement. We are not big spenders. We have no debt. I retired a few years ago at 52. He wants to retire next year at age 59. Our financial advisor ran some numbers for us and said we are fine, and even if we live to 90 we will still have a substantial amount to leave to our only child.

My question is this.... After working and saving our entire lives up to now, how do we transition emotionally to living off our savings? It seems like it will be discouraging to see our savings going down instead of up.
We are close but slightly older than you and wife has been retired for 5 years and I just retired last December. My first comment is that you may find your savings still growing despite no "income." We do plan on leaving money for our 3 kids as well. Emotionally it may be difficult to not seeing your savings go up at the rate it has been but yo ujust have to be strong.
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Old Yesterday, 09:11 AM
 
Location: NYC
2,967 posts, read 1,616,525 times
Reputation: 8013
Quote:
Originally Posted by ansible90 View Post
You can do it either way. You can set up monthly, quarterly, or annual withdrawals, or just take it as you need it... whatever works for you. You can take it all from one fund or spread it out among different funds. If you are 70.5 years or older, they will send you a notice at the start of each year telling you how much you are required to take for your RMDs (the amount is based on your age and the balance on Dec 31). I don't know about Vanguard, but Merrill and Fidelity do not charge for withdrawals from an IRA account (there might be a small charge for selling shares of a fund). An investment account may work differently.
What I've been doing during this historically long bull market is pulling some profits from those funds that are at 52 week highs 3, maybe 4 times a year. (Fidelity has a nice little visual scale for this when you open up the page of your assets' positions.) I have been putting those profits into a money market in the IRA/Roth.

I rebalance my asset mix of stock/bond funds about once a year from this. I also keep more than 2 years worth of expenses in money markets & CDs & I take my IRA withdrawals from these. I have a somewhat larger allocation to cash than many might since I'm holding off on collecting SS & I don't want my withdrawals to happen if there is a market downturn & I sell cheap.

So in general I would suggest to check your asset allocation balance between stock & bond funds & rebalance when they diverge from your mix by about 10% or so & take some profits for your withdrawal. I don't know if there is a bank that will do that for you if it seems too complex to diy, seems like there should be a legit service like that somewhere?
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Old Yesterday, 09:16 AM
 
14,136 posts, read 7,552,898 times
Reputation: 25891
Quote:
Originally Posted by BBCjunkie View Post
I am curious as to what COBRA costs nowadays.

It's wildly variable. You're paying 100% of the cost of the corporate group plan. That cost varies wildly depending on the demographics of the group. If the group is a bunch of geezer 50-somethings and 60-somethings, it's wildly expensive. If the group is mostly 20-something kids, it could easily be 1/3 the cost. It also varies based on the local cost of health care and what the medical insurance covers. The optimal situation is high deductible insurance where people use health savings accounts to cover the deductible, a low health cost part of the country, and mostly 20-somethings as employees.
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