Hourly vs Salary?

[George2615]

On the cons it would be healthcare... a lot of my early retired friends are paying $10,000 or more for Health Insurance and the California market is very high... so this is a consideration.

Becoming part of a large chain of Hospitals means employee premium contribution would actually be less than what we had been paying.

Due of my seniority, a portion of my health insurance (about 40%) is paid for by the the hosp. That has been fine since I retired but I was just notified that as of Jan. health ins. premiums went up. The employers contribution toward insurance increased so we didn't have to absorb the full hit but my portion increased 29% that I didn't count on.

Don't count on ins. premiums being less by becoming part of a larger chain. That's what we thought too but our premiums just skyrocketed. I can't understand why a multi billion dollar company couldn't negotiate for a better ins. plan. I'll be switching ins. once I turn 65.

 

[ultrarunner]

A single employee Health Insurance is currently $100 every two weeks with drug limitations and no visions... so $2600 annually.

The new company is $23 for a single employee with better drug and vision... so $598 annually.

The new company rates markedly increase for family coverage where a family of 5 would pay more with the new company than the old company.

But, for a single employee for 2017 the new company Health Insurance comes with a huge savings... of course the insurance is tied to the Hospital and our old policy was Blue Cross Anthem.

 

[CurlyDave]

Any regrets for those opting early retirement... other than waiting too long?

A lot of my friends are retired... most are career military or public safety. As one told me, he was basically working for a couple of bucks an hour as an Oakland Police Officer as his pension with medical was 90% of his pay... so at 53 he retired with 30 years in... spends most of his time being there for his grandkids as he missed a lot when his two were young...

I can see where those with a nice pension might have an easier choice.

This week has been a wake up call... tonight two of my co-workers were in tears... they have more time in than I do and their positions are being eliminated as all accounts payable and receivable will no longer be onsite... both have been offered positions in admitting and medical records and are willing to give it a try but it is very much like starting over.

Some here have said it should be looked at as starting a new job... and that is very true.

I retired at 61.5 and have no regrets at all. I realized I was selling my days to the company for less than they were worth to me. Especially when I thought about not knowing how many days I had left. I am coming up on the 10 year anniversary of that in a few months and it has been a great ride. Plus, it looks like the ride will continue, since my health is good.

Now, I have a company pension, DW kept working, and the finances were easy.

Your situation is different because of the lack of a pension. OTOH your rentals are a great asset.

At 57 and no company retirement, frozen over 10 years ago, not sure I would be out looking to hire on.

Thankfully, I have kept a small portfolio of rentals which are now all paid for... so it is not a question of putting food on the table... my needs are really very modest.

With your background of building and facilities management/maintenance, and your personal history of successfully owning and operating rental property, you should be planning for a new employer -- yourself.

Look on this as the opportunity of a lifetime. I call myself retired now, just because people understand that, but at the time I was doing it I thought of it differently. I made the decision that I was going to "declare myself independently wealthy." Now that I have had some time to think it over, what I was really doing was becoming comfortably self-employed.

We did section 1031 exchanges to sell our rentals in the SF Bay area and buy new ones in our retirement location. You can do the same thing. Do not be afraid of mortgages in "retirement," as long as they are for money-making assets they are a sound and responsible financial tool. Your tenants will end up paying them for you. Buy multi family rentals, maintain and manage them yourself, and you will be in great shape.

It is going to be easier to get loans on new properties if you are employed in a traditional job, so don't leave until you have your new self-employment/independent situation set up. But, one of the beauties of real estate mortgages is that they can not be called if your situation changes, as long as you keep the payments up.

If you want to discuss some details off line, send me a PM. With 20/20 hindsight, my only real regret is that I did not buy more rental units.

I could put up with a lot of BS at work if I had a solid plan for a very comfortable escape in a year or so...

 

[jerrybob]

Exactly, When another company wanted to buy my company. I sold. I'm 58, and wanted to go live the good life. Glad to be out of the rat race.
You never know when your time will come. My mom died at 68, my dad at 73

So true......my mom died at 56.....dad at 62.....6 months after retirement. If you can afford it.....get out as soon as possible. Drive your tractor....do volunteer work......go hunting/fishing......play with the dogs.......take the backroads......enjoy life!

 

[300UGUY]

I've been salary, and hourly, union & non union. The best advice I have is to relax. The changes are going to happen, and you could drive yourself nuts with worry. This stuff will settle out soon. Your friend who is going to be your supervisor is hopefully going to help you straighten this out. I'd talk to him, one on one first.

Some things I'd keep in mind:

Continue to do your job as you have been, until told otherwise. This will help the transition, and should be appreciated.

At 58, getting a new job might be hard. You do have a impressive resume.

Revel in it. Enjoy your job. You do great work, and it must be obvious to others.

Again, relax. You can't control everything.

Being a hourly guy was better for me. Paid much better than my time as a salary engineer. Maybe a union job might be better?

 

[kenmac]

You guys are lucky. Most if not all have had some form of Health insurance that paid, or partially paid for by the company you worked for. I have always had to pay my health insurance, so Health care cost wasn't a issue for me when I considered selling ,and retiring.
I only hope is that things will get better now. I don't think I could take much more hope and change.
What ever path you chose to take, I wish you the best.. I have no regrets !

 

[ultrarunner]

I paid my own Health Insurance for 12 years when I was self employed... one of the reasons I accepted the Hospital position with HCA is all the big company benefits... especially looking from the outside in... of course one by one most went away.

In hindsight my self employment track would have proved far more lucrative... rentals equal a job if your are hands on.

No regrets though going corporate... it sure did make my folks happy... I think it is one of the top things I did that really pleased Dad... he had a very hard time understanding putting in the effort to earn my degree and then spend 10 years managing rentals and rehabbing units.

Funny as how many of the Doctors I work with encourage their kids to go into Real Estate and several have set the kids up in Real Estate managing family holdings.

A little off topic... if a person came to me and asked about working in a hospital I would say become a Registered Nurse... the pay is excellent in the Bay Area.

I know two Doctors that now work as Surgical Nurses... they are very happy and one said when it was all said and done being a nurse allows him to have a life... no responsibilities to run an office, staffing, insurance claims, government mandates... etc.

Of course there is the Silicon Valley and Bio Tech jobs in the Bay Area too... my God Sister went to work for Apple as a High School Intern in 1979 and just how company stock paid for her home and was worth many times her clerical wages.

 

[ultrarunner]

I retired at 61.5 and have no regrets at all. I realized I was selling my days to the company for less than they were worth to me. Especially when I thought about not knowing how many days I had left. I am coming up on the 10 year anniversary of that in a few months and it has been a great ride. Plus, it looks like the ride will continue, since my health is good.

Now, I have a company pension, DW kept working, and the finances were easy.

Your situation is different because of the lack of a pension. OTOH your rentals are a great asset.

At 57 and no company retirement, frozen over 10 years ago, not sure I would be out looking to hire on.

Thankfully, I have kept a small portfolio of rentals which are now all paid for... so it is not a question of putting food on the table... my needs are really very modest.

With your background of building and facilities management/maintenance, and your personal history of successfully owning and operating rental property, you should be planning for a new employer -- yourself.

Look on this as the opportunity of a lifetime. I call myself retired now, just because people understand that, but at the time I was doing it I thought of it differently. I made the decision that I was going to "declare myself independently wealthy." Now that I have had some time to think it over, what I was really doing was becoming comfortably self-employed.

We did section 1031 exchanges to sell our rentals in the SF Bay area and buy new ones in our retirement location. You can do the same thing. Do not be afraid of mortgages in "retirement," as long as they are for money-making assets they are a sound and responsible financial tool. Your tenants will end up paying them for you. Buy multi family rentals, maintain and manage them yourself, and you will be in great shape.

It is going to be easier to get loans on new properties if you are employed in a traditional job, so don't leave until you have your new self-employment/independent situation set up. But, one of the beauties of real estate mortgages is that they can not be called if your situation changes, as long as you keep the payments up.

If you want to discuss some details off line, send me a PM. With 20/20 hindsight, my only real regret is that I did not buy more rental units.

I could put up with a lot of BS at work if I had a solid plan for a very comfortable escape in a year or so...

I've always considered you in the role of a mentor who has walked a similar path...

I did 1031 some rentals a few years ago into a closely held LLC that has worked out well... ownership without any day to day responsibilities... only monthly reports.

You are 100% correct when it comes to mortgages and employment and this is why I was so desperately looking for that forever place a few years back... low rates, depressed market, purchase for much less than the cost to build plus locking in Prop 13 taxes is a bonus in a down market... came close as 59 days in backup position with a better offer... it sure would have been life changing in every way had I closed the deal...

The avenue to a mortgage is probably the number one reason I've stayed on the job just in case lightning strikes twice.

Back in the day when I was self employed mortgage money was not an option... had to get creative... put down 25% and seller financing with mostly distressed property... all have been a win/win... especially for my sellers that got above market interest in retirement...

 

[George2615]

A single employee Health Insurance is currently $100 every two weeks with drug limitations and no visions... so $2600 annually.

The new company is $23 for a single employee with better drug and vision... so $598 annually.

The new company rates markedly increase for family coverage where a family of 5 would pay more with the new company than the old company.

But, for a single employee for 2017 the new company Health Insurance comes with a huge savings... of course the insurance is tied to the Hospital and our old policy was Blue Cross Anthem.

Those prices are not bad but those prices are for if you continue to stay employed.
If you are considering retiring, check with your HR dept. on retired employee benefits to see if they cover any portion of insurance or if you have to pay the full shot. If you have to pay the full shot it will be as you noted some of your retired friends are paying. I was grandfathered in so I don't have to pay the full shot. My former employer pays about 46% and I pay the remaining 54% of the monthly premium. Dental and eyeglass would be extra if I want them.

 

[ultrarunner]

Health Insurance in from 50 up to age 65 can be more than some pay on a mortgage.

When Mom was attacked by a dog at age 62 she was uninsurable for 3 years until she became Medicare Eligible... lucky she was in good health and no other injuries but once Cobra ran out she was on her own... I guess this would be illegal today?

Medicare has made retirement viable for many... as the supplemental is a much smaller bite for better coverage.

I'm pretty clueless as to what my actual premium would be going forward... the acquisition will be complete Feb 1, 2017.