Early Retirement

Health Care

This is always a major issues for people who retire before they qualify for Medicare. Other than paying exorbitant rates, here's what you can do:

Start a company--if you have a hobby or generate any income from any type of endeavor, hire your spouse or child and once you have two employees, many health plans consider you a "group." You don't need to incorportate--just go to our county recorders office and file a fictitious business name statement. Then find a local broker to place your group policy.

Join an existing group--maybe there's an association you can join. For example, as a CPA, one can join the CPA institute and get coverage on their group plan for many types of insurance. you don't need to have a credential. There may be associations for various preifaaions--e.g. the human resources association (which you can often join if you have even one employee). The local library has a directory of associations so you can easily find one for which you may qualify as a member.

Retirement Plan Distributions

You can get funds out of retirement plans at any age without penalty, even before age 59 1/2. You just need to file the rules in section 72 of the IRS code. Any accountant or qualified retirement advisor can help you set this up if you need to tap your retirement funds. If possible live off other funds even if you need to spend principal. Generally, the longer you can let your retirement funds grow, the better.

Early Retirement Forum -- chat with your peers

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