Help me with the plan.

[Regularguy]

RegularGuy.
I am in the federal long term care insurance program=FLTCIP (sponsored by OPM and insured by John Hancock Life & Health). I enrolled in 2011 when I was still in the federal govt. When I retired in 2017, I had to continue the monthly payment if I wanted to stay enrolled. So I did. I pay a monthly premium of $46.60/mo. My benefit period is for 730 days with a maximum daily benefit amount not to exceed ~$170. This guarantees me a max of $170/day everyday for up to ~$124K in total. If I end up with services that cost me less than the daily benefit amount then my benefit period will last longer.
I don't know the premium cost of the FLTCIP now, but I do know that the earlier you enroll, the less your monthly premium will be. You'll have to figure what's best for you in terms of ROI and whether to enroll sooner or later. Here are 2 links for the federal LTCIP: https://www.ltcfeds.com/about or https://www.ltcfeds.com/contact. My spouse (a non-fed) also had the option to enroll when I did at the same rate. Being 2 years older and with more of a family history of disease, he signed up.
Hope this helps.

Thank you so much for taking the time to respond. I do appreciate your information and it is well worth the review. As a question only. If you would of invested that premium amount into a separate fund, would it be possible to have more than enough to cover 730 days at 170.00 per day for the term you have been contributing? Maybe a better question is how many years of premium paying gets you to the 124 k. That was the only thought that ever stopped me from starting the plan. But I am re thinking it.

[Regularguy]

Retired at 56 1/2 with 34 years of service. I was Postal - EAS-23. Been retired for almost 3 years now and have yet to touch my TSP. Pension and SS Offset is pretty comparable to my working take home pay once you pulled out TSP, Taxes, SS, Medicare etc, etc, etc.... I've been able to offset by withdrawing from my savings in the case of unforeseen expenses that arose and don't feel I'll have to withdraw from TSP for many years to come. Wife is also retired and will start drawing SS next year so that will be an even bigger help to the bottom line.

My suggestion is don't retire just for the sake of retirement - you need a retirement plan or you'll sit around all day and watch soap operas and drive yourself crazy. We bought a motor home and so far have visited 30+ states and 20+ National Parks and many more National Monuments and State Parks with many more to go. On hiatus at the moment due to the virus, but have plans to get back to it once things straighten out and travel on and off for the next 10 years or so.. Also you need hobbies - sports, home repair, woodworking, eBay, gardening, etc, etc to stimulate you and take up the hours of the day. It's all about having a plan, knowing what you want, and enjoying the journey!

Wise words to consider thank you for sharing. EAS 23 has many more headaches than My EAS 18 provide. LOL Maybe I will see you on the BLM land soon.

[Regularguy]

9. Keep investing to make money. When you must make minimum required distributions strive to make each successive year's distribution greater than last year's because you invested wisely and not because you chose a higher distribution amount. Do this both in taxable and tax deferred accounts.

10. Got a will?

11. Got a Living Will?

12. Got a health designated representative?

a. Does it meet your state requirements?

b. Do all your doctors have a copy of it in their file on you?

c. Does your health care representative know your wishes?

13. Do you have a power of attorney?

14. Volunteer for municipal committees and share your knowledge and skills to improve the community you live in. My mantra is schools and roads drive property values.

15. So I've done 4 morbidity studies. There are issues with each decade you live. Do not expect to live forever and do not expect to retain your physical condition. Plan to hire help to maintain your living standard and conditions. This is another reason to keep investing for monetary gain.

16. Update your living quarters. I believe the time will come when we all live off the grid through electrical generation and batteries. And triple pane windows cancel noise like you can't believe. And your own electrical generation invites electric heat in your dwelling.

17. Learn to cook.

Hope this helps.

This does help and some very good information. I don't think I have done very many things on your list. Especially the will part. Time to get busy.

[Regularguy]

Save and invest over and over and over for 37 years. Get Divorced along the way, give half of everything away. Save and invest twice as much as before. Now 58 years old, at the top of the pay scale, finally made it. Time to retire? I find this to be a very difficult decision. How hard will it be to role reverse and spend the 4.5 % of the tsp per year. Get busy living or get busy dying. They should put that in a movie. Was your decision to plan the "when to retire" an easy one for you? Or will it be easy when that time comes. I used to think so.

I'm currently exploring my options for half-retirement. It is not "easy" to pull the trigger. Basically, my wife and I have been so vigilant about investing for so long that our "traditional retirement" (age 55 to death) is already paid for. So we are looking at dropping our annual retirement investments substantially, and then we only need to make half as much money. We can both work part time until age 55 and then do full retirement from there.

Congratulations, very good savers you have become. Now you will have to slow that train and head the other directions to become spenders. Take that lady on a trip to celebrate a huge milestone. Nice work.

[Regularguy]

This is a great discussion that could be a standing forum. I am 62 with 39 yrs. Living well under my means. My retirement net cash flow would be greater than when retired. Retirement means switching from a savings plan to a spending plan. Sounds great, huh?

BTW, 100% TW for the last 7 months, did make work/life balance...GREAT!

But then, why have I deferred retiring on 12/31/2019, then again on 03/31/2020, and now targeting 3/31/2021. Just reticent to move into the great unknown...?

Thanks for your input. Interesting you have chosen deferring retirement. One question that leaps to mind is What does 100% TW for last 7 months mean?
Also her is a link to older discussion on the topic. Aitrus left a gif that's worth seeing of his retirement enthusiasm.

https://tspcenter.com/forums/viewtopic. ... 4&start=15

[misfit]

Can someone start a poll about who they are voting for. Really, Just for fun and curiosity with no comments. This will help my plan. Thanks everyone!

[mjedlin66]

Can someone start a poll about who they are voting for. Really, Just for fun and curiosity with no comments. This will help my plan. Thanks everyone!

No, I don't want to deal with that. Please don't.

[jlozano042]

Can someone start a poll about who they are voting for. Really, Just for fun and curiosity with no comments. This will help my plan. Thanks everyone!

you misfit ....

[Aitrus]

Can someone start a poll about who they are voting for. Really, Just for fun and curiosity with no comments. This will help my plan. Thanks everyone!

*stares numbly...shakes head forlornly...sighs deeply in resignation...opens new bottle of whisky...*

[bloobs]

[twinkc]

RegularGuy.
I am in the federal long term care insurance program=FLTCIP (sponsored by OPM and insured by John Hancock Life & Health). I enrolled in 2011 when I was still in the federal govt. When I retired in 2017, I had to continue the monthly payment if I wanted to stay enrolled. So I did. I pay a monthly premium of $46.60/mo. My benefit period is for 730 days with a maximum daily benefit amount not to exceed ~$170. This guarantees me a max of $170/day everyday for up to ~$124K in total. If I end up with services that cost me less than the daily benefit amount then my benefit period will last longer.
I don't know the premium cost of the FLTCIP now, but I do know that the earlier you enroll, the less your monthly premium will be. You'll have to figure what's best for you in terms of ROI and whether to enroll sooner or later. Here are 2 links for the federal LTCIP: https://www.ltcfeds.com/about or https://www.ltcfeds.com/contact. My spouse (a non-fed) also had the option to enroll when I did at the same rate. Being 2 years older and with more of a family history of disease, he signed up.
Hope this helps.

Thank you so much for taking the time to respond. I do appreciate your information and it is well worth the review. As a question only. If you would of invested that premium amount into a separate fund, would it be possible to have more than enough to cover 730 days at 170.00 per day for the term you have been contributing? Maybe a better question is how many years of premium paying gets you to the 124 k. That was the only thought that ever stopped me from starting the plan. But I am re thinking it.

Regularguy--great question and one I wrestled with for a while before I bought into the plan in 2011 at $19/mo. Have to admit part of my decision was based on personal circumstances seeing my Mom give up all of her pension and husbands' to pay for his two-year stay in a nursing home before he died. But also it was the nominal cost of $19/mo (or $228/year) while I was in the federal service. Only after I retired in 2017 did I start paying $47/mo (equiv to $564/yr).
In considering your question about how many years I would need to invest my payments in a separate fund (instead of paying a premium for FLTCIP) to reach the maximum payout of $124K, I used an 8% annual compound return on the initial $228/yr starting in 2011 for the first 7 years until I retired in 2017 and then $564/yr for the remaining time. If my calculations are correct, it would take me a little over 40 years to to reach $124K. The calendar year would be 2051; and I would be 94 at that time.
Not sure I will live that long (94 yo). I'd like to think I might make it to 90, but who knows, right? I may need the LTC sooner. Not to mention what could happen over those 40 years (31 years actually since 9 years have already past) in the stock market. The ROI could go lower. I recognize I am fortunate that I was able to sign up when the FLTCIP was being offered at a very low rate. No doubt there are a lot of variables to consider, and very personal ones too. For me though, I think it's been worth it and removes a lot of future worry.