I'd like to see comments on the issue of early retirement.

First, consumers in their 50s and 60s spend more on healthcare than
youngsters, so they will need a good insurance policy. Around here
that costs around $1000/month. Ignoring taxes because I don't know
what they'll be a decade or more from now, using a 4% withdrawal
factor requires a present value sum of $300,000 just for health
insurance (that's for those who retire today).

Given that number, and looking at a 4% withdrawal factor, future
yearly inflation and obstacles to withdrawing from 401k and IRAs, I
question the practicality of a normal person trying to plan for an
early retirement that comes anywhere near maintaining their present
lifestyle.

On Sep 4, 9:04 am, "HW \"Skip\" Weldon" <skip5700removet...@yahoo.com
wrote:

using a 4% withdrawal
factor requires a present value sum of $300,000 just for health
insurance (that's for those who retire today).

Assuming that a 50-year-old male is just looking to fund the insurance
policy until Medicare kicks in at age 65 and his medical insurance
costs go down dramatically...<snipped

The same male can get an inflation-adjusted single life annuity with
initial benefit amout of $1,000 per month for $253,680. I haven't
found the cost of an inflation-adjusted 15 year annuity, but it
probably is in the $180,000 range.

The bottom line is that he would need to set aside far less than
$300,000 to provide for medical insurance to age 65.

I'd like to see comments on the issue of early retirement.

First, consumers in their 50s and 60s spend more on healthcare than
youngsters, so they will need a good insurance policy.  Around here
that costs around $1000/month.  Ignoring taxes because I don't know
what they'll be a decade or more from now, using a 4% withdrawal
factor requires a present value sum of $300,000 just for health
insurance (that's for those who retire today).

Given that number, and looking at a 4% withdrawal factor, future
yearly inflation and obstacles to withdrawing from 401k and IRAs, I
question the practicality of a normal person trying to plan for an
early retirement that comes anywhere near maintaining their present
lifestyle.

First, consumers in their 50s and 60s spend more on healthcare than
youngsters, so they will need a good insurance policy. Around here
that costs around $1000/month. Ignoring taxes because I don't know
what they'll be a decade or more from now, using a 4% withdrawal
factor requires a present value sum of $300,000 just for health
insurance (that's for those who retire today).

I'd like to see comments on the issue of early retirement.

First, consumers in their 50s and 60s spend more on healthcare than
youngsters, so they will need a good insurance policy. Around here
that costs around $1000/month. Ignoring taxes because I don't know
what they'll be a decade or more from now, using a 4% withdrawal
factor requires a present value sum of $300,000 just for health
insurance (that's for those who retire today).

Given that number, and looking at a 4% withdrawal factor, future
yearly inflation and obstacles to withdrawing from 401k and IRAs, I
question the practicality of a normal person trying to plan for an
early retirement that comes anywhere near maintaining their present
lifestyle.

First, consumers in their 50s and 60s spend more on healthcare than
youngsters, so they will need a good insurance policy.  Around here
that costs around $1000/month.  Ignoring taxes because I don't know
what they'll be a decade or more from now, using a 4% withdrawal
factor requires a present value sum of $300,000 just for health
insurance (that's for those who retire today).

I'd like to see comments on the issue of early retirement.

First, consumers in their 50s and 60s spend more on healthcare than
youngsters, so they will need a good insurance policy. Around here
that costs around $1000/month. Ignoring taxes because I don't know
what they'll be a decade or more from now, using a 4% withdrawal
factor requires a present value sum of $300,000 just for health
insurance (that's for those who retire today).

I'd like to see comments on the issue of early retirement.

First, consumers in their 50s and 60s spend more on healthcare than
youngsters, so they will need a good insurance policy.  Around here
that costs around $1000/month.  Ignoring taxes because I don't know
what they'll be a decade or more from now, using a 4% withdrawal
factor requires a present value sum of $300,000 just for health
insurance (that's for those who retire today).

Given that number, and looking at a 4% withdrawal factor, future
yearly inflation and obstacles to withdrawing from 401k and IRAs, I
question the practicality of a normal person trying to plan for an
early retirement that comes anywhere near maintaining their present
lifestyle.

-HW "Skip" Weldon
 Columbia, SC

On the other
hand, you read about the $80,000 earners who never changed lifestyle as
they worked up from $40,000. If one can save a high (25-30) percent of
income, they may find they are saving toward that 20X number but they
can live on less than half their pre-retirement gross.

I think the health warning is the one to worry about more than any
other. I can plan for a certain lifestyle yet cut back on things like
vacations, dinners out, etc. in bad times, but the rising health costs
are toughest to plan, and will eat into everything else.

I see two issues:

I'd like to see comments on the issue of early retirement.

First, consumers in their 50s and 60s spend more on healthcare than
youngsters, so they will need a good insurance policy. Around here
that costs around $1000/month. Ignoring taxes because I don't know
what they'll be a decade or more from now, using a 4% withdrawal
factor requires a present value sum of $300,000 just for health
insurance (that's for those who retire today).

Given that number, and looking at a 4% withdrawal factor, future
yearly inflation and obstacles to withdrawing from 401k and IRAs, I
question the practicality of a normal person trying to plan for an
early retirement that comes anywhere near maintaining their present
lifestyle.

First, consumers in their 50s and 60s spend more on healthcare than
youngsters, so they will need a good insurance policy. Around here
that costs around $1000/month.

I'd like to see comments on the issue of early retirement.

First, consumers in their 50s and 60s spend more on healthcare than
youngsters, so they will need a good insurance policy. Around here
that costs around $1000/month.

Meidcare premiums and copays are on the same doubling rate,
but starting at a lower amount. The premiums have inreased from
$53 a month to $122 for standard medicare in the past five years. Plus
co-pays are going up. Plus means-testing is phasing in ...

On Sep 4, 6:06 pm, joetaxpayer
At some point, won't costs have to level out? If any one sector grows
faster than the rest of the economy, won't it grow as its share of the
pie, until it crowds out all others?

The US has an insatiable appetite for medical care - basic healing,
extreme healing ($100K drugs for a few extra months of life), looking
good, and sport. 16% of US GDP is now health-related, with
projections of 20% to 25% by mid-century not out of line.

rick++ wrote:

At some point, won't costs have to level out? If any one sector grows
faster than the rest of the economy, won't it grow as its share of the
pie, until it crowds out all others?

* plan waaaay in advance and stick with a career that leaves you with
some benefits, if early retirement is a priority.

I don't think anyone can plan for employer-provided health benefits in
retirement. You might have them when you retire, but how long will it be
before the employer makes unilateral changes?
--

"Chris Cowles" <garbageaddress@bellsouth.net> wrote in message
news:JfHxk.29930$bx1.11487@bignews1.bellsouth.net...

I don't think anyone can plan for employer-provided health benefits in
retirement. You might have them when you retire, but how long will it be
before the employer makes unilateral changes?
--

There are several "tiers" to the PERS retirement system in Alaska. The court
has ruled that the retirement benefit package promised to the employees,
including system-paid health care, are a contract and cannot be unilateraly
revoked. I don't know why this doesn't seem to apply to privately
admnistered pensions. Perhaps the employees aren't so well organized nor
represented.

My recollection of the deciding case (Douglas Aircraft - before it was

First, consumers in their 50s and 60s spend more on healthcare than
youngsters, so they will need a good insurance policy. Around here
that costs around $1000/month.