Can you share your experience if you retired from Ford and you are younger than 65. Thanks.
Income, healthcare insurance, deductible, 401K, pension lum sum or monthly payment from Ford, other expenses.
22 replies (most recent on top)
"I know some people have insanely high medical costs in retirement primarily caused by poor diets. Focus on health to save $ and future pain and regrets."
I have no debt and good health, but my insurance is not cheap. My expenses are more like $35K per year considering everything you mentioned. I don't see how your generalized statement is helpful at all.
After the only thing you’ve put in your mouth for a year has been water, vegetables, fruit, beans/legumes, mushrooms, rice (and other whole grains - not processed beforehand) come back and tell us how your health is.
Sadly we are attending yet another coworkers wake who had died at 52 of heart attack. He had a slew of diet induced diseases. Started with in his 30s with high blood pressure and high cholesterol, then diabetes, then edema, then cancer, then clotting, then mini strokes.
You have to love yourself enough to take care of yourself. Most doctors just hand out pills and procedures as they don’t think patients will listen to dietary advice (and of course there is no financial gain for them if the doctor is motivated by money). All the pills have side effects and long time use is not good.
Choose your hard.
@3ymi+1jj6G98U
"I know some people have insanely high medical costs in retirement primarily caused by poor diets. Focus on health to save $ and future pain and regrets."
And some of us have high health care costs thru no fault of our own. What an A$$h*le!
If you are retired and have no debt what expenses do you have? There is electricity, natural gas, water/sewer, phone, cable, city taxes, house insurance, car insurance, medical insurance, car and house maintenance and groceries. After that it is all optional/fun spending.
I do my parents taxes and they are living well retired in MI on $14K in their 70s. Dad spends his time fishing and woodworking. Mom spends her time gardening and bird watching.
I know some people have insanely high medical costs in retirement primarily caused by poor diets. Focus on health to save $ and future pain and regrets.
Dude that’s an S-ton of beer!
@2diz+1jj6G98U I don't know how anyone could live on $15,000/ yr in Michigan! I spend more on beer than that! LoL
Wow @2gwg $5K a month? We are debt free. After DH retired we are spending 1350 a month, when the HRA runs dry that will increase 700 a month as we are paying medical premiums from that. That would be 2050 a month. We plan to do some serious traveling starting in 2023 so I could see getting up to $5K a month.
Contrast to when DH was working we were averaging 3500 a month (also debt free).
The main differences are around commuting, eating out, office attire and retail therapy.
Now he is too busy with hobbies and activities to spend money :-)
I will be retiring this year as well. Our marriage rule has always been to live off of one salary so mine always goes to savings.
DH took the pension which is 3500 a month. I will take the lump sum.
@2phc+1jj6G98U
I also have no debt and know that I could live on $5k/month, but I wouldn't want to HAVE to live on $5k/month which probably explains why I HAVE to keep working. :-)
@1kdd+1jj6G98U It's easy when you have no debt. It's all part of our plan. By keeping our income low it allows us to convert more to Roth. With the market being down, it is the best time to convert. Converting as much as we can before we get on Medicare to avoid high IRMMA's.
Please keep your tin-foil hat theories to yourself. I’d hate to see this board ruined by fantasy and ridiculous conspiracy ideas.
Need to get another JOB to bridge the difference to 65.
Now the GOP want to cut social security AND Medicare.
Life is looking real rosy for the next years until I turn 65 and beyond !
"Scalise acknowledges GOP plan to change Social Security, Medicare
As the midterms elections near, voters don't appear focused on Republican plans for Social Security and Medicare. That's probably a mistake."
https://www.msnbc.com/rachel-maddow-show/maddowblog/scalise-acknowledges-gop-plan-change-social-security-medicare-rcna52578
@pdv+1jj6G98U
Living on 5K per month is quite impressive.
@1zme+1jj6G98U If you do some digging into your actual retirement benefits, you will learn that you do indeed get help for medical after you retire. Ford offers a reimbursement account to you. The value of the account grows with your years of service and your salary. Go read your retirement plan document.
Maybe it's time for a new sub: Retiring from Ford with full GRP Benefits... Many of us will not receive this $1000/month health care subsidy from Ford as a bridge to Medicare. For those who will receive full GRP benefits, congratulations. For one minute, just think about those of us who will not receive pre-medicare health care subsidies, before complaining about the cost of your health care.
@mwo+1jj6G98U I use rule 72T Google it. :) It's not the best deal as I have to continue taking the same amount out every year for 5 years whether I want to or not. It works, and it allowed me to retire early, so I'm not complaining. I could have left my money in my 401k and used the rule 55, but I wanted to move it to Vanguard to have access to more funds.
@otl+1jj6G98U I used the Vanguard Robo Advisor and it set up my funds for me. It is diversified for my situation. I have mostly index funds and a couple of bond funds. Also, a cash reserve of 5 years worth of income.
If 401k is rolled over to an IRA rule of 55 is not applicable to IRA withdrawals and there will be penalty
Meant “without penalty”
Rule of 55. That’s probably how the commenter can access with penalty. That’s what I plan to do at 55, assuming I am still employed by ford at that time.
https://www.investopedia.com/rule-of-55-5324286
@pdv+1jj6G98U
yes, that's great.
Just wondering what you mean by "My gross monthly income from my IRA is $5K." So, you're withdrawing $5k/month from your IRA prior to turning 59.5? If so, isn't there a penalty?
Not doubting or speaking negatively of your plan, just trying to understand.
Awesome. What kind of portfolio did you set up for your $2.7M at Vanguard?
When I left Ford my lump sum was 1.5M, and my 401K was 1.2M. I moved my funds over to Vanguard and I use their Robo Advisor. My gross monthly income from my IRA is $5K.
My only expenses are my medical insurance (ACA), my property taxes, utilities, food-including eating out , and gas for my car. I normally have $1000 left over each month. I reinvest $500 of it into my brokerage account. Retired in 2020, I am 57, wife is 55. No kids left at home. My medical cost is $470 a month after Ford contributes $1000/month. I plan to collect Social Security at age 70. Hope this helps!
I will share that medical insurance from Healthcare.gov (Ford kicked salaried retires under 65 off their plans in 2022) for BCBS plan comparable to what I had when working is $770 month per person. Deductible is $7k. Based on age/county you live in
New plans/prices come November 1st and are expected to increase 10%. Dental insurance is $35/month and covers pretty much nothing so I don't have it. 6 more years until Medicare.
But Ford values my service ..