Retired early? What about health care?

[cantdrv55]

Financially Independent Retire Early (FIRE). It’s too bad I’m just now becoming aware of FIRE strategies. I always thought I had to work until 67 and then retire. Now I’m learning that we can live off an annual 4% withdrawal from our investments if we can curb our spending enough. And that’s for a 30 year retirement! Pretty doable except for health care costs.

If I retire now, no more employer paid HC. Where would I get it for my family of three? What are the costs and quality? I’m looking into Covered California but wondering what others have done about HC until Medicare kicks in. Would love to hear your strategies!

[Chocaholic]

Marry someone with benefits. Many who espouse the joys of early retirement forget to mention that their spouse still works full time.

67 for me. That will be when my youngest finishes law school.

[LakeCleElum]

Many of my friends have spent most of the adult live doing the military reserve thing. They can retire early from their real job and have medical. Probably a little late to start now?

[Bugsinrugs]

Health care was a concern for me. I waited until 67. Medicare is great and I am for Medicare for all. My Kaiser supplemental is all of $24 a month. We were paying for Kaiser $1200 a month with a $5000 deductible before I turned 65.

[dmcummins]

I quit at 50. Health insurance runs around 20k a year. I’m 64 now and the wife is 60, so next year it should at least be a little less expensive for me.

If you can structure your income correctly you can get a subsidy for Obamacare. I quit way before that and don’t qualify for any subsidy, so I just pay.

[Sooner or later]

I quit at 58, bent over, and took it dry. 10 grand a year or so for just myself for good insurance. My Medicare A, B, D, and F is about $400 a month. Basically no out of pocket other than that.

[Arizona_928]

Tricare

[Baz]

Do you really need health care? I didn't have it (it's called being self-insured...lol) for quite a few years. Once in a while visited the local walk-in clinic for some anti-biotics, but otherwise just took care of myself.

I've had health care through Humana now for 2 years and still haven't needed it for anything major.

Just eat & live healthy and stay active, I say.

[Sooner or later]

Originally Posted by Baz

Do you really need health care? I didn't have it (it's called being self-insured...lol) for quite a few years. Once in a while visited the local walk-in clinic for some anti-biotics, but otherwise just took care of myself.

I've had health care through Humana now for 2 years and still haven't needed it for anything major.

Just eat & live healthy and stay active, I say.

You will damn sure be glad you have Humana if your unlucky number comes up.

No insurance is the fast path to bankruptcy.

[Baz]

Originally Posted by Sooner or later

You will damn sure be glad you have Humana if your unlucky number comes up.

No insurance is the fast path to bankruptcy.

I never said it was bad to have it.

Just that I didn't have it and didn't need it.

Lucky? Maybe.

Good genes? Yes!

Healthy lifestyle? Absolutely!

[Crowbob]

Originally Posted by Baz

Do you really need health care? I didn't have it (it's called being self-insured...lol) for quite a few years. Once in a while visited the local walk-in clinic for some anti-biotics, but otherwise just took care of myself.

I've had health care through Humana now for 2 years and still haven't needed it for anything major.

Just eat & live healthy and stay active, I say.

Good for you!

However, I am very close to a lady who eats waaay better than me, lives a very clean life and works in her garden (mowing, weeding, hauling brush) for hours every day between making sandwiches.

But, one hip was replaced, second one is scheduled. One knee needs replacement but is second priority behind the hip, is a cancer survivor (status post chemo, partial colectomy) and thumb fusion. Other than some kind of thyroid problem she is metabolically excellent. BP, cholesterol, weight are dead center normal.

She’d be a shriveled up wheelchair-bound heap of depression but more likely dead without health insurance.

[KFC911]

Originally Posted by dmcummins

....

If you can structure your income correctly you can get a subsidy for Obamacare. I quit way before that and don’t qualify for any subsidy, so I just pay.

That's what I do. Single and in good health, I had BCBS (individual) which was similar to the BCBS coverage I had when I left my corporate gig back in '08 (I was 48 at the time). When the ACA came around, I keep my income low and qualify for a subsidy, so I pay a couple of grand for BCBS coverage, but really pay out-of-pocket for everything until I hit my max cap. Around 9-10K per year would be my maximum if worse came to worse.

So far, so good....

[Baz]

Originally Posted by Crowbob

Good for you!

However, I am very close to a lady who eats waaay better than me, lives a very clean life and works in her garden (mowing, weeding, hauling brush) for hours every day between making sandwiches.

But, one hip was replaced, second one is scheduled. One knee needs replacement but is second priority behind the hip, is a cancer survivor (status post chemo, partial colectomy) and thumb fusion. Other than some kind of thyroid problem she is metabolically excellent. BP, cholesterol, weight are dead center normal.

She’d be a shriveled up wheelchair-bound heap of depression but more likely dead without health insurance.

Sounds like her genetics "may not" be as good as mine!

[Chocaholic]

Genetics won’t prevent you from getting injured or sick. Being an adult in this day and age with no health insurance isn’t wise.

[Baz]

Originally Posted by Chocaholic

Genetics won’t prevent you from getting injured or sick. Being an adult in this day and age with no health insurance isn’t wise.

So good genetics doesn't help?

Then why does the question always come up - does your family have a history of (insert health issue here)?

[Chocaholic]

Originally Posted by Baz

So good genetics doesn't help?

No. An injury doesn’t care about genetics. That is not a strategy.

And if something catastrophic were to befall you, who will eat the bill for you?

[Baz]

Originally Posted by Chocaholic

No. An injury doesn’t care about genetics. That is not a strategy.

And if something catastrophic were to befall you, who will eat the bill for you?

But you didn't specify "injury".

You said:

Genetics won’t prevent you from getting injured or sick.

Not trying to give you a hard time.

I just feel that sometimes my posts are misinterpreted.

If you go back and read my initial post - I never said having good genes means health insurance isn't necessary - nor would it prevent health issues.

[jyl]

I am self employed, so went on ACA and bought the cheapest policy. Pretty affordable, all my doctors are in-network, the deductible is substantial ($3K/yr?) but that was the case with my corporate insurance too. Also put money in a HSA so that my out of pockets are pretax. It’s not a problem, I don’t think the OP should let it affect his plans.

[SeanPizzle]

I'm going to pull the plug at 54 or 55. Been doing a lot of planning and have researched extensively. The ACA is a game changer. Until recently, if you kept your income below 400% of federal poverty level, you get a tax subsidy to offset your premiums. Where I live east of Sacramento, 400% of FPL is 84K a year for family of 3. The COVID relief bill sweetens the formula a bit. Your premiums are capped at 8.5% of MAGI for a Silver plan. We were prepared to spend 24K a year in premiums, but if we keep our MAGI at 100k, 8500 bucks is a lot easier pill to swallow. And first 80K in LTCG is tax free. I'm totally on board the FIRE wagon, I just have to dial back the spending a bit.

[Bill Douglas]

You could come and live here. Excellent trout fishing.

And the gummint pays for all that health stuff.