cronewitch
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Post by cronewitch on Mar 31, 2016 21:38:02 GMT -5
We all need to live below our means not just a little below but cushions so every thing isn't tragic. I remember working with a woman who had disasters all the time. Things that most of us just fix to her were problems. I would go home and find I needed a washing machine or something and think, they don't last forever it was about time to die, if she needed a new tire for her car she would be stressed for weeks. Living on the edge is fine when you are 18 and have parents who have your back but not retirement. I was just looking at a posting for a $500K condo with water view walking distance to the public pier I like to shop at. Old house is worth maybe 400K and I owe 121K so I might put down nearly 300K but property taxes are over 6K and dues are 6K a year. This could take me from having so much income/assets I never need to worry or back to worry. It is really nice hardwood floors and the only unit with access to the roof beautiful was the owners unit. To live there I would need all new furniture since I don't have anything I love enough to move it.
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cronewitch
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Post by cronewitch on Mar 31, 2016 22:23:39 GMT -5
I'm 43, planning on retiring at 67 but wouldn't mind doing it sooner if I can afford it. I don't have a million saved, I don't have anywhere near it. I may hit 200K by the end of this year, if I'm lucky. I'm single with no dependents so there won't be anyone to take care of me in my dotage!
I've had a Roth for about 7 years now and have been maxing it for the past several years and will continue to do so. My employer contributes 10% to a 401k and I'm contributing another 10% myself. I am hopeful that 25 years of contributions and growth will make a difference. You will be shocked how much it can grow when you are doing well already. At your age I had less than 10K in IRA never had 401K saving 2K a year. Then got a 401K that was 15% for a year or so then laid off. So when the ROTH was invented I had 67K total to covert but could start saving 5K a year instead of 2K. I could afford to save but had high interest mortgage and bought boats and stuff. I got another 401K at the new job for a year or two in my late 40s. So at 54 I had about 100K saved and the new job had a 401K I had to wait to join the first year. Then they changed the plan so instead of 15% we could put in 13K plus 6K to IRA and every year they increased the amount of 401K so when retired I was putting in 23K or so. Since my mortgage rate was lower and mortgage amount was small I could save half my income, I refinanced to invest 114K once so at 60 I had about 400K, then the markets fell so I had way less but was saving 30K a year or more so with the market recovery and profit sharing 15% and putting more in I was growing my accounts like crazy. One year they went up 150K it was 2013 the year my mom died and I got 100K from that so a quarter million in a single year. I had 946K at 65 when at 50 only 100K. Once your life gets on the level where your mortgage is small and no car payments or other debt with a little good luck you can do more than you dreamed. Unless you are a big spender your 10% will become 20% or more maybe 50% plus employer 10% the next 200K will take way less time. Investment growth starts to kick in as much as you are so save 30K and it grows 30K you are saving 60K a year or 600K in 10 years not 25 years.
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Plain Old Petunia
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Post by Plain Old Petunia on Apr 1, 2016 0:29:26 GMT -5
We all need to live below our means not just a little below but cushions so every thing isn't tragic. I remember working with a woman who had disasters all the time. Things that most of us just fix to her were problems. I would go home and find I needed a washing machine or something and think, they don't last forever it was about time to die, if she needed a new tire for her car she would be stressed for weeks. Living on the edge is fine when you are 18 and have parents who have your back but not retirement. I was just looking at a posting for a $500K condo with water view walking distance to the public pier I like to shop at. Old house is worth maybe 400K and I owe 121K so I might put down nearly 300K but property taxes are over 6K and dues are 6K a year. This could take me from having so much income/assets I never need to worry or back to worry. It is really nice hardwood floors and the only unit with access to the roof beautiful was the owners unit. To live there I would need all new furniture since I don't have anything I love enough to move it. If you bought it with a reverse mortgage, you would only need to put about 250k down. Maybe less. No payments to make. Just sayin'.
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cronewitch
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Post by cronewitch on Apr 1, 2016 2:50:37 GMT -5
We all need to live below our means not just a little below but cushions so every thing isn't tragic. I remember working with a woman who had disasters all the time. Things that most of us just fix to her were problems. I would go home and find I needed a washing machine or something and think, they don't last forever it was about time to die, if she needed a new tire for her car she would be stressed for weeks. Living on the edge is fine when you are 18 and have parents who have your back but not retirement. I was just looking at a posting for a $500K condo with water view walking distance to the public pier I like to shop at. Old house is worth maybe 400K and I owe 121K so I might put down nearly 300K but property taxes are over 6K and dues are 6K a year. This could take me from having so much income/assets I never need to worry or back to worry. It is really nice hardwood floors and the only unit with access to the roof beautiful was the owners unit. To live there I would need all new furniture since I don't have anything I love enough to move it. If you bought it with a reverse mortgage, you would only need to put about 250k down. Maybe less. No payments to make. Just sayin'. Thank you for the kind suggestion, I will keep that in mind.
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Plain Old Petunia
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Post by Plain Old Petunia on Apr 1, 2016 10:39:15 GMT -5
If you bought it with a reverse mortgage, you would only need to put about 250k down. Maybe less. No payments to make. Just sayin'. Thank you for the kind suggestion, I will keep that in mind. I'm just saying if you want that condo, you have enough to make it work.
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beccazan
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Post by beccazan on Apr 1, 2016 15:02:07 GMT -5
I definitely won't have 1M when I retire, but will still be pretty comfortable. I, too, have a pension (military) which I've been already getting since age 38. In addition to that, I have been investing in an IRA and civilian 401k and am optimistic that I'll have at least $500K when I retire (thinking around 65 if not sooner!). I don't think I'll have any problem living on the pension, investment withdrawals and SS. I also have Tricare for Life for health insurance and a LTC policy to help cover any later-in-life expenses. Good luck!
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jelloshots4all
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Post by jelloshots4all on Apr 1, 2016 20:21:49 GMT -5
All I can say is start early, and even later in life, invest as much to get your employers 401k match, and more if you can. As Crone stated, it compounds. My goal is $2M, but doubtful that I will really need it, as I am single and kids will be on their own!
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Ombud
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Post by Ombud on Apr 2, 2016 9:10:16 GMT -5
Thread made me look! I have 2670 in monthly pension, will get 2300+ in SSA in 6 yrs so that's 5K A MONTH! Can I afford to retire now? What to do with my time?
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Gardening Grandma
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Post by Gardening Grandma on Apr 2, 2016 10:28:57 GMT -5
Thread made me look! I have 2670 in monthly pension, will get 2300+ in SSA in 6 yrs so that's 5K A MONTH! Can I afford to retire now? What to do with my time? Now? Only if you can live on $2670/mo. If $5K/mo will cover your living expenses, yes you could retire in 6 years. Does your pension have a cola? If not, I'd develop a plan to deal with inflation (the SS cola will help, if Congress doesn't change it). "What to do with my time?" is a really important question. I don't think people consider it as much as they should and sometimes there's a big adjustment to make.
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Ombud
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Post by Ombud on Apr 2, 2016 12:38:38 GMT -5
Thread made me look! I have 2670 in monthly pension, will get 2300+ in SSA in 6 yrs so that's 5K A MONTH! Can I afford to retire now? What to do with my time? Now? Only if you can live on $2670/mo. If $5K/mo will cover your living expenses, yes you could retire in 6 years. Does your pension have a cola? If not, I'd develop a plan to deal with inflation (the SS cola will help, if Congress doesn't change it). "What to do with my time?" is a really important question. I don't think people consider it as much as they should and sometimes there's a big adjustment to make. The COLA maxes out at 4% but if I try to live on it then my traveling days will be limited to just me (usually 8) & within USA
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hurricanegirl
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Post by hurricanegirl on Apr 3, 2016 6:08:46 GMT -5
Ombud is 6 years your FRA?
have you ever "played around" with a retirement budget?
IMO we should start that play retirement budget approximately 5 years prior
Compare that pretend budget to your actual spending, and then pay attention to the overages, Is it all discretionary spending? Can you live without or cut back on those items?
I was forced into retirement 5 years earlier than I planned and my "play budget" helped me a lot when it became my actual budget unexpectedly
Health insurance and (in my case) prescription drugs can be the biggest challenge,,,,even AFTER Medicare and part D with that horrid Medicare donut hole
my DH is in the donut hole as of 4/1/16 and I just paid $437.49 for a one month supply of one of his many prescriptions. I estimate I will spend $3000 before we exit the donut hole (September ish) and go back to a more normal copay
so
How will you handle your insurance needs between now and 65 if you cut the cord?
what will you do with your time?
you would be surprised at where the time goes and how did I ever do all of this while employed?
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Ombud
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Post by Ombud on Apr 3, 2016 6:36:02 GMT -5
Great questions! In 6 yrs I'll be 70. So I guess this is time to get real. Think I need to start by looking at what I'm spending again. Realistically not some ideal.
FWIW My pension has a built in HMO so that's covered. From what I understand I'll miss the donut hole but will be required to sign my Medicare over to them. Right now I only get 1 script every 6 months (he orders 20mg but I split that to keep my cholesterol in good range)
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TrixAre4Kids
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Post by TrixAre4Kids on Apr 4, 2016 18:27:26 GMT -5
I retired four years ago at 56 with $590k (about 15x expenses) in my retirement accounts. That has grown to $673k now. I have only taken one withdrawal $26.5k, the beginning of 2015 for some big expenses. $10k to pay off my car, $4k in major dental work (YAY Mexico!), new tires for my motorhome & car and $7k to cover the tax on the withdrawal from my 401k.
When I retired in 2012 I sold my condo, spent half the equity to buy the motorhome and banked the rest. The past 3 years I've been traveling the US. I mostly boondock, which you might know as 'wild camping.'
I have a non-cola'd pension of $28.8k, and rental income of about $11k. The rental is a small condo that I own, worth about $140k. I may sell it at some point if I ever find the ideal parcel of land I've been looking for, but it's a comfort to me to have it as a 'fall-back' position if I ever decide to hang up the keys.
My SS will be $1700 at 62, and $2270 at FRA. Not sure when I'll take it, it really depends if I buy property or not. I need to read up on those changes I guess. Have there been any recent threads on SS?
I have UHC health insurance as part of my retirement (YAY unions!), the premium has crept up to $300/month in the past four years. No copay, and they put $1k a year into my spending account. The deductible is $1500/year.
I'm still 5 years from medicare, who knows what it will be like when I get there.
Overall, if I didn't have the pension, I would not retire without at least 25x expenses in my retirement assets (not including a residence), and like cronewitch, I like to have a cushion.
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plugginaway22
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Post by plugginaway22 on Apr 4, 2016 18:39:29 GMT -5
Trix, I remember you from way back! Thought it sounded amazing to travel around, and here you are still doing it. Are you alone? Do you go where you have friends and family? Would love to hear more about your lifestyle!
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sapphire12
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Post by sapphire12 on Apr 4, 2016 20:14:16 GMT -5
Trix, It sounds like you are enjoying your retirement!
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TrixAre4Kids
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Post by TrixAre4Kids on Apr 4, 2016 20:34:03 GMT -5
Hi Plugginaway22, it's nice that somebody remembers me, thanks!
I travel with my two cats, guess I'm on my way to being a crazy cat lady.
I joined a couple RV organizations while I was researching the lifestyle, RV-Dreams and Escapees. I've been to four rallies and have met loads of other rv'rs. Pretty much now where-ever I go, I know someone in the area. It helps that we all tend to head south in the winter and north in the summer! Facebook and RVillage are how we keep in touch.
I traveled a lot of miles my first year on the road, from PNW to the southwest the first winter, then I headed east and north. I summered in New England followed by Florida for the next winter. I've been able to spend extensive time with cousins in Illinois and Louisiana along the way that prior to this I've had little contact with. It's been wonderful to reconnect with them.
As is typical with most full time rv'rs tho, I've slowed down my pace. I'm not in a frantic race to get from here to there anymore, missing cool stuff along the way. I stay in each new place a longer time exploring the local sights.
Even so, my bucket list keeps growing instead of shrinking. I never thought I'd be on the road this long when I started out, but I haven't found that perfect someplace to settle down yet and I'm perfectly happy to keep traveling until I do. Let me know if you have any specific questions and I'll do my best to answer them.
Ah well, sorry to don't get to see my view after all!
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Ombud
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Post by Ombud on Apr 4, 2016 22:00:06 GMT -5
Here's what I must pay each month: PGE 228 ATT 83 ATT GS1 66 Comcast 95 H2O 40 Garbage 25 Impound Prop tax /earthquake ins 300 Auto / home / umbrella / music instrument insurances 177 Gardener 120 Gas 100 Food 100 Starbucks 100 Charity 50 Net pension 1944 + only a 3% COLA this year (each May) Leaves only $460 Seriously thinking about trying retirement or seasonal work, obviously cannot afford to completely stop yetHas anyone in addition to TheOtherMe done it? Did it work out as planned? I think it is working out for her. It's a big step
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CCL
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Post by CCL on Apr 5, 2016 4:06:01 GMT -5
Why not try living on a "retirement" or "part-time" budget for a while and bank the difference? Say you make $5k and minimum bills are $2K plus $1.5k for spending, groceries, etc, so you need $3.5k. Then put the extra $1.5k in savings as an extra cushion for when you actually do retire completely. That would give you some idea of how you will manage with less income.
Even though he took a big paycut, we were fine because we were already saving a good portion of his previous pay.
After a while we got tired of our big house and sold it, buying a smaller one. That cut our expenses, as well.
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resolution
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Post by resolution on Apr 5, 2016 6:26:11 GMT -5
Here's what I must pay each month: PGE 228 ATT 83 ATT GS1 66 Comcast 95 H2O 40 Garbage 25 Impound Prop tax /earthquake ins 300 Auto / home / umbrella / music instrument insurances 177 Gardener 120 Gas 100 Food 100 Starbucks 100 Charity 50 Net pension 1944 + only a 3% COLA this year (each May) Leaves only $460 Seriously thinking about trying retirement or seasonal work, obviously cannot afford to completely stop yetHas anyone in addition to TheOtherMe done it? Did it work out as planned? I think it is working out for her. It's a big step Are you willing to take a modest withdrawal on your retirement investments, something like 2-3%, or are you set on never withdrawing them and leaving them as inheritances? I don't remember how much you have saved, but I am under the impression that it is enough to make this budget work very easily. How much would you receive from small, measured withdrawals?
I don't think it is feasible without a plan to dip into savings or work seasonally/part time. Some of your categories are really tight, like $100 a month for food.
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Ombud
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Post by Ombud on Apr 5, 2016 6:36:57 GMT -5
Good idea! I'll be fine once I hit SSA but not so sure b4 then. That 'extra' goes every month with dining out / travel / SF / misc house stuff. 2% withdrawal would add 1k per month so you can see I'm way under 1m
FWIW: It's not really a budget it's what I spend on average per month (I'm a vegetarian in California so my yard is helpful, hence 120 for the gardener)
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TheOtherMe
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Post by TheOtherMe on Apr 5, 2016 17:53:40 GMT -5
Here's what I must pay each month: PGE 228 ATT 83 ATT GS1 66 Comcast 95 H2O 40 Garbage 25 Impound Prop tax /earthquake ins 300 Auto / home / umbrella / music instrument insurances 177 Gardener 120 Gas 100 Food 100 Starbucks 100 Charity 50 Net pension 1944 + only a 3% COLA this year (each May) Leaves only $460 Seriously thinking about trying retirement or seasonal work, obviously cannot afford to completely stop yetHas anyone in addition to TheOtherMe done it? Did it work out as planned? I think it is working out for her. It's a big step Once I got used to being paid monthly instead of 26 times a year, it got much easier. It's just me and the cat (who cost me $100 today). My federal pension is a CSRS pension so we usually get a COLA annually. We didn't this year. I do have health insurance through FEHB, but will be checking in the fall to see if I am better off going with a local plan and getting Medicare Part D for my scrips. I am afraid of the donut hole though. There are things I have cut out and things I am working on cutting out (like Paul McCartney for example). He is older than me, but I can't keep up with him! Until I moved here, except for the years I was fighting for my life healthwise, I have worked part time jobs. This is a small town, where everybody knows everybody. It's been very difficult to find part time work. The one I had at the college did not work out. I followed a very popular person and nobody taught me the job. I got the worst evaluation of my life. I saw the handwriting on the wall and resigned. It wasn't worth it for less than $10 per hour and no benefits. The last two years, I've had the tax season job. I still don't understand why I was told my position had been done away with. I was told I could apply for two other seasonal positions, neither of which I wanted and they knew it. I do work part time at the church. I make about $3000 per year. I did get a $2 per hour raise this year, so that will go up. As long as the church is in existence, they will keep me. They had a difficult time filling the position. It was a case of knowing somebody there. My sister and BIL are members of the church. When I told the pastor that, he said he didn't want any references. Most likely, I will never draw social security because I paid in to CSRS. All the years I worked part time can not over come the WEP offset until maybe when I am 70.
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hurricanegirl
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Post by hurricanegirl on Apr 6, 2016 3:42:49 GMT -5
the other me - does your FEHB insurance include a prescription plan.
If so and regardless of premium savings you might be better off keeping it, if you fear falling into the donut hole with Part D
I just read an article about the 200% increase the last few years for insulin (DH is diabetic and we just entered that horrid hole)
even though the donut hole will "shrink" over the next few years - in 2020 we will still be responsible for 25% of a (now) $1000 a month - so if drug costs continue to increase that 25% will not necessarily mean that your OOP expense decreases.
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hurricanegirl
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Post by hurricanegirl on Apr 6, 2016 3:57:26 GMT -5
OTOH, Medicare A and B (I do not have a supplement) but am in a Medicare Advantage program, is wonderful
In November I fell - tripped over the cat - and broke my pelvis
spent 4 days in the hospital and two weeks in the nursing home
according to my EOB's of the $43,000 which negotiated rates lowered to approx. 50% of that amount I am only responsible for approx.$600.00. my co pay for ambulance was $250, my co pay for outpatient PT was $220 and a $13 co pay each for zillions of x rays. and somehow an $8000 charge from hospital was denied but EOB clearly states I am not responsible - I don't understand how or why, but do not really care, either
I was very surprised and pleased with that outcome
Not bad coverage for $104.90 month. My HMO Medicare Advantage plan has a -0- premium
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whispering17
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Post by whispering17 on Oct 8, 2017 18:50:14 GMT -5
As I stated, my DH had passed away. I started collecting his pension and my pension while I was working. His life insurance was in a separate bucket. My paycheck went to my 401k exclusively. I lived off the pensions.....very frugally. I put the rest to work and saved every darned nickel I got my hands on. All my bills were paid...no car payments, no credit cards. I retired a year earlier than I wanted too because my boss was an ass. But I had all ready had a stroke and did not want another so I retired at 67 1/2 years old. I have n3ever regretted it!!
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zibazinski
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Post by zibazinski on Oct 8, 2017 18:58:44 GMT -5
What is the "donut hole?"
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Blonde Granny
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Post by Blonde Granny on Oct 8, 2017 19:15:33 GMT -5
I don't know if Medicare part D still has the "donut hole" since I have the VA for my meds.
Donut hole was a dollar amount, somewhere around $2500 a 3000 where you had no drug coverage until you paid some outrageous amount out of pocket until $4500 or so. Then part D would kick back in.
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ilovedolphins
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Post by ilovedolphins on Oct 8, 2017 19:18:39 GMT -5
I will never have a million in my entire life. I hope to retire with at least $400,000. Depending on how life goes.
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zibazinski
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Post by zibazinski on Oct 8, 2017 19:41:39 GMT -5
I don't know if Medicare part D still has the "donut hole" since I have the VA for my meds. Donut hole was a dollar amount, somewhere around $2500 a 3000 where you had no drug coverage until you paid some outrageous amount out of pocket until $4500 or so. Then part D would kick back in. Omg
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Tennesseer
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Post by Tennesseer on Oct 8, 2017 19:41:43 GMT -5
Donut Hole is still there.
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dee27
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Post by dee27 on Oct 8, 2017 19:44:09 GMT -5
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