Cyclist
New Member
Hello Everyone, just asking for your thoughts on which direction to plan for retirement. Of course if my knees and legs are strong, I'll automatically
be going the route to work until age 65. There is no option to continue working beyond that age.
I am 55 yrs old.
DH is 62 this month.
We have a $1450 a month mortgage in Calif.
It's paid off when I turn 80 yrs old. I am healthy but had a rough life so estimate my life expectancy at about mid 80's.
Expenses:
Part B+ the CHEAPEST Medigap Plan of $125 (no advantage plans available here) + co-pays/deductibles- $260x2 people= $650
Utilities (Propane, power, Natural Gas, Water) $450
Transportation (DMV Fees- $25, Insurance- $125, Tires $100 per month- $100 a week for gas- bare minimum to drive to closest town 1x a wk)- $350
Repairs- Car/House. heavy snow country in the sierra's, many repairs- $175
Incidentals/Food/Clothes/Groceries- $800 (just to survive- for 2 people, no food banks here. Ill health requires certain food/vegetables)
Internet/Landline- $150 (we have Satellite internet, it's all that is available out here in the boondocks)
Auto-Wear and Tear on the Car- $500 per mo. That's if we replace the car with a cheap 6k used car as ours wears out
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$2775 per month. We live in the Sierra's so endure heavy snow every winter.
It limits his work ability to working just half the year.
I work all year. We both commute is 3 hrs 15 min per day to the nearest town with services.
We cannot move. Our biological son is mentally disabled. He cannot live alone without being checked on, we choose to take him to some appointments to ensure all is good, etc. During the snowy winters for 6 months, we only see him a few times a month since its so difficult to drive here. We usually go to him bringing dinner, cleaning up his home, etc. He owns his house.
He lives 2 hrs away and we see him 1x a week when he's over for dinner or we stop by his house
Which route should we plan to go in retirement?
1. DH and I take SS early for a combined Social Security amount of about $2300 per mo.
How can we live off of $2300 when our EXPENSES are $2775 per month?
- Eliminate driving. Take our County Bus into town 1x a wk to the nearest town with services. Change doctors to this town.
We'd drive illegally, occasionally, but only within our small 125 population town and to visit our son late at night if he doesn't show for dinner during half the year when the weather permits. About 10 people here drive illegally, mainly just within 2 mile radius downtown the post office for example during a snowstorm. It's almost impossible to have any issues so the Cops ignore it.These are honest hard working individuals who take the County bus 1x a week into the nearest town, 1.5 hrs away, with services. Most of us either ride a bike into town, drive, or occasionally some off-road vehicle (though technically it's illegal but often most ignore it if it's a Senior who cannot walk)
-Biggest Benefit. Medicaid will cover All his expenses after he pays for Part B.
I am covered thru retiree medical for $20 per month starting at 65.
Other option is a $125 Medigap Policy, the cheapest option and it leaves open a 3k out of pocket. Almost useless as you pay for most everything.No advantage plans offered. He has some health issues already so this is great peace of mind.
-Low income Discounts: Example 10% off opower bill= $15 per month (we otherwise use Karosine heater, and Propane too). $17.50 discount on our landline phone. $30 discount on our $85 Satellite internet (no other options out here).We pay full price for everything like most people do but doing the research, these discounts are valuable. We would never consider signing up for Food Stamps
-IRA. I have a 50K balance in my IRA. At age 75, when DH is dead or possibly almost ready to die to health issues (though he eats pretty healthy)- it should be about 180K by then at 6.5% interest.
I will rely on this IRA to make my $1400 a month house payments for 5 yrs until the Mortgage is paid off. If he outlives me, thru a miracle, it would be vice versa. We are okay when I hit age 80 and he's hit age 87.5 yrs old.
2. Assume I can work this physical job until age 65 and he takes his SS at age 70. My legs are sore right now so that is about 10 yrs away. Our combined SS would cover our expenses but we'd only have a pretty small cushion of $275 per month leftover each month cutting it pretty close. Pay 100% of bills as we've always done with no low income discounts, No medicaid discount.
I contribute a little to a work 401K. Plan is to use that balance buy an electric car or hybrid for 20-25K. This would reduce the gas costs listed above giving us a better cushion. However we would not be able to be home growing any vegetables. Not a great place to grow stuff but it can be done and does help lower our food bill. He grows some herbs/sprouts/broccoli/kale already
KEY- We risk paying out of pocket for his MEDICAL which is the main thing that concerns me IF I cannot work until age 65. I'd want to take my SS at age 62 to qualify for low income discounts if I cannot work until age 65. Hopefully around age 62, I'll have an idea. Go over taking my SS at age 62, and we loose ALL Of those discounts. We could go into the hole. So it needs to be either/or.
Of course if I can continue working this very physical job until age 65 (we are forced to retire after that) then #2 is our hopeful plan but is it too risky?? Do you think I ought to just take SS at 62 and quit working to qualify for the low income stuff? I could not continue to contribute to SS or we'd go over and loose ALL of that going into the hole. Being right on the cuspid is the worst financial place to be. Either go poor or pay for everything with a good $250+ cushion (which I know is low, esp. for here in Calif)
The Mortgage is paid off when I am 80 yrs old. DH will surely be dead by then at 87.5 yrs old. He's got some health issues now so I expect he will live until about early to mid 80's max. So the expenses will go down by 1k a month without a Mortgage.
IRA
50K balance currently. Gains average about 6.5 to 7% per year. At my age of 75, it will have likely grown to about 180K.
At age 80, no more Mortgage which I'll assume saves about $800 per month. I will be okay when he passes away.
I also have very good Retiree Medical benefits so am not concerned about loosing Medicaid or any low income discounts.
Of course if I can continue working this very physical job until age 65 (we are forced to retire after that) then #2 is our hopeful plan but is it too risky?? Do you think I ought to just take SS at 62 and quit working to qualify for the low income stuff until I hit about age 75-80 when I/we no longer qualify?
be going the route to work until age 65. There is no option to continue working beyond that age.
I am 55 yrs old.
DH is 62 this month.
We have a $1450 a month mortgage in Calif.
It's paid off when I turn 80 yrs old. I am healthy but had a rough life so estimate my life expectancy at about mid 80's.
Expenses:
Part B+ the CHEAPEST Medigap Plan of $125 (no advantage plans available here) + co-pays/deductibles- $260x2 people= $650
Utilities (Propane, power, Natural Gas, Water) $450
Transportation (DMV Fees- $25, Insurance- $125, Tires $100 per month- $100 a week for gas- bare minimum to drive to closest town 1x a wk)- $350
Repairs- Car/House. heavy snow country in the sierra's, many repairs- $175
Incidentals/Food/Clothes/Groceries- $800 (just to survive- for 2 people, no food banks here. Ill health requires certain food/vegetables)
Internet/Landline- $150 (we have Satellite internet, it's all that is available out here in the boondocks)
Auto-Wear and Tear on the Car- $500 per mo. That's if we replace the car with a cheap 6k used car as ours wears out
--------------------------------------------------------------------------------------------------------------------
$2775 per month. We live in the Sierra's so endure heavy snow every winter.
It limits his work ability to working just half the year.
I work all year. We both commute is 3 hrs 15 min per day to the nearest town with services.
We cannot move. Our biological son is mentally disabled. He cannot live alone without being checked on, we choose to take him to some appointments to ensure all is good, etc. During the snowy winters for 6 months, we only see him a few times a month since its so difficult to drive here. We usually go to him bringing dinner, cleaning up his home, etc. He owns his house.
He lives 2 hrs away and we see him 1x a week when he's over for dinner or we stop by his house
Which route should we plan to go in retirement?
1. DH and I take SS early for a combined Social Security amount of about $2300 per mo.
How can we live off of $2300 when our EXPENSES are $2775 per month?
- Eliminate driving. Take our County Bus into town 1x a wk to the nearest town with services. Change doctors to this town.
We'd drive illegally, occasionally, but only within our small 125 population town and to visit our son late at night if he doesn't show for dinner during half the year when the weather permits. About 10 people here drive illegally, mainly just within 2 mile radius downtown the post office for example during a snowstorm. It's almost impossible to have any issues so the Cops ignore it.These are honest hard working individuals who take the County bus 1x a week into the nearest town, 1.5 hrs away, with services. Most of us either ride a bike into town, drive, or occasionally some off-road vehicle (though technically it's illegal but often most ignore it if it's a Senior who cannot walk)
-Biggest Benefit. Medicaid will cover All his expenses after he pays for Part B.
I am covered thru retiree medical for $20 per month starting at 65.
Other option is a $125 Medigap Policy, the cheapest option and it leaves open a 3k out of pocket. Almost useless as you pay for most everything.No advantage plans offered. He has some health issues already so this is great peace of mind.
-Low income Discounts: Example 10% off opower bill= $15 per month (we otherwise use Karosine heater, and Propane too). $17.50 discount on our landline phone. $30 discount on our $85 Satellite internet (no other options out here).We pay full price for everything like most people do but doing the research, these discounts are valuable. We would never consider signing up for Food Stamps
-IRA. I have a 50K balance in my IRA. At age 75, when DH is dead or possibly almost ready to die to health issues (though he eats pretty healthy)- it should be about 180K by then at 6.5% interest.
I will rely on this IRA to make my $1400 a month house payments for 5 yrs until the Mortgage is paid off. If he outlives me, thru a miracle, it would be vice versa. We are okay when I hit age 80 and he's hit age 87.5 yrs old.
2. Assume I can work this physical job until age 65 and he takes his SS at age 70. My legs are sore right now so that is about 10 yrs away. Our combined SS would cover our expenses but we'd only have a pretty small cushion of $275 per month leftover each month cutting it pretty close. Pay 100% of bills as we've always done with no low income discounts, No medicaid discount.
I contribute a little to a work 401K. Plan is to use that balance buy an electric car or hybrid for 20-25K. This would reduce the gas costs listed above giving us a better cushion. However we would not be able to be home growing any vegetables. Not a great place to grow stuff but it can be done and does help lower our food bill. He grows some herbs/sprouts/broccoli/kale already
KEY- We risk paying out of pocket for his MEDICAL which is the main thing that concerns me IF I cannot work until age 65. I'd want to take my SS at age 62 to qualify for low income discounts if I cannot work until age 65. Hopefully around age 62, I'll have an idea. Go over taking my SS at age 62, and we loose ALL Of those discounts. We could go into the hole. So it needs to be either/or.
Of course if I can continue working this very physical job until age 65 (we are forced to retire after that) then #2 is our hopeful plan but is it too risky?? Do you think I ought to just take SS at 62 and quit working to qualify for the low income stuff? I could not continue to contribute to SS or we'd go over and loose ALL of that going into the hole. Being right on the cuspid is the worst financial place to be. Either go poor or pay for everything with a good $250+ cushion (which I know is low, esp. for here in Calif)
The Mortgage is paid off when I am 80 yrs old. DH will surely be dead by then at 87.5 yrs old. He's got some health issues now so I expect he will live until about early to mid 80's max. So the expenses will go down by 1k a month without a Mortgage.
IRA
50K balance currently. Gains average about 6.5 to 7% per year. At my age of 75, it will have likely grown to about 180K.
At age 80, no more Mortgage which I'll assume saves about $800 per month. I will be okay when he passes away.
I also have very good Retiree Medical benefits so am not concerned about loosing Medicaid or any low income discounts.
Of course if I can continue working this very physical job until age 65 (we are forced to retire after that) then #2 is our hopeful plan but is it too risky?? Do you think I ought to just take SS at 62 and quit working to qualify for the low income stuff until I hit about age 75-80 when I/we no longer qualify?
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not enduring the almost record snowfall we have here. Thanks again