Reply to Disagreeing on when to retire with spouse

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP here. We have around $2.5-3m in assets, excluding any home equity in our primary residence. I feel like we can live on just my spouse's income, maybe cutting back just slightly. My spouse does not want to cut back on our lifestyle at all.[/quote]

Seems fair.   :roll:   
what if spouses wants to retire today too?    [/quote]

OP here. I already answered that and said it would be fine.[/quote]

Then what would you do for healthcare? I think you're too young to fully understand how things change wrt what you need medically as you get older. [/quote]

[b]Also, ACA is great, you have some options.  But it is NOT cheap.  in our 50s, coverage for 2, with VSP and Dental will run $2K/month, with a $6K/12K deductible and max OOP of $9K/$18K.[/b]  No Out of Network Coverage, except urgent care and ER.

In comparison, we pay $270/month for FULL Family (worker/spouse/all kids) for a PPO (not EPO), $1250/$2500 deductible Ind/Family and max OOP $3500/7K.  And we have Out of network OOP capped at $7K/$14K.    I believe COBRA costs would be $1900/month.  So about the same but for way less coverage and No OON coverage.  Not an issue normally, but it is nice to know that if you have some rare medical condition, you can choose to go anywhere in USA and at max pay $7K.   With ACA, you are left locally to choose (and we have excellent choices)
[/quote]

This is totally false—or, charitably, I can say it's extremely unlikely.

I suggest everyone considering and nearing early retirement check out their exchange to get exact prices for themselves or their family.  At least for Maryland, the figures I have seen are nothing close to what the fearmongers here suggest ("Plan on $2K/month for two people!"). I am a 42-year-old man and I currently pay $2K PER YEAR on the exchange for my health insurance (I have a $10K deductible, but that works for me because I'm healthy).  I plan on retiring at 45 so the cost of healthcare is a big question.

I ran lots of quotes for various scenarios:  insuring me alone in 10-15 years, insuring a family of 4 in the event I get married, insuring a family member with a chronic condition that causes me to frequently hit the deductible and OOP max.  In virtually no scenario could I figure out how to even arrive at a $2K/month spend—and this included plan premiums, deductibles and co-pays.  Yet, to hear DCUM talk, you need to plan for $2K/month in premiums alone for two people.  Utterly absurd.  Potential early retirees, you must run quotes for yourself, as this field is fraught with misinformation.[/quote]

NP - I just ran the numbers for an ACA plan in Maryland. Our income makes us ineligible for federal subsidies. Estimated premiums were nearly $1,600 a month for a family of four, or around $20k per year. Like a PP said, the ACA is a good option but not an inexpensive one, unless you qualify for federal subsidies.[/quote]

I'm the PP you and others have quoted.  I do plan on receiving subsidies, and the figures cited above—including being unable to find a way to get the healthcare spend for a family of four to reach $2K per month, even with a family member with a chronic condition that causes us to hit the OOP max—assume the use of subsidies.  However, keeping one's taxable income down in retirement is an essential part of financial planning, and it is not difficult to qualify for subsidies.

For example, if retiring early with $4M and using a 3% withdrawal rate, that $120K income qualifies a family of four as "low-income" and eligible for subsidies.  However, notwithstanding this classification, that income still affords a great quality of life.  The federal income tax due would be $0 due to the capital gains tax laws.  None of that $120K needs to go toward 401(k)s, IRAs, etc.  Assuming the house is paid off when retired, none of the $120K needs to go to mortgage payments.  It's all disposable income and is likely on par with that available to an UMC family earning $300K. Therefore, only the very wealthy and the very poor planners are not eligible for subsidies.

And lastly, many here overstate the importance and magnitude of the subsidies.  As mentioned, I am currently paying $2K PER YEAR for my plan (with no subsidies since I still work), so barring someone with very serious health problems, options are available for everyone that are much cheaper than the figures often cited here.[/quote]

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