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Is it possible to retire in America if you don't qualify for Medicare? I never contributed enough payroll taxes to qualify for SS or Medicare before moving abroad and do not see myself going back anytime soon. I still have 30 years to retirement, so who knows what will happen, but if I never come back while of working age, I assume not qualifying for Medicare would make the cost of spending my retirement in the US pretty prohibitive?
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Nov 28, 2023 19:46
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Magic City Monday posted:Is it possible to retire in America if you don't qualify for Medicare? Sure! Your options are to be rich and/or die quickly.
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Nov 28, 2023 20:45
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Old people that are not Medicare eligible, are still eligible for ACA exchange subsidies and/or Medicaid in the same way that a retired 64 year old can be. Depending on whether you qualify for subsidies and how much, and if you cover a spouse, you might need to budget an additional $5k-$30k per year in 2023 dollars compared to someone similarly situated who is Medicare eligible. That's a lot of money but it's up to you on whether that's cost prohibitive or worth it or not. And of course a lot can change in 30 years.
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Nov 28, 2023 20:45
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daslog posted:My frustration with any target date fund (and any other fund really) is that the S&P 500 index funds have outperformed everything for such a long time that even though I'm in my early 50s I have a hard time putting my money elsewhere. (Yes, I do have an index bond funds, but I hate it) You can never predict the market, but this is why I have 0 target date funds and very minimal bond funds, albeit I’ll change it when close to retirement (def not close yet). Magic City Monday posted:Is it possible to retire in America Unfortunately no.
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Nov 28, 2023 21:41
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Magic City Monday posted:Is it possible to retire in America if you don't qualify for Medicare? I never contributed enough payroll taxes to qualify for SS or Medicare before moving abroad and do not see myself going back anytime soon. I still have 30 years to retirement, so who knows what will happen, but if I never come back while of working age, I assume not qualifying for Medicare would make the cost of spending my retirement in the US pretty prohibitive? I would look into retirement in Panama. There is a pretty good expat community there and everything is cheap.(for now)
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Nov 28, 2023 22:08
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Magic City Monday posted:Is it possible to retire in America if you don't qualify for Medicare? I never contributed enough payroll taxes to qualify for SS or Medicare before moving abroad and do not see myself going back anytime soon. I still have 30 years to retirement, so who knows what will happen, but if I never come back while of working age, I assume not qualifying for Medicare would make the cost of spending my retirement in the US pretty prohibitive? The Medicare part B premiums (AKA outpatient care stuff and some qualifying equipment) don't change based on work history. Current premiums are around $170.10. You need to have part A to enroll in part B however. Medicare part A (AKA inpatient care, hospice care, and some home health care) monthly premiums in 2023:
But part A and part B alone don't cover:
Plus, Medicare part B has a 20% copay for most things, a $240 deductible, and no out of pocket maximum. And part A has an annoying $1600 deductible, and copays for hospital stays longer than 60 days. To cover prescription drugs, you can get part D. The details depends on provider (private fun times), but usually around a $50 monthly premium, copay on most drugs are a few dollars but there are a few annoying exception. To cover foreign travel, more hospital inpatient stay, and Medicare copays, you can get medigap insurance, which will usually run $100-400 monthly premiums depending on how comprehensive you want it. Alternatively, instead of part D and medigap, you can get part C, which will also cover most of the things in that missing coverage list, which you can usually get for $0 dollars in premiums, but it means you are in private insurance hell where you have provider networks, you have to get permission from your insurance before hand for a lot of expenses, and all the other private insurance BS you come to expect. None of this covers long-term care though, so if you have to go into a nursing home, you'll have to deal with state-run programs and hope they cover you once you run out of money. As for if you can retire in the US without at least 30 quarters of FICA tax paying, if you have enough money to afford around $900 a month in medical expenses in 2023 dollars on top of living expenses, you can be doing fine by paying $700ish for base medicare, $50 for part D, and $150 or so for a medigap that will cover the copays but not the part A deductible, and deal with the remaining annoyances. You can scrape by with a couple hundred less a month by dealing with private insurance BS. If you can't afford even that, you'll probably be in trouble though. MegaZeroX fucked around with this message at 22:25 on Nov 28, 2023 |
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Nov 28, 2023 22:21
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Jabarto posted:I worded that poorly, I was shocked to see a 401k with such low fees. 401k's tend to be lovely in general and getting 0.08 on one is amazing. I have a target date fund at Fidelity that's at 0.2% Ha yeah, that makes a lot more sense. My 401k is pretty baller. All my ER are under 0.03.
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Nov 28, 2023 23:57
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MegaZeroX posted:As for if you can retire in the US without at least 30 quarters of FICA tax paying, if you have enough money to afford around $900 a month in medical expenses in 2023 dollars on top of living expenses, you can be doing fine by paying $700ish for base medicare, $50 for part D, and $150 or so for a medigap that will cover the copays but not the part A deductible, and deal with the remaining annoyances. You can scrape by with a couple hundred less a month by dealing with private insurance BS. If you can't afford even that, you'll probably be in trouble though. That's not as bad as I would have thought. Not ideal, but not horrible either.
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Nov 29, 2023 21:17
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I’m saving up for a house on the 4-5 year time horizon, and I want to move my I Bonds somewhere that makes better sense. Should I sell them and put the money in a 5yr treasury? What about AAA corporate bonds? A (4.95% on 5yr) or BBB corporate bonds? I’ll be socking away ~$2000/month as well.
Valicious fucked around with this message at 19:03 on Nov 30, 2023 |
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Nov 30, 2023 19:00
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I'd cycle them into new I Bonds with the 1.3% fixed rate. Or 5 year TIPS, though the auctions are infrequent and the secondary market can be a little complicated. Corporate bonds are probably not worth the hassle for the small additional return over treasuries. If you do buy corporate, I would buy an investment grade short term fund, not individual corporate bonds (too much credit risk). Keep in mind also that treasuries are state tax exempt, so if you live in a state with income taxes, the difference in yield between treasury and corporate is narrowed a bit by the state tax hit.
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Nov 30, 2023 23:45
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I was browsing Fidelity and I saw this 6.221% yield seems like it's almost to good to be true. I know it matures in 6 weeks, but what else am I missing?
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Dec 1, 2023 01:20
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daslog posted:I was browsing Fidelity and I saw this  (also, short time to maturity TIPS are at risk of deflationary adjustments moreso than longer ones)
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Dec 1, 2023 01:41
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drk posted:
The same trade was up earlier in the day, I just didn't have time to grab the screenshot. I need to do some more research on TIPS.
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Dec 1, 2023 13:38
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PSA for everyone who, like me, bought iBonds September of 22: today is 15 months out from that. You can sell the bonds and shift them to something with a higher interest rate.
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Dec 1, 2023 15:35
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daslog posted:I was browsing Fidelity and I saw this Are you going to be able to hit that order minimum?
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Dec 1, 2023 16:19
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Here's the depth of book now that the market is open: So yes, there is still a high rate for a $100k purchase. The yield on a QTY1 ($1000) purchase is lower. I still think the reason for that high rate is deflation risk. The last month to month CPI inflation rate was 0%, but the TIPS inflation index actually decreased by 0.04% (which means the value of the TIPS was adjusted down, not up). With energy prices continuing to fall, there is certainly a reasonable chance the next inflation reading will be negative. TIPS bought on the secondary market are a bit complicated because of this deflation risk. While TIPS can never decrease below the original principal value, that only really protects people who bought at auction. If you buy shortly before maturity, all of the inflation increases built into the price are at risk. While I am not an expert in TIPS, I am assuming that is what is going on with this CUSIP.
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Dec 1, 2023 17:05
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For some additional info, a nominal treasury maturing a day later has a secondary market yield of 5.358 @ QTY1. So the question to the potential investor is, is a real return of 5.717% better than a nominal return of 5.358%? For a longer maturity, that high real rate would be a fantastic deal. But with just one (or maybe 2) inflation adjustments left on this particular TIPS and the most recent one being negative, its actually not nearly as good a deal as it might look.
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Dec 1, 2023 17:14
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I'm not wrapping my head around why deflation is a risk when it comes to these bonds. Is it because if inflation is negative, the fed drops the borrowing rate, making money cheaper over all and meaning that the money locked up in the bond could suddenly be making more money elsewhere?
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Dec 1, 2023 18:56
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Awkward Davies posted:PSA for everyone who, like me, bought iBonds September of 22: today is 15 months out from that. You can sell the bonds and shift them to something with a higher interest rate. I'm new to iBonds so I just want to run this past this thread to make sure I'm not screwing anything up. I purchased in May 2022 and I see that it's currently yielding 3.94% which poo poo my Marcus savings account is better than that. So I redeem the bond into the C of I fund, purchase a new iBond with the original money, and then wire the proceeds I've made over to my Marcus account. That will count as my purchase for this year and in January I'll be able to buy another
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Dec 1, 2023 19:08
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Awkward Davies posted:I'm not wrapping my head around why deflation is a risk when it comes to these bonds. TIPS are adjusted up in value each month inflation is positive and down each month inflation is negative. Heres a great article on understanding TIPS on the secondary market: https://tipswatch.com/2023/02/05/tips-on-the-secondary-market-things-to-consider/
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Dec 1, 2023 19:09
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OK but a TIPS with two months left you can just hold to maturity right? The risk is if you are trading them, the value can drop before you want to sell?
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Dec 1, 2023 19:14
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PIZZA.BAT posted:I'm new to iBonds so I just want to run this past this thread to make sure I'm not screwing anything up. I purchased in May 2022 and I see that it's currently yielding 3.94% which poo poo my Marcus savings account is better than that. So I redeem the bond into the C of I fund, purchase a new iBond with the original money, and then wire the proceeds I've made over to my Marcus account. That will count as my purchase for this year and in January I'll be able to buy another Just redeem it all into your savings account now and buy the new bond at the end of this month. I Bonds purchased on any day of the month are always considered to have been issued on the first day of the month, so youll earn more interest that way. It also probably easier than dealing with the C of I account?
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Dec 1, 2023 19:15
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Leperflesh posted:OK but a TIPS with two months left you can just hold to maturity right? The risk is if you are trading them, the value can drop before you want to sell? No, the treasury will literally adjust the value down if the next inflation reading is negative, as they did this month. The inflation index is determined by the treasury, not the market.
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Dec 1, 2023 19:17
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IIRC it's basically "for it to keep its current value, inflation needs to remain at its current level. If inflation increases, it increases in value. If inflation decreases, it decreases in value." This is different from an instrument like I Bonds where it's pegged to inflation itself-- is that right?
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Dec 1, 2023 19:19
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I Bonds are fully deflation and inflation protected. They can never decrease in real or nominal value. TIPS bought on the secondary market can lose nominal value, even when held to maturity. The real yields are determined by the market and can also be negative.
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Dec 1, 2023 19:25
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Leperflesh posted:OK but a TIPS with two months left you can just hold to maturity right? The risk is if you are trading them, the value can drop before you want to sell? Trading TIPS before maturity subjects you to changes in real rates moreso than the inflation adjustment. Just like nominal bonds, market rates go up and down. With two months left, your sensitivity to real rates is extremely low, and TIPS are liquid enough that selling them a couple months early or holding to maturity won't be a big deal either way.
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Dec 1, 2023 19:33
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drk posted:I Bonds are fully deflation and inflation protected. They can never decrease in real or nominal value. This is because the principal is adjusted at time of interest payment, whereas the principal is fixed on an I bond?
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Dec 1, 2023 19:34
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jokes posted:This is because the principal is adjusted at time of interest payment, whereas the principal is fixed on an I bond? Its more complicated than that. The link I posted above talks about how TIPS are valued better than I could. I bonds are comparatively a much simpler product.
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Dec 1, 2023 19:46
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PIZZA.BAT posted:I'm new to iBonds so I just want to run this past this thread to make sure I'm not screwing anything up. I purchased in May 2022 and I see that it's currently yielding 3.94% which poo poo my Marcus savings account is better than that. So I redeem the bond into the C of I fund, purchase a new iBond with the original money, and then wire the proceeds I've made over to my Marcus account. That will count as my purchase for this year and in January I'll be able to buy another I did a very similar thing earlier this month (even to and from Marcus accounts). I just sold the I bond, sent proceeds to Marcus, waited for the money to clear to Marcus and bought the new I bonds. I thought about doing C of I but figured it wasn't worth the hassle in case I misunderstood it. If you go that route I'd be curious to hear if it works out.
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Dec 1, 2023 19:50
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I'd imagine I Bonds should be as simple as possible since the limitations on buying them prevent big boys from getting their hands on them, so I'm not against that.
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Dec 1, 2023 19:56
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Awkward Davies posted:PSA for everyone who, like me, bought iBonds September of 22: today is 15 months out from that. You can sell the bonds and shift them to something with a higher interest rate. Thanks for the reminder, I forgot they had turned into a pumpkin. In other news, when you have a very large rollover check for your 401k, you should just pay the $10 for express delivery rather than have it go into the limbo of regular mail, regardless of the nice Fidelity man saying, “it probably won’t matter due to Thanksgiving.”
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Dec 1, 2023 21:44
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drk posted:I Bonds are fully deflation and inflation protected. They can never decrease in real or nominal value. Thanks for all the info. I've never traded TIPS and probably never will, they're weird, but it's good to know.
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Dec 1, 2023 22:04
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smackfu posted:In other news, when you have a very large rollover check for your 401k, you should just pay the $10 for express delivery rather than have it go into the limbo of regular mail, regardless of the nice Fidelity man saying, “it probably won’t matter due to Thanksgiving.” I did 2 rollovers this year where they sent me a check that I then sent to the new financial institution. Both times the reps were like no don’t worry about it, regular mail is fine. I had one sent express and one not, and it really is better to just pony up the money just for peace of mind. I hope your check gets to you soon, if it hasn’t already
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Dec 1, 2023 22:31
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You couldn’t ACH? When I did it last year there was no check involved, it was all just transferred.
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Dec 1, 2023 22:38
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No, no ACH option for a lot of the major providers. You can often electronically deposit the check in their app once you finally get it. So at least not two snail mail delays.
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Dec 1, 2023 22:48
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jokes posted:I'd imagine I Bonds should be as simple as possible since the limitations on buying them prevent big boys from getting their hands on them, so I'm not against that.
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Dec 2, 2023 00:42
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Combining the subject of I Bonds and nervousness around sending large sums of 'money' through the mail, does anyone have experience converting paper I bonds to electronic ones on the Treasury Direct website? Similar question around a few old paper EE bonds I have, but they are fully mature and so I would cash them out. Reading the instructions, it seems like a fairly simple process, but the final step seems to be physically mailing in the bonds to the gov't. Any idea how long that process actually takes to go through? And what happens if the USPS loses the envelope?
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Dec 2, 2023 03:20
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SamDabbers posted:Fidelity is sneaky. They also have "Fidelity Freedom Index" target date funds which are the same asset allocations as the "Fidelity Freedom" ones but composed of their low cost passive index funds instead of the expensive active equivalents. I'm kind of curious what Fidelity 401k users here recommend. Here's the options we have. (Large image I had to stitch together, so I won't link it inline.) Normally I'd go with the target date fund, but 0.65%?
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Dec 2, 2023 04:30
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FXAIX + FSPSX + FXNAX will make a perfectly reasonable three fund portfolio.
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Dec 2, 2023 04:48
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Small White Dragon posted:I'm kind of curious what Fidelity 401k users here recommend. All-in FXAIX depending on your age and risk tolerance and rest of your portfolio and target asset allocation. Or pick a target date fund and never think about it again. 0.65% kinda sucks a lot but if it keeps you from touching it, could be good.
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Dec 2, 2023 05:15
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