Sorry disbeliever but this is 100% fact:now I believe that as much as I believe t'rump believes anything he says.
Does anybody think and plan for themselves.
Do you really think financial planners have your best interest in mind. NO! They want you to have huge portfolios so they can make lots of $$$$$$. You can learn from them but please think for yourselves and don't be led astray.
Merck retiree health care is 388.00 for a single in 2018. It's a 80/20 with a 1500 deductible. Plan come with preventative care no deductible.
So now you have a idea what health care will be until 65. Pay off your house, car, credit cards and be 100% debt free.
Now if you can get together one million in savings, live off the return and never touch the principal. If your debt free that should not be a problem. Even a down year and you managed 4%. That's 40,000 and you have 0 debt. You would be just fine. Yes, the zombie apocalypse may occur, if it does then 20 million will not save you. The economy is cyclical and some years you will get a better return and earn 10% and others will bet you maybe 4% however, you will be just with a diversified portfolio. When you turn 62 your eligible to begin taking social security which you can add to your income (the longer you wait to begin SS the more you will receive monthly). Your overall income is much lower so your tax rate is much lower as well. You have no debt so all your income is paying utilities, food, 388.00 health care and your fun
Unless you just have an overwhelming need to live an extravagant lifestyle you can easily walk away by being debt free with just one million dollars. All this crap from advisors about needing to have a % of pre retirement income and multi million dollar nest eggs is designed to allow them to make big dollars from your retirement.
I think everyone 54 and younger who is eligible to retire next year pays
The same. $500 single. $1200 married, $1700 for married plus depedants. So much for subsidized medical!
Unfortunately, since she was not 50 by the end of 2012, she falls in the sol bucket. That was the medical subsidy cutoff. Read the summary plan description.Are the costs quoted above the monthly premiums for retiree healthcare, for those who are not yet 65? My wife is a 20-year Merck employee and is 51 years old. She is an administrative assistant there and makes about 60k per year. Not a ton of money, but she provides the healthcare benefits for us.
Our plan is for her to retire at 55, with 24 years of service, but we were wondering what the health insurance costs will be. I believe she pays a modestly lower health insurance premium compared to higher-paid colleagues and I'm wondering if the premiums after retirement will be better than those posted above. $1200 a month for pre-Medicare retiree health insurance is not much better than COBRA. Can someone please give me some additional guidance about the rate we'll be paying from age 55, until we go on Medicare at 65?
Unfortunately, since she was not 50 by the end of 2012, she falls in the sol bucket. That was the medical subsidy cutoff. Read the summary plan description.
I read the SPD about two months back and followed the flow chart diagram they had in there, to see if an employee qualifies for the subsidies for retiree healthcare. She met the criteria. I don't recall seeing any criteria of turning 50 by EOY 2012. I'll dig the SPD out of my files to re-read it, but are you saying she gets no subsidy, or that she gets a diminished subsidy?
Participant only: 388.00
Participant +spouse: 970.00
Participant + child: 776.00
Participant +child+ spouse: 1,358.00
This is my cost. I don't know if it varies based on your position or income level at Merck
i wouldn't do it...people are living so long now, you could easily need to cover 30 more years of living, and run short....
now there is a whole new movement of "Nomads" that are choosing to build out vans, cargo vehicles, or live in mortohomes or RVs, that are able to live on a shoestring, and get out of corporate hell...it is not for everyone, but it does offer an earlier escape...
Otherwise, I would buck up, (unless Merck pushes you out) and try and work until at least 62...2.3 sounds like alot, but it really isn't these days...
Great post!!! I was an FA at Wells Fargo for a blink and that industry is all about making money. Way worse than pharma. If you do feel lost in even the above explanation, work with a "Fee Only Financial Planner" that has the CFP certification and acts as a true fiduciary. Anyone working for the big houses is just making their commission or working against matching their draw. Most fee only FAs are members of NAPFA. You can search for one near you on here: https://www.napfa.org
i wouldn't do it...people are living so long now, you could easily need to cover 30 more years of living, and run short....
now there is a whole new movement of "Nomads" that are choosing to build out vans, cargo vehicles, or live in mortohomes or RVs, that are able to live on a shoestring, and get out of corporate hell...it is not for everyone, but it does offer an earlier escape...
Otherwise, I would buck up, (unless Merck pushes you out) and try and work until at least 62...2.3 sounds like alot, but it really isn't these days...
i wouldn't do it...people are living so long now, you could easily need to cover 30 more years of living, and run short....
now there is a whole new movement of "Nomads" that are choosing to build out vans, cargo vehicles, or live in mortohomes or RVs, that are able to live on a shoestring, and get out of corporate hell...it is not for everyone, but it does offer an earlier escape...
Otherwise, I would buck up, (unless Merck pushes you out) and try and work until at least 62...2.3 sounds like alot, but it really isn't these days...
Thank you for sharing this. I read in the SPD that the payment depends on age. Can you tell me your age? My wife will retire at 55 and now I'm wondering if the payment goes up or down if she retires at, say, age 56, or 56, etc.
That payment seems high. I have never really shopped for health insurance on an exchange. Is that a good rate for the coverage you get? I'm assuming you shopped around in the open market and compared it to Merck. So, because you are on the Merck plan, is it safe to assume it's a great deal?
I really appreciate the helpful advice from you Merck retirees. For my wife and I, the big wildcard is healthcare coverage in our interim period between retirement and Medicare. We are all set in all other respects and she really wants to get out of Merck soon, but touching it out for four more years will be worth it only if the susbsidized healthcare is that good of a deal.
Actually 2.3 million is a lot in the south or Texas. No state income tax in Texas. Move and have a better lifestyle plus better weather!
