Has it been three Years already since Hubs retired?
And I haven't killed him yet?! lolz
Here are where the finances stand compared to when he retired July 31st 2017. First the bad news.....
* The RMSA Account has $59,206.06 less in it than when he retired. This is the monies his company set aside to pay for medical insurance premiums until he/we reach Medicare age(65). As you know medical insurance(good medical insurance that actually pays for anything)is expensive.
In 2017 our monthly premiums were $1,771.94.
In 2018 our monthly premiums were $1,814.38
In 2019 our monthly premiums were $ 1,848.67
In 2020 our monthly premiums were $1,883.76.
Even after a "decent"(hahaha)interest rate paid on this account's balance we have approximately 25 months worth of premiums left(depending of course on how much rates go up each year). The RMSA money is slated to be depleted by September 2022. That leaves 7 months of premiums to pay OOP for Hubs until he hits Medicare and 16 months of premiums to pay OOP for me until I hit that magic age of 65. rah. Premiums to cover just me that last 9 months should be a bit lower than the premiums that will cover both of us the first 7 months before Hubs hits 65.
After the RMSA funds are gone we will be eligible for ACA plans with subsidies. Not sure how I feel about the coverage those plans provide but it will be what it will be. If we don't qualify for subsidies for insurance coverage(I doubt our income will be too high to qualify but who knows if there will even be subsidies then!)then we will pay what we have to pay. It's important to have so we'll work it into the budget.
* The HSA Account, which we have been tapping the last three years for drug and visit co-pays has $1,476.16 more in it than the balance when he retired three years ago. Before you say, "you go girl!" about that, this amount is after we pumped $6,600 into it at the end of 2019 from our 401K(for the tax benefit partly)so really it's down $5,123.84 from July 2017.
And now for the good news......
* The 401K has $42,901.79 more in it than it had in July 2017. And that's with having withdrawn $18K during 2018 and $12K in early 2020($30K total withdrawn in 3 years). Hubs had planned on withdrawing $36K per year but we just didn't need that much with our frugal lifestyle. The $42K+ growth is due to interest earned(and stock gains) on all that money. I loves me some compounding interest!! ;-)
* Our other non-401K savings are $57,627.84 more than we had in July 2017. Mostly that's Hubs' last paycheck in 2017, CD interest, Savings Bonds matured and cashed out, plus a few small tax refunds and a bit of income in the form of eBay sales and blogging revenue. This non-401K savings will be taking a small hit soon as we are paying off Ex-CB's small student loan shortly. We gifted the other 2 kids a hunk of money in the last few years(Daughter used hers to help pay to go back to college and Eldest used his to pay off his car)and now that Ex-CB has proved he is financially responsible he'll be getting his gift too and the Bank of Mom and Dad is officially closing it's doors. ;-)
Comparing each of the last three "years" figures.....
Total Income
2017-2018 $60,979.52
2018-2019 $52,946.63
2019-2020 $57,728.43($6,600 of this is in the HSA)
Total Bills Paid
2017-2018 $37,799.73
2018-2019 $49,189.94
2019-2020 $45,504.12
Leftover Funds
2017-2018 $23,179.79
2018-2019 $3,756.69
2019-2020 $12,224.31($6,600 of this is in the HSA)
Three years into Retirement and financially things are looking pretty good.
I am off now to go work on organizing stuff and do some sewing after lunch. Then a few more episodes of "Weeds" tonight.
Sluggy
It's hard to believe it's already been three years since your dh retired. Where does the time go? I'm happy to read that you all are doing well in the department. DD turns 23 in October, so 3 more years of insurance and then she will be on her own. So she will have to start reviewing all her options in the near future.
ReplyDeleteIt does not seem like it has been three years.
ReplyDeleteYou guys did a great job. Being frugal and raising 3 kids, and being smart with your money-can't beat that. Clearly, you didn't end up being a bag lady and it doesn't look like you will in the future :)
ReplyDeleteCongrats! Good job on the financial front. Happy, healthy and long retirement to you both!
ReplyDeleteWow, that was a fast three years!
ReplyDeleteI too am glad to hear the "R" is going well enough.
ReplyDeleteIt' s sure motivating to see how fast the savings goes for health insurance-my biggest fear of retiring early.
ReplyDeleteHi Sluggy this is Chris. I wanted to thank you so much for posting this, and letting us know the particulars of how things are going so far with your retirement budget. It gives me hope that when we are in that situation in a few years that things will be ok for us too. I also wanted to let you know that I have been offering you in prayer with your recent surgery and praying the recovery continues to go well.
ReplyDelete