Can I retire yet?

Sorry disbeliever but this is 100% fact:
Just retired at 58 with $6Million, two decent pensions, and absolutely no debt. It's easy street now and don't miss the bully industry. Just beware healthcare insurance costs until you turn 65 are expensive if not in your pension.

 

Does anybody think and plan for themselves.

Do you really think financial planners have your best interest in mind. NO! They want you to have huge portfolios so they can make lots of $$$$$$. You can learn from them but please think for yourselves and don't be led astray.

Merck retiree health care is 388.00 for a single in 2018. It's a 80/20 with a 1500 deductible. Plan come with preventative care no deductible.

So now you have a idea what health care will be until 65. Pay off your house, car, credit cards and be 100% debt free.

Now if you can get together one million in savings, live off the return and never touch the principal. If your debt free that should not be a problem. Even a down year and you managed 4%. That's 40,000 and you have 0 debt. You would be just fine. Yes, the zombie apocalypse may occur, if it does then 20 million will not save you. The economy is cyclical and some years you will get a better return and earn 10% and others will bet you maybe 4% however, you will be just with a diversified portfolio. When you turn 62 your eligible to begin taking social security which you can add to your income (the longer you wait to begin SS the more you will receive monthly). Your overall income is much lower so your tax rate is much lower as well. You have no debt so all your income is paying utilities, food, 388.00 health care and your fun

Unless you just have an overwhelming need to live an extravagant lifestyle you can easily walk away by being debt free with just one million dollars. All this crap from advisors about needing to have a % of pre retirement income and multi million dollar nest eggs is designed to allow them to make big dollars from your retirement.

 

Great post!!! I was an FA at Wells Fargo for a blink and that industry is all about making money. Way worse than pharma. If you do feel lost in even the above explanation, work with a "Fee Only Financial Planner" that has the CFP certification and acts as a true fiduciary. Anyone working for the big houses is just making their commission or working against matching their draw. Most fee only FAs are members of NAPFA. You can search for one near you on here: https://www.napfa.org

 

Are the costs quoted above the monthly premiums for retiree healthcare, for those who are not yet 65? My wife is a 20-year Merck employee and is 51 years old. She is an administrative assistant there and makes about 60k per year. Not a ton of money, but she provides the healthcare benefits for us.

Our plan is for her to retire at 55, with 24 years of service, but we were wondering what the health insurance costs will be. I believe she pays a modestly lower health insurance premium compared to higher-paid colleagues and I'm wondering if the premiums after retirement will be better than those posted above. $1200 a month for pre-Medicare retiree health insurance is not much better than COBRA. Can someone please give me some additional guidance about the rate we'll be paying from age 55, until we go on Medicare at 65?

 

Hope people will actually read this post. Previous poster is absolutely correct.

Financial industry is crooked as hell.
The best thing anyone could do for themselves is be debt free and then you acquire "F$&k You" money. That's where you pay off your house and car and put a little back. Then you are in control of your life and anyone tries to make you do something you don't want to do: F$&k You.

Most people today need a $6.00 latte each morning and blow money of interest because they are up to their eyeballs in debt on the way to buy a $80,000 vehicle that they lease. Yea-that guy needs six million to retire.

I retired 5 years ago, paid off my house and all debt. Had less than 800K in retirement. Today that is now almost one million, I still have no debt, live off the gains and pick up over 2K each month in social security.

 

Unfortunately, since she was not 50 by the end of 2012, she falls in the sol bucket. That was the medical subsidy cutoff. Read the summary plan description.

 

I read the SPD about two months back and followed the flow chart diagram they had in there, to see if an employee qualifies for the subsidies for retiree healthcare. She met the criteria. I don't recall seeing any criteria of turning 50 by EOY 2012. I'll dig the SPD out of my files to re-read it, but are you saying she gets no subsidy, or that she gets a diminished subsidy?

 

I retired 3 yrs ago. As a single house was paid off and no debt. Medical from another pharma for me was $1,500 per yr till Medicare kicks in. First of all it helps if you can move to a red state. Blue state taxes take the most of your $. Be careful of politicians who promise free anything. The taxpayer pays for it. I can survive on my pension so will not take as until 70. I do not need the money. Pay off all debt now and do not initiate more. We will be getting tax changes and many deductions will end.

 

Ok I dug out the benefits paperwork and looked at it again. The " age 50 by EOY 2012 " requirement is for determinig if you are covered under the old "points" based system, i.e. Age at retirement plus years of service, post-40 years of age. I'm assuming the points-based system was better, which of course is why it was ended. I too was a Merck employee back in the 1990's and I remember all the old timers talking about the rule of 92.

In my wife's case, the SPD says she will get a susbsody, but that it'll be based on her age when she retires, which will be 55. So now I see why the costs being quoted here are different.

So, if anyone can clarify what an age 55 retiree pays for self-plus-spouse coverage this year, at least I'll have a rough idea how much to budget. I understand they can jack the amount up at any time, but what I'm trying to figure out is if the subsidy is substantial enough to make her stay at Merck until she is age 55. Merck is not a great place to work anymore, so if the subsidy is a pittance, she may just hang it up next year and I'll pick up the insurance coverage offered at my job. Thanks in advance for the replies.

 

Participant only: 388.00
Participant +spouse: 970.00
Participant + child: 776.00
Participant +child+ spouse: 1,358.00

This is my cost. I don't know if it varies based on your position or income level at Merck

 

Thank you for sharing this. I read in the SPD that the payment depends on age. Can you tell me your age? My wife will retire at 55 and now I'm wondering if the payment goes up or down if she retires at, say, age 56, or 56, etc.

That payment seems high. I have never really shopped for health insurance on an exchange. Is that a good rate for the coverage you get? I'm assuming you shopped around in the open market and compared it to Merck. So, because you are on the Merck plan, is it safe to assume it's a great deal?

I really appreciate the helpful advice from you Merck retirees. For my wife and I, the big wildcard is healthcare coverage in our interim period between retirement and Medicare. We are all set in all other respects and she really wants to get out of Merck soon, but touching it out for four more years will be worth it only if the susbsidized healthcare is that good of a deal.

 

Actually 2.3 million is a lot in the south or Texas. No state income tax in Texas. Move and have a better lifestyle plus better weather!

 

Great advice. Spent 6 mos with WF. Couldn't screw people for. Living.
One more tip: Ask the FA whose retirement he/she is more concerned with; yours or mine.

 

Bullshit!

 

I know 3 reps retired who live in a 120K RV and travel the county year round.

 

ugh, no thanks not with all those Trumpies.

 

Just avoid the northeast, CA and WA that's where all the liberals are and the blue states rip you off big time.

 

#31 Your wife cannot afford to retire unless she has sufficient funds to support herself for thirty years. Also, she has to be able to have medical expenses secured until age 65 and Medicare as this could greatly increase.

 

but people that are not religious nuts or opiod addicts and criminals