Should I stop daydreaming about retiring at 55?

[Anonymous]

FYI

My health insurance for one person age 60 through ObamaCare under the Affordable Care Act runs me $1300 per month with a $7000 deductible. This is a bronze plan and the cheapest option in my state. I do not qualify for subsidies in my state as I earn over $46,000 per year.

[Anonymous]

Anonymous wrote:Do you imagine that you will be done with kid related expenses when your kid is 20?

You can plan for it, but we are there and probably have the money to do it, but the idea of retiring now with kids this age (17-22) is laughable to us.

Why?

[Anonymous]

Anonymous wrote:FYI

My health insurance for one person age 60 through ObamaCare under the Affordable Care Act runs me $1300 per month with a $7000 deductible. This is a bronze plan and the cheapest option in my state. I do not qualify for subsidies in my state as I earn over $46,000 per year.

How much do states differ? Our income will be 120k (pensions and rental income) and I am figuring $700 a month for both of us.

[Anonymous]

Anonymous wrote:

Anonymous wrote:FYI

My health insurance for one person age 60 through ObamaCare under the Affordable Care Act runs me $1300 per month with a $7000 deductible. This is a bronze plan and the cheapest option in my state. I do not qualify for subsidies in my state as I earn over $46,000 per year.

How much do states differ? Our income will be 120k (pensions and rental income) and I am figuring $700 a month for both of us.

DP: States vary widely--you can look at the options in your state. Just input the age you will be when you need it rather than your current age because age of course has an impact. If you're retiring at 55 check 55 and 60 so you can get a sense of the increase. Also, make sure to check the Silver and Gold plans too because in many states these are oddly cheaper sometimes because the best insurer in your state isn't offering a Bronze plan or other reason. If you're planning to move to another state in retirement, make sure to run the numbers there--especially if it is a state that has opposed Medicaid expansion as that impacts the health care market as do other state policies.

[Anonymous]

Anonymous wrote:

Anonymous wrote:FYI

My health insurance for one person age 60 through ObamaCare under the Affordable Care Act runs me $1300 per month with a $7000 deductible. This is a bronze plan and the cheapest option in my state. I do not qualify for subsidies in my state as I earn over $46,000 per year.

How much do states differ? Our income will be 120k (pensions and rental income) and I am figuring $700 a month for both of us.

That’s far too low for adults in their fifties. I was covering one adult via Obamacare (no subsidies) and it was $900 and I was in my late 30s. It zooms up as you age.

[Anonymous]

Anonymous wrote:I am 40. DH (also 40) and I have an HHI of $290,000 and one 5 yo. We have about $950k saved in our tax advantaged retirement accounts ($500k of which is in my accounts, $400k in his). We bought our home in 2021 and pay about $2,500 per month PITI, plan to stay in it for as long as possible. We have one child and won't have any more. I will qualify for retiree health insurance through my employer when I am 55. Fidelity calculator says based on my savings I will be able to retire as long as the market doesn't do extremely badly (I'm okay if the market is below average but not "significantly below average"). We contribute about $90k in our retirement accounts annually including Roth IRAs and $6k per year in a 529.

Should I daydream about retiring early or do I need a reality check? My job is interesting but sometimes soul sucky.

You have $950K in retirement accounts. What about outside of that? Ignore the house in these discussions. Assuming you have about $1M, your money should double every 7/8 years and you'll have over $4mil (likely $4-6) by the time you reach 55. That's been our experience..

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:FYI

My health insurance for one person age 60 through ObamaCare under the Affordable Care Act runs me $1300 per month with a $7000 deductible. This is a bronze plan and the cheapest option in my state. I do not qualify for subsidies in my state as I earn over $46,000 per year.

How much do states differ? Our income will be 120k (pensions and rental income) and I am figuring $700 a month for both of us.

That’s far too low for adults in their fifties. I was covering one adult via Obamacare (no subsidies) and it was $900 and I was in my late 30s. It zooms up as you age.

No. I have no idea what bells and whistles you people are including in your plans, but I bought an Obamacare plan in MD last year (single, age 41) for under $200/month - no subsidies. Yes, it's got a $10K deductible, which is fine as I am in good health. Apart from the chronically sick, I honestly have no idea why healthcare is some big bogeyman eating tens of thousands of dollars in people's budgets each year.

[Anonymous]

You should be more than fine with your saving. 90k/year at 7% gets you to 4.5 million or so (so 130-180k/year at 3-4 % withdrawal).

Plus you have employer sponsored health insurance at 55. Also sounds like you have a pension or at least SS. and you have a low PITI.

Our numbers are not dissimilar (we will have less in retirement but pensions and our PITI is 4k and we have 2 kids) and our FA says we should be fine.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:FYI

My health insurance for one person age 60 through ObamaCare under the Affordable Care Act runs me $1300 per month with a $7000 deductible. This is a bronze plan and the cheapest option in my state. I do not qualify for subsidies in my state as I earn over $46,000 per year.

How much do states differ? Our income will be 120k (pensions and rental income) and I am figuring $700 a month for both of us.

That’s far too low for adults in their fifties. I was covering one adult via Obamacare (no subsidies) and it was $900 and I was in my late 30s. It zooms up as you age.

dp.. I'm in MD. Last year, the high deductible bronze plan was about $1400/mo for a family of 4 -- adult ages 53 and 59. I think for the two adults alone it would be about $1100 now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:FYI

My health insurance for one person age 60 through ObamaCare under the Affordable Care Act runs me $1300 per month with a $7000 deductible. This is a bronze plan and the cheapest option in my state. I do not qualify for subsidies in my state as I earn over $46,000 per year.

How much do states differ? Our income will be 120k (pensions and rental income) and I am figuring $700 a month for both of us.

That’s far too low for adults in their fifties. I was covering one adult via Obamacare (no subsidies) and it was $900 and I was in my late 30s. It zooms up as you age.

No. I have no idea what bells and whistles you people are including in your plans, but I bought an Obamacare plan in MD last year (single, age 41) for under $200/month - no subsidies. Yes, it's got a $10K deductible, which is fine as I am in good health. Apart from the chronically sick, I honestly have no idea why healthcare is some big bogeyman eating tens of thousands of dollars in people's budgets each year.

because you are single and only 41.

We are a family of 4, adults in the mid/late 50s, and a kid who seems accident prone making us visit an ER and have surgery on broken bones. You will have more health issues as you age, but also they want more tests as you age: heart, colonoscopy, mammo, etc.. Then they find things, and want to address it, which you have to pay oop. Other than routine visits, doctor visits can be anywhere from $50 to $150 every time you go. Rx is oop, and can cost anywhere from $2 to $100 per.

That's how people end up spending a lot on medical care.

I'm glad you are healthy. I was too, at that age. Now you know. Make sure you plan for it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:FYI

My health insurance for one person age 60 through ObamaCare under the Affordable Care Act runs me $1300 per month with a $7000 deductible. This is a bronze plan and the cheapest option in my state. I do not qualify for subsidies in my state as I earn over $46,000 per year.

How much do states differ? Our income will be 120k (pensions and rental income) and I am figuring $700 a month for both of us.

DP: States vary widely--you can look at the options in your state. Just input the age you will be when you need it rather than your current age because age of course has an impact. If you're retiring at 55 check 55 and 60 so you can get a sense of the increase. Also, make sure to check the Silver and Gold plans too because in many states these are oddly cheaper sometimes because the best insurer in your state isn't offering a Bronze plan or other reason. If you're planning to move to another state in retirement, make sure to run the numbers there--especially if it is a state that has opposed Medicaid expansion as that impacts the health care market as do other state policies.

yep. I live in MD where the private market is cheaper than Va. I thought about moving to VA, but the health insurance costs in VA are so much higher. I ran the numbers between saving on tax and paying for the higher health insurance premium + the oop I would end up paying, and I don't save all that much from moving to Va.

[Anonymous]

OP you need to tell us your yearly expenses. prepare a budget for how much you need to spend. your HHI is crazy high and you're relatively behind in retirement savings but done, right, you have potential to save enough money to retire by 55.

[Anonymous]

You can do what my DH does, which is daydream about the second career he'll have at 55 that is not soul sucking. He will retire at 55 for sure and we save aggressively now. He finds it mentally better to have something positive to look forward to instead of how much longer he has to hold on at current job.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:FYI

My health insurance for one person age 60 through ObamaCare under the Affordable Care Act runs me $1300 per month with a $7000 deductible. This is a bronze plan and the cheapest option in my state. I do not qualify for subsidies in my state as I earn over $46,000 per year.

How much do states differ? Our income will be 120k (pensions and rental income) and I am figuring $700 a month for both of us.

That’s far too low for adults in their fifties. I was covering one adult via Obamacare (no subsidies) and it was $900 and I was in my late 30s. It zooms up as you age.

No. I have no idea what bells and whistles you people are including in your plans, but I bought an Obamacare plan in MD last year (single, age 41) for under $200/month - no subsidies. Yes, it's got a $10K deductible, which is fine as I am in good health. Apart from the chronically sick, I honestly have no idea why healthcare is some big bogeyman eating tens of thousands of dollars in people's budgets each year.

You’re 41. Price it for a 60 yo man.

[Anonymous]

Anonymous wrote:OP you need to tell us your yearly expenses. prepare a budget for how much you need to spend. your HHI is crazy high and you're relatively behind in retirement savings but done, right, you have potential to save enough money to retire by 55.

Behind relative to who or what?