That's so true. I have two different state government defined benefit pensions (two different jobs), and while those payments are "guaranteed", the ability for those payouts to continue rely on the returns in those pension accounts and the willingness of taxpayers to cover shortfalls over time. If Trump sustains his insanity for the next 4 years, and a third term (haha), then ALL BETS ARE OFF FOR EVERYONE, INCLUDING SOCIAL SECURITY. Elections have consequences.
I didn't panic during the 2000 dot com bubble burst, the 2008 meltdown, and stayed all in the market, near 100% stock index, during the Trump 1 and Biden years. The returns have been fantastic. But Trump 2 felt different. A month ago, I shifted half my portfolio into cash. I just avoided $50k of loss. I just had a sixth sense that Trump would wreck the economy.
Regarding insurance, it's a shame that everyone has to pay more for weather events particularly, but not exclusively, on the coasts. I understand the concept of insurance to spread risk and costs, but I can't believe that coastal homeowners are paying rates, even today after large rate increases, that are commensurate with the risk of loss.
I have the option of a Medicare Advantage plan that is a bit unique and am wondering if anyone has perspectives about it. I'm a retiree from Illinois State government and they provide free health insurance to retirees. However, when you become eligible for Medicare, you have the option of enrolling in the State of Illinois' Medicare Advantage Plan. The Plan covers all the ancillary things that a Medicare Advantage Plan does, including the Donut hole, vision, dental, etc. It has a low maximum out of pocket for a family of $3,000 per year. It costs about $30 per month, but you have to make your normal monthly payments directly to Medicare based on your financial situation just like you were still enrolled directly in Medicare. However, it doesn't have a network of providers you have to adhere to. The third-party administrator is Aetna and you can see any doctor or hospital as long as they accept Medicare AND they can process payments through Aetna. It looks to me almost every doctor independent doctor and hospital network as far as I can see has the ability to interact with Aetna. Of course, I could still keep Medicare and purchase a Medigap policy, but the Illinois plan seems to have no real downside.
I've always read it's best to wait until 70 to claim. I planned retirement not needing social security at all. I have two government defined benefit retirement plans (one with a guaranteed COLA escalator), government paid health insurance when I retire at 62 to carry me to Medicare, and a deferred comp (403b and 457b) balance in the seven figures. When I mentioned to my financial advisor that I guess my wife and I will wait until 70 to claim, he agreed I don't need it, and said why don't I just take it at 62 and spend it? Enjoy the money. I never looked at it that way before and that made sense to me. I ran the numbers and I would have to live to 78 before I would "loose" money by taking early. But the early retirement years are the healthiest. I still think for most people, delaying is best if they can. But it's really situational.
Comments
MAGA math
Post: Tariffs and our retirement assets
Link to comment from April 6, 2025
That's so true. I have two different state government defined benefit pensions (two different jobs), and while those payments are "guaranteed", the ability for those payouts to continue rely on the returns in those pension accounts and the willingness of taxpayers to cover shortfalls over time. If Trump sustains his insanity for the next 4 years, and a third term (haha), then ALL BETS ARE OFF FOR EVERYONE, INCLUDING SOCIAL SECURITY. Elections have consequences.
Post: Tariffs and our retirement assets
Link to comment from April 6, 2025
It will all be good...after trumps 3rd term LOL
Post: Tariffs and our retirement assets
Link to comment from April 5, 2025
I didn't panic during the 2000 dot com bubble burst, the 2008 meltdown, and stayed all in the market, near 100% stock index, during the Trump 1 and Biden years. The returns have been fantastic. But Trump 2 felt different. A month ago, I shifted half my portfolio into cash. I just avoided $50k of loss. I just had a sixth sense that Trump would wreck the economy.
Post: Tariffs and our retirement assets
Link to comment from April 5, 2025
Regarding insurance, it's a shame that everyone has to pay more for weather events particularly, but not exclusively, on the coasts. I understand the concept of insurance to spread risk and costs, but I can't believe that coastal homeowners are paying rates, even today after large rate increases, that are commensurate with the risk of loss.
Post: A new glitch in retirement planning to consider
Link to comment from December 25, 2024
I have the option of a Medicare Advantage plan that is a bit unique and am wondering if anyone has perspectives about it. I'm a retiree from Illinois State government and they provide free health insurance to retirees. However, when you become eligible for Medicare, you have the option of enrolling in the State of Illinois' Medicare Advantage Plan. The Plan covers all the ancillary things that a Medicare Advantage Plan does, including the Donut hole, vision, dental, etc. It has a low maximum out of pocket for a family of $3,000 per year. It costs about $30 per month, but you have to make your normal monthly payments directly to Medicare based on your financial situation just like you were still enrolled directly in Medicare. However, it doesn't have a network of providers you have to adhere to. The third-party administrator is Aetna and you can see any doctor or hospital as long as they accept Medicare AND they can process payments through Aetna. It looks to me almost every doctor independent doctor and hospital network as far as I can see has the ability to interact with Aetna. Of course, I could still keep Medicare and purchase a Medigap policy, but the Illinois plan seems to have no real downside.
Post: Which is better, traditional Medicare or Medicare Advantage?
Link to comment from June 24, 2024
Great suggestions and perspectives!
Post: Long Term Care
Link to comment from June 23, 2024
I've always read it's best to wait until 70 to claim. I planned retirement not needing social security at all. I have two government defined benefit retirement plans (one with a guaranteed COLA escalator), government paid health insurance when I retire at 62 to carry me to Medicare, and a deferred comp (403b and 457b) balance in the seven figures. When I mentioned to my financial advisor that I guess my wife and I will wait until 70 to claim, he agreed I don't need it, and said why don't I just take it at 62 and spend it? Enjoy the money. I never looked at it that way before and that made sense to me. I ran the numbers and I would have to live to 78 before I would "loose" money by taking early. But the early retirement years are the healthiest. I still think for most people, delaying is best if they can. But it's really situational.
Post: When should you claim Social Security retirement benefits—and why?
Link to comment from January 8, 2022