71–80 of 308 posts
Earlier quoted context omitted.
This is why I max out my HSA and don't withdraw since it became available to me (unfortunately this was until my 30s) Have you considered moving to a country with quality healthcare at cheaper price? Mexico comes to mind
In case you're not aware, you can't use HSA funds to pay for insurance.
I had a version of this realization early in my life. I wanted to be a musician. I thought that school and other things in life were a burden and that once I was devoted to music, I'd be happy and full. I got my dream by 18 years old. When music became my work I hated it. Made me think differently about life.
Earlier quoted context omitted.
This is the reality of the situation; until you're eligible for (edit) medicare, health is a significant expense. When paired with the "hedonistic treadmill" of spending, early retirement takes a lot more investment than many suspect. Even at a safe withdrawal rate of 4%, $2M is "only" $80k a year. You're not driving around in Ferrari's and eating caviar on that (parodying a rich lifestyle here). Of course there are…
Medicare. To be eligible for Medicaid, you have to be quite lacking in assets.
Earlier quoted context omitted.
This is the reality of the situation; until you're eligible for (edit) medicare, health is a significant expense. When paired with the "hedonistic treadmill" of spending, early retirement takes a lot more investment than many suspect. Even at a safe withdrawal rate of 4%, $2M is "only" $80k a year. You're not driving around in Ferrari's and eating caviar on that (parodying a rich lifestyle here). Of course there are…
Will $80k a year be enough for any lifestyle? That's the question I struggle with. It's more than enough in today's dollars. But I have no idea what will happen with inflation and costs between now and retirement day. Maybe by the time I retire, $80k/yr will be poverty level. Maybe health insurance premiums alone will cost $80k/yr. Who knows! What will the value of the dollar be and to what extent will healthcare cos…
There is a treasure trove of information in the Bogleheads wiki: https://www.bogleheads.org/wiki/Getting_started
If you've ever talked to anyone that has done FIRE or just retired a few years early, it's always health insurance. The current US system of healthcare via your employer is a huge blocker to any kind of alternative lifestyle. Have to wait until 65 (or like 68 by the time most of us can retire)
I'm not sure what it covers.
He'd started a business with a friend in the 1970's that became quite successful in the Detroit Metro area. He retired and like a good Italian, bought a house in Florida and played golf everyday. After a few months he hated his new life, and wished he'd never sold his business. He realized after he retired that his work was something he enjoyed doing, that his clients - most of whom he knew for 20+ years - were people he loved to see and visit. All that changed after he retired and sold the business to my older brother and a another business partner. There was no going back, and that was that.
The greatest expense for me in retirement is now health insurance so it makes sense for me to instead work for insurance coverage and put my wealth towards an inheritance for my children. I used to naively believe once I paid off my mortgage, had a substantial retirement account and savings - a couple million dollars - I'd no longer work. It's also very difficult to get off of the treadmill of spending a lot of money…
$2 million in investments AND a payed off mortgage and still, it doesn't pencil out to retire? Seems like over the past decade+ the 'value' of even $1 million has become more and more diluted. To support even just a middle class, to upper middle class lifestyle, can get very expensive.
Earlier quoted context omitted.
This is the reality of the situation; until you're eligible for (edit) medicare, health is a significant expense. When paired with the "hedonistic treadmill" of spending, early retirement takes a lot more investment than many suspect. Even at a safe withdrawal rate of 4%, $2M is "only" $80k a year. You're not driving around in Ferrari's and eating caviar on that (parodying a rich lifestyle here). Of course there are…
Will $80k a year be enough for any lifestyle? That's the question I struggle with. It's more than enough in today's dollars. But I have no idea what will happen with inflation and costs between now and retirement day. Maybe by the time I retire, $80k/yr will be poverty level. Maybe health insurance premiums alone will cost $80k/yr. Who knows! What will the value of the dollar be and to what extent will healthcare cos…
If you've ever talked to anyone that has done FIRE or just retired a few years early, it's always health insurance. The current US system of healthcare via your employer is a huge blocker to any kind of alternative lifestyle. Have to wait until 65 (or like 68 by the time most of us can retire)