Early Retirement

[ben ji]

Healthcare is the biggest question mark I have but who knows what that picture will look like in the future. My parents retired in their late 50's and joined some christian health care cost share plan thingy instead of obamacare because my dad heard about it on rush limbaugh. Luckily they have had no medical issues and are now on that sweet sweet medicare.

If you really want to retire early in a couple of years (especially with kids) you need to have a crap ton of money or jump through all sorts of hoops to make your taxable income low enough to qualify for obamacare subsidies.

I'm assuming that the healthcare portion of retiring early will look completely different in 10-20 years but I'm just a kansas state wildcat superfan living in flyover country. 

[michigancat]

Healthcare is the biggest question mark I have but who knows what that picture will look like in the future. My parents retired in their late 50's and joined some christian health care cost share plan thingy instead of obamacare because my dad heard about it on rush limbaugh. Luckily they have had no medical issues and are now on that sweet sweet medicare.

If you really want to retire early in a couple of years (especially with kids) you need to have a crap ton of money or jump through all sorts of hoops to make your taxable income low enough to qualify for obamacare subsidies.

I'm assuming that the healthcare portion of retiring early will look completely different in 10-20 years but I'm just a kansas state wildcat superfan living in flyover country. 

medicare for all would be great for early retirees

[catastrophe]

Definitely agree about the healthcare issue. I’ve stopped taking any money out of my HSA to let it grow as much as possible until I need it. People say to save receipts so you can reimburse that stuff later but I’m pretty confident my future expenses will be plenty enough.

[sys]

my target is around 60k/year.  this is a fair bit more than what i what i was thinking a few years ago, and i have no doubt we could get by with less, but i think a little mission creep is much more common than not.

[kim carnes]

Healthcare is the biggest question mark I have but who knows what that picture will look like in the future. My parents retired in their late 50's and joined some christian health care cost share plan thingy instead of obamacare because my dad heard about it on rush limbaugh. Luckily they have had no medical issues and are now on that sweet sweet medicare.

If you really want to retire early in a couple of years (especially with kids) you need to have a crap ton of money or jump through all sorts of hoops to make your taxable income low enough to qualify for obamacare subsidies.

I'm assuming that the healthcare portion of retiring early will look completely different in 10-20 years but I'm just a kansas state wildcat superfan living in flyover country. 

medicare for all would be great for early retirees

You’d be paying for your healthcare with higher taxes

[ben ji]

Healthcare is the biggest question mark I have but who knows what that picture will look like in the future. My parents retired in their late 50's and joined some christian health care cost share plan thingy instead of obamacare because my dad heard about it on rush limbaugh. Luckily they have had no medical issues and are now on that sweet sweet medicare.

If you really want to retire early in a couple of years (especially with kids) you need to have a crap ton of money or jump through all sorts of hoops to make your taxable income low enough to qualify for obamacare subsidies.

I'm assuming that the healthcare portion of retiring early will look completely different in 10-20 years but I'm just a kansas state wildcat superfan living in flyover country. 

medicare for all would be great for early retirees

You’d be paying for your healthcare with higher taxes

Ideally they introduce medicare for all right as I retire early

[Kat Kid]

AS of now, I plan to retire at 55, back of the envelope says I am on track to do that.  May have to wait until 60.  One thing I've learned is retirement isn't guaranteed for anyone so I will try to get my years while I'm healthy.

Agree with this and is my current plan as well. I would really like to be at a point where Mrs. SF could drop at 50. If I have to stick it out a couple more years so she can do that, whatevs.

What are you guys planning on for level of income in retirement, as expressed as percent of income before retirement?

Yeah I haven’t done anything super in depth, but having social security, pension and Roth makes me pretty confident that I will be able to survive on pension and other savings then start  withdrawing Roth at 60 then start social security at 70 if needed.

I get to stay on employer healthcare group for very reasonable cost until I hit Medicare but I hope that we have single payer by then.

[kim carnes]

Healthcare is the biggest question mark I have but who knows what that picture will look like in the future. My parents retired in their late 50's and joined some christian health care cost share plan thingy instead of obamacare because my dad heard about it on rush limbaugh. Luckily they have had no medical issues and are now on that sweet sweet medicare.

If you really want to retire early in a couple of years (especially with kids) you need to have a crap ton of money or jump through all sorts of hoops to make your taxable income low enough to qualify for obamacare subsidies.

I'm assuming that the healthcare portion of retiring early will look completely different in 10-20 years but I'm just a kansas state wildcat superfan living in flyover country. 

medicare for all would be great for early retirees

You’d be paying for your healthcare with higher taxes

Ideally they introduce medicare for all right as I retire early

You still pay taxes on your retirement distributions

[Kat Kid]

Healthcare is the biggest question mark I have but who knows what that picture will look like in the future. My parents retired in their late 50's and joined some christian health care cost share plan thingy instead of obamacare because my dad heard about it on rush limbaugh. Luckily they have had no medical issues and are now on that sweet sweet medicare.

If you really want to retire early in a couple of years (especially with kids) you need to have a crap ton of money or jump through all sorts of hoops to make your taxable income low enough to qualify for obamacare subsidies.

I'm assuming that the healthcare portion of retiring early will look completely different in 10-20 years but I'm just a kansas state wildcat superfan living in flyover country. 

medicare for all would be great for early retirees

You’d be paying for your healthcare with higher taxes

Would still be cheaper.

[catastrophe]

Healthcare is the biggest question mark I have but who knows what that picture will look like in the future. My parents retired in their late 50's and joined some christian health care cost share plan thingy instead of obamacare because my dad heard about it on rush limbaugh. Luckily they have had no medical issues and are now on that sweet sweet medicare.

If you really want to retire early in a couple of years (especially with kids) you need to have a crap ton of money or jump through all sorts of hoops to make your taxable income low enough to qualify for obamacare subsidies.

I'm assuming that the healthcare portion of retiring early will look completely different in 10-20 years but I'm just a kansas state wildcat superfan living in flyover country. 

medicare for all would be great for early retirees

You’d be paying for your healthcare with higher taxes

Ideally they introduce medicare for all right as I retire early

You still pay taxes on your retirement distributions

Not on a Roth I thought.

[kim carnes]

Healthcare is the biggest question mark I have but who knows what that picture will look like in the future. My parents retired in their late 50's and joined some christian health care cost share plan thingy instead of obamacare because my dad heard about it on rush limbaugh. Luckily they have had no medical issues and are now on that sweet sweet medicare.

If you really want to retire early in a couple of years (especially with kids) you need to have a crap ton of money or jump through all sorts of hoops to make your taxable income low enough to qualify for obamacare subsidies.

I'm assuming that the healthcare portion of retiring early will look completely different in 10-20 years but I'm just a kansas state wildcat superfan living in flyover country. 

medicare for all would be great for early retirees

You’d be paying for your healthcare with higher taxes

Ideally they introduce medicare for all right as I retire early

You still pay taxes on your retirement distributions

Not on a Roth I thought.

you’re not retiring on a Roth unless you plan on living on nothing

[kim carnes]

Healthcare is the biggest question mark I have but who knows what that picture will look like in the future. My parents retired in their late 50's and joined some christian health care cost share plan thingy instead of obamacare because my dad heard about it on rush limbaugh. Luckily they have had no medical issues and are now on that sweet sweet medicare.

If you really want to retire early in a couple of years (especially with kids) you need to have a crap ton of money or jump through all sorts of hoops to make your taxable income low enough to qualify for obamacare subsidies.

I'm assuming that the healthcare portion of retiring early will look completely different in 10-20 years but I'm just a kansas state wildcat superfan living in flyover country. 

medicare for all would be great for early retirees

You’d be paying for your healthcare with higher taxes

Would still be cheaper.

If you’re a candidate for early retirement then you’re just the type of person the govt would be looking for to fund m4a for those who can’t afford more taxes so I wouldn’t assume it’s going to be cheaper for you.

[catastrophe]

You can at least put in $6k/year into a Roth though (way more if your employer is generous). You layer it in with taxable income and it shouldn’t be that hard to avoid paying much in taxes.

[sys]

unless you have far more money than anyone here worrying about retiring early or not, your post-retirement taxes aren't going to cost more than your health care, so yes, obviously getting the gov to pay for your healthcare would be a huge benefit.


technically, maybe offset by increased taxes when you're over 65 and current govt policy would already pay for much of your health care, but honestly we're not likely to raise taxes on middle class or even very upper middle class brackets anytime soon no matter how much we spend.

[slackcat]

my target is around 60k/year.  this is a fair bit more than what i what i was thinking a few years ago, and i have no doubt we could get by with less, but i think a little mission creep is much more common than not.

60k sounds a little low.  Wife and I figure on 90k to cover fixed expenses and allow for extended vacations or unexpected med.  Prolly won't spend it all but could donate to Business College.  Also plan to move somewhere with warm weather and low COL.  Haven't ruled out being ex-pat.

[wetwillie]

I’m on the work till I die plan

[DaBigTrain]

I’m on the work till I die plan

You got that XRP tho. In 20 years when it’s at $1.50 a piece should be able to retire

[wetwillie]

I’m on the work till I die plan

You got that XRP tho. In 20 years when it’s at $1.50 a piece should be able to retire

Don’t think I will make it another 20 but that is a nice solace if I do

[sys]

don't die, wetwillie.

[slackcat]

We can do a gofundme for wetwillie

[Kat Kid]

Healthcare is the biggest question mark I have but who knows what that picture will look like in the future. My parents retired in their late 50's and joined some christian health care cost share plan thingy instead of obamacare because my dad heard about it on rush limbaugh. Luckily they have had no medical issues and are now on that sweet sweet medicare.

If you really want to retire early in a couple of years (especially with kids) you need to have a crap ton of money or jump through all sorts of hoops to make your taxable income low enough to qualify for obamacare subsidies.

I'm assuming that the healthcare portion of retiring early will look completely different in 10-20 years but I'm just a kansas state wildcat superfan living in flyover country. 

medicare for all would be great for early retirees

You’d be paying for your healthcare with higher taxes

Would still be cheaper.

If you’re a candidate for early retirement then you’re just the type of person the govt would be looking for to fund m4a for those who can’t afford more taxes so I wouldn’t assume it’s going to be cheaper for you.

They might go after my Roth, (probably tighten distribution or raise age?) but I doubt it. They aren’t going to go after my pension or SS. I would happily give up my HSA stocks for Medicare 4 all.

[Kat Kid]

unless you have far more money than anyone here worrying about retiring early or not, your post-retirement taxes aren't going to cost more than your health care, so yes, obviously getting the gov to pay for your healthcare would be a huge benefit.


technically, maybe offset by increased taxes when you're over 65 and current govt policy would already pay for much of your health care, but honestly we're not likely to raise taxes on middle class or even very upper middle class brackets anytime soon no matter how much we spend.

Yeah this isn’t even close.


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[ben ji]

my target is around 60k/year.  this is a fair bit more than what i what i was thinking a few years ago, and i have no doubt we could get by with less, but i think a little mission creep is much more common than not.

60k sounds a little low.  Wife and I figure on 90k to cover fixed expenses and allow for extended vacations or unexpected med.  Prolly won't spend it all but could donate to Business College.  Also plan to move somewhere with warm weather and low COL.  Haven't ruled out being ex-pat.

Trying to escape the cancer from the windmills?

[kim carnes]

unless you have far more money than anyone here worrying about retiring early or not, your post-retirement taxes aren't going to cost more than your health care, so yes, obviously getting the gov to pay for your healthcare would be a huge benefit.


technically, maybe offset by increased taxes when you're over 65 and current govt policy would already pay for much of your health care, but honestly we're not likely to raise taxes on middle class or even very upper middle class brackets anytime soon no matter how much we spend.

Yeah this isn’t even close.


Sent from my iPhone using Tapatalk

Go ahead and post the math, kk

[ben ji]

unless you have far more money than anyone here worrying about retiring early or not, your post-retirement taxes aren't going to cost more than your health care, so yes, obviously getting the gov to pay for your healthcare would be a huge benefit.


technically, maybe offset by increased taxes when you're over 65 and current govt policy would already pay for much of your health care, but honestly we're not likely to raise taxes on middle class or even very upper middle class brackets anytime soon no matter how much we spend.

Yeah this isn’t even close.


Sent from my iPhone using Tapatalk

Go ahead and post the math, kk

Its impossible to do the math without knowing what the new tax rates would be to fund medicare for all but lets I'm going to create an example.

Median family income in the US was 68k in 2019. Lets say you and your wife are 50 years old, retired and want to withdraw 68k per year from your 401k/IRA's and will need to pay tax on this.

After your standard deduction of 24,400 you will owe taxes on 43,600 which would equal $4,843 in federal taxes using the 2019 tax bracket.

A quick look through the 2021 ACA options for residents in KC(KS side) your cheapest plan for a married 50 year old couple would be $314 a month with a 12k deductible and a 17k out of pocket max.

So best case scenario where all you pay is the premium its $3,768 per year or 77% of your federal tax burden.

I'm pretty sure medicare for all would be cheaper in this very basic example.