giramomma
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Post by giramomma on Apr 5, 2022 10:47:42 GMT -5
Details: Age 46, almost 47.
Age of kids 4, 10, 14, 18 (rounding up for spring Bdays) Married.. Saving "for the kids" not a concern, unless the stock market complete falls apart. Even then, probably still not a concern.
Our NW has crossed the 7 figure mark. That includes house equity, but not the cash value of my pension. We have about 850K in accounts, excluding the cash value of my pension. We have some of everything.
Cash value of my pension right now is about 100K, maybe more.
I started working for the state at 25.
I can retire at 55.
I cannot receive my pension before 55.
It sounds like I can also buy out up to two years of my pension.
Paying off our mortgage does nothing. Principal and interest is $400 a month.
Health insurance: I am three years away from hitting the magic number of accrued sick days that would allow me to keep my workplace insurance as a retiree. I was just told my health insurance costs would be 0. I'll believe it when I see that in writing.
I can also pay the premiums if I can't get enough sick leave to convert: 2K/month if I'm not on medicare. 1.2K on medicare. Cost has been stable for a decade. Comfortable with those numbers. Health: I'm waking up every day, but that is not a guarantee. I've used up 60% of my life-time supply of the traditional chemo cocktail for breast cancer. I have a mutation. Colon cancer could also be a thing for me. I'm going to be monitored pretty carefully. Risk of re-occurance is still fairly low (I was quoted about 2% as long as I take care of business).
That said, my dad did really well with treatment and was within a year or two of having an average male life span, even with having terminal cancer. Question: I could be in a position where I would want to completely downshift at 53. Meaning, I'd retire from my day job, and buy out whatever I needed to to get my full pension.
Me teaching, plus DH working part time, and passive income would give us conservatively 2.5K a month.
Worst case, health insurance would cost us 2K a month. We might be able to switch to DH's workplace health insurance. That would cost us 900 a month. This means we would need another 2.5K-3.5K a month, depending.
Where would you put money in now, that could cover a 3K deficit for 1-2 years, 6 years down the road? We have about 10K a year to work with. With kids getting off our dime, I could try to squeeze out more money.
I know, it is convoluted. Such is my life.
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jerseygirl
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Post by jerseygirl on Apr 5, 2022 11:24:12 GMT -5
Not answering your question about early retirement but is it possible to get a lump sum instead of pension payments? Lump sum allows you to invest possibly increasing available funds plus any funds remaining go to your heirs. I was able to get lump sum Jerseyguy couldn’t. My lump sum increased a lot and I can take more monthly than the pension would have paid plus amount is still growing and will be able to leave a good amount to our kids. Jerseyguy just keeps getting the same payment no COLA snd amount seems to be less each year and with inflation increasing will be sadly meager as time goes by
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Post by minnesotapaintlady on Apr 5, 2022 11:43:06 GMT -5
Husband works FT those two years? Childcare wouldn't be an issue anymore. Otherwise, can't you just use the taxable account during that stretch? I would put the 10K in I bonds if you already have a lot in stocks.
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giramomma
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Post by giramomma on Apr 5, 2022 12:46:17 GMT -5
Husband works FT those two years? Childcare wouldn't be an issue anymore. Otherwise, can't you just use the taxable account during that stretch? I would put the 10K in I bonds if you already have a lot in stocks.
DH works part time, 20 hours. Childcare hasn't been an issue since the peanut was 2, about 8 years ago. At that point, we couldn't afford childcare anymore.
He makes about 18K a year.
Going full time could be an option, too. But, that's only if he would have to. I could generate more money teaching. My teaching in my original post was 10 hours a week. I could work more than that. But, there is a limit to potential working hours. (ie, I can't teach school aged kids during the school day).
Other options for generating income include doing work like being a crossing guard (nearly 20/hour with access to a pension, health insurance, etc for 20 hours a week) or being a substitute office lady in the public schools, or being a substitute classroom aide. Substitute aides for mainstream rooms get paid $14/hour; special ed, it's like 16/hour. Always demand. Before the pandemic, they were even paying bonuses if you completed all the jobs you signed up for. I'd have to get my teaching license to be a sub. Which could also be a thing. Pay is $100 a day. It would be more efficient for me to find more kiddos to teach. Basically, at some point soon, I want to be in control of my schedule and not work summers at all. I'm not sure I could negotiate a 9 month appointment at my job. That could be an option. Pension is based on 3 highest years of income. Not last three years of service. I've made a note of the bonds. I was thinking that while I was typing.
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CCL
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Post by CCL on Apr 5, 2022 12:56:47 GMT -5
So if you can buy 2 years on the pension would you still get the zero-cost health insurance? Then you'd have to work 5 more years? Speaking from experience, hubby's pension/insurance is the only thing that allowed him to retire.
You've been thru so much already. Why not let your husband work more and you work less?
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Post by minnesotapaintlady on Apr 5, 2022 13:00:36 GMT -5
Husband works FT those two years? Childcare wouldn't be an issue anymore. Otherwise, can't you just use the taxable account during that stretch? I would put the 10K in I bonds if you already have a lot in stocks.
DH works part time, 20 hours. Childcare hasn't been an issue since the peanut was 2, about 8 years ago. At that point, we couldn't afford childcare anymore.
He makes about 18K a year.
But wasn't the reason he only worked PT was so you wouldn't have to pay childcare?
I'd say "Tag! You're it!"
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giramomma
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Post by giramomma on Apr 5, 2022 15:05:40 GMT -5
DH works part time, 20 hours. Childcare hasn't been an issue since the peanut was 2, about 8 years ago. At that point, we couldn't afford childcare anymore.
He makes about 18K a year.
But wasn't the reason he only worked PT was so you wouldn't have to pay childcare?
I'd say "Tag! You're it!"
Yes. But, also he will be the one transitioning to the care of his parents, and depending on what happens after my mom dies, he may have to take on what he can there. Even if it's doing things like helping me install internet/wireless so that I work down there for a while coordinating things. My inlaws are not the spry old folks you are used to.
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debthaven
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Post by debthaven on Apr 5, 2022 17:43:12 GMT -5
IMO giramomma it's his turn now. You have ALWAYS been the breadwinner, not to mention the fact that you've always had several jobs. I know DH's parents have been very generous with you and your kids. I still think it's his turn now. If you need to change things up again later, you will.
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giramomma
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Post by giramomma on Apr 5, 2022 18:47:35 GMT -5
So if you can buy 2 years on the pension would you still get the zero-cost health insurance? Then you'd have to work 5 more years? Speaking from experience, hubby's pension/insurance is the only thing that allowed him to retire. You've been thru so much already. Why not let your husband work more and you work less? See, that's what I don't know about yet. The person I talked to today is supposed to call me back next week with more details about the health insurance stuff. That's one the areas I don't have clarity in.
We did talk about my husband working full time if I can't deal with my work situation. We are just still mulling things over. I've been so locked into one path that it never dawned on me that there could be other choices. It appears that I have more choices than I ever thought possible. It's a little paralyzing.
I need something to keep me busy though. Netflix and knitting aren't enough to keep me focused in the present so that I don't turn into a puddle every time I have a medical check up. Although I am enjoying catching up on oscar nominees for best picture.
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TheOtherMe
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Post by TheOtherMe on Apr 5, 2022 21:11:49 GMT -5
giramomma I will drive over in late May early June when I return from my vacation. We can have coffee on a patio.
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giramomma
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Post by giramomma on Apr 12, 2022 10:14:26 GMT -5
So. I just got off with the benefits person. I cannot buy out time like I thought I did. If everything holds, I should have about 4 years of paid health insurance premiums in retirement. (At least I don't have to worry about another oopsie, lol!)
Heath insurance will run 2K a month before I turn 65 and 1.2K a month starting at 65. I am not worried about absorbing the cost at 65.
They count my three years highest pay, not my last three years of service. Our child costs should dramatically decrease in 10 years...it will be one kid in HS...no more private school tuition. The question really becomes how many years do I want to pay 24K a year for health insurance premiums, and where is that money going to come from.
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gs11rmb
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Post by gs11rmb on Apr 12, 2022 12:00:36 GMT -5
So. I just got off with the benefits person. I cannot buy out time like I thought I did. If everything holds, I should have about 4 years of paid health insurance premiums in retirement. (At least I don't have to worry about another oopsie, lol!)
Heath insurance will run 2K a month before I turn 65 and 1.2K a month starting at 65. I am not worried about absorbing the cost at 65.
They count my three years highest pay, not my last three years of service. Our child costs should dramatically decrease in 10 years...it will be one kid in HS...no more private school tuition. The question really becomes how many years do I want to pay 24K a year for health insurance premiums, and where is that money going to come from.
That's a lot of money to pay on a drastically reduced income. Do you hate your job? If not, I'd probably just keep working. From other posts it sounds as if your DH sacrificed career opportunities for family responsibilities so it's unlikely he's ever going to be able to serve as the family breadwinner. Could you 'gut it out' until 60? By that time you should have 5 years of health insurance premiums saved up so you won't have to start paying until 65.
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bean29
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Post by bean29 on Apr 12, 2022 12:38:57 GMT -5
Is that $2,000 for Family coverage? that is a great deal - I know it doesn't seem that way, but it is.
What happens if you turn it down when you retire b/c DH is working, but then he is forced to retire or passes before he is 65, can you get back into the insurance?
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giramomma
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Post by giramomma on Apr 12, 2022 13:02:19 GMT -5
The question really becomes how many years do I want to pay 24K a year for health insurance premiums, and where is that money going to come from.
That's a lot of money to pay on a drastically reduced income. Do you hate your job? If not, I'd probably just keep working. I don't hate my job. But, I don't like my work environment. I like the work. I just don't like how we essentially have no direction, no future plans, and I now have 3ish layers of management above me, four, if you include the big dean.
At this point, I want to be able to work in an environment that is nimble and responsive to opportunities. I don't want to work in an environment where by the time everyone approves of the project/opportunity, it will be gone. The current situation won't be for too much longer, the earliest we're going to see change is 2.5 years..So who knows what things will look like then.
I do think that we are past the point of return...in terms of getting back to the "good old days." I would say our unit has been on the decline for the past decade. It might get incrementally better. But, we're never going to get to where we should be.
Some of it too, is I really do not need to be managed in a way that our structure demands that I be managed. But, I think I can live with it. I think a real solution to this is downshifting. I can work half time. I'd still be getting all of my benefits. I'd be making as much as when I started working. Health insurance could run $400 or so a month. But, that's cheaper than 2K. I'd still be earning sick leave, have vacation time, etc.
It could be an option...working part time from 55-57. Now, if I get this job I applied for, I'd be willing to stay a little longer. And a PhD might be back on the table.
If my cancer comes back, I'm not doing what I did this time around. I'm not working 60 hour weeks, on top of treatment. I paid my dues by doing that once. I took less than 10 day off total..to preserve my sick leave for retirement. I think it was probably around 6 days of in 8 months. Two of those days where when I got my port and first chemo in and when I had my lumpectomy.
Not to get all dramatic, but I've worked two jobs from 25 on. I've spent much of my life gutting it out. I worked nearly 9 months straight when I was pregnant with the peanut. I took 5 days off..federal holidays. That's when I was teaching close to 20 hours a week. So, I was working Saturdays and Sundays, too. I'd like stop gutting it out. I am very worried about just stopping working as well. I'm afraid of what sort of decline will happen. Which lands me back at working part time for a while.
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giramomma
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Post by giramomma on Apr 12, 2022 13:05:35 GMT -5
Is that $2,000 for Family coverage? that is a great deal - I know it doesn't seem that way, but it is. What happens if you turn it down when you retire b/c DH is working, but then he is forced to retire or passes before he is 65, can you get back into the insurance? Yup. 2K a month for family coverage. Given that I had $700 of medical bills for my treatment, I am very grateful for it. It's also a non-negotiable for me.
I'm the only one that carries health insurance. DH doesn't carry. I suppose we could look into it..but I think it would take his entire paycheck. (he's a contract worker, part time). Because of that, he's been out of the equation. But, that is a good question to ask, and I should ask it.
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susana1954
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Post by susana1954 on Apr 12, 2022 14:46:34 GMT -5
giramomma, when you talk about downshifting, are you talking about with another company not subject to your pension? I ask that because we can't earn over a certain amount and continue to draw our pension. And if we work half-time or whatever, we only get half of our benefits paid. So if it costs the state $2k for our insurance, they would only pay $1k and I would have to pay the rest instead of the $266 insurance cost me for family coverage when I retired. And, no, they wouldn't let me pay $133 as a half-time employee. And our pension system is far more reaching than just I can't earn that amount teaching. I can't work as a public librarian or police dispatcher or anything covered by the state retirement system and earn more than that amount. (I think it is $24k a year, but I'm not sure.) So if I were you and trying to downshift, I would have to start working for private industry. You could substitute, but you couldn't be a full-time teacher as you suggested earlier for a public school. Every state is different, but you might check it out.
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giramomma
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Post by giramomma on Apr 12, 2022 17:51:52 GMT -5
More things to dive into so I know what my options are or aren't.
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