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I wonder how this changes with kids and healthcare costs

UncleOxidant 6y ago
Healthcare costs in the US are problematic for early retirement - even if "early" is in your 50s. The ACA actually made things a lot better if you can keep your annual income under certain thresholds. But with the possible demise of the ACA being able to control health insurance costs could become problematic. The Supreme Court is going to rule on it next year - arguments start in November and it looks like they'll be getting another anti-ACA justice soon so this seems like a likely outcome. This kind of uncertainty is difficult to budget for.
- vsskanth 6y ago
  Yeah this is what I was looking for. Without some kind of health insurance no amount of money is enough to retire.
  - UncleOxidant 6y ago
    Indeed. And if health insurance goes back to excluding pre-existing conditions which is likely to happen post-ACA it's going to leave most people wide open to risk. The other thing that likely would happen in a post-ACA context would be that there will be insurance policies that don't cover various conditions like, say, cancer treatment - it might look like you're getting a fairly decent premium, but you'll need to read the fine print for what's excluded. Yes, Trump says his "plan" will cover pre-existing conditions, but no one has ever seen this wonderful plan that costs less than ACA plans and also covers pre-existing conditions.
stkdump 6y ago
In Germany healthcare costs depend on your income. If you have no income (investment returns don't count against that), you can get monthly government payments to cover a moderate lifestyle. But if you have no labor income but sit on some non-negligable net worth, you don't qualify. That means FIRE is a lot more expensive, unless you (or your spouse) takes at least a part time job to get health care covered cheaply, which is actually not that uncommon.
- AstralStorm 6y ago
  On the other hand, the really good healthcare will still end up with you paying out of pocket (potentially not a lot, but enough to exceed the cheapskating; potentially a ton), or gambling that the overloaded social system is fast enough. Being richer also opens options of taking extra time off and going medical "shopping", and being able to afford necessary travel.
  - adrianN 6y ago
    I think the difference between normal healthcare and a private health insurance is overstated in Germany. Of course you get perks, and it's easier to get appointments, but I have yet to see data that supports meaningfully different outcomes between the two systems.

Healthcare costs in the US are problematic for early retirement - even if "early" is in your 50s. The ACA actually made things a lot better if you can keep your annual income under certain thresholds. But with the possible demise of the ACA being able to control health insurance costs could become problematic. The Supreme Court is going to rule on it next year - arguments start in November and it looks like they'll be getting another anti-ACA justice soon so this seems like a likely outcome. This kind of uncertainty is difficult to budget for.

vsskanth 6y ago
Yeah this is what I was looking for. Without some kind of health insurance no amount of money is enough to retire.
- UncleOxidant 6y ago
  Indeed. And if health insurance goes back to excluding pre-existing conditions which is likely to happen post-ACA it's going to leave most people wide open to risk. The other thing that likely would happen in a post-ACA context would be that there will be insurance policies that don't cover various conditions like, say, cancer treatment - it might look like you're getting a fairly decent premium, but you'll need to read the fine print for what's excluded. Yes, Trump says his "plan" will cover pre-existing conditions, but no one has ever seen this wonderful plan that costs less than ACA plans and also covers pre-existing conditions.

stkdump 6y ago

In Germany healthcare costs depend on your income. If you have no income (investment returns don't count against that), you can get monthly government payments to cover a moderate lifestyle. But if you have no labor income but sit on some non-negligable net worth, you don't qualify. That means FIRE is a lot more expensive, unless you (or your spouse) takes at least a part time job to get health care covered cheaply, which is actually not that uncommon.

AstralStorm 6y ago
On the other hand, the really good healthcare will still end up with you paying out of pocket (potentially not a lot, but enough to exceed the cheapskating; potentially a ton), or gambling that the overloaded social system is fast enough. Being richer also opens options of taking extra time off and going medical "shopping", and being able to afford necessary travel.
- adrianN 6y ago
  I think the difference between normal healthcare and a private health insurance is overstated in Germany. Of course you get perks, and it's easier to get appointments, but I have yet to see data that supports meaningfully different outcomes between the two systems.