Author Topic: Early Retirement due to Medical Issues - Which sub-forum to use? Who to Consult  (Read 845 times)

h2ogal

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Hello!   

I would like some mustachian advice related to retiring ďearlyĒ (in my case, just a few years before full retirement age) due to medical issues.   Is there a specific area of the forum that is best to post?

In short I am 56, tried ďretiringĒ in 2016, got bored and also was not comfortable with my income, and so went back to working/earning income/saving more.    I have enough savings to retire and cover my living expenses, ($900K+ In my own retirement accounts, and also DH owns an S-Corp and takes $80K/yr income).   From 2016 to now I have been working and saving, aiming for a fatter FIRE, more $$ to share with family and to travel, and targeting a new retirement date in 3 years.

This week I found out I have with an early stage disease (its very treatable, and my odds are very good at full recovery), BUT this is making me think seriously about moving my retirement date up.  I will need Surgery, and then a few weeks/months of disability.   I donít want to make any mistakes in terms of disability or my retirement accounts.  I also want to make sure my nest egg and paid for home is protected from any crazy medical debt (NY State resident).

My health insurance is through my husbandís S-Corp, so we control and select the health plans and his company pays the premiums.   We currently have a high deductible plan with HSA.

I am currently employed full time at a large public corporation, and am eligible for FMLA, disability, etc.

Where is the best place to look for well-rounded financial advice?   I have made an appointment with my financial planner, and I also am booking an appointment with an elder care lawyer.   Should I also meet with our Health Insurance provider?   How much and what details should I tell my employer?

So many questions.   If anyone has any experience with this situation I would be very happy to hear from you.


dblaace

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I'm in a similar position and interested in what you find out. I'm 58 and diagnosed with something that could mean 5 to 25 years but the cost of treatment can be high. At some point it would qualify for disability but not currently and unknown when it would get to that point.
« Last Edit: January 06, 2020, 05:05:19 PM by dblaace »

hops

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Posting a case study at Bogleheads, something similar to this, might yield some good advice from people who've been there:

https://www.bogleheads.org/forum/viewtopic.php?t=255429

There have many other threads about the same subject, that's just the first one my search returned.

h2ogal

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To dblaace-  I met with my financial planner today.   I found out that I can leave my job now and get distributions from the 401(k) at this particular job penalty free this is because I am over 55.   I think itís called the 55 and over rule.     I may even be able to roll other IRAs into this work 401(k)     My planner also helped me calculate my 72T distribution options     I found out that since I have many disparate IRAs and 401(k)s from various past jobs I could target one or more for 72 tea distribution which really gives me flexibility with how much money I take out.  For example if I pick one of the accounts with a lower balance I could take out as little as 5000 per year. If on the other hand I merge two accounts with larger balances I could take out 20,000 per year.

 If I qualify for Social Security disability which I actually hope I donít because I hope Iím not that sick , I can get medical coverage early Medicare. 

For now Iím just doing research and applying for short-term disability and then I will see how my treatments go  and how I feel  before making any other decisions. 

Iím also going to look on the bogleheads site which may have more posts in this line than this site does. Best of luck with your situation also.

h2ogal

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To Hops:   Thank you for the advice yes I will look into the bogleheads site.   Thank you very much for the link   

dblaace

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To dblaace-  I met with my financial planner today.   I found out that I can leave my job now and get distributions from the 401(k) at this particular job penalty free this is because I am over 55.   I think itís called the 55 and over rule.     I may even be able to roll other IRAs into this work 401(k)     My planner also helped me calculate my 72T distribution options     I found out that since I have many disparate IRAs and 401(k)s from various past jobs I could target one or more for 72 tea distribution which really gives me flexibility with how much money I take out.  For example if I pick one of the accounts with a lower balance I could take out as little as 5000 per year. If on the other hand I merge two accounts with larger balances I could take out 20,000 per year.

 If I qualify for Social Security disability which I actually hope I donít because I hope Iím not that sick , I can get medical coverage early Medicare. 

For now Iím just doing research and applying for short-term disability and then I will see how my treatments go  and how I feel  before making any other decisions. 

Iím also going to look on the bogleheads site which may have more posts in this line than this site does. Best of luck with your situation also.

I'm a little over a year till 59 1/2 and I could start withdrawing from my 401k and IRA which is what i had planned on doing. Now it's the unknown cost of healthcare and duration of retirement now that has thrown a wrench into things. I'd rather not have to work till I'd qualify for disability to get medicare, and the same as you I hope I'm not that sick.

I've got a year to monitor how things progress and hopefully know more.