Thread regarding Ford layoffs

Mostly good comments. Each one has a different financial journey, future medical cost is the biggest unknown. If you can manage to spend 3% of your net worth each year, then you’ll likely never run out of money.

For health care, I'm budgeting $24K per year and each year adding 4%. I look at it as part of "doing business". If total investments (on average YOY) generate $150K, then $24K is just a % of a total spend. The rest goes to travel, hobbies, food, and fixed house/car expenses. That's pretty much it. We put up with so much $hit at work, it is time to enjoy life.

A fun comment: The most important purchase in retirement is a new mattress to sleep-in. You don't have to get up at a crack of dawn to attend a meeting with Chennai.

I’m @1tvf+1wd4N8L7. Our out of pocket max is $16k for my wife and I. We live a health life style. Per my Apple Watch stats, my VO2 max is in the high range, average 15,485 steps per day, average resting heart rate is 56, and I cycled 5826.26 miles this year. None of that matters on the healthcare market. They only care about your age. I’ll be 65 in April and my wife is 18 months behind me. Once you hit Medicare age, Fords HRA drops to $1800 per year.

It’s important to have a history with your doctors because many will not take new Medicare patients because the government payments are so low - sometimes less than the doctors cost. Our total Medicare cost for Part A, B, lowest deductible D, and lowest deductible medigap part G will be about $6K before $3600 for HRA. If you saved and invested your HSA like I did, the $103K balance will pay our Medicare premiums for the rest of our lives.

@2ifm+1wd4N8L7 "what is your out of pocket in 2025?"
I am not @1tvf+1wd4N8L7, but did do research for 2024 Marketplace Health Plans and the BCBS Premier PPO Bronze was $16k OOP max for a couple. Yes, there are cheaper plans, but like @1tvf said, we need BCBS for the doctors/health issues we have. And before any one says "you need to live a healthier life style to avoid high medical costs when you're older" ... none of our health issues have anything to do with lifestyle.

@1tvf+1wd4N8L7 - so what is your out of pocket in 2025? (not including Ford HRA) $24k?

Talk to a financial planner before you retire outside of what Ford provides and advice on this site. Your personal situation will determine the best plan for a happy retirement and/or next chapter. I'm a finance guy who retired in 2022 after 35 years, no one knows everything.

$12K for you and your spouse’s health insurance is quite low. You must be willing to accept and doctors the HMO sends your way and a gate keeper to limit your access to specialists. Our BCBSM HSA Bronz PPO plan is now $24K as of 1/1/25. This is the least expensive option that all our doctors would accept. Deductible is $8K each and out of pocket max is $16K each.

I do agree with having no loans for anything. My home taxes are $5600 per year.

I took the pension and we are able to live mostly on the monthy payment. I also have learned and manage all our investments and save the $10 - $15K per $1M the financial “advisor” wants every year. Because our basic expenses are covered, I was able to take higher risks on our investments. I retired at the end of 2018 with a net worth of $1.6M. That has grown to over $4.5M and I’ve also converted over $1M to Roth and paid the taxes in cash from our brokerage account.

We have always lived very simply and within our means. That’s a hard habit to break and continues. We’re comfortable and sleep well at night.

@OP I agree with most of those numbers. $12,000 a year for a couple + $7,000 deductible per person is among the cheapest coverage available. We are talking Bronze plans here. Dental depends on the work done. My wife spent $3,500 this year, but I spent 0. Vision, I went with Zenni. Prescription glasses in $50-70 each, plus $70 for optometrist.

However, property taxes look very steeped. I pay $5,300 a year for a 3 bedroom + 2 bathrooms house in a nice area. Misc expenses on 3K seems too much. 3K a month cover most of our expenses: groceries + utilities + cell + car & home insurance + gas.

I think that anyone with no mortgage, nor loans, should be fine living with $5K a month, including health insurance, as long as they have most of their meals at home.

H5N1 beats all these 401k plans...

Retire if you are not contributing to the company anymore. If you are only hanging on for the paycheck, then you should leave

maybe YOU should change "you should" to "I should" speak for yourself and your own situation and no someone else's that you don't know. learn to live your life, not mine.

You really don't know your situation until you actually retired. I retired early and we are good.

I've got way more than I need to retire. Large pension, lots of investments. I like to go into the office every day and stir the pot. Why would I give that up?

@ffw+1wd4N8L7, So it is costing you <$1100 per month for medical, dental and vision for you and your wife. What insurance plan is this? Can you provide details of your actual medical, dental and vision insurance plans? This is a good price.

While I think that there are good points in this post, each person's situation is going to be different. I love my mortgage. At under 4%, I'd rather keep it and put that money to use generating a higher return. As far as medical, both myself and my wife are pre-Medicare. We have ACA plans for medical, dental, and vision. Our total OOP is less than $100/month with the HRA subsidy. When my wife goes on Medicare in 2025, her monthly costs for Medicare Part A, B, and D with a Medigap plan will actually go up because the HRA subsidy is less.

Apparently I can't retire until my pension and 401k income is higher than my working income. Or, I could cut some expenses, such as paying a lot less in property taxes. Why do you need the big home, the kids are grown. OP, your budget and lifestyle doesn't apply to all employees.

Where did you come up with those numbers, a ouiji board? A magic 8-ball? Was it a Vodka induced vision?

Each person should do their own research and come up with a monthly budget and then see if it fits into their particular situation. The OP is fear mongering and thinks that everybody is in the same position, which they arent. OP GO AWAY!