Medicare Question

[Tractor Seabee]

Seabee, I didnt understand the extra 5 yrs at higher pay? You took SS at 65? But kept working?

Yes, you have to be a double dipper to survive in this economy. Read my explanation again. I have 3 government pensions; military, civil service, and SS. Many of the same days apply to all three concurrently and others two, so I guess I am a triple dipper. I planned all this long before it all came to fruition. Lesson learned to all you younger ones; planning your retirement is a paramount duty for your early working days. I actually, all together, have 6 annuities working for me plus an IRA and other investments. I managed to get all 39 years plus accumulated. No zeros and dumped some real low paid years with very high paid years. I can now live in the style that I became accustomed to.

Ron

 

[kenmac]

I will start taking SS at 62 (in about 6 months) I might not live to 65.
My wife still works, so I'm on her health insurance plan

 

[buckeyefarmer]

Seabee, thanks for the info.

I might take SS at 62. Still debating that.

I get pension at 60, but my high 3 are from yrs ago. It would benefit me a lot to work 3 more to raise it, but dont think i can stomach it.. Would be major pay cut to do it.

I also have another small pension i can start any time. And multiple 401k plans.

I track it all in a spreadsheet, including what my SS will be if i start at different years.

 

[Tractor Seabee]

Seabee, thanks for the info.

I might take SS at 62. Still debating that.

I get pension at 60, but my high 3 are from yrs ago. It would benefit me a lot to work 3 more to raise it, but dont think i can stomach it.. Would be major pay cut to do it.

I also have another small pension i can start any time. And multiple 401k plans.

I track it all in a spreadsheet, including what my SS will be if i start at different years.

You need to consider consolidating those 401Ks into one IRA if you are no longer with the sponsoring employer. I have a good adviser and he has made me a lot of money with the portfolio we arranged. It netted 17% last year and is already at 12% this year. Putting it all together allows you to diversify in a more meaningful manner. If you have not heard ; both 401s and IRAs you have to start taking a payout at 701/2. i have beat tat system as the earnings are more than paying back the mandatory distribution as they call it. Principal has stayed intact. Lots to think bout and consider. Now is the time to put it all in place. Remember I am only one mans opinion, get others.

Ron

 

[buckeyefarmer]

The trick is finding a good advisor...

 

[KennyG]

Just another small item for those of us turning 70 about now. There is a proposal in Congress to change the age when you have to start taking distributions from 401K and IRA. Instead of 70-1/2 it will become 72 (unless they change the bill again or don't pass it by the end of the year). The negative part of the bill is that inherited retirement accounts (by other than spouse) will have to be withdrawn within 10 years, instead of reset to the age of the heir. The purpose of this is to increase the tax revenues from retirement accounts, by distributing it sooner and requiring heirs to take the income while they are still working, with a higher tax rate. Not a lot you can do about this except to live until your kids retire.

 

[Tractor Seabee]

The trick is finding a good advisor...

Uniquely I found mine on a fluke. He was in the process of making routine calls to his clients and reached me on a mis-dial. For some reason we got to talking and I liked his pitch. We are still together for almost 20 years. We recovered all the losses from 2008 in 3 years. During those 20 years except for the 3 result from 2008 every year has been a positive return. Investment portfolio is all geared to long term focusing on high dividend payers. There has been no churning.

Ron

 

[Tractor Seabee]

Just another small item for those of us turning 70 about now. There is a proposal in Congress to change the age when you have to start taking distributions from 401K and IRA. Instead of 70-1/2 it will become 72 (unless they change the bill again or don't pass it by the end of the year). The negative part of the bill is that inherited retirement accounts (by other than spouse) will have to be withdrawn within 10 years, instead of reset to the age of the heir. The purpose of this is to increase the tax revenues from retirement accounts, by distributing it sooner and requiring heirs to take the income while they are still working, with a higher tax rate. Not a lot you can do about this except to live until your kids retire.

The secret is to take those distributions and re-invest them asap. Roth IRAs have the advantage of paying the taxes now instead of later when you may not be able to afford it.

Ron

 

[KennyG]

The secret is to take those distributions and re-invest them asap. Roth IRAs have the advantage of paying the taxes now instead of later when you may not be able to afford it.

Ron

My approach is to keep the funds in the tax deferred accounts as long a possible to delay the taxes and to minimize the withdrawals to keep from being pushed into higher tax brackets. Roth is great but I had most of my retirement funds already in conventional accounts when the Roth law was passed. If I had moved them to a Roth account I would have been killed on taxes because I was already in a high bracket.

 

[Tractor Seabee]

My approach is to keep the funds in the tax deferred accounts as long a possible to delay the taxes and to minimize the withdrawals to keep from being pushed into higher tax brackets. Roth is great but I had most of my retirement funds already in conventional accounts when the Roth law was passed. If I had moved them to a Roth account I would have been killed on taxes because I was already in a high bracket.

Kenny, I was in the same situation so did the same thing. 401K to a regular IRA is a wash tax wise just consolidate so you only have to watch one account instead of several and you take the advantage of order of magnitude. I hope the young folks are following this thread. If you have been following my posts you will note that I have a very comfortable retirement. With current health and hereditary factors I plan to continue beating the system. I consider I earned every dime of it.

Ron

 

[buckeyefarmer]

I keep my accounts spread for the diversity. Only one 401k and an IRA i could combine.

 

[dmccarty]

Looks like a lot of good advice here. The only thing I would (respectively) take issue with Seabee on is the best age to start social security. There is no one answer for everyone except that you should delay as long as you can with financial comfort (up to age 70, when SS benefits no longer increase)....

Just something to think about.

Yep.

We have always planned to live off of our own retirement savings in retirement. Social Security would just be a bonus. Now that we are getting closer to retirement age, it looks like Social Security will pay for 1/2 to 3/4 or our expenses so we hopefully will not use/need much of our retirement savings. Depending on how some of our plans turn out, SS could pay for almost all of our retirement expenses. We will take SS at age 62 so that we can save OUR money. We cannot pass on our SS benefits to family but we can use the SS payments to reduce how much we take from our savings, thus maximizing our funds, which can be passed on to our family.

Later,
Dan

 

[kenmac]

62 is also when I'm taking mine. Pulling out of investments will cost me taxes when I pull out, and I will lose any gains that may occur in the market.
I need to get all my money out of SS before I die, so I'm starting early about 6 months from now

 

[Travelover]

I did go to medicare.gov but site wants to signup for SS that I don't want yet. Seems to be a government web sight that is very confusing. Locked me out for the next 24 hours.
One insurance salesman told me I don't need a supplemental policy because I do have Tricare for life.

mark

You don't need to take Social Security to create an account at their site. That site will tell you what your benefits will be at different ages. For Medicare, I recommend calling BoomerBenefits. These guys are really sharp and will help you find the best deal if you need supplemental coverage. If you are covered by TriCare, they can explain that to you, too. Boomer Benefits Medicare Supplements | Medicare Help

 

[Tractor Seabee]

The only coverage combined tri-care for life and medicare do not provide seamlessly is vision, hearing, and dental services. Medicare Part D is covered by tri-care. With zero cost other than medicare A premiums, I decided I could handle the other 3 on my own. Seldom have enough other medical costs to be able to put on 1040 Schedule A. Last year was the first with hearing aids and unexpected dental costs. Even then the deduction was hardly worth keeping the records. A $1M+ retail value for a serious gall bladder surgery and recovery cost me $0 several years ago. Not many commercial medi-gap policies will get you there, if there are any. There is no extra paperwork, medicare sends the balance direct to tri-care. I have never had to dispute a claim.

Ron

 

[goeduck]

Uniquely I found mine on a fluke. He was in the process of making routine calls to his clients and reached me on a mis-dial.
Ron

He is a good salesman if you still think it was a misdial. . Not that it matters.

 

[bigtiller]

62 is also when I'm taking mine. Pulling out of investments will cost me taxes when I pull out, and I will lose any gains that may occur in the market.
I need to get all my money out of SS before I die, so I'm starting early about 6 months from now

It's a tax, not a retirement account. Your money is long gone, someone older than you already spent it. You can get even though, and you will only have to live for about 40 months to do it. Add another 40 months to your life expectancy to get the money your employers paid in on your behalf.

That's my numbers, your's may be slightly different.

 

[MAX-24-Dean]

You have to sign up. It isn’t automatic.

If you elected to recieve Social Security payments prior to age 65, then when you turn 65 it is more or less automatic.
SSA sends you a notice that you can elect or decline Medicare coverage, if you do not send the document back declining Medicare they automatically start taking the coverage out of your SSA monthly payments.

 

[workinonit]

I just went to the Medicare office and sat down with a what ever they are called. I'm still working so I only signed up for Part A which you must do at 65. Your window for doing so is limited, especially after you turn 65. I think it's like a month or two. Part B you can sign up for at any point when you get rid of your employer sponsored health insurance.

 

[ericm979]

Here's a web page that lays it out:

When does Medicare coverage start?

The date your coverage starts depends on which month you sign up during your Initial Enrollment Period. Coverage always starts on the first of the month.

www.medicare.gov