Public Service Loan Forgiveness progress

[Ultralight]

Here is an interesting update:

I am over 6 years into my Public Service Loan Forgiveness! Less than 4 years to go!

[LDAHL]

Congratulations. Any plans for what changes you may make when the burden is lifted? Does it become more stressful thinking some mishap could occur in the final innings?

Your presence has been missed around here.

[Ultralight]

Congratulations. Any plans for what changes you may make when the burden is lifted? Does it become more stressful thinking some mishap could occur in the final innings?

Your presence has been missed around here.

My plans are to continue making better financial choices and to simply put that “payment” into a retirement plan.

The stress of a mishap feels steady and somewhat nagging. Could happen, might not happen. Time will tell.

Thanks, missed being here and the interesting perspectives you all have!

[catherine]

Thanks, missed being here and the interesting perspectives you all have!

I woke up this and saw a long list of new posts, and I said to myself "what the heck! This is great!" and then I saw your avatar and said "Oh, now it all makes sense! Ultralight is back!" Thanks for your updates!

[iris lilies]

You are more than half way there, yay! Downhill slide now. An advantage is you are getting older and time goes more quickly! Haha.

[LDAHL]

You are more than half way there, yay! Downhill slide now. An advantage is you are getting older and time goes more quickly! Haha.

That’s true. I swear I can see kids grow up before my very eyes. It’s like being the Flash, which is surprising considering I’ve never been slower.

[Tammy]

My plans are to continue making better financial choices and to simply put that “payment” into a retirement plan.

The stress of a mishap feels steady and somewhat nagging. Could happen, might not happen. Time will tell.

Thanks, missed being here and the interesting perspectives you all have!

I was always somewhat risk averse, but since getting covid, I’m financially conservative to a fault.

This is the first job in my 23 year nursing career where my benefits are good enough to get me through this with full pay. I hadn’t used any sick time since I hired into this company in 2010. So my first 3 months off work was 100% covered by my sick leave that had accrued. Full paychecks and benefits. Now I’ve started to use my accrued vacation pay, which will cover me through mid-December. But I hope to return to work before that.

So I used to keep a few thousand in liquid cash for emergencies. Now I’m keeping a 8-12 month supply of liquid cash. It’s never been more clear to me that I am NOT in control of my future. I need to be ready, rather than paying off our house at record speed, who cares if we have a mortgage??? All other debts are long ago paid, and our mortgage interest rate is very low.

I also was happy to see that we live very well on 1/2 my income. I hadn’t really paid attention when I was working. My job was very consuming and I just paid large chunks of money toward the mortgage when we had extra. Now I know our budget in detail and that’s reassuring for an uncertain future.

Also - I’ve never been so aware of how vulnerable these few years are between my age of almost 59 and my planned retirement age of 64. If I can return to work and follow my plan, I’ll have a full pension for the rest of my life. If not, I’ll be out of money in about 18-24 months, and we will then be deciding which IRAs to cash out early, not to mention having 5 years of trying to figure out health insurance. These 5 years are the difference between comfort and barely paying the bills in retirement.

I read that about half of retirements are not happening as planned. They are forced either by health problems or layoffs.

[Teacher Terry]

Tammy, my husband was laid off at 53 and couldn’t find work. He had to take his pension early which cost us 600/month. If we had been willing to relocate he could have found work as he’s a engineer. Is your husband still working?

[Tammy]

My husband retired a year ago. His work was outdoors in the phx heat and he just couldn’t do it anymore. He voluntarily retired just prior to age 60, and is not taking any income/SS/etc as my salary is more than plenty for us. He has been the house husband for a year so all I had to focus on was my job. Sometimes he was even my chauffeur and would drop me off at the door so I didn’t have to park and walk in 115 degrees. Then he was also my nurses aide for a while there when I got sick ...

We’ve talked about a perfectly balanced life where we both would work at less stressful jobs for 20 hours a week for the next 5 years. But our society is set up so that someone needs to be full time to get health insurance, and it is in both of our best interests for me to get the full pension, it’s transferable to him f I die first. And then there’s covid .... so many jobs have an exposure risk. Especially part time ones, as they are in the service industries.

So the plan is for me to return to work when fully recovered. If that becomes impossible then we will reevaluate.

[bae]

Here is an interesting update:

I am over 6 years into my Public Service Loan Forgiveness! Less than 4 years to go!

Almost there! Stay on target :-)

[happystuff]

But our society is set up so that someone needs to be full time to get health insurance,

I totally agree with this statement! This job is the first time I've had life insurance (let alone my own benefits versus being on dh's) in the past 25 years or so.

[bae]

But our society is set up so that someone needs to be full time to get health insurance,...

I have been purchasing my own health insurance out of my own pocket for over 20 years now. No need to be full time.

[Tammy]

But if I couldn’t work and had to purchase our health insurance for the next 5-7 years until we both qualify for Medicare, then we would run out of cash (all sources) in about 3-4 years, and enter retirement with about 2500 a month total monthly income. If I work 5 more years and get a full pension, it’s more like 5000 a month. For the rest of our lives.

(I’m assuming that if I can work I will return to my highly paid position. If not, I won’t be working at all. I figure if I’m good enough to work I should continue on the path toward the pension.)

We are right in the middle of finding out which fork in the road is our future path.

We can live on 2500 a month if we’re careful. But with inflation and long life we will eventually be rather poor.

[Teacher Terry]

Tammy healthcare is huge for most people. I hope you can return to work.

[catherine]

Self-paid healthcare is very expensive. I paid over $1600/month and it was a huge hit on our budget, but for me, my consultant fees covered it and made it worth it to shed the golden handcuffs. But most people have to wear those handcuffs, unfortunately. Now if we had a healthcare system like most other developed countries do....

[ApatheticNoMore]

I was always somewhat risk averse, but since getting covid, I’m financially conservative to a fault.

I may be getting less risk adverse just because I need money, risks and returns. Not right now mind you, I can live off my paycheck. Just I've been investing since 30 and it's disappointing.


So I used to keep a few thousand in liquid cash for emergencies. Now I’m keeping a 8-12 month supply of liquid cash. It’s never been more clear to me that I am NOT in control of my future. I need to be ready

I keep that and more just for unemployment alone. I know how long unemployment can last. Know it very well.


Also - I’ve never been so aware of how vulnerable these few years are between my age of almost 59 and my planned retirement age of 64. If I can return to work and follow my plan, I’ll have a full pension for the rest of my life. If not, I’ll be out of money in about 18-24 months, and we will then be deciding which IRAs to cash out early, not to mention having 5 years of trying to figure out health insurance. These 5 years are the difference between comfort and barely paying the bills in retirement.

I read that about half of retirements are not happening as planned. They are forced either by health problems or layoffs.

and add in age discrimination in employment, no wonder


We’ve talked about a perfectly balanced life where we both would work at less stressful jobs for 20 hours a week for the next 5 years. But our society is set up so that someone needs to be full time to get health insurance, and it is in both of our best interests for me to get the full pension, it’s transferable to him f I die first. And then there’s covid .... so many jobs have an exposure risk. Especially part time ones, as they are in the service industries.

oh yea it weights like heck on me. I'm scared of exposure now and I'm not even high risk, and they have us working at home, so my fears of having exposure for work have been utterly baseless so far. Now what if I was 60 and had more risk and they were forcing everyone back? But covid will be long cured by then? Well yes, of course, but what about the next pandemic? Clearly we aren't a country that is capable of handling pandemics well as has been amply demonstrated, so it's just going to be: don't catch it!

Health insurance is expensive outside of employment, and mostly bad as well (although the whole medical system leaves much to be desired)

[Tammy]

Tammy healthcare is huge for most people. I hope you can return to work.

Thanks - I’m hoping for a November return.

In a pinch, we could always sell the house to get to the 50-100 grand that it has increased in value since we bought it. But we have to live somewhere ... we also can someday sell the 80 acres from my dad. But we have a verbal agreement to not sell it until my parents are both deceased, and/or my brother reaches age 72 or chooses to stop farming. I won’t break that agreement, I’ll rent to my brother as promised.

[Tammy]

With all of that, I’m still one of the lucky ones in that I’m employed (as on, still on the payroll while on leave), housed, and insured. So many people are on the edge of homelessness right now.

[catherine]

Tammy, I just saw on FB that Vermont is paying per-diem rates for traveling nurses. Not sure if they are looking for psychiatry, but who wouldn't want to be in Vermont in the winter? :). jk. They are quoting $2500/week. I'm sure there are tons of opportunities like that all over the US. Maybe temp is easier psychologically on you at this point?

[Tammy]

I think that would be worse. New job, new city, on my feet all day ...

The job I’m hoping to return to is a management position in an office setting. Long hours, but I get to sit down a lot.

If I end up having to look for something else, I’ll start searching for a work from home nurse job with insurance companies. Probably 1/3 the money but that’s ok as long as it has benefits. Lack of a commute would be a plus.

But I’m still hoping for a November return ...

I appreciate this group of virtual friends here at simple living. You all are great sounding boards.